30. Contingent Liability

For A.Y 2015-16 Income Tax Authorities have raised demand of Rs. 98,54,080, which the company has not
acknowledged as debt. The company has preferred an appeal against the order before CIT(A). According to
the order no : ITBA/NFAC/S/250/2022-23/1049764702(1) issued by ITO ward (5)(2) Mumbai dated
15/02/2023, the appeal is party allowed.

For A.Y 2018-19 Income tax Authorities have raised demand of Rs. 17,41,10,080, which the company has not
acknowledged as debt. The company has preferred an appeal against the order.

31. Financial Instruments

Financial risk management objective and policies

This section gives an overview of the significance of financial instruments for the Company and provides
additional information on the balance sheet. Details of significant accounting policies, including the criteria
for recognition, the basis of measurement and the basis on which income and expenses are recognized, in
respect of each class of financial assets and financial liabilities are disclosed in Note 2 (b).

Fair Value Hierarchy

The table shown below analyses financial instruments carried at fair value, by valuation method. The
different levels have been defined below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices)

Level3: Inputs for the asset or liability that are not based on observable market data(unobservable inputs)

The fair value of the financial assets and liabilities are included at the amount that would be received to sell
an asset and paid to transfer a liability in an orderly transaction between market participants. The following
methods and assumptions were used toestimate the fair values:

• Cash and Cash Equivalents, Other Current Assets/Liabilities: Approximate their carrying amounts largely
due to the short-term maturities of these instruments.

• Trade Payables and Trade Receivables: All trade payables are recorded at transaction price except the
trade payables to foreign suppliers. Trade payables to foreign suppliers are recorded @ the exchange
rate prevailing on the reporting date and the difference is considered in profit and loss account.

• Loans Current & Non-Current and Other Current Liabilities: All the amounts given/taken as loans do not
carry any interest obligation and it is not practicable to estimate the timing of repayment of this loan.
Thus, it is considered as repayable/receivable on demand and the face value (i.e. amount payable on
demand) of such asset is considered its fair value.

• Non-Current Borrowings: The amount is borrowed for construction of real estate project and the interest
of same is capitalized to the project cost, whereas cost of availing loan is apportioned to over a period of
loan, thus same is reduced from the value of loan.

There has been no transfer between Level 1 and Level 3 during the above periods.

32. Critical Estimates and Judgments in applying Accounting Policies:

The management believes that the estimates used in preparation of the financial statements are prudent and
reasonable. Information about estimates and judgments made in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements are as follows:

i) Property, plant and equipment and useful life of property, plant and equipment and intangible assets

The carrying value of property, plant and equipment is arrived at by depreciating the assets over the
useful life of assets. The estimate of useful life is reviewed at the end of each financial year and changes
are accounted for prospectively.

ii) Impairment of Non-Financial Assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use.

The management has not assessed the impairment loss on the asset of the company.

iii) Provisions and Contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance
with the applicable Ind AS.A provision is recognized if, as a result of a past event, the Company has a
present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow
of economic benefits will be required to settle the obligation. Where the effect of time value of money is
material, provisions are determined by discounting the expected future cash flows.

iv) Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable
profit will be available against which the losses can be utilized. Significant management judgment is
required to determine the amount of deferred tax assets that can be recognized, based upon the likely
timing and the level of future taxable profits together with future tax planning strategies.

33. Capital Management

The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating
and healthy capital ratios in order to support its business and provide adequate return to shareholders
through continuing growth and maximize the shareholders' value . The company's overall strategy remains
unchanged from previous year. The following table summarizes the capital of the company

34. GST Credit

GST credit taken in the books of accounts have been verified with the Purchases made during the year,
however the balances of GST Credit Brought Forward and GST Credit Carried Forward are subject to
confirmation as annual return for GST and the GST Audit Report are finalized after the date of Audit
Report.

35. In view of better disclosure and true and fair view or to confirm the current year classifications the
figures of the previous year including statement of profit and loss have been regrouped / rearranged
wherever necessary.

Signature to Note 1 to 35

For, Jain &Golechha. For and on behalf of Board of Directors

Chartered Accountants Shukra Jewellery Limited

FRN: 119637W

Sd/- Sd/- ^Sd/-

CA Yash K. Golechha Chandrakant Shah Mayuri Shah

Partner Director Director

M.No.607597 DIN: 01188001 DIN: 01188108

UDIN : 25607597BMNQZG2649

Date: 29.05.2025 Date: 29.05.2025

Place: Ahmedabad Place: Ahmedabad