2. Corporate Social Responsibilities

As per section 135 of Companies Act, 2013, a Company meeting the applicability threshold, needs to spend 2% of its average net profits for the immediately preceding 3 financial years on CSR Activities. CSR Committee has been formed by the company as per the Companies Act. The funds are allocated to the activities which are specified in schedule VII of the Companies Act, 2013.

26 Note: Future cash flows in respect of the above matters are determinable only on receipt of judgements/decisions pending at various forums/authorities. Management is hopeful of successful outcome in the appellate proceedings. Disputed tax dues are appealed before concerned appellate authorities. The Company is advised that the cases are likely to be disposed off in favour of the Company and hence no provision is considered necessary therefor.

In the opinion of the management, no provision is required against contingent liabilities.

4. Earnings and Expenditure in foreign currency There have been no imports and exports during the year.

5. Trade Receivables

The holding company has Trade Receivables of Rs 261,322.75 Lakhs outstanding for more than 3 years. The company has not recognized any provision for expected credit losses on trade receivables during the year. Management believes that all receivables are recoverable and no material credit risk exists as at the reporting date. The company continues to monitor the creditworthiness of its customers and will reassess the need for provisioning in future periods.

6. Employee Benefits:

The Company offers gratuity benefits, a defined employee benefit scheme to its employees. The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk. The Company has not funded its gratuity obligations. The following table sets out the status of the defined benefit schemes and the amount recognised in the standalone financial statements as per the actuarial valuation done by an independent actuary.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

8. Goods and Services Tax ( GST )

Expenses and assets are recognised net of the amount of sales/ value added taxes/ goods and services tax paid, except:

• When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable; and

26 • When receivables and payables are stated with the amount of tax included. The net amount

of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

The company has regularly filed the requisite returns under GST laws. There were certain differences between books and the returns filed which needs to be reconciled. However, in the opinion of the management, the differences were not material and will not have any major effect on the profit and loss account.

9. Leases Operating lease:

The Company has let-out and taken premises under cancellable operating lease agreements, which the Company intends to renew in the normal course of its business. The lessee cannot sublease these properties. Total lease rentals recognized as income (on cash basis) in the Profit and Loss Account for the year with respect to above is Rs. 132.31 Lakhs (Previous year Rs. 122.87 lakhs) and total lease rentals paid recognized as expenditure is Rs. 14.47 lakhs (Previous year Rs. 15.04 lakhs).

i. Capital and other commitments

Estimated number of contracts remaining to be executed on capital account and not provided for is Nil (Previous Year is Nil).

ii. Micro and Small Enterprises dues

Based on the information / Documents available with the Company, amounts due to micro and small enterprises are NIL.

10. Brief Particulars of Employees who were entitled to receive or were in receipt of emoluments aggregating to Rs.60,00,000/- or more per annum and/or Rs.500,000/- or more per month, if employed, for a part of the year is Nil (Previous Year Nil)

11. The company has an ongoing litigation with Canara Bank with regard to the correct balance. The matter is pending before the Honorable Debt Recovery Tribunal, however the company has disclosed the entire alleged difference in balance along with interest in the Balance Sheet for accounting purpose, which is not an admission of the alleged balance by the company.

12. Segment reporting policies:

The Company is mainly engaged in the business of gold and gold products. The Company has identified the Board of Directors of the Company as the Chief Operating Decision Maker (CODM) as defined under Ind AS 108 “Operating Segments”. The CODM has evaluated and according to their analysis company’s business activity falls within a single operating segment. Hence there is no separate reportable segment under Indian Accounting Standard on Ind AS 108, ‘Operating Segment’.

13. The Company assesses its assets annually for any indication for impairment of asset. For the year company has identified that there is no material impairment of assets and hence no provision is required as per Indian Accounting Standards.

14. The Company has not done any transactions with parties registered under MSME so there is no outstanding amount due to MSME.

The Company’s financial assets majorly comprise of trade receivables, current investments, bank deposits and cash & cash equivalents. The Company’s financial liabilities majorly comprise of borrowings, trade payables and other commitments.

The Company is primarily exposed to market risk, credit risk and liquidity risk arising out of operations and the use of financial instruments. The Board of Directors have overall responsibility for establishment and review of the Company’s risk management framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions affecting business operations and the Company’s activities.

a. Market risk

Market risk is that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: interest rate risk, currency risk and other price risk, such as commodity risk. The expose to currency risk and interest risk is given below:

(a) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company’s exposure to the risk of changes in interest rates relates to short term / working capital in nature and hence are not exposed to significant interest rate risk.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expenses is denominated in a foreign currency) and the Company’s net investment in foreign subsidiaries.

b. Credit risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract leading to financial loss. The Company’s exposure to credit risk arises from its operating and financing activities. The credit risk arises primarily from trade receivables, and the maximum exposure to credit risk is equal to the carrying value of financial assets.

In order to mitigate the credit risk on receivables, credit quality of the customer is assessed based on the credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding receivables are monitored on an ongoing basis to ensure timely collections and to mitigate the risk of bad debts.

An impairment analysis is performed at each reporting date for the outstanding trade receivables and expected credit loss if any are provided for. The Company’s maximum exposure to counterparty credit risk at the reporting date is the carrying value of financial assets.

26 c. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities in financial assets and liabilities. The Company’s objective is to maintain a balance between continuity of funding and flexibility. The Company’s treasury management team monitors on a daily basis the fund positions/requirements and identifies future mismatches in funds availability and reports the planned and current liquidity position to the top management and board of directors of the Company.

The table below summarises the maturity profile of the Company’s financial assets and liabilities at the end of the reporting period based on contractual undiscounted cash flows:

26 16. Transfer pricing

The Company has not done any transaction during the year in this regard.

17. Earning Per Share (a) Basic

Basic earnings per share is calculated by dividing the net profit for the year by the weighted average number of ordinary shares outstanding during the financial year held by the Company.

(b) Diluted

For the purpose of calculating diluted earnings per share, the profit attributable to equity holders of the parent and the weighted average number of ordinary shares outstanding during the financial year have been adjusted for the dilutive effects of all potential ordinary shares, warrants and share options granted to employees. The dilutive earning per share is calculated by dividing the profit attributable to equity holders of the parent company by the weighted average number of shares that would have been in issue upon full exercise of the remaining warrants, adjusted by the number of such shares that would have been issued at fair value as follows:

26 18. Management Discussion and analysis

Management discussion and analysis report forms a part of the annual report and includes various matters.

19. Reconciliation of Share Capital Audit

A qualified Practicing Company Secretary carried out a share capital audit quarterly, reconciled and confirmed that the total admitted equity share capital with the National Securities Depository Limited (“NSDL”), the Central Depository Services (India) Limited (“CDSL”) and shares in physical forms are in agreement with the total issued and listed equity share capital.

20. Additional Regulatory Information:

As per the notification issued on 24th March 2021, the Ministry of Corporate Affairs, has amended Schedule Ill of The Companies Act, 2013, requiring additional disclosure which are applicable to the company which have been disclosed below.

i) There is no proceedings initiated or pending against the company for holding any Benami Property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and Rules made there under during the year.

iii) There is no balance outstanding on account of any transaction with Companies stuck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

iv) There is no tax assessment under The Income Tax Act, 1961 for non-disclosure or surrender of undisclosed income during the year.

v) The Company does not have any Capital work in progress or intangible assets under development whose completion is overdue or has exceeded its cost compared to its original plan.

vi) The Company, other than as disclosed in Note No. 3 has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entity (intermediaries) with the understanding that intermediary shall: (a) Directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entity (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall: (a) Directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

viii) The company has not traded nor invested in the Virtual Currency - Crypto Currency during the year.

26 ix) The management acknowledges the regulatory requirement of a software with a feature to

track changes in financial records. The ERP currently used by the company does not contain an edit option itself to avoid any misuse in the accounting and hence the requirement for a feature to track changes does not exist. Currently the company is developing a new ERP with futuristic technology which will contain an audit trail feature.

21. The previous year’s figure has been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.