(K) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

Provisions for restructuring are recognized by the Company when it has developed a detailed formal plan
for restructuring and has raised a valid expectation in those affected that the Company will carry out the
restructuring by starting to implement the plan or announcing its main features to those affected by it.

Provisions are measured at the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
When a provision is measured using the cash flows estimated to settle the present obligation, it's carrying
amount is the present value of those cash flows (when the effect of the time value of money is material). The
measurement of provision for restructuring includes only direct expenditures arising from the restructuring,
which are both necessarily entailed by the restructuring and not associated with the ongoing activities of the
Company.

Contingent liabilities are disclosed by way of a note to the financial statements when there is a possible
obligation arising from past events, the existence of which will be confirmed only by the occurrence or
nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a
present obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be made.

A contingent asset is not recognized but disclosed in the financial statements where an inflow of economic
benefit is probable.

(L) Employee benefits

Employee benefits include salaries, wages, contribution to provident fund, gratuity, leave encashment towards
un-availed leave, compensated absences, post-retirement medical benefits and other terminal benefits.

Short-term employee benefits

Wages and salaries, including non-monetary benefits that are expected to be settled within 12 months
after the end of the period in which the employees render the related service are recognized in respect of
employees' services up to the end of the reporting period and are measured at the amounts expected to be
paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in
the balance sheet.

Post-employment benefits Defined contribution plan

Employee Benefit under defined contribution plans comprises of Contributory provident fund etc. is
recognized based on the undiscounted amount of obligations of the Company to contribute to the plan. The
same is paid to a fund administered through a separate trust.

Defined benefit plan

Defined benefit plans comprising of gratuity is recognized based on the present value of defined benefit
obligations which is computed using the projected unit credit method, with actuarial valuations being carried
out at the end of each annual reporting period. These are accounted either as current employee cost or
included in cost of assets as permitted.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in the employee benefit expense in the
statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognized in the period in which they occur, directly in other comprehensive income. They are included
in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments
are recognized immediately in profit or loss as past service cost.

Short term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount
of the benefits expected to be paid in exchange for the related service. Liabilities recognized in respect of
other long-term employee benefits are measured at the present value of the estimated future cash outflows
expected to be made by the Company in respect of services provided by employees up to the reporting date.

(M) Financial instruments

Financial assets and financial liabilities are recognized when an entity becomes a party to the contractual
provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through Statement of Profit and Loss (FVTPL)) are added to or deducted from
the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit
and loss are recognized immediately in Statement of Profit and Loss.

(N) Financial assets

Recognition and initial measurement

The Company initially recognizes loans and advances, deposits and debt securities purchased on the date on
which they originate. Purchases and sale of financial assets are recognized on the trade date, which is the date
on which the Company becomes a party to the contractual provisions of the instrument.

All financial assets are recognized initially at fair value. In the case of financial assets not recorded at FVTPL,
transaction costs that are directly attributable to its acquisition of financial assets are included therein.

On initial recognition, a financial asset is classified to be measured at -

> Amortized cost; or

> Fair Value through Other Comprehensive Income (FVTOCI) - debt investment; or

> Fair Value through Other Comprehensive Income (FVTOCI) - equity investment; or

> Fair Value through Profit or Loss (FVTPL)

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated
at 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 the 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 instrument is classified as FVTOCI only if it meets both of the following conditions and is not recognised
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.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in the Other Comprehensive Income (OCI). However, the
Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the
Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognized in
OCI is reclassified from the equity to Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using the EIR method.

All equity investments except unquoted investments on account of acquisition of subisidiary in scope
of IND AS 109 are measured at fair value. Equity instruments which are held for trading and contingent
consideration recognized by an acquirer in a business combination to which IND AS 103 applies are classified
as at FVTOCI. For all other equity instruments, the Company may make an irrevocable election to present in
other comprehensive income subsequent changes in the fair value. The Company makes such election on an
instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. The non¬
current investment except unquoted investments on account of acquisition of subisidiary has been recorded
at Fair Value through Other Comprehensive Income (FVTOCI).

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI
to Statement of Profit and Loss, even on sale of investment. However, on sale/disposal the Company may
transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTOCI category are measured at fair value with all changes recognized
in the Other Comprehensive Income.

All other financial assets are classified as measured at FVTPL.

In addition, on initial recognition, the Company may irrevocably designate a financial asset that otherwise
meets the requirements to be measured at amortised cost or at FVTOCI as at FVTPL if doing so eliminates or
significantly reduces and accounting mismatch that would otherwise arise.

Financial assets at FVTOCI are measured at fair value at the end of each reporting period, with any gains and
losses arising on remeasurement recognized in Other Comprehensive Income. The net gain or loss recognized
in Other Comprehensive Income incorporates any dividend or interest earned on the financial asset and is
included in the 'other income' line item. Dividend on financial assets at FVTPL is recognised when:

• The Company's right to receive the dividends is established,

• It is probable that the economic benefits associated with the dividends will flow to the entity,

• The dividend does not represent a recovery of part of cost of the investment and the amount of dividend
can be measured reliably.

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another party.

Impairment

The Company applies the expected credit loss model for recognizing impairment loss on financial assets
measured at amortized cost, trade receivables, other contractual rights to receive cash or other financial
asset.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring
as the weights. Credit loss 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 Company expects to receive (i.e. all cash shortfalls),
discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or
originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual
terms of the financial instrument (for example, prepayment, extension, call and similar options) through the
expected life of that financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial instrument has increased significantly since initial
recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition,
the Company measures the loss allowance for that financial instrument at an amount equal to 12-month
expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses and
represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting
date and thus, are not cash shortfalls that are predicted over the next 12 months.

If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model
in the previous year but determines at the end of a reporting year that the credit risk has not increased
significantly since initial recognition due to improvement in credit quality as compared to the previous year,
the Company again measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk since initial
recognition, the Company uses the change in the risk of a default occurring over the expected life of the
financial instrument instead of the change in the amount of expected credit losses. To make that assessment,
the Company compares the risk of a default occurring on the financial instrument as at the reporting date with
the risk of a default occurring on the financial instrument as at the date of initial recognition and considers
reasonable and supportable information, that is available without undue cost or effort, that is indicative of
significant increases in credit risk since initial recognition.

For 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 11 and Ind AS 18, the Company always measures the loss
allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the
Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is
computed based on a provision matrix which takes into account historical credit loss experience and adjusted
for forward-looking information.

(O) Financial liabilities and equity instruments

Classification as debt or equity

Debt and equity instruments issued by a company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and
an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of
directly attributable transaction costs.

Financial liabilities

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 (that does
not meet hedge accounting requirements) or it is designated as such on initial recognition.

A financial liability is classified as held for trading if:

> It has been incurred principally for the purpose of repurchasing it in the near term; or

> On initial recognition it is part of a portfolio of identified financial instruments that the Company
manages together and has a recent actual pattern of short-term profit-taking; or

> It is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading may be designated as at FVTPL upon
initial recognition if:

> Such designation eliminates or significantly reduces a measurement or recognition inconsistency that
would otherwise arise.

> The financial liability forms part of a group of financial assets or financial liabilities or both, which is
managed, and its performance is evaluated on a fair value basis, in accordance with the Company's
documented risk management or investment strategy, and information about the grouping is provided
internally on that contract basis; or

> It forms part of a containing one or more embedded derivatives, and IND AS 109 permits the entire
combined contract to be designated as at FVTPL in accordance with IND AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement
recognized in the Statement of Profit and Loss. The net gain or loss recognized in the Statement of Profit and
Loss incorporates any interest paid on the financial liability and is included in the 'other gains and losses' line
item in the Statement of Profit and Loss.

Other financial liabilities

Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at
amortized cost using the effective interest method.

Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company's obligations are discharged,
cancelled, or have expired. An exchange with a lender of debt instruments with substantially different terms
is accounted for as an extinguishment of the original financial liability and the recognition of a new financial
liability. Similarly, a substantial modification of the terms of an existing financial liability (whether attributable
to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability
and the recognition of a new financial liability. The difference between the carrying amount of the financial
liability derecognized and the consideration paid and payable is recognized in profit or loss.

Offsetting financial instruments

Financial assets and liabilities are offset, and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or
realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent
on future events and must be enforceable in the normal course of business and in the event of default,
insolvency or bankruptcy of the Company or the counterparty.

(P) Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short - term deposits
with an original maturity of three months or less, which are subject to insignificant risk of changes in value.
Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

(Q) Share capital

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

(R) Segments reporting

The Company's only identifiable reportable segment is Gold jewelry and hence disclosure of Segment wise
information is not applicable under IND-AS 108 "Operating Segments". Details of geographical segments are
disclosed.

(S) Earnings per share
Basic earnings per share

Basic earnings per share is computed by dividing the net profit after tax by weighted average number of equity
shares outstanding during the period. The weighted average number of equity shares outstanding during the
year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders,
share split and reverse share split (consolidation of shares).

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit after tax after considering the effect of interest
and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares
by the weighted average number of equity shares considered for deriving basic earnings per share and also
the weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares including the treasury shares held by the Company to satisfy the exercise of the share
options by the employees.

(T) Proposed Dividends

The Company recognizes a liability to make distributions to equity holders when the distribution is authorised,
and the distribution is no longer at the discretion of the Company. As per the Corporate laws in India, a
distribution is authorised when it is approved by the shareholders.

(U) Gold Metal Loan

The Company has an arrangement with the approved banker for lifting gold under metal loan terms against a
limit under "price unfixed basis" and opts to fix the price for gold taken under loan within 180 days of delivery.
However, based on business expediencies, the Company fixes the price within 180 days, whenever the price is
favourable. The price difference arising out of such transactions are accounted in the purchase cost adjusted
accordingly. The interest if any payable to bankers on such outstanding is treated as finance cost on accrual
basis.

Considering the impact of IND AS it is observed that such GML as financial instruments within the scope of
IND AS 109 and the amount payable to such approved banker is in cash and hence the same is a Financial
Liability.

The Host Contract i.e., the loan has two parts:

- Right to fix gold rate.

- The prices are fixed in USD which is not a functional currency of either the Company or approved banker.

The Right to fix the gold rate has economic characteristics that is similar to the host contract. The pricing
mechanism in the contract is commonly used in the industry when the contracts are negotiated. Thus,
separation of two component is not required.

The company has assessed that USD is the currency in which the price of the gold is routinely denominated
in commercial transactions around the world. Hence the risk in foreign currency fluctuation -USD is closely
related to the host contract. Since the both components of the contract are closely linked to the host contract,
separation is not required. The company considers the contract as financial liability and thus measure the
entire liability at fair value through profit and loss account.

(V) Share Based Payments

Certain employees (including senior executives) of the Company receive part of their remuneration in the
form of employee stock options (ESOP). The cost of equity-settled transactions is determined by the fair value
at the date when the grant is made using an appropriate valuation model. Further details are given in note
43(C). That cost is recognised, together with a corresponding increase in share-based payment reserve in
equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has expired and the Company's best estimate of
the number of equity instruments that will ultimately vest. The expense or credit in the Statement of Profit
and Loss for a period represents the movement in cumulative expense recognised as at the beginning and
end of that period and is recognised in employee benefits expense. The dilutive effect of outstanding options
is reflected as additional share dilution in the computation of diluted earnings per share.

Nature & Purpose of each Reserves under Other Equity

(a) Securities premium reserve : Securities premium reserve is created due to premium on issue of shares. These
reserve is utilized in accordance with the provisions of the Companies Act, 2013. In current year it is utilised for
share issue expenses and bonus issue of shares.

(b) Items of Other Comprehensive Income

"Remeasurements of Net Defined Benefit Plans : Differences between the interest income on plan assets and the
return actually achieved, and any changes in the liabilities over the year due to changes in actuarial assumptions
or experience adjustments within the plans, are recognised in other comprehensive income and are adjusted to
retained earnings.

Fair valuation of investment : Non - current investments made by the company in quoted shares is recorded at fair
value and the Gain/(loss) on revaluation is recognised in other comprehensive income."

(c) Retained Earnings

Statement of Profit and Loss are the profits that the Company has earned till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders.

(d) Share Warrants

"During FY 2023-24, the Company had issued 1,76,400 share warrants to outsiders by the resolution passed on
07-12-2023 and 2,07,000 share warrants to promoter group by the resolution passed on 16-01-2024. An amount
equivalent to 25% of the warrant price are received at the time of subscription and allotment of each warrant
("Warrant subscription price"), and balance 75% of warrant issued price shall be payable by the warrant holder on
exercise of the warrants. Out of this, all share warrants issued to outsiders were converted into equity shares.

(e) Share Based Payment Reserve

"During the year, the company granted 1,00,000 employee stock options (ESOPs) to its employees pursuant
to a resolution passed on 03-02-2025, under the Employee Stock Option Scheme. The options will vest and be
exercisable by the employees in tranches All options are outstanding as on 31-03-2025.

Details of Security and Repayment Terms :

i The Company has availed a Guaranteed Emergency Credit Line (GECL) 2.0 Term Loan facility amounting to '774.90
lakhs (as on 31 March 2024: '774.90 lakhs). The facility is secured by a 2nd pari-passu charge on the Company's
inventory, receivables and its entire current assets. Additionally, it is backed by 2nd Pari Passu pledge of equity
shares and 2nd Pari Passu charge on all movable and immovable assets acquired through the term loan. The
facility also carries a 100% credit guarantee from the National Credit Guarantee Trust Company Limited (NCGTC).
As of March 2025, the outstanding balance stands at '164.73 lakhs (as on 31 March 2024: '364.96 lakhs), with
repayments scheduled till 2025.

ii The Company has availed a Guaranteed Emergency Credit Line (GECL) 2.0 Extension Term Loan facility amounting
to '1,184.20 lakhs (as on 31 March 2024: '1,184.20 lakhs). The facility is secured by 2nd pari-passu charge on the
Company's inventory, receivables and its entire current assets. Additionally, it is backed by 2nd Pari Passu pledge of
equity shares and 2nd Pari Passu charge on all movable and immovable assets acquired through the term loan. The
facility also carries a 100% credit guarantee from the National Credit Guarantee Trust Company Limited (NCGTC).
As of March 2025, the outstanding balance stands at '825.49 lakhs (as on 31 March 2024: '1,113.17 lakhs), with
repayments scheduled till 2027.

iii The Company has availed Term Loan facility of '1,445.00 Lakhs (as on 31 March 2024: 1,030.00 Lakhs). The Facility
is secured by exclusive hypothecation charge over assets created out of this term loan. Outstanding balance for this
borrowing is '1,148.33 Lakhs (as on 31 March 2024: '978.50 lakhs). Repayments till 2029.

Note 43

Defined Benefit Plans

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense
recognized in relation to these schemes represents the value of contributions payable during the period by the Company
at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the
prior months contributions that were not due to be paid until after the end of the reporting period.

The major defined contribution plans operated by the Company are as below:

a) Provident fund

In accordance with the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 eligible employees of the
Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both
employees and the Company make monthly contributions at a specified percentage of the covered employees' salary.
The contributions, as specified under the law, are made to the provident fund administered and managed by Government
of India. The Company has no further obligations under the fund managed by the GOI beyond its monthly contributions
which are charged to the Statement of Profit and Loss in the period they are incurred. The benefi ts are paid to employees
on their retirement or resignation from the Company."

b) Gratuity

The Company has an obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees.
The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination
of the employment of an amount equivalent to 15 days salary, as applicable, payable for each completed year of service,
without any payment ceiling. Vesting occurs upon completion of five years of service. The Company accounts for the
liability for gratuity benefits payable in the future based on an actuarial valuation. The most recent actuarial valuation
of the present value of the defined benefit obligation was carried out at March 31, 2023 by an independent actuary. The
present value of the defined benefit obligation, and the related current service cost and past service cost, were measured
using the projected unit credit method.

NOTE: 45

Financial instruments
Fair values

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 in to account the characteristics of the asset or liability if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or
disclosure purposes in these financial statements is determined on such a basis.

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

> Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.

> Level 2: inputs are inputs, other than quoted prices included within level 1, that are observable for the asset
or liability, either directly or indirectly; and

> Level 3: inputs are unobservable inputs for the asset or liability.

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts
and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following
methods and assumptions were used to estimate the fair values:

• Long-term fixed-rate and variable-rate receivables/borrowings are evaluated by the Company based on
parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer
and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account
for the expected credit losses of these receivables.

• The fair values of the quoted notes and bonds are based on price quotations at the reporting date. The fair
value of unquoted instruments, loans from banks and other financial liabilities, obligations under finance
leases, as well as other non-current financial liabilities is estimated by discounting future cash flows using
rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being
sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the fair value of
the equity instruments is also sensitive to a reasonably possible change in the growth rates. Management
regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and
determines their impact on the total fair value.

• The fair values of the Company's interest-bearing borrowings and loans are determined by using DCF method
using discount rate that reflects the issuer's borrowing rate as at the end of the reporting period.

NOTE: 46

Financial risk management objectives and policies:

The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support
its operations. The Company's principal financial assets include loans, trade and other receivables, and cash and
cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk and
liquidity risk. The Company's senior management oversees the management of these risks providing an assurance
that the Company's financial risk activities are governed by appropriate policies and procedures and that financial
risks are identified, measured and managed in accordance with the Company's policies and risk objectives. It is
the Company's policy that no trading in derivatives for speculative purposes may be undertaken. The Board of
Directors reviews and agrees policies for managing each of these risks, which are summarized below.

(A) Financial risk management

The management of the company is responsible for overseeing the Risk Management Framework for developing
and monitoring the Company's risk management policies. The risk management policies are established to
ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying, and mapping
controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk
management policies and systems are reviewed regularly to reflect changes in the market conditions and
the Company's activities to provide reliable information to the Management and the Board to evaluate the
adequacy of the risk management framework in relation to the risk faced by the Company.

The risk management policies aim to mitigate the following risks arising from the financial
instruments:

> Market risk

> Credit risk; and

> Liquidity risk

(B) 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 the market prices. The Company is exposed in the ordinary course of its business to risks related
to changes in foreign currency exchange rates, commodity prices and interest rates.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge
risk exposures. The use of financial derivatives is governed by the Company's policies approved by the Board
of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use
of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity.
Compliance with policies and exposure limits is reviewed by the Management and the internal auditors on a
continuous basis. The Company does not enter into or trade financial instruments, including derivatives for
speculative purposes.

(C) Foreign currency risk management

The Company's functional currency is Indian Rupees (INR). The Company undertakes transactions denominated
in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates
affects the Company's revenue from export markets and the costs of imports, primarily in relation to raw
materials. The Company is exposed to exchange rate risk under its trade and debt portfolio.

Adverse movements in the exchange rate between the Rupee and any relevant foreign currency results
in increase in the Company's overall debt position in Rupee terms without the Company having incurred
additional debt and favourable movements in the exchange rates will conversely result in reduction in the
Company's receivables in foreign currency. In order to hedge exchange rate risk, the Company has a policy to
hedge cash flows up to a specific tenure using forward exchange contracts. In respect of imports and other
payables, the Company hedges its payables as when the exposure arises. Short term exposures are hedged
progressively based on their maturity.

All hedging activities are carried out in accordance with the Company's internal risk management policies, as
approved by the Board of Directors, and in accordance with the applicable regulations where the Company
operates. The company has entered into currency swap transaction during the year.

The carrying amounts of the Company's monetary assets and monetary liabilities at the end of the reporting
period are disclosed in Note 49

(D) Credit risk management:

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration
of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with
creditworthy counterparties as a means of mitigating the risk of financial loss from defaults.

Company's credit risk arises principally from the trade receivables, loans, cash & cash equivalents and financial
guarantees.

Trade receivables

Customer credit risk is managed centrally by the Company and subject to established policy, procedures and
control relating to customer credit risk management. Credit quality of a customer is assessed based on an
extensive credit rating scorecard and individual credit limits defined in accordance with the assessment.

Trade receivables consist of many customers spread across geographical areas with no significant
concentration of credit risk. The outstanding trade receivables are regularly monitored, and appropriate
action is taken for collection of overdue receivables.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition,
many minor receivables are grouped into homogenous groups and assessed for impairment collectively. The
calculation is based on ongoing customer interactions and management's estimate of realization.

policy.

(E) Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage
of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing.
The Company requires funds both for short term operational needs as well as for long term capital expenditure
growth projects. The Company generates sufficient cash flow for operations, which together with the available
cash and cash equivalents and short term investments provide liquidity in the short-term and long- term. The
Company has established an appropriate liquidity risk management framework for the management of the
Company's short, medium and long-term funding and liquidity management requirements. The Company
manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial
assets and liabilities.

Collateral

The Company has pledged part of its trade receivables, inventories, short term investments, cash and cash
equivalents and all current assets to fulfil certain collateral requirements for the banking facilities extended
to the Company. There is obligation to return the securities to the Company once these banking facilities are
surrendered.

Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders of the parent. The primary objective of the
Company's capital management is to maximize the shareholder value.

The Company manages its capital structure and adjusts in light of changes in economic conditions and the
requirements of the financial covenants. 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 capital plus net debt. The Company
includes within net debt, interest bearing loans and borrowings, less cash, and cash equivalents, excluding
discontinued operations.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt
includes, interest bearing loans and borrowings less cash and cash equivalents, bank balances other than
cash and cash equivalents and current investments. Company's gearing ratio at the end of the reporting
period is as follows:

In order to achieve this overall objective, the Company's capital management, amongst other things, aims
to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that
define capital structure requirements. Breaches in meeting the financial covenants would permit the bank
to immediately call loans and borrowings. There have been no breaches in the financial covenants of any
interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended
31^st March, 2025 and 31^st March 2024.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the DCF model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial instruments.

NOTE 50

Security of Net Current Assets against borrowings

Reconciliation between Net Current Assets as per Quarterly statement filed with the Bank and Current Assets
as per Books of accounts

The company has been sanctioned working capital limits in excess of 5 crores Rupees, in aggregate, from banks or
financial Instituions on the basis of Secutiy of Current Assets. The amount of net current assets reported in the financial
statements differ from the amount submitted to the bank by (Rs.444.40/- lakhs), (1380.63/- Lakhs), 49.20 Lakhs and
(2,318.08/- lakhs) as at June, 2024, September, 2024, December, 2024 and March, 2025 respectively. These differences
are on account of data submitted to the bank from provisional finacial statement subject to pending finalization.

NOTE 51

Leases

The Company adopted Ind AS 116 "Leases" and applied the standard to the lease contracts using the modified
retrospective method. Consequently, the Company recorded the lease liability at the present value of the lease payments
discounted at the incremental borrowing rate and the right of use asset at value equal to the lease liability subject to the
adjustments for prepayments and accruals. The weighted average incremental borrowing rate of 9% has been applied
to lease liabilities recognised in the Balance Sheet at the date of initial application. Interest on lease liabilities is '124.85
Lakhs for the year.

The Company has lease contracts for Factory premise rented in Navi Mumbai. They have a lease term of 5 years.

"The Company's obligations under its leases are secured by the lessor's title to the leased asset. The Company is restricted
from assigning and subleasing " "the leased assets and some contracts require the Company to maintain premises in
good state. The lease contract include extension and termination" options which are further discussed below.

The Company applies the 'short-term lease' recognition exemptions for leases whose term is 12 months or less.

Terms of Cancellation and Escalation

The Leases are cancellable by giving one month notice by either parties and these does not carries any escalation.

(e) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(f) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(g) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such

as, search or survey or any other relevant provisions of the Income Tax Act, 1961

NOTE 56

The figures for the comparative periods have been regrouped wherever necessary, to conform to the current year's
classification.

For VJ SHAH & CO. FOR AND ON BEHALF OF THE BOARD

Chartered Accountants
FRN.: 109823W

NIRAV MALDE MANGESH CHAUHAN MAHENDRA CHAU HAN

(PARTNER) (MANAGING DIRECTORS. CFO) (WHOLE-TIME DIRECTOR)

MEMBERSHIP NO.: 152425 DIN: 02138048 DIN: 02138084

NIKITAJAIN

PLACE : MUMBAI (COMPANY SECRETARY)

DATE : 27th May, 2025 (ICSI M. No.: A71411)