A. Company Overview

Swarnsarita Jewels India Limited (the Company] is public company and a company limited by shares incorporated under the Companies Act 1956. It was incorporated on 25^th August, 1992, It is a Non-Government company. It is registered at Registrar of Companies, Mumbai, Allotted CIN L36911MH1992PLC068283 and its registration number is 68283,Swarnsarita Gems Ltd is involved in the business of Export & Import and Manufacturing & Trading of Polished Diamonds, Gems & Jewellery, It offers products such as diamond studded rings, bracelets, pendants, diamond necklaces, earrings, etc, in silver & gold, Swarnsarita Gems Ltd, is listed on the Bombay Stock exchange as a result of takeover of a profit making company Shyam Star Gems Ltd,

B. Statement of Compliance

The financial statements of company have been prepared in accordance with Indian Accounting Standards as notified under the Companies (Indian Accounting Standards] Rules, 2015 read with Section 133 of the Companies Act, 2013 and Companies (Indian Accounting Standards] amendment rules, 2016 and other relevant provisions of the act,

The financial statements were authorized for issue by the company's Board of Directors at their meeting held on 29^th May, 2024,

C. Significant Accounting Policies

1. Basis of Preparation & Presentation of Financial Statement

The financial statements are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act’], The statement of Cash Flows has been prepared and presented as per the requirements of IND-AS 7 “Statement of Cash flows". The financial statements have been prepared in accordance with Indian Accounting Standards as notified under the Companies (Indian Accounting Standards] Rules, 2015 read with Section 133 of the Companies Act, 2013 and other relevant provisions of the act, These financial statements have been prepared under the historical cost convention except certain Financial Assets and liabilities, which have been measured at fair value, The accounting policy provides information on such Financial Assets and Liabilities measured at fair value. The Company follows the accrual basis of accounting, These financial statements include the Balance Sheet, the Statement of Changes in Equity, the Statement of Profit and Loss (including other comprehensive income], the Statement of Cash flows and Notes, comprising a summary of significant accounting policies and other explanatory information and comparative information in respect of the preceding period.

The financial statements are presented in Indian Rupees in Lakh and all values are rounded off to the nearest lakh as permitted by Schedule III of the Companies Act 2013. Earnings per share data are presented in Indian Rupees up to two decimal places.

2. Use of Estimates and ]udgments

The preparation of the financial statements in conformity Indian Accounting Standards requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, the accompanying disclosure and disclosure of contingent liabilities as atthe date of the financial statements and the reported amounts of income and expenses for the period presented,

Uncertainty about these assumptions and estimates could result in outcomes that require material adjustments to the carrying amount of assets and liabilities affected in future periods. Estimates and assumptions are reviewed on periodic basis, Revision to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Critical Accounting Judgments and Key Sources of Estimation Certainty

The key assumptions concerning the future and other key sources of estimation, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities, within the next financial year, are described below. The Company has based its assumptions and estimates on parameters available when the financial statements were prepared, Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company, Such changes are reflected in the assumptions when they occur.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:

i. Measurement of Defined Benefit Obligations

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations, An actuarial valuation involves making various assumptions that may differ from actual developments in the future, These include the determination of the discount rate, future salary increases and mortality rates, Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions, All assumptions are reviewed at each reporting date, The parameter most subject to change is the discount rate, In determining the appropriate discount rate for plans, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The mortality rate is based on publicly available mortality tables for India. Future salary increases and gratuity increases are based on expected future inflation rates,

Further details about gratuity obligations are given in Note - 20 [ii] below, For the purpose of assessing the leave availment rate, the Company considered the past leave availment history of the employees.

ii. Provisions and Contingent Liabilities

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resource will be required to settle the obligation, in respect of which are liable estimate can be made, Provisions [excluding retirement benefits and compensated absences) are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date and are discounted to its present value if the effect of time value of money is considered to be material. These are reviewed at each year end date and adjusted to reflect the best current estimate, The unwinding of the discount is recognized as finance cost, Expected future operating losses are not provided for,

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may or may not require an outflow of resources, When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are neither recognized nor disclosed in the financial statements, However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.

Hi. Valuation of Deferred Tax Assets / Liabilities

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period, The policy for the same has been explained under Notel7 [ii] below.

iv. Useful lives of Property, Plant and Equipment

The Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period. During financial years ended 31 March 2024, there were no changes in useful lives of property plant and equipment and intangible assets, The Company at the end of each reporting period, based on external and internal sources of information, assesses indicators and mitigating factors of whether a property, plant or equipment and intangible assets may have suffered an impairment loss. If it is determined that an impairment loss has been suffered, it is recognized in profit or loss

v. Going concern:

During the current year ended March 31, 2024, management has performed an assessment ofthe entity's ability to continue as a going concern. Based on the assessment, management believe that there is no material uncertainty with respect to any events or conditions that may cast a significant doubt on the entity to continue as a going concern, hence the financial statements have been prepared on going concern basis,

vi. Impairment of Investments

The Company reviews its carrying value of investments carried at cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

vii. Provision for Inventory

The Company provides provision based on policy, past experience, current trend and future expectations of the inventory held by them,

3. Fair Value Measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, (regardless of whether that price is directly observable or estimated using another valuation technique]. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability, if market participants would take those characteristics into account when pricing the asset or liability, atthe measurement date,

Fair value hierarchy:

For financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 — Inputs are quoted prices (unadjusted] in active markets for identical assets or liabilities that entity can access atthe measurement date,

• Level2—Inputs are 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 are not based on observable market data

• (un observable inputs], Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The investments included in Level 2 of fair value hierarchy have been valued using quotes available for similar assets and liabilities in the active market, The investments included in Level 3 of air value hierarchy have been valued using the cost approach to arrive at their fair value, The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value measurements and the cost represents estimate of fair value within that range,

4. Current and Non-current classification:

All assets and liabilities are classified into current and non-current,

Assets

An asset is classified as current when it satisfies any of the following criteria;

a] It is expected to be realized in, or is intended for sale or consumption in, the Company's normal operating cycle;

b] It is held primarily for the purpose of being traded;

c] It is expected to be realized within 12 months after reporting date; or

d] It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets,

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it is satisfies any of the following criteria:

a) It is expected to be settled in the Company's normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the reporting date; or

d) The Company does not have as unconditional right to defer settlement of the liability for at least 12 months after the reporting date, Terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instrument do not affect its classification,

Current liabilities include current portion of non-current financial liabilities,

All other liabilities are classified as non-current,

5. Operating Cycle :

Based on the nature of services and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current -non-current classification of assets and liabilities.

6. Property, plant and equipment

Property, Plant and Equipment (PPE) is recognized when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably, PPE is stated at original cost, net of tax/duty credits availed, if any, less accumulated depreciation and cumulative impairment,

Cost comprises the purchase price and any attributable costs of bringing the asset to its working condition for its intended use as estimated by the management, Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure on property, plant and equipment after its purchase/completion is capitalized only if it is probable that future economic benefit associated with the expenditure will flow to the company,

PPE not ready for the intended use, on the date of the Balance Sheet are disclosed as "Capital Work-in-Progress”,

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets.

If significant parts of an item of property, plant and equipment have different lives, then they are accounted for as separate items [major components) of property, plant and equipment,

An item of property, plant and equipment and any significant part initially recognized is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal, Any gain or loss arising on de-recognition 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 property, plant and equipment is de-recognized.

Depreciation is calculated on a Straight-Line Method on the basis of the useful life as specified in Schedule II to the Companies Act, 2013, Depreciation method is reviewed at each financial year end to reflect expected pattern of consumption of the future economic benefits embodied in the asset and adjusted if appropriate.

Depreciation for additions to/deductions from, owned Assets is calculated on pro rata basis,

Depreciation charged for impaired Assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is allocated over its remaining useful life.

The estimated useful lives are as mentioned below:

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

7. Intangible assets

Intangible Assets are stated at original cost net oftax/duty credits availed, if any, less accumulated amortization and cumulative impairment, Intangible Assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably,

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

Amortization method and useful lives are reviewed at each reporting date, If the useful life of an asset is estimated to be significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern.

Amortization on impaired Assets is provided by adjusting the amortization charges in the remaining period so as to allocate the Asset's revised carrying amount over its remaining useful life.

Amortization is provided using the Straight-Line Method as per the following useful life as per Schedule II of the Companies Act 2013:

8. Leases as per IND-AS 116

The company determines whether a contract is (or contains] a lease is based on the substance of the contract at the inception of the lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration, The company recognizes Right to Use and lease liability at the commencement of the lease period,Subsequently the right to use is shown as at cost less any accumulated depreciation and any accumulated impairment losses; and adjusted for any re-measurement of the lease liability, The company applies depreciation requirements of IND-AS 16, Property, Plant and Equipment, in depreciating the right-of-use asset and the lease term mentioned in the contract is taken as useful life for calculating the depreciation.

The company measures the lease liability at the present value of the lease payments. The lease payments are discounted using incremental borrowing rate applicable to the company for a similar term. Subsequently the lease liability is increasing the carrying amount to reflect interest on the lease liability; reducing the carrying amount to reflect the lease payments made; and re-measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments,

In the current year, the company has recognized Interest on Lease Liability and Amortization of Right to Use Asset as per Ind AS 116 "Lease" in the profit and loss statement as under,

i, Interest on lease liability of Rs, 0,62 Lakhs

ii, Amortization of Right to use Asset of Rs, 4,82 Lakhs

iii, Total Outstanding Cash Outflow for Lease as per the agreement is Rs 3.92 Lakhs

iv, The Carrying amount of Rightto use Asset as on 31^st March, 2024 is Rs, 3.31 Lakhs

The Company has taken premises under leave and license agreement, the rent and escalation of which depends upon the lease by the Company, The Company has given refundable interest free security deposits under certain agreements,

9. Investment in subsidiaries

The Company has elected to account for its equity investments in subsidiaries under Ind AS 27 on separate financial statements, at costless accumulated impairment losses, if any, Where an indication of impairment exists, the carrying amount of the investment is assessed,Investments in subsidiaries are measured at cost less impairment, On disposal of investments in subsidiaries, the difference between net disposal proceeds and the carrying amounts are recognized in the Statement of profit and loss.

10. Impairment of Non-Financial assets

Property, Plant & Equipment and Intangible Assets

Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable, If any such indication exists, the recoverable amount [i.e. higher of the fair value less cost to sell and the value-in-use] is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, there cover able amount is determined for the cash generating unit [CGU] to which the asset belongs,

If the recoverable amount of an asset [or CGU] is estimated to be less than its carrying amount, the carrying amount of the asset [or CGU] is reduced to its recoverable amount, An impairment loss is recognized in the statement of profit and loss.

Other Assets

As at each Balance Sheet date, the carrying amount of Assets is tested for impairment so as to determine;

i, The provision for impairment loss, if any; and

ii, The reversal of impairment loss recognised in previous periods, if any,

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount,

Recoverable amount is determined:

i, In the case of an individual asset, at the higher of the net selling price and the value in use;

ii, In the case of a cash generating unit [a group of Assets that generates identified, independent cash flows], at the higher of the cash generating unit's net selling price and the value in use.

11. 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, Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

a) Financial Assets

Initial recognition and measurement:

Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income [OCI], and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Company's business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of financial asset and financial liabilities. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section [g] Revenue from contracts with customers.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in three categories:

[i] Financial Assets at amortized cost

[ii] Financial Assets at fair value through other comprehensive income [FVTOCI]

[iii] Financial Assets at fair value through profit or loss [FVTPL]

i. Financial assets at amortized cost

A financial asset is measured at the amortized cost if both the following conditions are met:

a] The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b] Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest [SPPI] on the principal amount outstanding.

ii. Financial assets at fair value through other comprehensive income [FVTOCI)

A financial asset shall be classified and measured at fair value through other comprehensive income if both of the following conditions are met:

a) The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and,

b] 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.

iii. Financial assets at fair value through profit or loss [FVTPL)

FVTPL is a residual category for financial assets, Any financial asset, which does not meet the criteria for categorization as at amortized cost or as FVTOCI at initial recognition, is classified as at FVTPL, The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in profit or loss.

Impairment of Financial Assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period, The Company recognizes a loss allowance for expected credit losses on financial asset. In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial Instruments for recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience,

De-recognition of Financial Assets A financial asset is de-recognized when and only when:

i. The contractual rights to the cash flows from the financial asset expire;

ii. Ittransfers the financial Assets and the transfer qualifies for de-recognition,

b) Financial liabilities

Financial Liabilities are subsequently carried at amortized cost using the effective interest method for trade and other payables, maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

c) Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet when, and only when, the Company has a legally enforceable right to set off the amount and it intends, either to settle them on a net basis or to realize the asset and settle the liability simultaneously,

12. Inventories

Inventories comprise of raw materials and finished goods are carried at the lower of cost or net realizable value. Cost of Finished Goods [Gold and Diamond Jewellery) and Raw Material [Gold and Other Precious Metal) are determined on weighted average basis by taking average of borrowed gold and self-purchased gold separately for.

Other Finished Goods are valued at cost or net realizable value whichever is lower. Raw material of Loose diamonds are valued specifically at weighted average cost method,

Cost of inventories comprises all costs of purchase and, other duties and taxes [other than those subsequently recoverable from tax authorities), costs of conversion and all other costs incurred in bringing the inventory to their present location and condition, In respect of purchase of goods at prices that are yet to be fixed at the year end, adjustments to the provisional amounts are recognized based on the year end closing gold rate.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Raw materials and other supplies held for use in the production of finished products are not written down below cost except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net realizable value,

13. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents, Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage,

14. Bank balances other than cash and cash equivalents

The company considers all financial instruments, which are convertible into known amounts of cash that are subject to an insignificant risk of change in value and have original maturities of more than three but not more than twelve months from date of purchase, to be bank balances other than cash and cash equivalents, These balances consist of deposits with banks which are restricted for withdrawal or usage before the original maturity barring a few exceptions where they can be withdrawn or used subject to modified contractual terms such as decreased rates of interest or payment of applicable fines/penalties.

15. Share Capital Ordinary Shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares options are recognized as a deduction from equity, net of any tax effects,

16. Gold Loan:

i, Transactions of purchase of gold under Gold Loan Scheme of the banks where the final rate of gold is settled on the subsequent date to the date of transactions are normally recorded at the prevailing rate of gold and exchange rate onthe date of transaction as per proforma invoice provided by the suppliers of the gold,

ii, Difference arise in the value of purchases as compared to the value as per proforma invoice on the date of settlement of transaction is transferred to the purchase cost as plus or minus as the case maybe.

iii, Monetary item of gold loan denominated in foreign currency at the year-end are translated at the year-end rate of exchange of the foreign currency and the year-end rate of gold on the London Metal Exchange as certified by the seller bank of the gold and difference so arrived is taken to the cost of purchase of goods,

17. Income taxes

Income tax expense comprises current tax and deferred tax, It is recognized in the Statement of profit or loss exceptto the extentthat it relates to an item recognized directly in equity or in other comprehensive income.

i. Current income taxes

The Income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences. Income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in India. Advance taxes and provisions for current income taxes are presented in the Balance sheet without off- setting advance tax paid and income tax provision arising in the same tax jurisdiction.

/'/. Deferred Income Taxes

Deferred income tax is recognized using the Balance Sheet approach .Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax asset are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized, The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient tax able profit will be available to allow all or part of the deferred income tax asset to be utilized.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority,

Transaction or event which is recognised outside the statement of Income and Expenditure, either in other comprehensive income or in equity, if any is recorded along with the tax as applicable,

18. Revenue recognition as per IND AS 115

The Company earns revenue primarily from manufacturing and trading of gold Jewellery, In appropriate circumstances, revenue is recognized when no significant uncertainty as to determination or realization exists, Revenue is reported net of discounts, indirect taxes.

Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services, excluding amounts collected on behalf of third parties [for example taxes and duties collected on behalf of the government]. Consideration is generally due upon satisfaction of performance obligations and a receivable is recognized when it becomes unconditional.

/. Revenue from operations

The Company earns its prime revenue from Export of jewellery, cutting & polishing of diamonds, Job work charges. The revenue from such transactions is reported in the period in which it occurred.

Revenue from sale of goods is recognized at the point in time when control of the goods is transferred to the customer, generally on delivery of the goods,

/'/. Revenue from other Income

Other income of Company includes income from Interest on Fixed Deposits and Unsecured Loan, Rental Income, and Interest on Late Payments. These amounts are reported in the period in which they accrue,Interest income is recognized on a time proportion basis, taking into account the amount outstanding and at an effective interest rate, as applicable,

19. Cost recognition

Costs and Expenses are recognized on an accrual basis as and when they become payable, and have been clarified according to their nature, The costs of the Company are broadly categorized in cost of material consumed, employee benefit expenses, finance costs, depreciation and amortization and other operating expenses, Employee benefit expenses include employee compensation, allowances paid, contribution to various funds, staff welfare expenses and Gratuity Expense. Other operating expenses mainly include fees to external consultants, cost of running its facilities, travel expenses, exhibition charges, freight charges, export expenses, communication costs, allowances for delinquent receivables and advances and other expenses, Other expenses is an aggregation of costs which are individually not material such as commission and brokerage, recruitment and training, entertainment etc.

20. Employee Benefits

/. Short term Employee Benefits

All employee benefits payable wholly within a period of twelve months of receiving employee services are classified as short-term employee benefits, Benefits such as salaries, allowances, advances and similar payments paid to the employees of the Company are recognized during the period in which the employee renders such related services. The undiscounted amount of shortterm employee benefits to be paid in exchange for employee services are recognized as an expense as the related service is rendered by employees. ii. Post-employment Benefits

Defined contribution plans

The employee benefits payable after twelve months or more of rendering the service are classified as long term employee benefits, A defined contribution plan is a post-employment benefit plan under which the Company pays specified contribution to a Government administered scheme and has no obligation to pay any further amounts. The Company makes specified monthly contributions towards provident fund and employee state insurance, which are defined contribution plans, at the prescribed rates, The Company's contribution is recognized as an expense in the Statement of profit and loss during the period in which the employee renders the related service.

Defined Benefit Plans Gratuity

The Company's liabilities under the Payment of Gratuity Act are determined on the basis of actuarial valuation carried out by an independent actuary, made at the end of each financial year using the projected unit credit method. Obligation is measured at the presentvalue of estimated future cash flows usinga discounted rate that is determined by reference to marketyields at the Balance Sheet date on Government bonds, where the terms of the Government bonds are consistent with the estimated terms of the defined benefit obligation. These benefits are settled at the time of cessation of service by the employee due to retirement etc,

21. Foreign Currency

Foreign currency transactions are recorded at the exchange rates prevailing on the dates of the transactions. Exchange differences arising on foreign currency transactions settled during the period are recognized in the Statement of profit and loss.

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into functional currency at the exchange rates at the reporting date. The functional currency of the Company is Indian rupee. The resultant exchange differences [gains and losses] arising on settlement and restatement are recognized in the Statement of profit and loss,

Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated.

22. Earnings per share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding at the end of the reporting period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares, However the company did not have any potentially dilutive securities in any of the year's presented,

23. Statement of Cashflow

Statement of Cash flow is prepared segregating the cash flows from operating, investing and financing activities, Cash flow from operating activities is reported using indirect method, Under the indirect method, the net surplus is adjusted for the effects of changes during the period in inventories, operating receivables and payables transactions of a non-cash nature

i, Non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and undistributed profits of associates; and

ii, All other items for which the cash effects are investing or financing cash flows.