i. Assets pledged as security: No assets out of the property, plant & equipment stated above are pledged as security.

ii. Contractual obligations: There are no contractual obligations outstanding at any reporting date in respect of property, plant & equipment stated above.

iii. The title deeds of following immovable properties disclosed under the head "Property, Plant & Equipment" are not held in the name of the Company:

Notes:

(i) The above stocks are lying at show-room premises of the company located at Rajkot, Gujarat, India.

(ii) For mode of valuation, refer accounting policy of inventory stated at: note-4(g) of these financial statements.

i. Out of above trade receivables, there are no amount which is receivable from firms / private companies in which directors of the company are partners / directors.

ii. The Company provides an allowance for impairment of doubtful accounts (credit impaired) based on financial condition of the customer, ageing of the trade receivable and historical experience of collections from customers. The activity in the allowance for impairment of trade

(d) Rights, Preferences and Restrictions attached to equity shares

The Company has single class of equity shares of ' 10 per share. Accordingly, all equity shares rank equally with regard to dividend and share in the company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the company. Voting rights cannot be exercised in respect of shares which are fully paid. Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting (AGM).

Failure to pay any amount called up on shares may lead to forfeiture of the shares.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(e) The Company has not alloted any share pursuant to contract(s) without payment being received in Cash during the period of 5 years immediately preceding the Balance Sheet date.

(f) The Company has issued Nil Bonus Shares or allotted any share on payment being received in cash during the period of 5 years immediately preceding the Balance Sheet date.

(g) The company has not bought back shares during the period of 5 year immediately preceeding the Balance Sheet date.

(h) The Company has not reserved any share for issue under options and contracts or commitments for the sale of shares or disinvestment.

utilised by the company for issuance of bonus shares and writing of share issue expenses.

Retained earnings: Retained earnings can be utilised by the company for distribution to its equity shareholders of the company. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the requirements of the Companies Act, 2013. Thus, the amounts reported above are not distributable in entirety.

Equity Security Premium: The amount received in excess of face value of the equity shares is recognised in equity security premium. Being realised in cash, the same can be

i. Lease Obligation:

Obligation for leasehold showroom is repayable in 107 monthly installments starting from FY 2022-23 till FY 2031-32 as per the terms of lease deed. The same is secured against the showroom taken under lease.

i. Metal Loans from Directors:

Loans received from directors in the form of Gold which can be repayable on demand or can be extended as per mutual consent. Usance Charges - 2% p.a.

ii. Unsecured Loans from Directors:

Unsecured Loans received from directors which can be repayable on demand or can be extended as per mutual consent. Interest rate - 12% p.a.

Note: The above claim is subject to legal proceeding at various appellate authorities. At the end of the last year, there were two claims outstanding i.e. ' 5709.19 lakhs in respect of FY 2016-17 and ' 18.48 lakhs in respect of FY 2017-18.

During the current year, company's outstanding proceeding in respect of FY 2016-17 has been resolved partially. In respect of the said matter, the Company has received the decision of Deputy Commissioner (Appeals) in its favor and majority of the demand is removed. Only demand of ' 15.10 Lacs remains outstanding which is worked out approximately @ 33% of the total additions sustained in appeal. On the date of signing of these financial statements,

the income-tax department still has a right to challenge the order of Deputy Commissioner (Appeals) received in the favor of the company by filing appeal at higher authority.

Another demand of ' 18.48 Lacs in respect of FY 2017-18 remains unresolved. Hence the total outstanding demand at the end of the current year is ' 33.58 lacs.

However the company is contesting the said demands and the management including its tax advisors believes that its position will likely be upheld in the appellate process. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position and results of operations.

34 Details of Employee Benefits:(a) Defined Contribution Plans

The Company offers its employees benefits under defined contribution plans in the form of provident fund. Provident fund cover substantially all regular employees which are on payroll of the company. Both the employees and the Company pay predetermined contributions into the provident fund. The contributions are normally based on a certain proportion of the employee's salary and are recognised in the Statement of Profit and Loss as incurred.

A sum of ' 10.54 lakhs and ' 8.77 lakhs have been charged to the Statement of Profit and Loss in respect of this plan during year ended March 31, 2023 and March 31, 2022 respectively.

(b) Defined Benefit Plan - Gratuity:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy. The fund is managed by Life Insurance Corporation of India.

It is responsible for the administration of the plan assets and for the definition of the investment strategy.

The company provides for the Liability for Gratuity to employees determined on the basis of actuarial Valuation based on Projected Unit Credit method.

The following table summarizes the components of net benefit expense recognized in the Statement of Profit and Loss and the amounts recognized in the Balance Sheet for the plan:

F. Characteristics of defined benefit plans and risks associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit plans which are as follows:

a. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

i. Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

ii. Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

iii. Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

b. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter- valuation period.

c. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.

d. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/ government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

e. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the

employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

35 Segment Reporting

The Company's operations pre-dominantly relates to manufacturing and sale of gold & diamond jewellery. The Company has considered this as the only one reporting segment in accordance with the requirement of Ind AS 108 - Operating Segments.

The Board of Directors ("BOD") evaluates the Company's performance and allocates resources based on an analysis of various performance indicators of this single operating segment. The BOD reviews revenue and gross profit as the performance indicator for this single operating segment. Accordingly, it constitutes as a single reportable operating segment.

Details of entity wide disclosures for this segment are given as below:

(i) Bifurecation of Revenue from external customers by each group: Refer note 22 to the financial statements.

(ii) Bifurecation of Net sales to external customers by geographic area on the basis of location of customers:

The below fair value hierarchy explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost for which fair values are disclosed in the financial statements. To provide the indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed is as under:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilties

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

Level 3 - Inputs for the assets or liabilties that are not based on observable market data (unobservable inputs)

There were no transfers between the levels during the year

Valuation process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilties required for financial reporting purposes, including level 3 fair values. The fair valuation of level 1 and level 2 classified assets and liabilties are readily available from the quoted pricies in the open market and rates available in secondary market respectively.

The carrying amount of trade receivable, trade payable, security deposits, cash and bank balances, statutory dues payable / receivable, and current borrowings and other financial assets / liabilities are considered to be the same as their fair value due to their short-term nature.

37 Financial risk management

The Company's activities expose it to a variety of financial risks which includes credit risk, market risk and liquidity risk. The Company's primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company's risk management policies and processes are established :

To identify & analyse the risks faced by the Company,

To set appropriate risk limits & controls, and

To monitor such risks & take corrective action for the

same.

The Company's risk management is governed by policies approved by the board of directors. The Company identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The Company has policies for overall risk management, as well as for specific areas, such as interest rate risk, credit risk, use of non-derivative financial instruments.

The Board of Directors (BOD) oversees how management monitors compliance with the company's risk management policies & procedures, and reviews the

adequacy of the risk management framework in relation to the risks faced by the Company. The Board of Directors is assisted in its oversight role by finance department. Finance department undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

I Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers.

The company company's exposure to credit risk is very minimal as the company operates on cash basis. The company operates in jewellery industry (mainly into B2C segment) wherein the company collects amount from the customer as and when the jewellery items have been delivered. Delivery of items are given on credit basis to very few / selected customers in exceptional cases only. For those cases wherein credit terms are granted, the company establishes credit limits and continuously monitors the creditworthiness of customers. The Company also establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments. The company has adopted simplified approach of ECL model for impairment.

i) Trade Receivables:

The Company's exposure to credit risk is influenced mainly by the individual characteristics of few customers to whom credit terms are granted. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company with various activities as mentioned above, manages its credit risk. An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company does not hold collateral as security.

ii) Financial assets that are neither past due nor impaired

Credit risk from balances with banks is managed by the Company's treasury department in accordance with the Company's assessment of credit risk about particular financial institution. None of the Company's cash equivalents were past due or impaired as at each balance sheet date.

II Liquid Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages liquidity risk by maintaining adequate reserves and by continuously monitoring the forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to

meet its liabilities when due. The Company's policy is to manage its borrowings centrally using mixture of noncurrent and current borrowing facilities to meet anticipated funding requirements.

Currently the company does not face any liquidity risk as the company has enough liquid assets compared to its liabilities. As on each reporting dates, the company's liquid assets are much higher than its liquid liabilities.

The tables below analyze the company's financial liabilities into relevant maturity groupings based on their contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

The Company's current financial assets are ' 23978.92 lakhs and ' 20447.73 lakhs as at March 31, 2023 and March 31, 2022 respectively which are much more higher than its cash outflow within a year on account of financial liabilities.

III Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and longterm debt. The Company is exposed to market risk primarily related to commodity risk only.

a) 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 is not exposed to currency risk as the company's operations are in Indian Rupees only. The company doesn't deal with any foreign currency.

b) Interest Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to interest rate risk as the company does not have any floating interest rate borrowings. Borrowings from directors have fixed interest rates and repayable on demand.

c) Price Risk

Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases and sales of Gold, Bullion, Diamonds and jewelleries made up of the same.

Gold is one of the commodities whose prices fluctuate on daily basis. Company's exposure to price risk arises from trade payables of the company that are at unfixed prices and therefore payment is sensitive to changes in gold prices. In order to hedge this risk, the company settles the bill with manufacturers in physical gold terms as opposed to cash payments. The company maintains a fixed inventory of gold in terms of kg which can be given as delivery for settlement of trade with the manufacturer. Further shortage of gold on account of sales are replenished by the company instantly by buying from the open market. Hence the company's inventory replenishment strategy as well as settlement of trade through physical inventory of gold act as a natural hedge against potential transaction losses on account of gold price swings.

38 Capital Management:

The Company's capital management is intended to maximise the return to shareholders and benefits for other stakeholders for meeting the long-term and shortterm goals of the Company; and reduce the cost of capital through the optimization of the capital structure i.e. the debt and equity balance.

The management of the company believes in owned equity and does not procure heavy borrowings to satisfy the operation needs. Rather the company invests its owned cash flows into the business due to which company generally doesnot have any significant borrowings on any reporting date. Further the company generally has excess funds to repay the debt amount. These excess funds owned by the company are generally invested in short-term mutual funds to earn capital gain incomes.

The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Foot notes explaining reasoning for variances in above

ratios:

(i) Decrease in current ratios is mainly on account of increase in current liabilities (majorly trade payables) of the company. During the current year, the company's trade payable has been increased substantially as the company has purchased high amount of gold and jewellery made-up of gold on longer credit terms from its suppliers for its new showroom opened in current year only.

(ii) Increase in Debt-Equity Ratio is mainly on account of increase in lease obligation (current & non-current, both) of the company, as the company has acquired new showroom on long-term finance lease during the current year.

(iii) Increase in debt-service coverage ratio is mainly on account of increase in earnings of the company as well as no major loan repayments during the current year. During the last year, the company has larger debt-service base as it had repaid directors' rupee loans of ' 253.62 lakhs.

(iv) Decrease in return on equity, return on capital employed and net profit ratios is mainly on account of decrease in profitability of the company during the current year compared to last year. Company's profitability has been decreased mainly on account of following reasons:

a. During the current year, the company has acquired new showroom (including furniture & fixtures fitted in to the showroom) on lease/rental basis which has increased various expenses such as lease/rental charges, shop maintenance, electricity charges etc.,

b. For the purpose of increasing customer base at new showroom, the company has sold gold jewellery at lower profit margin compared to last year.

(v) There is slight increase in inventory and net capital turnover ratios, on account of revenue growth in the current year as compared to last year which is mainly because of opening a new showroom (i.e. sales unit) in current year. Consequently the company's average inventory and working capital have also increased in line with the revenue.

(vi) Decrease in trade receivable turnover ratio is mainly on account of high trade receivables outstanding at year-end as compared to last year. The company's outstanding trade receivables have been increased substantially as the company has sold gold and jewellery made-up of gold on longer credit terms to its customers to increase customer base/footsteps on the new showroom opened by the company in current year only.

(vii) Decrease in trade payable turnover ratio is mainly on account of high trade payables outstanding at year-end as compared to last year. The company's outstanding trade payables have been increased substantially as the company has purchased high amount of gold and jewellery made-up of gold on longer credit terms from its suppliers for its new showroom opened in current year only.

(viii) During the previous year, the company has earned high short-term capital gains on sale of its investments in mutual funds as compared to last year. Also company's last year earnings from investments were negatively affected by outbreak of COVID-19 virus and lockdowns declared by Govt. due to the same.

Note: The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earnings per share of the Company remains the same.

Note: Till last year, the company has not entered into any lease agreement and hence the above disclosures in respect of "leases" as at March 31, 2022 is not applicable.

Major Terms of Lease in respect of Leasehold Land & Showroom:

1. The lease agreement with related party is executed to take following on lease:

(a) A land admeasuring about 415-22 Sq Mtrs of Plot No. 2 situated at Kalawad Road, Opp. Swaminarayan Temple, Nr. Mahila College, Rajkot comprising of part of Revenue Survey No. 433 & 445/p, TPS No. 2 (Rajkot), FP No. 472 & 473, City Survey Ward No. 15/2, City Survey No. 3606 in Sub-Dist. & Regi. Dist. Rajkot,

(b) A showroom (i.e. building) covering various floors such as celler (underground), ground, first, second, third floor and terrace thereon, admeasuring carpet area dimensions of 660.24 Sq. Mtrs. constructed on above land.

2. Discount rate: The implicit rate of return is used as the discount rate in calculating the present value of the minimum lease payments,

3. No contingent rent is payable under this lease.

4. As per the lease agreement, rent charges shall be escalated by 5% at every year.

46 Subsequent Events:

Subsquent to balance sheet date, One (1) fully paid-up equity share having face value of ' 10/- (Rupees Ten only) each in share capital of the company has been sub-divided / split into five (5) fully paid-up equity shares having face value of ' 2/-(Rupees Two Only) each, pursuant to the shareholders' approval received through postal ballot on April 29, 2023.

Other than above, there are no other events occurred which require disclosure or adjustments in the financial statements.

47 In the opinion of the Board of the Directors of the Company, the current assets have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made in the accounts except stated otherwise.

48 Previouse Periods' / Years' figures have been re-grouped / Re-Classified where necessary to make it comparable with the current period.