2.14 Contingencies and Provisions:

Provisions are recognized when the Company has a present obligation (legal or constructive)
as a result of a 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. The expense relating to a provision is presented in the statement of
profit and loss net of any reimbursement.

Contingent liabilities are recognized only when there is a possible obligation arising from past
events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly
within the control of the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of obligation cannot be made.
Contingent assets are not recognized in the financial statements.

2.15 Statement of Cash Flow:

Cash flows are reported using the indirect method, whereby profit/(loss) before exceptional
items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows from operating, investing
and financing activities of the Company are segregated based on available information.

2.16 Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

Financial Assets

Initial recognition and measurement

All financial assets are initially recognized when the Company becomes a party to the contractual
provisions of the instrument. All financial assets are initially measured at fair value plus, in the
case of financial assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.

Subsequent measurement

Classification

For the purpose of subsequent measurement, the Company classifies financial assets in following
categories:

Financial assets at amortized cost

Financial assets at amortized cost are subsequently measured at amortized cost using the
effective interest method. The amortized cost is reduced by impairment losses, if any. Interest
income and impairment are recognized in the Statement of Profit and Loss.

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

These assets are subsequently measured at fair value through other comprehensive income
(OCI). Changes in fair values are recognized in OCI and on derecognition, cumulative gain or
loss previously recognized in OCI is reclassified to the Statement of Profit and Loss. Interest
income calculated using EIR and impairment loss, if any, are recognized in the Statement of
Profit and Loss.

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

These assets are subsequently measured at fair value. Net gains and losses, including any interest
income, are recognized in the Statement of Profit and Loss.

Financial assets are not reclassified subsequent to their recognition except if and in the period
the Company changes its business model for managing for financial assets.

De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire, or it transfers the rights to receive the contractual cash flows in a
transaction in which substantially all of the risks and rewards of ownership of the financial asset
are transferred or in which the Company neither transfers nor retains substantially all of the risks
and rewards of ownership and it does not retain control of the financial asset. If the Company
enters into transactions whereby it transfers assets recognized on its balance sheet, but retains
either all or substantially all of the risks and rewards of the transferred assets, the transferred
assets are not derecognized. Any gain or loss on derecognition is recognized in the Statement of
Profit and Loss.

Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on
financial assets measured at amortized cost, lease receivable, trade receivable other contractual
rights to receive cash or other financial assets. For trade receivable, the Company measures the
loss allowance at an amount equal to life time expected credit losses. Further, for the measuring
life time expected credit losses allowance for trade receivable the Company has used a practical
expedient as permitted under Indian AS 109. This expected credit loss allowance is computed
based on provisions, matrix which takes into account historical credit loss experience and
adjusted for forward looking information.

Financial Liabilities-

Initial recognition and measurement

All financial liabilities are initially recognized when the Company becomes a party to the
contractual provisions of the instrument. All financial liabilities are initially measured at
amortized cost unless at initial recognition, they are classified as fair value through profit or loss.
In case of trade payables they are initially recognize at fair value and subsequently, these
liabilities are held at amortized cost, using the Effective interest method.

Classification and subsequent measurement

Financial liabilities are classified as measured at amortized cost or FVTPL.

A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a
derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are
measured at fair value and net gains and losses, including any interest expense, are recognized
in the Statement of Profit and Loss.

Financial liabilities other than classified as FVTPL, are subsequently measured at amortized cost
using the effective interest method. Interest expense is recognized in Statement of Profit and
Loss. Any gain or loss on DE recognition is also recognized in the Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on subsequently different terms, or the terms of an existing liability are subsequently
modified, such an exchange or modification is treated as the derecognition of the original liability
and the recognition of the new liability. The difference in the respective carrying amount is
recognize in the Statement of Profit & Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount presented in the balance
sheet when, and only when, the Company currently has a legally enforceable right to set off the
amounts and it intends either to settle them on a net basis or to realise the assets and settle the
liabilities simultaneously.

1) Some of the Balances of sundry creditors, sundry debtors, loans & advances, and other
liabilities are subject to balance confirmation and reconciliation.

2) In the opinion of the Board of Directors, Current Assets, Loans & Advances are
approximately of the value at which they are stated in the Balance Sheet, if realized in the
ordinary course of business.

3) The Company operates in one segment only.

4) The Company manages its capital to ensure that it will be able to continue as a going
concern. The structure is managed to provide ongoing returns to shareholders and service
debt obligations, whilst maintaining maximum operational flexibility.

5) The carrying amounts of trade payables, other financial liabilities, cash and cash
equivalents, other bank balances, trade receivables and other financial assets are considered
to be the same as their fair values due to their short-term nature.

6) The Company opines that no provision for expected credit loss is required.

7) There is no significant market risk or liquidity risk to which the Company is exposed.

8) Payment to Statutory Auditors (Rs In Lakhs)-

9) No amount remained due to Micro and Small Enterprises as defined in the “The
Micro, Small and Medium Enterprise Development Act, 2006” as identified on the
basis of information collected by the management.

10) The Company has re grouped and re-classified the previous year’s figures in
accordance with the requirements applicable in the current year. In view of this,
certain figures of the current year are not strictly comparable with those of the
previous year.

11) The Earning Per Share (IndAS-33) has been computed as under-

12) Notes 1 to 38 form integral part of standalone financial statements.

ADDITIONAL DISCLOSURES:

(i) Previous year figures have been regrouped and reclassified wherever necessary.

(ii) Expenditure and earning in foreign currency: Nil

(iii) Undisclosed Income:

Company does not have any transactions 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). Also, there are nil previously unrecorded income and related
assets.

(iv) Details of Crypto Currency or Virtual Currency:

Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.

(v) Figures have been rounded off to the nearest Lakhs.

FOR , AKGVG & ASSOCIATES.. For, Gautam Gems Limited

CHARTERED ACCOUNTANTS
FRN NO.018598N

^ At 1

WIT^ M.Oi.suctt,

PriyankShah Gautam P. Sheth NidhiG.Sheth

(Partner) (Managing Director) (Director)

Mem. No. : 118627 DIN : 06748854 DIN : 06748877

UDIN : 25118627BMKTDA8145

Place: Ahmedabad KrinaThakkar Dishant D. Jagad

Date : 26/05/2025 (Company Secretary) (CFO)