Jinkushal Industries Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2026

The estimated impact of Ind AS 116 on the Company''s financial statements is as follows:

(a) The Company incurred interest expense on lease liabilities amounting to Rs. 3.84 Lakhs for the year ended March 31, 2026. The total cash outflow for leases amounted to Rs. 11.51 Lakhs during the year.

(b) Lease contracts entered by the Company majorly pertains for office premises taken on lease to conduct its business in the ordinary course.

(c) The weighted average incremental borrowing rate applied to lease liabilities is 8.56% for the year ended FY 2026. The Company has applied a single discount rate to a portfolio of leases of a similar assets in similar economic environment with similar end date.

(d) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

(e) During the year, the Company identified certain errors in the measurement of lease liabilities and corresponding Right-of-Use (ROU) assets under Ind AS 116, "Leases". Accordingly, the lease liabilities and related Right-of-Use assets have been recomputed and the necessary adjustments have been recognised in the financial statements for the year ended March 31, 2026 to appropriately reflect the requirements of Ind AS 116.

Notes with respect to Tata Capital Loan

1) The Company has availed a secured loan facility of H 10 crore from TATA Capital during the year ended 31st March 2026.

2) The loan facility has been secured by:

(a) Pledge of the Company''s investments in mutual funds amounting to H 18.71 crore (including the personal investment of Two Director) fair value as at 31st March 2026.

(b) Pledge of personal mutual fund investments of two directors of the Company (Mr. Anil Kumar Jain and Mr. Abhinav Jain), who have joined as co-borrowers under the said facility.

3) The aforesaid directors have not derived any benefit from the said facility. The entire loan proceeds have been utilised solely by the Company for its operational and financing requirements.

4) The arrangement has been accounted for in accordance with Schedule III (Division II - Ind AS) to the Companies Act, 2013 and the disclosure requirements of Ind AS 24 - Related Party Disclosures.

37 Contingent Liabilities and Commitments The details of Contingent Liabilities and Commitments (to the extent not provided for): (H In Lakhs)
Particulars	As at 31.03.2026	As at 31.03.2025
Contingent Liabilities:
(a) claims against the company not acknowledged as debt	19.18	19.18
(b) guarantees excluding financial guarantees; and	-	-
(c) other money for which the company is contingently liable*.	-	-
Total	19.18	19.18
Capital Commitments outstanding to be executed:
(a) estimated amount of contracts remaining to be executed on capital account and not provided for;	-	-
(b) uncalled liability on shares and other investments partly paid; and	-	-
(c) other commitments	-	-
Total	-	-
''Income Tax demand u/s 143(3) of income tax act,1961 of Rs. 19.18 Lakhs for the AY 2017-18.The case has been going under CIT (Appeals), Raipur

Note : During the previous financial year, the Company had incurred excess CSR expenditure of H 0.21 lakh over and above the statutory CSR obligation. In accordance with Section 135 of the Companies Act, 2013 read with Rule 7(3) of the Companies (CSR Policy) Rules, 2014, the Company has utilized H 0.14 lakh of such excess expenditure as a set-off against the CSR obligation of the current financial year.

39 Disclosure pursuant to Indian Accounting Standard-108 "Operating Segments":

During the year/period under review, the company was engaged in multiple business activities, including refurbishing, machine hiring services,warehouse rent and other auxiliary services. As per Ind AS 108 - Operating Segments, entities must disclose segment information if they meet the specified quantitative thresholds. After evaluation, it has been determined that the company does not meet these criteria. Therefore, the segment reporting requirements under Ind AS 108 are not applicable.

(c) Valuation Technique to determine fair value:

Fair Value of investments in Equity Instruments are derived from Bhav Copy of recognised stock exchange i.e NSE and BSE as applicable. Fair Value of investment in Mutual Funds are derived from published NAV on amfiindia.com. Fair Value of investments in Alternate Investment Funds are derived from published NAV by respective AIF through their SOA.

42 Financial Risk Management

The principal financial assets of the Company include Investment, trade and other receivables, and cash and bank balances that derive directly from its operations. The principal financial liabilities of the company, include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks and that advises on financial risks and the appropriate financial risk governance framework for the Company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: foreign currency risk, interest rate risk, investment risk.

(i) Foreign currency risk

The company operates internationally and business is transacted in several currencies.

The Company operates internationally and the major portion of business is transacted in USD, AED and EURO. The Company has Sales, Purchase, (etc.) in foreign currency. Consequently, the Company is exposed to foreign exchange risk. Foreign exchange exposure is partially balanced by purchasing in goods, commodities and services in the respective currencies. The company evaluate exchange rate exposure arising from foreign currency transactions and the company follows established risk management policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency risk by appropriately hedging the transactions. The Company uses a derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates, which are included in interest bearing loans and borrowings in these financial statements. The company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

At the reporting date the interest rate profile of the Company''s interest bearing financial instrument is at its fair value:

(iii) Investment Risk

The company is exposed to price risk arising from investments in equity, AIFs, and equity-oriented mutual funds that will fluctuate due to changes in market traded prices, which may impact the return and value of such investments. The value of investments in such imvestments as at March 31, 2026 is Rs 2249.16 Lakhs (March 31, 2025 is Rs. 261775 ). Accordingly, fair value fluctuations arising from market volatility is recognised in Statement of profit and loss.

Liquidity Risk

The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payables. The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The company monitors its risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The company plans to maintain sufficient cash and deposits to meet the obligations as and when fall due.

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and bank balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. Customer credit risk is managed by the entity''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

Credit risk is the risk of financial loss to the group if a customer or counterparty to any other financial instrument fails to meet its contractual obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of credit worthiness as well as concentration of risks.The group is exposed to credit risk from its operating activities(primarily trade receivables) and from its investing activities including deposits with banks, derivative instruments and security deposits

The group establishes an allowance account for impairment that represents its estimate of losses in respect of trade and other receivables.The allowance account is used to provide for impairment allowance losses.Subsequently when the group is satisfied that no recovery of such losses is possible, the financial asset is considered irrecoverable and amount charged to the allowance account is then written off against the carrying amount of imapired financial asset.

Write off policy

The financial assets are written off, in case there is no reasonable expectation of recovering from the financial asset. Capital Management

The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The Company manages it''s capital to ensure that it will continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The company monitors capital using a gearing ratio.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The Company monitors capital using a gearing ratio, which is net debt divided by total equity.

VII. Risk Exposure

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

Actuarial risk:

It is the risk that benefits will cost more than expected.This can arise due to one of the following reasons:

Adverse Salary Growth Experience:

Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates:If actual mortality rates are higher than assumed mortality rate assumption then the Gratuity Benefits will be paid earlier than expected.Since there is no condition of vesting on the death benefit,the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates:If actual withdrawal rates are higher than assumed withdrawal rate assumption then the Gratuity Benefits will be paid earlier than expected.The impact of this will depend on whether the benefits are vested as at the resignation date.

Investment Risk:

For funded plans that rely on insurers for managing the assets,the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases,the present value of the assets is independent of the future discount rate.This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cash flows.

Market risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate.The discount rate reflects the time value of money.An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation.The government may amend the Payment of GratuityAct thus requiring the companies to pay higher benefits to the employees.This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

a. Current Ratio - The increase in the Current Ratio as on March 31, 2026 was primarily due to increase in trade receivables, cash & cash equivalents. Although current borrowing and trade payable also increased during the year, the increase in current assets was proportionately higher, resulting in improvement in the Company''s liquidity position.

b. Debt Equity Ratio - The Debt Equity Ratio as on March 31, 2026 decreased primarily due to significant increase in shareholders'' equity consequent to the Initial Public Offer (IPO) made during the year. The increase in equity share capital and securities premium was proportionately higher than the increase in borrowings, resulting in strengthening of the Company''s capital base and reduction in the Debt Equity Ratio.

c. Debt Service coverage Ratio - The Debt Service Coverage Ratio as on March 31, 2026 declined primarily due to a proportionalte decrease in operating income of the company and increase in Current borrowing resulting in increase in interest cost.

d. Return on Equity Ratio - The ROE as on march 31, 2026 decreased primarily due to lower Profit After Tax (PAT) and also increase in share capital and reserve and surplus due to issue of initial public offer (IPO) during the year.

e. Inventory turnover Ratio - The Inventory Turnover Ratio as on March 31, 2026 increased mainly due to increase in sales as compared to average inventory compared to last year. This indicates improved efficiency in utilization of inventory.

f. Trade Receivables Turnover Ratio - The Trade Receivables Turnover Ratio as on March 31, 2026 decreased primarily due to increase in average trade receivables during the year.

g. Trade payable Turnover Ratio - The Trade Payables Turnover Ratio as on March 31, 2026 increased marginally due to increase in net credit purchases.

h. Net Capital Turnover Ratio - The Net Capital Turnover Ratio as on March 31, 2026 decreased mainly due to increase in working capital arising from higher trade receivables and other current assets, which was proportionately higher than the increase in turnover.

i. Net profit Ratio - The Net Profit Ratio as on March 31, 2026 decreased primarily due to increase in one time listing and ipo related expense other than debited to securities premium , lower other income due to foreign exchange fluctuation gain/ loss and increase in empoyee benefit expense as compared to turnover.

j. Return on capital employed Ratio - The Return on Capital Employed (ROCE) as on March 31, 2026 decreased mainly due to increase in capital employed during the year.

k. Return on investment - The Return on Investment as on March 31, 2026 decreased primarily due to significant loss arising from fair valuation of investments during the year as compared to fair valuation gain in the previous year. Further, the reduction in the investment portfolio during the year also contributed to lower returns generated from investments.

50 Additional Regulatory Information as per Para Y of Schedule III to Companies Act, 2013:

i. The Company does not have any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company.

ii. The Company has not revalued its Property, Plant and Equipment.

iii. The Company has not granted loans or advances in the nature of loans to promoters, Directors, KMPs and the related

parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

iv. No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

v. The Company does have borrowings from banks or financial institutions on the basis of security of current assets but banks do not require the company to submit statement on current assets as per the terms agreed between company and banks or financial institutions and the facilities taken are export packing credit and overdraft.

vi. The company is not declared as wilful defaulter by any bank or financial institution or other lender.

vii. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013

or section 560 of Companies Act, 1956.

viii. There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

ix. The company have investments and compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 have been complied with.

x. Significant Accounting Ratios: Refer Note 47 above

xi. The Company does not have any scheme of arrangements which has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xii. There is no income surrendered or disclosed as undisclosed income in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

xiii. The Company has not traded or invested in crypto currency or virtual currency.

xiv. A. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any

other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

B. No funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xv. During the year, the Company successfully completed its Initial Public Offering (""IPO"") comprising a Fresh Issue of 8,64,0000 equity shares and an Offer for Sale of 9,59,548 equity shares, aggregating to 95,99,548 equity shares of face value H10 each at an issue price of H 121 per equity share. The Fresh Issue resulted in gross proceeds of H 104.54 crore to the Company. The equity shares issued under the Fresh Issue were allotted at a premium of H 111 per share, and accordingly the premium amount has been credited to the Securities Premium Account. The Offer for Sale proceeds were received by the selling shareholders and did not result in any inflow of funds to the Company.

Pursuant to the IPO, the Company''s equity shares were listed and admitted for trading on the National Stock Exchange of India and BSE Limited with effect from 3 October 2025. The proceeds from the Fresh Issue are being utilized in accordance with the objects stated in the Prospectus. The unutilized portion of the proceeds, if any, as at 31 March 2026 is maintained in designated bank accounts and/or other permitted investments pending utilization.

xvi. During the year, the Company classified JK Tower as an asset held for sale in accordance with the requirements of Ind AS 105, as the criteria for such classification were met and the sale was considered highly probable. Accordingly, the asset has been presented under "Assets Held for Sale" in the Balance Sheet as at March 31, 2026.

51 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current period''s classification / disclosure.