2.12 Provisions
General

A provision is recognized when the company has
a present obligation as a result of past event, it is
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation and a reliable estimate can be made of the
amount of the obligation. Provisions are not discounted
to their present value and are determined based on
the best estimate required to settle the obligation at
the reporting date. These estimates are reviewed at
each reporting date and adjusted to reflect the current
best estimates.

Onerous Contracts:

Present obligations arising under onerous contracts
are recognized and measured as provisions. An
onerous contract is considered to exist where the
Company has a contract under which the unavoidable
costs of meeting the obligations under the contract
exceed the economic benefits expected to be received
from the contract.

2.13Contingencies

Contingent Liabilities

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognized
because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there
is a liability that cannot be recognized because it
cannot be measured reliably. Contingent liabilities are
not recognised but are disclosed in notes to accounts.

Contingent Assets:

Contingent Asset is not recognised in standalone
financial statement since this may result in to
recognition of income that may never be realised.

2.14 Financial instruments
Financial assets:

Initial recognition and measurement:

Financial assets are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition of financial assets (other than financial
assets at fair value through profit or loss) are added to
the fair value of the financial assets on initial recognition.
Transaction cost directly attributable to the acquisition
of financial assets at fair value through profit or loss are
recognised immediately in profit or loss.

Subsequent Measurement:

Debt instruments

Subsequent measurement of debt instruments
depends on the company’s business model for
managing the asset and the cash flow characteristics
of the asset. There are three measurement categories
into which the company classifies its debt instruments:

Financial assets at amortized cost

Financial assets that are held within a business
model whose objective is to hold assets for collecting
contractual cash flows and whose contractual terms
give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding are subsequently measured
at amortized cost using the effective interest rate
method. The change in measurements are recognized
as finance income in the statement of profit and loss.

Financial assets at fair value through other
comprehensive income (FVTOCI)

Financial assets that are held within a business
model whose objective is achieved both by collecting
contractual cash flows and selling the financial assets
and the assets’ contractual cash flows represent solely
payments of principal and interest on the principal
amount outstanding are subsequently measured at fair
value. Fair value movements are recognized in other
comprehensive income.

Effective Interest method:

The effective interest method is a method of calculating
the amortised cost of a debt instrument and of allocating
interest income over the relevant period. The effective
interest rate that exactly discounts estimated future
cash receipts through the expected life of the debt
instrument, or, where appropriate, a shorter period, to
the net carrying amount on initial recognition.

I ncome is recognised on an effective interest basis
for debt instruments other than those financial assets.
Interest income is recognised in profit or loss and is
included in the “Other income” line item.

Financial assets at fair value through profit or loss
(FVTPL)

Any financial asset which does not meet the criteria
for categorization as financial instruments at amortized
cost or as FVTOCI, is classified as financial instrument
at FVTPL. Financial instruments included within the
FVTPL category are subsequently measured at fair
value with all changes recognized in the statement of
profit and loss.

Equity instruments

The company subsequently measures all equity
investments at fair value. Where the company’s
management has elected to present fair value gains and
losses on equity investments in other comprehensive
income, there is no subsequent reclassification of fair
value gains and losses to profit or loss.

Dividends from such investments are recognised in
profit or loss as other income when the company’s
right to receive payments is established. Changes in
the fair value of financial assets at fair value through
profit or loss are recognised in other gain/ (losses) in
the statement of profit and loss. Impairment losses (and
reversal of impairment losses) on equity investments
measured at FVOCI are not reported separately from
other changes in fair value.

Derecognition

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.

On derecognition of a financial asset in its entirety, the
difference between the asset’s carrying amount and the
sum of the consideration received and receivable and
the cumulative gain or loss that had been recognised
in other comprehensive income and accumulated in
equity, if any, is recognised in profit or loss.

Where the entity has neither transferred a financial
asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is
derecognised if the Company has not retained control
of the financial asset. When the Company retains
control of the financial asset, the asset is continued to
be recognised to the extent of continuing involvement
in the financial asset. Any gain or loss arising from the
derecognition of the financial asset is recognised in the
profit and loss statement.

Foreign exchange gains and losses
The fair value of financial assets denominated in a
foreign currency is determined in that foreign currency
and translated at the spot rate at the end of each
reporting period.

For foreign currency denominated financial assets
measured at amortised cost and FVTPL, the exchange
differences are recognised in the statement of profit
and loss except for those which are designated as
hedging instruments in a hedging relationship.

For the purposes of recognising foreign exchange
gains and losses, FVTOCI debt instruments are treated
as financial assets measured at amortised cost. Thus,
the exchange differences on the amortised cost are
recognised in the statement of profit and loss and other
changes in the fair value of FVTOCI financial assets are
recognised in other comprehensive income.

Reclassification of financial assets

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial assets which are equity instruments and
financial liabilities. For financial assets which are debt
instruments, a reclassification is made only if there is
a change in the business model for managing those
assets. Changes to the business model are expected
to be infrequent.

Financial liabilities:

Initial recognition and measurement

Financial liabilities are recognized initially at fair value
and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.

Subsequent measurement

For the purpose of subsequent measurement, financial
liabilities are classified as:

Financial liabilities at amortized cost

Financial liabilities such as loans and borrowings
are subsequently measured at amortized cost using
the effective interest rate method. The change in
measurements are recognized as finance costs in the
statement of profit and loss.

Financial liabilities at fair value through profit or loss
(FVTPL)

Financial liabilities include financial liabilities held for
trading and financial liabilities designated upon initial
recognition as at fair value through profit or loss if
the recognition criteria as per Ind AS 109 - “Financial
Instruments” are satisfied. Gains or losses on liabilities
held for trading are recognized in statement of profit and
loss. Fair value gains or losses on liabilities designated
as FVTPL attributable to changes in own credit risk are
recognized in other comprehensive income. All other
changes in fair value of liabilities designated as FVTPL
are recognized in the statement of profit and loss. The

Company has not designated any financial liability as
at FVTPL.

Derecognition

The Company derecognizes financial liabilities when
the Company’s obligations are discharged, cancelled
or have expired. The difference between the carrying
amount of the financial liability derecognized and the
consideration paid and payable is recognised in profit
or loss.

Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign
currency and are measured at amortised cost at the
end of each reporting period, the foreign exchange
gains and losses are determined based on the
amortised cost of the instruments and are recognised
in the statement of profit and loss.

The fair value of financial liabilities denominated in a
foreign currency is determined in that foreign currency
and translated at the spot rate at the end of the reporting
period. For financial liabilities that are measured as at
FVTPL, the foreign exchange component forms part of
the fair value gains or losses and is recognised in the
statement of profit and loss.

Derivative financial instruments:

Forward exchange contracts not intended for trading
or speculation purposes, classified as derivative
financial instruments. The Company uses derivative
financial instruments such as forward exchange
contracts to hedge its risks associated with foreign
currency fluctuations. Such derivative contracts are
not designated as hedges and are accounted for at Fair
Value through Profit and Loss. There are no derivative
financial instruments outstanding as on year end.

Fair Value Hedge:

The Company has adopted fair value hedge for the
derivative contracts entered into and designated
derivative contracts or nonderivative financial liabilities
as hedging instruments to mitigate the risk of change
in fair value of hedged item due to movement in interest
rates, foreign exchange rates and commodity prices.
Changes in the fair value of hedging instruments and
hedged items that are designated and qualify as fair
value hedges are recorded in the Statement of Profit
and Loss with an adjustment to the carrying value of
the hedged item. Hedge accounting is discontinued
when the Company revokes the hedge relationship, the
hedging instrument or hedged item expires or is sold,
terminated, or exercised or no longer meets the criteria
for hedge accounting. The Company designates
derivative contracts as hedging instruments to mitigate
the risk of change in fair value of hedged item i.e. fixed
gold inventory due to movement in gold prices

Offsetting of financial instruments:

Financial assets and financial liabilities are offset and
the net amount is reported in the Balance Sheet if
there is currently enforceable legal right to offset the
recognized amounts and there is an intention to settle
on a net basis, to realize the assets and settle the
liabilities simultaneously.

2.15 Impairment

(i) Financial assets (other than at fair value)

The Company assesses at each date of balance sheet
whether a financial asset or a group of financial assets
is impaired.

Ind AS 109 requires expected credit losses to be
measured through a loss allowance. Company performs
credit assessment for customers on an annual basis.
Company recognizes credit risk, on the basis of lifetime
expected losses and where receivables are due for
more than six months. Lifetime ECL are the expected
credit losses resulting from all possible default events
over the expected life of a financial instrument.

For all other financial assets, expected credit losses
are measured at an amount equal to the 12 month
expected credit losses or at an amount equal to the
life time expected credit losses if the credit risk on
the financial asset has increased significantly since
initial recognition.

The impairment losses and reversals are recognised in
Statement of Profit and Loss.

(ii) Non-Financial Assets

Tangible 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, the recoverable
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 recognised
in the statement of profit and loss.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating
unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that

would have been determined had no impairment loss
been recognised for the asset (or cash-generating
unit) in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.

2.16 Earnings Per Share

The Company reports basic and diluted earnings
per share in accordance with Ind AS 33 on Earnings
per share. Basic earnings per share is computed
by dividing the net profit or loss for the period by
the weighted average number of equity shares
outstanding during the period. Diluted earnings per
share is computed by dividing the net profit or loss for
the period by the weighted average number of equity
shares outstanding during the period as adjusted for
the effects of all diluted potential equity shares except
where the results are anti-dilutive.

2.17 Segmented reporting:

Operating Segments are reported in a manner
consistent with the internal reporting provided to
the Chief Operating Decision Maker. The Company is
engaged in the business of “manufacture and sale of
Jewellery”.

Since the entire Company’s business is from
manufacture and sale of jewellery, there are no other
primary reportable segments. Thus, the segment
revenue, segment results, total carrying value of
segment assets, total carrying amount of segment
liabilities, total cost incurred to acquire segment
assets, total amount of charge of depreciation and
amortization during the year are all as reflected in the
Financial Statements as at and for the year ended
March 31, 2025.

2.18 Cash flow statement

The Cash Flow Statement is prepared by the indirect
method set out in Ind AS 7 on Cash Flow Statements
and presents cash flows by operating, investing and
financing activities of the Company.

2.19 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 an insignificant risk of
changes in value.

For the purpose of presentation in the statement
of cash flows, cash and cash equivalents consist of
cash and cash equivalent, as defined above, net of
outstanding bank overdrafts if they are considered an
integral part of the Company’s cash management.

2.20 Dividends

The final dividend proposed by the Board of Directors is
recognised only on approval by the shareholders in the

general meeting who have the right to decrease but not
increase the amount of dividend recommended by the
Board of Directors. Interim dividends are recognised
on declaration by the Board of Directors

2.21 Fair Value Measurement

Fair value is the price that would be received from
the sale of an asset or paid to transfer a liability in an
orderly transaction between market participants at
the measurement date. The fair value measurement is
based on the presumption that the transaction to sell
an asset or transfer the liability takes place either:

• In the principal market for the asset or liability.

• In the absence of principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

The fair value measurement of a non-financial asset
takes into account a market participant’s ability to
generate economic benefits by using the asset in its
highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as a whole:

• Level 1 - Quoted (Unadjusted) Market prices in active
markets for incidental assets or liabilities

• Level 2 -Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable

• Level 3 - Valuation Techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognized in the
financial statements on a recurring basis, the Company
determines whether transfers that have occurred
between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at
the end of each reporting period.

Determination of Fair Value

1) Financial Assets

The fair value of financial assets is estimated as the
present value of future cash flows, discounted at the
market rate of interest at the reporting date. This fair
value is determined for disclosure purpose.

2) Non-Derivative financial liabilities

Fair Value, which is determined for disclosure
purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at
the market rate of interest at the reporting date.

2.22 Non-current assets held for sale

Non-current assets and disposal Company’s are
classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather
than through continuing use. This condition is regarded
as met, only when the sale is highly probable and the
non-current asset (or disposal Company) is available for
immediate sale in its present condition. Management
must be committed to the sale, which should be
expected to qualify for recognition as a completed sale
within one year from the date of classification.

Non-current assets (and disposal Company’s)
classified as held for sale are measured at the lower of
their previous carrying amount and fair value less costs
to sell.

2.23 Leases:

As a lessee

The Company’s lease asset classes primarily consist
of leases for land and buildings.

The Company assesses whether a contract contains
a lease, at inception of a contract. 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.

To assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether: (i) the contact involves the use of an
identified asset (ii) the Company has substantially all of
the economic benefits from use of the asset through
the period of the lease and (iii) the Company has the
right to direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset (“ROU”) and a
corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term
of twelve months or less (short-term leases) and low
value leases. For these short-term and low value
leases, the Company recognizes the lease payments
as an operating expense on a straight-line basis over
the term of the lease.

Certain lease arrangements includes the options to
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities includes
these options when it is reasonably certain that they
will be exercised.

The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset. Right of use assets are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying amounts
may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the
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, the recoverable amount is determined
for the Cash Generating Unit (CGU) to which the
asset belongs.

The lease liability is initially measured at amortized
cost at the present value of the future lease payments.
The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates in the country
of domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment to the
related right of use asset if the Company changes its
assessment if whether it will exercise an extension or a
termination option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing cash flows.

As a lessor

Leases for which the Company is a lessor is classified
as a finance or operating lease. Whenever the terms of
the lease transfer substantially all the risks and rewards
of ownership to the lessee, the contract is classified
as a finance lease. All other leases are classified as
operating leases. When the Company is an intermediate
lessor, it accounts for its interests in the head lease
and the sublease separately. The sublease is classified
as a finance or operating lease by reference to the right
of-use asset arising from the head lease. For operating
leases, rental income is recognized on a straight line
basis over the term of the relevant lease.