xi. Provisions and Contingent Liabilities (Other than for employee benefit):

Provisions are recognized when the company has a present legal and constructive obligations arising from past events, outflow of future economic benefits should be probable and it should be measured in a reliable manner.

Provisions for onerous contracts i.e., contract where the expected unavoidable cost of meeting the obligation under the contract exceed the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as result of an obligating event based on a reliable estimate of such obligations

Provisions are measured at the present value of management best estimates. Expenditure will be required to settle the present obligation at the end of the reporting period.

Disclosures of contingent liability is present obligation as a result of past obligation events-on the basis of the evidence available, there is present obligation and an outflow of resources embodying economic benefits where settlement is probable.

xii. Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short- term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

Statement of cash flow is prepared in accordance with the indirect method prescribed in Ind AS-7 ‘Statement of cash flows.

xiii. Earning Per Share :

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented.

8. Good and Services Tax ( GST )

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

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

• When receivables and payables are stated with the amount of tax included. The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

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

9. Leases Operating lease:

The Company has let-out and taken premises under cancellable operating lease agreements, which the Company intends to renew in the normal course of its business. The lessee cannot sublease these properties. Total lease rentals recognized as income (on cash basis) in the Profit and Loss Account for the year with respect to above is Rs. 122.87 Lakhs (Previous year Rs. 129.83 lakhs) and total lease rentals paid recognized as expenditure is Rs. 15.04 lakhs (Previous year Rs. 7.18 lakhs).

i. Capital and other commitments

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

ii. Micro and Small Enterprises dues

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

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

11. The company has an ongoing litigation with Canara bank, with regards to the correct payable /Receivable, the matter is pending before the Hon’ble High Court of Karnataka and the DRT. However, company has disclosed the entire demand balance and the interest in the balance sheet (Note 15), for accounting purposes which is not an admission of the balance by the company.

12. Segment reporting policies:

The Company is mainly engaged in the business of gold and gold products. These, in the context of Ind AS 108 on segment reporting, issued by The Institute of Chartered Accountants of India are considered to constitute one single primary segment.

13. Company has identified that there is no material impairment of assets and as such no provision is required as per Indian Accounting Standards.

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

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

16. Financial risk management

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

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

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

a. Market risk

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

(a) Interest rate risk

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

(b) Foreign currency risk

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

b. Credit risk

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

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

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

c. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities in financial assets and liabilities. The Company’s objective

(b) Diluted

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

20. Reconciliation of Share Capital Audit

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

21. Additional Regulatory Information:

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

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

26 iii) There is no tax assessment under The Income Tax Act, 1961 for non-disclosure or surrender of

undisclosed income during the year.

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

v) The Company has used accounting software for maintaining its books of account for the year ended March 31, 2024 which does not have a feature of recording audit trail (edit log) facility.

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

For and on behalf of the Board As per our Report of even date

For B S D & CO

RAJESH J MEHTA SURESH KUMAR AKASH BHANDARI Chartered Accountants

Chairman Managing Director Company Secretary Firm Regn. No. 000312S

DIN : 00336457 DIN : 08097945 M.No. A55231 _Sd/_

B S VASUMATHI (P L VENKATADRI)

Place: Bengaluru Independent Director B. VIJENDRA RAO Partner

Date : May 30, 2024 DIN : 10613529 Chief Financial Officer M.No. 209054