h. Provisions, Contingent Liabilities and Contingent Assets :

Provisions involving a substantial degree of estimation in measurement are recognized
when there is a present obligation as a result of past events and it is probable that

there will be an outflow of resources. Contingent liabilities are not recognized but are
disclosed in the accounts by way of a note. Contingent assets are neither recognized
nor disclosed in the financial statements.

i. Cash and cash equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand
deposits with banks and other short term highly liquid investments that are readily
convertible to know amounts of cash and which are subject to an insignificant risk of
changes in value where original maturity is three months or less.

j. Cash Flow Statement

Cash flows are reported using the indirect method whereby the profit before tax is
adjusted for the effect of the transactions of a non cash nature, any deferrals or
accruals of past and future operating cash receipts or payments and items of income or
expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.

k Property, Plant And Equipment

i) Recognition and Measurement

Items of property, plant and equipment are measured at cost, which includes
capitalised borrowing costs, less accumulated depreciation, and accumulated
impairment losses, if any, except freehold land which is carried at historical cost.

Cost of an item of property, plant and equipment comprises its purchase price,
including import duties and non-refundable purchase taxes, after deducting trade
discounts and rebates, any directly attributable cost of bringing the item to its
working condition for its intended use and estimated costs of dismantling and
removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the
cost of materials and direct labor, any other costs directly attributable to bringing
the item to working condition for its intended use, and estimated costs of
dismantling and removing the item and restoring the site on which it is located.

When significant parts of plant and equipment are required to be replaced at
intervals, the Company depreciates them separately based on their specific useful
lives. Likewise, when a major inspection is performed, its cost is recognised in
the carrying amount of the plant and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognised in
the statement of profit and loss as incurred.

Useful lives have been determined in accordance with Schedule II to the Companies
Act, 2013. The residual values are not more than 5% of the original cost of the
asset.

Capital Work-in-progress includes cost of assets at sites and constructions
expenditure.

Gains and losses on disposal of an item of property, plant and equipment are
determined by comparing the proceeds from disposal with the carrying amount of
property, plant and equipment, and are recognized net within other income/other
expenses in statement of profit and loss.

ii) Subsequent Expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic
benefits associated with the expenditure will flow to the Company.

iii) Depreciation / Amortisation

Depreciation is calculated on cost of items of property, plant and equipment (other
than freehold land and properties under construction) less their estimated residual
values over their estimated useful lives using the straight-line method and is
generally recognised in the statement of profit and loss. Amortization on leasehold
land is provided over the period of lease.

Depreciation method, useful lives and residual values are reviewed at each
financial year-end and adjusted if appropriate. Based on technical evaluation and
consequent advice, the management believes that its estimates of useful lives
best represent the period over which management expects to use these assets.

Depreciation is not recorded on capital work-in-progress until construction and
installation are complete and the asset is ready for its intended use.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (up
to) the date on which asset is ready for use (disposed of).

v) Derecognition

An item of property, plant and equipment and any significant part initially recognised
is derecognised upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of profit and loss, when the
asset is derecognised.

l. Recognition of Dividend Income, Interest Income

Dividend on financial instruments is recognized as and when realized. Interest is
recognized on accrual basis.

m. Income Tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except

to the extent that it relates to a business combination or to an item recognised directly
in equity or in other comprehensive income.

i) Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income
or loss for the year and any adjustment to the tax payable or receivable in respect
of previous years. The amount of current tax reflects the best estimate of the tax
amount expected to be paid or received after considering the uncertainty, if any,
related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally
enforceable right to set off the recognised amounts, and it is intended to realise
the asset and settle the liability on a net basis or simultaneously.

ii) Deferred Tax

Deferred tax is recognised in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes. Deferred tax is also recognised
in respect of carried forward tax losses and tax credits.

Deferred tax assets are recognised to the extent that it is probable that future
taxable profits will be available against which they can be used. The existence of
unused tax losses is strong evidence that future taxable profit may not be available.
Therefore, in case of a history of recent losses, the Company recognises a deferred
tax asset only to the extent that it has sufficient taxable temporary differences or
there is convincing other evidence that sufficient taxable profit will be available
against which such deferred tax asset can be realised.

Deferred tax assets unrecognised or recognised, are reviewed at each reporting
date and are recognised/ reduced to the extent that it is probable/ no longer
probable respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on the laws that have
been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow
from the manner in which the Company expects, at the reporting date, to recover
or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if there is a legally enforceable
right to offset current tax liabilities and assets, and they relate to income taxes

levied by the same tax authority on the same taxable entity, or on different taxable
entities, but they intend to settle current tax liabilities and assets on net basis or
their tax assets and liabilities will be realised simultaneously.

n. Intangible assets

Intangible assets acquired are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less any accumulated amortisation
and accumulated impairment losses.

The useful lives of intangible assets are assessed as either finite or indefinite. The
Company currently does not have any intangible assets with indefinite useful life.
Intangible assets are amortised over the useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired.
The amortisation period and the amortisation method for an intangible asset are reviewed
at least at the end of each reporting period. Changes in the expected useful life or the
expected pattern of consumption of future economic benefits embodied in the asset are
considered to modify the amortisation period or method, as appropriate, and are treated
as changes in accounting estimates. The amortisation expense on intangible assets is
recognised in the statement of profit and loss unless such expenditure forms part of
carrying value of another asset.

Gains or losses arising from derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and
are recognised in the statement of profit and loss when the asset is derecognised.

o. Inventories

Inventories are valued at the lower of cost and net realisable value except scrap and by
products which are valued at net realisable value. Costs incurred in bringing the
inventory to its present location and condition are accounted for as follows:

i) Raw materials: cost includes cost of purchase and other costs incurred in bringing
the inventories to their present location and condition. Cost is determined on
weighted average basis.

ii) Finished goods and work in progress: cost includes cost of direct materials and
labour and a proportion of manufacturing overheads based on the normal operating
capacity, but excluding borrowing costs. Cost is determined on weighted average
basis.

p. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity.

1 Financial assets

i) Classification

• A financial asset is measured at amortized cost if it meets both of the following
conditions and is not designated as at Fair Value through Profit and Loss
Account (FVTPL):

- the asset is held within a business model whose objective is to hold assets to
collect contractual cash flows; and

- the contractual terms of a financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding.

• A debt investment is measured at Fair Value through other comprehensive
income (FVOCI) if it meets both of the following conditions and is not designated
as at FVTPL:

- the asset is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets; and

- the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal
amount outstanding.

• Financial assets are not reclassified subsequent to their initial recognition
except if and in the period the Company changes its business model for
managing financial assets.

ii) Measurement

At initial recognition, the Company measures a financial asset when it becomes
a party to the contractual provisions of the instruments and measures at its
fair value except trade receivables which are initially measured at transaction
price. Transaction costs are incremental costs that are directly attributable
to the acquisition of the financial asset. Transaction costs of financial assets
carried at fair value through profit or loss are expensed in profit or loss. A
regular way purchase and sale of financial assets are accounted for at trade
date.

iii) Subsequent Measurement and Gains and Losses

Financial assets at FVTPL :- These assets are subsequently measured at fair
value. Net gains including any interest or dividend income, are recognized in
profit or loss.

Financial assets at amortized cost :-These assets are subsequently measured
at amortized cost using the effective interest method. The amortized cost is
reduced by impairment losses. Interest income, foreign exchange gains and
losses and impairment are recognized in profit or loss. Any gain or loss on
de-recognition is recognized in profit or loss.

iv) Derecognition

The Company derecognises a financial asset when the contractual rights to
the cash flows from the financial asset expire, or it transfers the rights to
receive the contractual cash flows in a transaction in which substantially all
of the risks and rewards of ownership of the financial asset are transferred
or in which the Company neither transfers nor retains substantially all of
the risks and rewards of ownership and does not retain control of the financial
asset.

If the Company enters into transactions whereby it transfers assets recognised
on its balance sheet, but retains either all or substantially all of the risks
and rewards of the transferred assets, the transferred assets are not
derecognised.

2 Financial Liabilities

i) Classification. Subsequent Measurement and Gains and Losses

Financial liabilities are classified as measured at amortized cost or FVTPL. A
financial liability is classified as at FVTPL if it is classified as held- for-
trading. or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and
losses. including any interest expense. are recognized in profit or loss. Other
financial liabilities are subsequently measured at amortized cost using the
effective interest method. Interest expense and foreign exchange gains and
losses are recognized in profit or loss. Any gain or loss on derecognition is
also recognized in profit or loss.

ii) Derecognition

The Company derecognizes a financial liability when its contractual obligations
are discharged or cancelled. or expire. The Company also derecognises a
financial liability when its terms are modified and the cash flows under the
modified terms are substantially different. In this case. a new financial liability
based on the modified terms is recognised at fair value. The difference
between the carrying amount of the financial liability extinguished and the
new financial liability with modified terms is recognised in the profit or loss.

iii) Offsetting

Financial assets and financial liabilities are off set and the net amount
presented in the Balance Sheet when. and only when. the Company currently

has a legally enforceable right to set off the amounts and it intends either to
settle them on a net basis or to realise the asset and settle the liability
simultaneously.

q. Impairment

i) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL)
model for measurement and recognition of impairment loss on the financial assets
that are debt instruments, and are measured at amortised cost e.g., loans, debt
securities, deposits and trade receivables or any contractual right to receive cash
or another financial asset that result from transactions that are within the scope
of Ind AS 18.

The Company follows ‘simplified approach’ for recognition of impairment loss
allowance on trade receivables. The application of simplified approach does not
require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition

For recognition of impairment loss on other financial assets and risk exposure,
the Company determines that whether there has been a significant increase in
the credit risk since initial recognition. If credit risk has not increased significantly,
12-month ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If, in a subsequent period, credit
quality of the instrument improves such that there is no longer a significant
increase in credit risk since initial recognition, the Company reverts to recognising
impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default
events over the expected life of a financial instrument. The 12-month ECL is a
portion of the lifetime ECL which results from default events that are possible
within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the entity
expects to receive (i.e., all cash shortfalls), discounted at the original EIR.

ECL impairment loss allowance (or reversal) recognized during the period is
recognized as income/ expense in the statement of profit and loss. This amount is
reflected under the head ‘other expenses’ in the statement of profit and loss. The
balance sheet presentation for various financial instruments is described below:

• Financial assets measured as at amortised cost: ECL is presented as an allowance,
i.e., as an integral part of the measurement of those assets in the balance sheet.

the allowance reduces the net carrying amount. Until the asset meets write-off
criteria, the Company does not reduce impairment allowance from the gross
carrying amount

• Debt instruments measured at FVTPL: Since financial assets are already reflected
at fair value, impairment allowance is not further reduced from its value. The
change in fair value is taken to the statement of Profit and Loss.

• Debt instruments measured at FVTOCI: Since financial assets are already reflected
at fair value, impairment allowance is not further reduced from its value. Rather,
ECL amount is presented as ‘accumulated impairment amount’ in the OCI.

For assessing increase in credit risk and impairment loss, the Company combines
financial instruments on the basis of shared credit risk characteristics with the
objective of facilitating an analysis that is designed to enable significant increases
in credit risk to be identified on a timely basis.

ii) Impairment of Non-Financial Assets

The Company’s non-financial assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication
exists, then the asset’s recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset exceeds its
estimated recoverable amount. Impairment losses are recognised in the Statement
of Profit and Loss.

In respect of assets for which impairment loss has been recognised in prior periods,
the Company reviews at each reporting date whether there is any indication that
the loss has decreased or no longer exists. An impairment loss is reversed if there
has been a change in the estimates used to determine the recoverable amount.
Such a reversal is made only to the extent that the asset’s carrying amount does
not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.

r. Employee Benefits

i) Short Term Employee Benefits

Short-term employee benefit obligations are measured on an undiscounted basis
and are expensed as the related service is provided.

ii) Long term Employee Benefits:

Provident Fund and Superannuation Contribution are accrued each year in terms
of contracts with the employees. Provision for Gratuity is determined and accrued
on the basis of actuarial valuation. Leave encashment benefit to employees has
been provided on an estimated basis.

s. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of
an asset that necessarily takes a substantial period of time to get ready for its intended
use or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.

t. Foreign currency transactions and foreign operations
Functional and presentation currency

The financial statements are presented in Indian rupee (INR), which is Company’s
functional and presentation currency.

Initial Recognition

On initial recognition, transactions in foreign currencies entered into by the Company
are recorded in the functional currency (i.e. Indian Rupees), by applying to the foreign
currency amount, the spot exchange rate prevailing on the date of the transaction.
Exchange differences arising on foreign exchange transactions settled during the year
are recognized in the Statement of Profit and Loss.

Transactions and balances

Transactions in foreign currencies are recognised at the prevailing exchange rates on
the transaction dates. Realized gains and losses on settlement of foreign currency
transactions are recognised in the Statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the
year-end exchange rates and the resultant exchange differences are recognised in the
Statement of Profit and Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using the exchange rates at the dates of the initial transactions. Non¬
monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value is determined.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the
financial statements are a reasonable approximation of their fair values since the Company does not
anticipate that the carrying amounts would be significantly different from the values that would
eventually be received or settled.

Types of inputs for determining fair value are as under:

Level 1: This level of hierarchy includes financial assets that are measured by reference to quoted
prices (unadjusted) in active markets for identical assets or liabilities. This category consists of
investment in quoted equity shares, and mutual fund investments.The mutual funds are valued
using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example,
over-the counter derivatives) is determined using valuation techniques which maximise the use of
observable market data and rely as little as possible on entity-specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument
is included in level 3. This is the case for unlisted equity securities included in level 3.

i) Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the reporting periods.

ii) Transfer out of Level 3

There were no movement in level 3 in either directions during the financial year ending on 31
March 2024 and 31 March 2023.

B. Financial risk management

The Company’s financial liabilities comprise mainly of borrowings, trade payables and other
payables. The Company’s financial assets comprise mainly of cash and cash equivalents, other
balances with banks, loans, trade receivables and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors
(‘Board’) oversee the management of these financial risks through its Risk Management
Committee. The Risk Management Policy of the Company formulated by the Board, states the
Company’s approach to address uncertainties in its endeavor to achieve its stated and implicit
objectives. It prescribes the roles and responsibilities of the Company’s management, the structure
for managing risks and the framework for risk management. The framework seeks to identify,
assess and mitigate financial risks in order to minimize potential adverse effects on the Company’s
financial performance.

The following disclosures summarize the Company’s exposure to financial risks. Quantitative
sensitivity analysis have been provided to reflect the impact of reasonably possible changes in
market rates on the financial results, cash flows and financial position of the Company.

1) 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 risk comprises three types of risks: interest
rate risk, currency risk and other price risk. Financial instruments affected by market risk
includes borrowings, trade payables, trade receivables, loans and derivative financial
instruments.

a) Interest Rate Risk

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. Since the Company has
insignificant interest bearing borrowings, the exposure to risk of changes in market interest
rates is minimal. The Company has not used any interest rate derivatives.

b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will
fluctuate due to changes in foreign exchange rates .The Company operates, in addition to
domestic markets, significantly in international markets through its sales and services in
overseas in US$ and is therefore exposed to foreign exchange risk arising from foreign currency
transactions, primarily with respect to the US$.The Company does not enter into any derivative
instruments for trading or speculative purposes.

C) Other Price Risk

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to
changes in market traded price.Other price risk arises from financial assets such as
investments in equity instruments.The Company’s has no investments in quoted equity
instruments, therefore the Company has no Other Price risk.

2) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations resulting in a financial loss to the Company.To

manage this, the Company periodically assesses financial reliability of customers and other
counter parties, taking into account the financial condition, current economic trends, and
analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and
periodically reviewed on the basis of such information.The Company considers Credit risk arises
primarily from financial assets such as trade receivables, other balances with banks, and loans.

Credit risk arising from other balances with banks is limited and there is no collateral held
against these because the counterparties are banks and recognised financial institutions with
high credit ratings assigned by the credit rating agencies.

Financial assests are written off when there is no reasonable expectations of recovery, such as a
debtor failing to engage in a repayment plan with the Company. Where receivables have been
written off, the Company continues to engage in enforcement activity to attempt to recover the
receivable due. Where recoveries are made, these are recognized as income in the statement of
profit and loss.

The Company measures the expected credit loss of trade receivables based on historical trend,
industry practices and the business environment in which the entity operates. Loss rates are
based on actual credit loss experience and past trends. Based on the historical data, loss on
collection of receivable is not material hence no provision considered.

Financial Assets are considered to be of good quality and there is no significant increase in
credit risk.

3) Liquidity Risk

Liquidity risk is the risk that the company will encounter in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The
approach of the company to manage liquidity is to ensure , as far as possible, that these will have
sufficient liquidity to meet their respective liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risk damage to their reputation.
The company assessed the concentration of risk with respect to refinancing its debt and concluded
it to be low.

NOTE 26A : CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued capital and all other
equity reserves attributable to the equity shareholders of the Company. The primary objective of the
Company when managing capital is to safeguard its ability to continue as a going concern and to
maintain an optimal capital structure so as to maximize shareholder value.

The capital structure of the group is based on management’s judgement of the appropriate balance of
key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital
in proportion to risk and manage the capital structure in light of changes in economic conditions
and the risk characteristics of the underlying assets. In order to maintain or adjust the capital
structure, the group may adjust the amount of dividends paid to shareholders, return capital to
shareholders or issue new shares.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total
equity so as to maintain investor, creditors and market confidence and to sustain future development
and growth of its business. The Company will take appropriate steps in order to maintain, or if
necessary adjust, its capital structure.

NOTE: 31 EMPLOYEES’ BENEFITS
Defined Benefit Plan:

The company has not undertaken the actuarial valuation as per IND AS 19. Hence the impact of the
same on the financial statements have not been ascertained.

NOTE: 32 SEGMENT REPORTING

The company is primarily engaged in single business segment viz., Trading in Gems and precious
metals, hence there are no separate reportable primary segments as per Indian Accounting Standard
108 Operating Segments.

NOTE: 33 TITLE DEEDS OF IMMOVABLE PROPERTY

All the title deeds of immovable property are held in the name of the company. The Company does
not have any immovable Property during the year.

NOTE: 34 RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company has not dealt with any company whose balance if outstanding as on 31/03/2024, and
whose name are struck of from registrar of Companies u/s 248 of the Companies Act 2013 or sec 560
of the Companies Act 1956.

NOTE: 35 CORPORATE SOCIAL RESPONSIBILITY

Provisions of Section 135 of the Companies Act, 2013, requires every Company having a net worth of
Rupees 500 crore or more, or turnover of Rupees 1000 crore or more or a net profit of rupees 5 crore
or more during the immediately preceding financial year shall spend at least 2% of the average net
profits of the Company made during the three immediately preceding financial years on Corporate
Social Responsibility (CSR). The Company doesn’t fall in any of the above criteria, hence provisions
of Section 135 of the Companies Act, 2013, is not applicable to the Company.

As per our report of even date attached For and on behalf of the Board of Directors of

For Govind Prasad and Co. Sunraj Diamond Exports Limited

Chartered Accountants

(Firm Reg. No. : 114360W) Sd/- Sd/-

Sd/- Sunny Gandhi Shivil Kapoor

Govind Prasad (Director) (Independent Director)

Partner DIN-00695322 DIN-08616488

Membership No-047948 Sd/- Sd/-

UDIN: 24047948BKAILJ4858 Anshul Garg Prakash Mehta

(Company Secretary) (Chief Financial Officer)
Date : 29.05.2024 Date : 29.05.2024

Place: Mumbai Place: Mumbai