Notes to Accounts of Patdiam Jewellery Ltd.

Mar 31, 2024

m) Provisions/ Contingencies

A Provision is created when an enterprise has a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount and it is probable that an outflow of recourses will be required to settle the obligation. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

The Company does not recognise assets which are of contingent nature until there is virtual certainty of reliability of such assets. However, if it has become virtual certain that an inflow of economic benefits will arise, assets and related income is recognised in the financial statements of the period in which the change occurs.

n) Earning per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the period are adjusted for events of buy back. For the purpose of calculating diluted earnings per share, the net profit or loss attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all diluted potential equity shares.

24 CONTINGENCIES AND COMMITMENTS :

a) The Company has executed Corporate Guarantee of'' 1200.00 lakhs (Previous year '' 1200.00 lakhs) favouring Punjab National Bank Mumbai for its direct control by key managerail, Patdiam Jewels of firm, Mumbai.

b) The Company has outstanding demand of '' 21.38 lakhs for Assessment year 2011-12, the said proceeding is pending with Commissioner of Income Tax (Appeal).

33 During 2006, company has acquired some equity interest (equal to 18%) in two USA based companies, namely American Value Chain Inc(AVC) and Gems Media LLC (GM) by the investing in the aggregate a sum of US $ 2.00 lakhs (Equivalent Indian '' 92.56 lakhs )(US $ 1.90 lakhs in AVC and US $ 0.10 lakhs in GM-Equal to '' 87.93 lakhs in AVC and '' 4.63 lakhs in GM). Subsequent to investment both companies run in to trouble and incurred huge loss. The aggregate loss as on April, 2008 was US $ 47.45 lakhs However, company had a share holder agreement with other share holders of these companies where in it was protected from the loss and was given an exit option at a valuation of it is interest for US $ 9.80 lakhs, after 2009. Company has exercised its option and claimed that other share holders buy out its interest at an agreed consideration in terms of share holder''s agreement. However, other share holders had initially sought an extension of time, Ever after expiry of extened period, they have used delaying tactics citing huge loss, financial crunch etc as reason. Pending action in terms of share holder''s agreement, company continue to present its investment as such and has not considered any provision for diminution in value of its investments in terms of theoretical value of its equity interest. In the mean time company came to know that order share holders have put in more equity fund in the companies and raised their interest developments and after having exhausted all informal channels, finally in financial year i.e.in F.Y.2015-16 company has lodged a suite in court of law in USA and claimed remedy and specific performance under share holder''s agreement. It has made a plea before th court of law that its equity interest be brought out and it be paid compensation as per share holder''s agreement. Management if the company has been advised by its USA Lawyers that, there is more than probable chance of it getting its claim. Considering this company has continued to show it investment at cost and has not made any provision for loss by way of diminution in value of investments in the book . However as it has now filed a suite and expressed its intention to transfer or sale its equity interest in those companies, same has beeen classified as current investments.

34 The Company has incurred '' 16.00 lakhs (previous year '' 10.30 lakhs) towards Corporate Social Responsibility activities. Further, no amount has been spent on construction / acquisition of an asset of the Company and the entire amount has been spent in cash. The amount required to be spent under Section 135 of the Companies Act, 2013 for the year 2023-24 is '' 15.85 lakhs i.e. 2% of average net profits for last three financial years, calculated as per Section 198 of the Companies Act, 2013. In FY 2023-24 The has contributed excess amount to of "0.15 lakhs which is to be carry forward for next financial year.

35 Segment Reporting

The Company is only one Operating segments i.e Jewellery Manufacturing. There is no segment reporting required

36 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for any Benami property.

(ii) The Company does not have any transaction with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

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

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) 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:

(a) 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

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

(vii) The Company has 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:

(a) 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

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

(viii) The Company has not 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

37 The previous year''s figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.

FOR DAVE & DAVE For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm Registration No. 102163W

PRAVIN KAKDIA SAMIR KAKADIA

DAVE LILA SHANKAR Chairman & Director Managing Director

Partner DIN: 00178140 DIN: 00178128

Membership No. 042889

Place : Mumbai

Date : 29th May, 2024

UDIN : 24042889BKEMZQ8562 BHARAT SHAH

Chief Financial Officer Place : Mumbai Date : 29th May, 2024

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Mar 31, 2023

m) Provisions/ Contingencies

A Provision is created when an enterprise has a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount and it is probable that an outflow of recourses will be required to settle the obligation. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probablywill not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

The Company does not recognise assets which are of contingent nature until there is virtual certainty of reliability of such assets. However, if it has become virtual certain that an inflow of economic benefits will arise, assets and related income is recognised in the financial statements of the period in which the change occurs.

n) Earning per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the period are adjusted for events of buy back. For the purpose of calculating diluted earnings per share, the net profit or loss attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all diluted potential equity shares.

34 During 2006, company has acquired some equity interest (equal to 18%) in two USA based companies, namely American Value Chain Inc(AVC) and Gems Media LLC (GM) by the investing in the aggregate a sum of US $ 2.00 lakhs (Equivalent Indian '' 92.56 lakhs )(US $ 1.90 lakhs in AVC and US $ 0.10 lakhs in GM-Equal to '' 87.93 lakhs in AVC and '' 4.63 lakhs in GM). Subsequent to investment both companies run in to trouble and incurred huge loss. The aggregate loss as on April, 2008 was US $ 47.45 lakhs However, company had a share holder agreement with other share holders of these companies where in it was protected from the loss and was given an exit option at a valuation of it is interest for US $ 9.80 lakhs, after 2009. Company has exercised its option and claimed that other share holders buy out its interest at an agreed consideration in terms of share holder''s agreement. However, other share holders had initially sought an extension of time, Ever after expiry of extened period, they have used delaying tactics citing huge loss, financial crunch etc as reason. Pending action in terms of share holder''s agreement, company continue to present its investment as such and has not considered any provision for diminution in value of its investments in terms of theoretical value of its equity interest. In the mean time company came to know that order share holders have put in more equity fund in the companies and raised their interest developments and after having exhausted all informal channels, finally in financial year i.e.in F.Y.2015-16 company has lodged a suite in court of law in USA and claimed remedy and specific performance under share holder''s agreement. It has made a plea before th court of law that its equity interest be brought out and it be paid compensation as per share holder''s agreement. Management if the company has been advised by its USA Lawyers that, there is more than probable chance of it getting its claim. Considering this company has continued to show it investment at cost and has not made any provision for loss by way of diminution in value of investments in the book . However as it has now filed a suite and expressed its intention to transfer or sale its equity interest in those companies, same has beeen classified as current investments.

35 The Company has incurred '' 10.30 lakhs (previous year '' Nil) towards Corporate Social Responsibility activities. Further, no amount has

been spent on construction / acquisition of an asset of the Company and the entire amount has been spent in cash. The amount required to be spent under Section 135 of the Companies Act, 2013 for the year 2022-23 is '' 9.82 lakhs i.e. 2% of average net profits for last three financial years, calculated as per Section 198 of the Companies Act, 2013. In FY 22-23 The has contributed excess amount to of '' (

lakhs which is to be carry forward for next financial year.

36 Segment Reporting

The Company is only one Operating segments i.e Jewellery Manufacturing. There is no segment reporting required

37 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for any Benami property.

(ii) The Company does not have any transaction with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

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

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) 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:

(a) 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

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

(vii) The Company has 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:

(a) 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

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

(viii) The Company has not 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

38 The previous year''s figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.

FOR DAVE & DAVE For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm Registration No. 102163W

PRAVIN KAKDIA SAMIR KAKADIA

LALIT KUMAR G. DAVE Chairman & Director Managing Director

Partner DIN: 00178140 DIN: 00178128

Membership No. 043509 Place : Mumbai Date : May 30, 2023

UDIN : 23043509BGSUVD9449 BHARAT SHAH NAVITA CHAOUDHARY

Chief Financial Officer Company Secretary

Place : Mumbai Date : May 30, 2023

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Mar 31, 2018

1.01 Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Details to be given for each class of shares separately for Issued, Subscribed and fully paid up and Subscribed but not fully paid up as applicable.

2.01 *Secured by hypothecation of Stock , Debtors and equitable mortgage of Plant & Machinery and Factory Building other movable assets at Unit No. 102, Tower No.1, SEEPZ , SEEPZ SEZ, Andheri (E), Mumbai-400 096 and mortgage of property situated at Juhu, Mumbai in name of , Mr.Mahesh Navadia (Director) the said limit is also secured by personal guarantee of Director & relatives of directors.

2.02 Above loans were drawn from time to time under a sanction letter which is renewable after one year against documents in the nature of Bills for raw material labour charges and export sales.

2.03 Intrest is payable as per Reserve Bank of India /State Bank of India Guidelines and linked to base Rate.

2.04 Tenure of Each Individual PC loan is 180 Days(PNB & SBP) and that of Loan Against bill is up to due date of Respective Bill.

3.01 Inventories except Consumables Stores and Spares are valued at cost or net realisable value whichever is less.

3.02 Consumables Stores and Spares are valued at cost.

3.03 Value of imorted raw materials consumed and the value of all indigenous raw materials similarly consumed and the percentage of each to the total consumption.

(i) Defined Contribution Plan :

Contribution to Provident Fund is Rs. 3,31,078/- (Previous year Rs. 4,14,255/-), ESIC and Labour Welfare Fund includes Rs. 39,293/-(Previous year Rs. 23,251/-).

(ii) Defined Benefit Plan :

Gratuity & Leave Encashment:

The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five years of continuous service.

4.01 Value of imorted raw materials consumed and the value of all indigenous raw materials similarly consumed and the percentage of each to the total consumption.

5. CONTINGENT LIABILITIES NOT PROVIDED FOR :

a) The Company has executed Bank Guarantee of Rs. 120,000,000/- (Previous year Rs. 120,000,000/-) favouring Punjab National Bank Mumbai for its direct control by key managerail, Patdiam Jewels of firm, Mumbai.

6. Estimated amount of Contracts remaining to be executed on Capital Account and not provided for Rs..Nil. ( Previous year Rs..Nil.)

7. IN THE OPINION OF THE DIRECTORS :

a) The Current Assets and Loans & Advances are approximately of the value stated, if realised in the ordinary course of business.

c) The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary

8. During 2006, company has acquired some equity interest (equal to 18%) in two USA based companies, namely American Value Chain Inc(AVC) and Gems Media LLC (GM) by the investing in the aggregate a sum of US $ 2,00,000 (Equivalent Indian Rs. 92,55,666/-)(US $ 190000 in AVC and US $ 10000 in GM-Equal to Rs. 87,92,568/- in AVC and Rs. 4,63,098/- in GM). Subsequent to investment both companies run in to trouble and incurred huge loss. The aggregate loss as on April, 2008 was US $ 47,45,220.67. However, company had a share holder agreement with other share holders of these companies where in it was protected from the loss and was given an exit option at a valuation of it is interest for US $ 9,80,456.13, after 2009. Company has exercised its option and claimed that other share holders buy out its interest at an agreed consideration in terms of share holder''s agreement. However, other share holders had initially sought an extension of time, Ever after expiry of extened period, they have used delaying tactics citing huge loss, financial crunch etc as reason. Pending action in terms of share holder''s agreement, company continue to present its investment as such and has not considered any provision for diminution in value of its investments in terms of theoretical value of its equity interest. Also, it has other trade receivable of US $ 1,76,741.72(Equivalent Indian Rs. 11,046,358/- as at year end) due from GM which it has continue to carry at book value. In the mean time company came to know that order share holders have put in more equity fund in the companies and raised their interest developments and after having exhausted all informal channels, finally in current financial year i.e.in F.Y.2015-16 company has lodged a suite in court of law in USA and claimed remedy and specific performance under share holder''s agreement. It has made a plea before the court of law that its equity interest be brought out and it be paid compensation as per share holder''s agreement. Management if the company has been advised by its USA Lawyers that, there is more than probable chance of it getting its claim. Considering this company has continued to show it investment at cost and other receivables from these companies at book value and has not make any provision for loss by way of diminution in value of investment or bad debts for book debts. However as it has now filed a suite and expressed its intention to transfer or sale its equity interest in those companies, same has been classified as current investments.

9. The company has demand in respect of Income Tax for the Assessment Year 2013-14 of Rs. 1,44,430/-, Assessment Year 2012-13 of Rs. 74510/-and Assessment year 11-12 of Rs. 25,41,407/-.

10. The previous year''s figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.

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Mar 31, 2016

1. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Details to be given for each class of shares separately for Issued, Subscribed and fully paid up and Subscribed but not fully paid up as applicable.

2. *Secured by hypothecation of Stock , Debtors and equitable mortgage of Plant & Machinery and Factory Building other movable assets at Unit No. 102, Tower No.l, SEEPZ , SEEPZ SEZ, Andheri (E), Mumbai-400 096 and mortgage of property situated at Juhu, Mumbai in name of, Mr.Mahesh Navadia (Director) the said limit is also secured by personal guarantee of Director & relatives of directors.

3. Above loans were drawn from time to time under a sanction letter which is renewable after one year against documents in the nature of Bills for raw material labour charges and export sales.

4. Intrest is payable as per Reserve Bank of India /State Bank of India Guidelines and linked to base Rate.

5. Tenure of Each Individual PC loan is 180 Days(PNB & SBP) and that of Loan Against bill is up to due date of Respective Bill.

6. As per Accounting Standard 15 "Employee benefits", the disclosures as defined in the Accounting Standard are given below:

(i) Defined Contribution Plan :

Contribution to Provident Fund is ? 4,73,654/- (Previous year ? 3,25,378/-), ESIC and Labour Welfare Fund includes ?

15,744/-(Previous year ? 31,673/-).

(ii) Defined Benefit Plan :

Gratuity & Leave Encashment:

The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five years of continuous service.

PATDIAM JEWELLERY LIMITED

NOTES ON ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2016

7. CONTINGENT LIABILITIES NOT PROVIDED FOR :

a) The Company has executed Bank Guarantee of? 120,000,000/- (Previous year ? 120,000,000/-) favoring Punjab National Bank Mumbai for its direct control by key managerail, Patdiam Jewels of firm, Mumbai.

8. Estimated amount of Contracts remaining to be executed on Capital Account and not provided for ?.Nil. (Previous year ?.Nil.)

9. IN THE OPINION OF THE DIRECTORS :

a) The Current Assets and Loans & Advances are approximately of the value stated, if realized in the ordinary course of business.

c) The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary

10. DETAILS OF RELATED PARTIES TRANSACTIONS ARE AS UNDER:

a) List of related parties and relationship where control exists or with whom transactions were entered into :

Sr. No. Relationship Name of the Related Party

11 Key Management Personnel Mr. Samir Kakadia (Managing Director)

Mr. Jayesh Avaiya (Director)

Mr. Paresh Shah (Director)

Mr. Prakash Shah (Director)

12 Enterprise over which Key Managerial Patdiam Personnel has direct control Patdiam Jewels

13 Relative of Key Management Personnel Mr. Keval C. Navadia (Son of Director)

14 All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

15 The previous year''s figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.