Accounting Policies of Rajesh Exports Ltd. Company

Mar 31, 2024

iii. Significant accounting Policies:

a) Property, Plant and Equipments Reorganization and Measurement

Fixed assets are stated at historical cost less accumulated depreciation and impairment loss if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure on fixed assets after its purchase/ completion is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Intangible assets are stated at cost less accumulated amortization and impairment.

Intangible assets are amortized over their respective individual estimated useful life on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on number of factors including the effects of obsolescence, demand, competition and other economic factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful life are reviewed periodically including at each financial year end. Expenditure on research and development eligible for capitalization is carried as intangible assets under development where such assets are not yet ready for their intended use.

Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

Depreciation :

The Company has provided depreciation on straight line method over the useful lives of the assets estimated by the management as per Schedule II of the Companies Act, 2013. Depreciation on additions or extensions to existing assets is provided so as to coterminate with the life of the original asset if it becomes internal part of the existing asset or on the useful life of the asset if it is capable of independent use.

Depreciation on additions (disposals) provided on prorata basis, i.e, from (up to) the date on which asset is ready for use (Disposed of)

b) Investment Property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of the business, use in the production or supply of goods or services or for administrative purposes. upon initial reorganization, investment property is measured at cost. subsequent to initial reorganization, investment property is measured at cost less accumulated depreciation and accumulated impairment losses, if any.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its investment property recognised as at 1 April 2015, measured as per the previous GAAP and use that carrying value as the deemed cost of such investment property.

c) Impairment of Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward- looking information.

iv. Inventories

Raw materials and stores, work-in-progress, traded and finished goods are stated at the lower of cost, calculated on weighted average basis, and net realizable value. Cost of raw materials and stores comprise of cost of purchases. Cost of work-in- progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also includes all other cost incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Items held for use in the production of inventory are not written below cost if the finished products in which these will be incorporated are expected to be sold at or above cost.

v. Revenue Recognization

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates, Goods & Service Tax (GST) and amounts collected on behalf of third parties.

a) Revenue from sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, revenue can be measured reliably, the cost incurred can be measured reliably, it is probable that the economic benefits associated to the transaction will flow to the entity and there is no continuing management involvement with the goods. Transfer of risks and rewards vary depending on the individual terms of contract of sale.

b) Dividend Income

Dividend income on investments is accounted for when the right to receive the payment is established, which is generally when shareholders approve the dividend.

c) Interest Income

For all financial instruments measured at amortised cost, interest income is recognized using the effective interest rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. Interest income is included in Other Income in the Statement of Profit and Loss.

d) Rental income

Rental income from property leased under operating lease is recognised in the statement of profit and loss on an actual basis over the term of the lease since the rentals are in line with the expected general inflation. Lease incentives granted are recognised as an integral part of the total rental income.

vi. Leases

At inception of an arrangement, company determines whether the arrangement is or contains a lease

1. Assets Held under lease

Lease of property, plant and equipment that transfer to the company substantially all the risk and rewards of ownership are classified as finance lease.

The assets held under lease that don’t transfer the company sustainably all risks and rewards of ownership (Operating Lease) are not considered in company’s balance sheet.

2. Lease Payments

Payments made under operating leases are generally recognized in profit or loss on straight line basis over the term of lease. Minimum lease payment made under financial leases is apportioned between finance charge and deduction of the outstanding liability.

3. Lease Income

Lease income from operating leases where the group is a lessor is recognized in income on actual basis over the lease term, since the lease receipts are in line with general inflation rate.

vii. Financial Instruments a) Financial Assets :

Recognition and Initial Measurement:

Trade Receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the company become the party to the contractual provisions of the instruments.

Classification and Subsequent Measurement

Financial assets at FVTPL -

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

Financial assets at amortized cost -

These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

Equity investments at FVOCI -

These assets are subsequently measured at Fair Value except for investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, which shall be measured at cost. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are not reclassified to profit or loss.

Debt investments at FVTPL-

These assets are subsequently measured at fair value. Interest income under the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in statement of profit and loss.

Derecognition

The Company derecognises 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 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 derecognised.

b) Financial Liabilities :

Recognization and Initial Measurement

Financial Liabilities initially recognized at fair value less transaction cost, that are directly attributable and subsequently measured at amortized cost.

Classification and Subsequent Measurement

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability atleast 12 months after the reporting period.

Derecognition

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expired.

viii. Employee Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period as and when the contribution to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Company’s employees are not participating in Superannuation Schemes/ Plan.

The company provides for gratuity a defined benefit retirement plan (the Gratuity plan) covering eligible employees. The gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on respective employee salary and tenure of employment with the company.

Liabilities with regard to the gratuity plan are determined by actuarial valuation, performed by independent actuary, at each balance sheet date using the projected unit credit method.

The Company does not provide leave encashment and does not carry forward the accumulated leave to next year to its employees.

ix. Foreign Currency Transactions :

For its import and export transactions the company is exposed to currency fluctuations on foreign currency transactions, the company hedges its foreign exchange transactions against its own imports and exports and also by way of forward contracts with banks.

Premium paid on forward contracts is recognized over the life of the contracts.

The Company enters into derivative contracts in the nature of foreign currency options, forward contracts with an intention to hedge its existing assets and liabilities, firm commitments and highly probable transactions.

x. Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets are not recognized for temporary differences between the carrying amount and tax bases of investments in subsidiaries where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively

Deferred Tax Assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognized as deferred tax asset in the Balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realized.

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Mar 31, 2023

Significant accounting Policies

a) Property, Plant and Equipments
Reorganization and Measurement

Fixed assets are stated at historical cost less accumulated depreciation and impairment
loss if any. The cost comprises purchase price, borrowing costs if capitalization criteria
are met and includes financing cost if any, relating to borrowed funds attributable to
construction or acquisition of fixed assets, up to the date when the asset is ready for
intended use, any trade discounts and rebates are deducted in arriving at the purchase
price. Subsequent expenditure on fixed assets after its purchase/ completion is capitalized
only if such expenditure results in an increase in the future benefits from such asset
beyond its previously assessed standard of performance.

Intangible assets are stated at cost less accumulated amortization and impairment.

Intangible assets are amortized over their respective individual estimated useful life
on a straight-line basis, from the date that they are available for use. The estimated
useful life of an identifiable intangible asset is based on number of factors including the
effects of obsolescence, demand, competition and other economic factors, and the level
of maintenance expenditures required to obtain the expected future cash flows from the
asset. Amortization methods and useful life are reviewed periodically including at each
financial year end. Expenditure on research and development eligible for capitalization
is carried as intangible assets under development where such assets are not yet ready
for their intended use.

Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed
under capital work-in-progress. Advances paid towards the acquisition of fixed assets
outstanding as of each balance sheet date is disclosed under long term loans and
advances.

Depreciation :

The Company has provided depreciation on straight line method over the useful lives
of the assets estimated by the management as per Schedule II of the Companies Act,
2013. Depreciation on additions or extensions to existing assets is provided so as to co¬
terminate with the life of the original asset if it becomes internal part of the existing
asset or on the useful life of the asset if it is capable of independent use.

Depreciation on additions (disposals) provided on prorate basis, i.e from (up to) the
date on which asset is ready for use (Disposed of).

b) Investment Property

Investment property is property held either to earn rental income or for capital
appreciation or for both, but not for sale in the ordinary course of the business, use
in the production or supply of goods or services or for administrative purposes. upon
initial reorganization, investment property is measured at cost. subsequent to initial
reorganization, investment property is measured at cost less accumulated depreciation
and accumulated impairment losses, if any

On transition to Ind AS, the Company has elected to continue with the carrying value
of all of its investment property recognised as at 1 April 2015, measured as per the
previous GAAP and use that carrying value as the deemed cost of such investment
property.

c) Impairment of Assets

Assets are tested for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized
for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs of disposal
and value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets (cash-generating
units). Non-financial assets that suffered an impairment are reviewed for possible
reversal of the impairment at the end of each reporting period.

When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating expected credit losses, the Company
considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and
analysis, based on the Company’s historical experience and informed credit assessment
and including forward- looking information.

iv. Inventories

Raw materials and stores, work-in-progress, traded and finished goods are stated at the
lower of cost, calculated on weighted average basis, and net realizable value. Cost of raw
materials and stores comprise of cost of purchases. Cost of work-in- progress and finished
goods comprises direct materials, direct labour and an appropriate proportion of variable
and fixed overhead expenditure, the latter being allocated on the basis of normal operating
capacity. Cost of inventories also includes all other cost incurred in bringing the inventories
to their present location and condition. Costs of purchased inventory are determined after
deducting rebates and discounts. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated costs of completion and the estimated costs
necessary to make the sale. Items held for use in the production of inventory are not written
below cost if the finished products in which these will be incorporated are expected to be
sold at or above cost.

v. Revenue Recognization

Revenue is measured at the fair value of the consideration received or receivable. Amounts
disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates,
sales tax, value added taxes, Goods & Service Tax (GST) and amounts collected on behalf
of third parties.

a) Revenue from sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of
ownership have been transferred to the buyer, revenue can be measured reliably, the cost
incurred can be measured reliably, it is probable that the economic benefits associated
to the transaction will flow to the entity and there is no continuing management
involvement with the goods. Transfer of risks and rewards vary depending on the
individual terms of contract of sale.

b) Dividend Income

Dividend income on investments is accounted for when the right to receive the payment
is established, which is generally when shareholders approve the dividend.

c) Interest Income

For all financial instruments measured at amortised cost, interest income is recognized
using the effective interest rate (EIR), which is the rate that exactly discounts the
estimated future cash payments or receipts through the expected life of the financial
instrument or a shorter period, where appropriate, to the net carrying amount of the
financial asset. Interest income is included in Other Income in the Statement of Profit
and Loss.

d) Rental income

Rental income from property leased under operating lease is recognised in the statement
of profit and loss on an actual basis over the term of the lease since the rentals are
in line with the expected general inflation. Lease incentives granted are recognised as
an integral part of the total rental income.

vi. Leases

At inception of an arrangement, company determines whether the arrangement is or contains
a lease.

1. Assets Held under lease

Lease or property, plant and equipment that transfer to the company substantially all
the risk and rewards of ownership are classified as finance lease.

The assets held under lease don’t transfer the company sustainably all risks and rewards
of ownership (Operating Lease) are not considered in company’s balance sheet.

2. Lease Payments

Payments made under operating leases are generally recognized in profit or loss on
straight line basis over the term of lease. Minimum lease payment made under financial
leases is apportioned between finance charge and deduction of the outstanding liability.

3. Lease Income

Lease income from operating leases where the group is a lessor is recognized in income
on actual basis over the lease term. Since, the lease receipts are in line with general
inflation rate.

vii. Financial Instruments
a) Financial Assets :

Recognition and Initial Measurement:

Trade Receivables and debt securities issued are initially recognized when they are
originated. All other financial assets and financial liabilities are initially recognized
when the company become the party to the contractual provisions of the instruments.

Classification and Subsequent Measurement

Financial assets at FVTPL -

These assets are subsequently measured at fair value. Net gains and losses, including
any interest or dividend income, are recognized in profit or loss.

Financial assets at amortized cost -

These assets are subsequently measured at amortized cost using the effective interest
method. The amortized cost is reduced by impairment losses. interest income, foreign
exchange gains and losses and impairment are recognized in profit or loss. Any gain
or loss on derecognition is recognized in profit or loss.

Equity investments at FVOCI -

These assets are subsequently measured at fair value. Dividends are recognized as
income in profit or loss unless the dividend clearly represents a recovery of part of
the cost of the investment. Other net gains and losses are recognized in OCI and are
not reclassified to profit or loss.

Debt investments at FVTPL-

These assets are subsequently measured at fair value. Interest income under the effective
interest method, foreign exchange gains and losses and impairment are recognised in
profit or loss. Other net gains and losses are recognised in statement of profit and loss.

Derecognition

The Company derecognises 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 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 derecognised.

b) Financial Liabilities :

Recognization and Initial Measurement

Financial Liabilities initially recognized at fair value less transaction cost, that are
directly attributable and subsequently measured at amortized cost.

Classification and Subsequent Measurement

Borrowings are classified as current liabilities unless the company has an unconditional
right to defer settlement of the liability atleast 12 months after the reporting period.

Derecognition

The Company derecognises a financial liability when its contractual obligations are
discharged or cancelled, or expired.

viii. Employee Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period
as and when the contribution to the respective fund is due. The Company has no obligation,
other than the contribution payable under the respective scheme. Company’s employees
are not participated in Superannuation Schemes/ Plan.

The company provides for gratuity a defined benefit retirement plan (the Gratuity plan)
covering eligible employees. The gratuity plan provides a lump sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount
based on respective employee salary and tenure of employment with the company.

Liabilities with regard to the gratuity plan or determined by actuarial valuation, performed
by independent actuary, at each balance sheet date using the projected unit credit method.

The Company does not provide leave encashment and carry forward of accumulated leave
to next year to its employees.

ix. Foreign Currency Transactions :

For its import and export transactions the company is exposed to currency fluctuations on
foreign currency transactions, the company hedges its foreign exchange transactions against
its own imports and exports and also by way of forward contracts with banks.

Premium paid on forward contracts is recognized over the life of the contracts.

The Company enters into derivative contracts in the nature of foreign currency options, forward
contracts with an intention to hedge its existing assets and liabilities, firm commitments
and highly probable transactions.

x. Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s
taxable income based on the applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the end of the reporting period. Management periodically evaluates
positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation. It establishes provisions, where appropriate, on the basis of
amounts expected to be paid to the tax authorities

Deferred income tax is provided in full, using the liability method, on temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the
financial statements. Deferred income tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the end of the reporting period and are expected
to apply when the related deferred income tax asset is realized or the deferred income tax
liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax
losses only if it is probable that future taxable amounts will be available to utilize those
temporary differences and losses.

Deferred tax assets are not recognized for temporary differences between the carrying amount
and tax bases of investments in subsidiaries where it is not probable that the differences
will reverse in the foreseeable future and taxable profit will not be available against which
the temporary difference can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to
offset current tax assets and liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities are offset where the entity
has a legally enforceable right to offset and intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates
to items recognized in other comprehensive income or directly in equity. In this case, the
tax is also recognized in other comprehensive income or directly in equity, respectively

Deferred Tax Assets include Minimum Alternative Tax (MAT) paid in accordance with the
tax laws in India, which is likely to give future economic benefits in the form of availability
of set off against future income tax liability. Accordingly, MAT is recognized as deferred
tax asset in the Balance sheet when the asset can be measured reliably and it is probable
that the future economic benefit associated with the asset will be realized.

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Mar 31, 2022

1 Company Information and significant accounting Policies

i. Reporting Entity:

Rajesh Export Limited(“The Company”) is an Indian Public Company and limited by shares. incorporated under provisions of Companies Act, 1956, the shares of the company are traded on the BSE and NSE Limited. The address of the company’s registered office is #4, Batavia Chambers, Kumara Krupa Road, Kumara park East, Bangalore-560 001. The Company is leading gold refiner and Manufacturer of all kind of Gold products. The Company exports its products to various countries around the world and it also sells its products in whole sale and retail in India and also has retail showrooms under the brand name of SHUBH Jewellers. REL has setup various manufacturing facilities in India and in other countries.

ii. Basis of Preparation

A. Statement of Compliances

The standalone financial Statements are prepared on accrual basis of accounting except for the statement of cash flows and comply with the Indian Accounting Standards (Ind AS) notified under the companies (Indian Accounting Standards) Rules and Companies (Indian Accounting Standards)Amendment Rules, 2016, The companies Act 2013( to the extent notified and applicable), other relevant provisions of the Act and Guidelines issued by the Security Exchange Board of India (SEBI).

B. Basis of Measurement:

The Financial statements have been prepared at Historical cost except the following items

• Defined benefit plan - plan assets measured at fair value.

• Certain Financial Assets and Liabilities measured at fair market value

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

C. Functional and Presentation Currency

The Financial statements are presented in Indian Rupees (INR), which is the company’s functional currency. All financial information presented in INR has been rounded off to the nearest in Lakhs

D. Use of Estimate and Judgments

Estimates and underlying assumption are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.

Judgments

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the standalone financial statements is included in the following notes:

Note: 2 :- Lease Classification Assumption and Estimation Uncertainties

Information about assumptions and estimations uncertainties that have a risk significant of resulting in material adjustments in the year ended 31st March 2022 is included in the following notes:

Note 1 and 2 : Depreciation and amortization method and useful life of items of properties, Plant & Equipments and Investment properties

Note 1 & 23 : Measurement of defined benefit obligations : Key actuarial assumptions

Note 1, 19 & 26 : Reorganization and measurement of provisions and contingencies: Key assumptions about the likelihood and magnitude of an outflow of resources.

E. Measurement of Fair Value

Some of the company’s accounting policies and disclosures required the measurement of fair values, for both financial and non-financial assets and liabilities

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

Significant valuation issues are reported to the Company’s audit committee. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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 prices (unadjusted) in active markets for identical assets or liabilities.

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

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy

iii. Significant accounting Policies:

a) Property, Plant and Equipments Reorganization and Measurement

Fixed assets are stated at historical cost less accumulated depreciation and impairment loss if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure on fixed assets after its purchase/ completion is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Intangible assets are stated at cost less accumulated amortization and impairment.

Intangible assets are amortized over their respective individual estimated useful life on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on number of factors including the effects of obsolescence, demand, competition and other economic factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful life are reviewed periodically including at each financial year end. Expenditure on research and development eligible for capitalization is carried as intangible assets under development where such assets are not yet ready for their intended use.

Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

Depreciation :

The Company has provided depreciation on straight line method over the useful lives of the assets estimated by the management as per Schedule II of the Companies Act, 2013. Depreciation on additions or extensions to existing assets is provided so as to coterminate with the life of the original asset if it becomes internal part of the existing asset or on the useful life of the asset if it is capable of independent use.

Asset	Management Estimate of useful life	Useful life as per Schedule II
Building	30-60 years	30-60 years
Plant and Machinery	15 years	15 years
Generator	15 Years	15 years
Furniture and Fixtures	10 Years	10 Years
Office Equipment	05 Years	05 Years
Weighing Scale	15 years	15 years
Borewell	30-60 years	30-60 years
Technical Knowhow	8 Years	8 Years
Motor Vehicles	8 Years	8 Years
Lease hold land	Lease Term	Lease Term

Depreciation on additions (disposals ) provided on prorate basis, i.e from (up to) the date on which asset is ready for use (Disposed of)

b) Investment Property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of the business, use in the production or supply of goods or services or for administrative purposes. Upon initial reorganization, investment property is measured at cost. Subsequent to initial reorganization, investment property is measured at cost less accumulated depreciation and accumulated impairment losses, if any.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its investment property recognised as at 1 April 2015, measured as per the previous GAAP and use that carrying value as the deemed cost of such investment property.

c) Impairment of Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward- looking information.

iv. Inventories

Raw materials and stores, work-in-progress, traded and finished goods are stated at the lower of cost, calculated on weighted average basis, and net realizable value. Cost of raw materials and stores comprise of cost of purchases. Cost of work-in- progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also includes all other cost incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Items held for use in the production of inventory are not written below cost if the finished products in which these will be incorporated are expected to be sold at or above cost.

v. Revenue Recognization

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates, sales tax, value added taxes, Goods & Service Tax (GST) and amounts collected on behalf of third parties.

a) Revenue from sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, revenue can be measured reliably,the cost incurred can be measured reliably, it is probable that the economic benefits associated to the transaction will flow to the entity and there is no continuing management involvement with the goods. Transfer of risks and rewards vary depending on the individual terms of contract of sale.

b) Dividend Income

Dividend income on investments is accounted for when the right to receive the payment is established, which is generally when shareholders approve the dividend.

c) Interest Income

For all financial instruments measured at amortised cost, interest income is recognized using the effective interest rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. Interest income is included in Other Income in the Statement of Profit and Loss.

d) Rental income

Rental income from property leased under operating lease is recognised in the statement of profit and loss on an actual basis over the term of the lease since the rentals are in line with the expected general inflation. Lease incentives granted are recognised as an integral part of the total rental income.

vi. Leases

At inception of an arrangement, company determines whether the arrangement is or contains a lease.

1. Assets Held under lease

Lease or property,plant and equipment that transfer to the company substantially all the risk and rewards of ownership are classified as finance lease.

The assets held under lease don’t transfer the company sustainably all risks and rewards of ownership (Operating Lease) are not considered in company’s balance sheet.

2. Lease Payments

Payments made under operating leases are generally recognized in profit or loss on straight line basis over the term of lease. Minimum lease payment made under financial leases is apportioned between finance charge and deduction of the outstanding liability.

3. Lease Income

Lease income from operating leases where the group is a lessor is recognized in income on actual basis over the lease term .Since the lease receipts are inline with general inflation rate.

vii. Financial Instruments a) Financial Assets :

Recognition and Initial Measurement:

Trade Receivables and debt securities issued are initially recognized when they are originated .All other financial assets and financial liabilities are initially recognized when the company become the party to the contractual provisions of the instruments.

Classification and Subsequent Measurement

Financial assets at FVTPL -

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss

Financial assets at amortized cost -

These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

Equity investments at FVOCI -

These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are not reclassified to profit or loss.

Debt investments at FVTPL-

These assets are subsequently measured at fair value. Interest income under the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in statement of profit and loss.

Derecognition

The Company derecognises 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 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 derecognised.

b) Financial Liabilities :

Recognization and Initial Measurement

Financial Liabilities initially recognized at fair value less transaction cost, that are directly attributable and subsequently measured at amortized cost

Classification and Subsequent Measurement

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability atleast 12 months after the reporting period.

Derecognition

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expired.

viii. Employee Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period as and when the contribution to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Company’s employees have not participated in Superannuation Schemes/ Plan.

The company provides for gratuity a defined benefit retirement plan (the Gratuity plan) covering eligible employees. The gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on respective employee salary and tenure of employment with the company. Liabilities with regard to the gratuity plan or determined by actuarial valuation, performed by independent actuary, at each balance sheet date using the projected unit credit method. The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

ix. Foreign Currency Transactions :

For its import and export transactions the company is exposed to currency fluctuations on foreign currency transactions, the company hedges its foreign exchange transactions against its own imports and exports and also by way of forward contracts with banks.

Premium paid on forward contracts is recognized over the life of the contracts.

The Company enters into derivative contracts in the nature of foreign currency options, forward contracts with an intention to hedge its existing assets and liabilities, firm commitments and highly probable transactions.

x. Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets are not recognized for temporary differences between the carrying amount and tax bases of investments in subsidiaries where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively

For operations carried out in Special Economic Zones which are entitled to tax holiday under the Income tax Act, 1961 no deferred tax is recognized in respect of timing differences which reverse during the tax holiday period, to the extent company’s gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is recognized in the year in which timing difference originate.

Deferred Tax Assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognized as deferred tax asset in the Balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realized.

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.

xiv. Recent accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards.

There is no such notification which would have been applicable from 1 April 2021.

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Mar 31, 2019

Note No 1

Company Information and significant accounting Policies i. Reporting Entity:

Rajesh Export Limited ("The Company") is an Indian Public Company and limited by shares, incorporated under provisions of Companies Act , 1956, The share of the company traded on the BSE and NSE Limited. The address of the company''s registered office is #4, Batavia Chambers, Kumara Krupa Road, Kumara park East, Bangalore-560 001. The Company is a leading gold refiner and Manufacturer of all kind of Gold products. The Company exports its products to various countries around the world and it also sells its products in whole sale and retail in India and also through its Own retail showrooms under the brand name of SHUBH Jewellers. REL has setup various manufacturing facilities in India and other countries.

ii. Basis of Preparation

A. Statement of Compliances

The standalone financial Statements are prepared on accrual basis of accounting except for the statement of cash flows and comply with the Indian Accounting Standards (Ind AS) notified under the companies (Indian Accounting Standards) Rules and Companies (Indian Accounting Standards) Amendment Rules, 2016, The companies Act 2013 (to the extent notified and applicable), other relevant provisions of the Act and Guidelines issued by the Security Exchange Board of India (SEBI).

B. Basis of Measurement:

The Financial statements have been prepared at Historical cost except the following items

• Defined benefit plan - plan assets measured at fair value.

• Certain Financial Assets and Liabilities measured at fair market value

C. Functional and Presentation Currency

The Financial statements are presented in Indian Rupees (INR), which is the company''s functional currency. All financial information presented in INR has been rounded off to the nearest in Lakhs

D. Use of Estimate and Judgments

In preparing these financial statements, management has made judgments, estimates and assumptions, that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.

Judgments

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the standalone financial statements is included in the following notes:

Note: 2 :- Lease Classification

Assumption and Estimation Uncertainties

Information about assumptions and estimation uncertainties that have a risk significant of resulting in material adjustments in the year ended 31st March 2019 is included in the following notes:

Information about assumptions and estimations uncertainties that have a risk significant of resulting in material adjustments in the year ended 31st March 2018 is included in following notes:

Note 1 and 2 : Depreciation and amortization method and useful life of items of properties, Plant & Equipments and Investment properties

Note 1 & 23 : Measurement of defined benefit obligations : Key actuarial assumptions

Note 1, 19 & 26 : Reorganization and measurement of provisions and contingencies: Key assumptions about the likelihood and magnitude of an outflow of resources.

E. Measurement of Fair Value

A number of the company''s accounting policies and disclosures required the measurement of fair values, for both financial and non-financial assets and liabilities

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

Significant valuation issues are reported to the Company''s audit committee. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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 prices (unadjusted) in active markets for identical assets or liabilities.

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

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy

iii. Significant accounting Policies:

a) Property, Plant and Equipments Reorganization and Measurement

Fixed assets are stated at historical cost less accumulated depreciation and impairment loss if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure on fixed assets after its purchase/ completion is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Intangible assets are stated at cost less accumulated amortization and impairment.

Intangible assets are amortized over their respective individual estimated useful life on a straight-line basis, from the date that they are available for useful. The estimated useful life of an identifiable intangible asset is based on number of factors including the effects of obsolescence, demand, competition and other economic factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful life are reviewed periodically including at each financial year end. Expenditure on research and development eligible for capitalization is carried as intangible assets under development where such assets are not yet ready for their intended use.

Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

Depreciation :

The Company has provided depreciation on straight line method over the useful lives of the assets estimated by the management as per Schedule II of the Companies Act, 2013. Depreciation on additions or extensions to existing assets is provided so as to co-terminate with the life of the original asset if it becomes internal part of the existing asset or on the useful life of the asset if it is capable of independent use.

Asset	Management Estimate of useful life	Useful life as per Schedule II
Building	30-60 years	30-60 years
Plant and Machinery	15 years	15 years
Generator	15 Years	15 years
Furniture and Fixtures	10 Years	10 Years
Office Equipment	05 Years	05 Years
Weighing Scale	15 years	15 years
Borewell	30-60 years	30-60 years
Technical Knowhow	8 Years	8 Years
Motor Vehicles	8 Years	8 Years
Lease hold land	Lease Term	Lease Term

Depreciation on additions (disposals) is provided on prorata basis, i.e from (up to) the date on which asset is ready for use (Disposed of)

b) Investment Property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of the business, use in the production or supply of goods or services or for administrative purposes. Upon initial reorganization, investment property is measured at cost. Subsequent to initial reorganization, investment property is measured at cost less accumulated depreciation and accumulated impairment losses, if any.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its investment property recognised as at 1 April 2015, measured as per the

previous GAAP and use that carrying value as the deemed cost of such investment property.

c) Impairment of Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s historical experience and informed credit assessment and including forward- looking information.

iv. Inventories

Raw materials and stores, work-in-progress, traded and finished goods are stated at the lower of cost, calculated on weighted average basis, and net realizable value. Cost of raw materials and stores comprise of cost of purchases. Cost of work-in- progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also includes all other cost incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Items held for use in the production of inventory are not written below cost if the finished products in which these will be incorporated are expected to be sold at or above cost. v. Revenue Recognization

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates, sales tax, value added taxes, Goods & Service Tax (GST) and amounts collected on behalf of third parties.

a) Revenue from sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, revenue can be measured reliably, the cost incurred can be measured reliably, it is probable that the economic benefits associated to the transaction will flow to the entity and there is no continuing management involvement with the goods. Transfer of risks and rewards vary depending on the individual terms of contract of sale.

b) Dividend Income

Dividend income on investments is accounted for when the right to receive the payment is established, which is generally when shareholders approve the dividend.

c) Interest Income

For all financial instruments measured at amortised cost, interest income is recognized using the effective interest rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset.

d) Rental income

Rental income from property leased under operating lease is recognised in the statement of profit and loss on an actual basis over the term of the lease since the rentals are in line with the expected general inflation. Lease incentives granted are recognised as an integral part of the total rental income.

vi. Leases

At inception of an arrangement, company determines whether the arrangement is or contains a lease

1. Assets Held under lease

Lease or property, plant and equipment that transfer to the company substantially all the risk and rewards of ownership are classified as finance lease.

The assets held under lease that don''t transfer the company sustainably all risks and rewards of ownership (Operating Lease) are not considered in company''s balance sheet.

2. Lease Payments

Payments made under operating leases are generally recognized in profit or loss on straight line basis over the term of lease. Minimum lease payment made under financial leases is apportioned between finance charge and deduction of the outstanding liability.

3. Lease Income

Lease income from operating leases where the group is a lessor is recognized in income on actual basis over the lease term. Since the lease receipts are in line with general inflation rate.

vii. Financial Instruments a) Financial Assets :

Recognition and Initial Measurement:

Trade Receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the company becomes the party to the contractual provisions of the instruments.

Classification and Subsequent Measurement Financial assets at FVTPL -

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss

Financial assets at amortized cost -

These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign

exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

Equity investments at FVOCI -

These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are not reclassified to profit or loss.

Debt investments at FVTPL-

These assets are subsequently measured at fair value. Interest income under the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in statement of profit and loss.

Derecognition

The Company derecognises 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 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 derecognised.

b) Financial Liabilities :

Recognization and Measurement

Financial Liabilities initially recognized at fair value less transaction cost, that are directly attributable and subsequently measured at amortized cost

Classification and Subsequent Measurement

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability atleast 12 months after the reporting period.

Derecognition

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expired.

viii. Employee Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period as and when the contribution to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Company''s employees have not participated in Superannuation Schemes/ Plan.

The company provides for gratuity a defined benefit retirement plan (the Gratuity plan) covering eligible employees. The gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on respective employee salary and tenure of employment with the company. Liabilities with regard to the gratuity plan or determined by actuarial valuation, performed by independent actuary, at each balance sheet date using the projected unit credit method. The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

ix. Foreign Currency Transactions :

For its import and export transactions the company is exposed to currency fluctuations on foreign currency transactions, the company hedges its foreign exchange transactions against its own imports and exports and also by way of forward contracts with banks. Premium paid on forward contracts is recognized over the life of the contracts. The Company enters into derivative contracts in the nature of foreign currency options, forward contracts with an intention to hedge its existing assets and liabilities, firm commitments and highly probable transactions. x. Income Tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets are not recognized for temporary differences between the carrying amount and tax bases of investments in subsidiaries where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively For operations carried out in Special Economic Zones which are entitled to tax holiday under the Income tax Act, 1961 no deferred tax is recognized in respect of timing differences which reverse during the tax holiday period, to the extent company''s gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is recognized in the year in which timing difference originate.

Deferred Tax Assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognized as deferred tax asset in the Balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realized.

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

Provisions are recognized when the company has a present legal and constructive obligation 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 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 managements best estimates. Expenditure will be required to settle the present obligation at the end of the reporting period.

Disclosures of contingent liability is a 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.

xiv. Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

xv. Recent accounting Pronouncements - Issued and effective

Amendment to Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was issued on 28 March 2018 and supersedes Ind AS 11 Construction Contracts and Ind AS 18 Revenue and it applies, with limited exceptions, to all revenue arising from contracts with its customers. Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures.

The Company adopted Ind AS 115 using the modified retrospective method of adoption. The change did not have a material impact on the financial statements of the Company.

Amendment to Ind AS 21 The Effects of Changes in Foreign Exchange Rates

On March 28, 2018, Ministry of Corporate Affairs (MCA) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21.

• Appendix B to Ind AS 21 applies when:

a. Pays or receives consideration denominated or priced in a foreign currency and

b. Recognises a non-monetary prepayment asset or deferred income liability - e.g. non-refundable advance consideration before recognising the related item at a later date.

• Date of transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration.

• If there are multiple payments or receipts in advance, the entity should determine a date of the transaction for each payment or receipt of advance consideration.

The amendment has come into force from April 1, 2018.

The Company has evaluated the effect of this on the financial statements and the impact is not material.

Amendment to Ind AS 40 Investment Property

The amendment lays down the principle regarding when a company should transfer an asset to, or from, an investment property.

1) A transfer is made when and only when:

a. There is an actual change of use i.e. an asset meets or ceases to meet the definition of investment property.

b. There is evidence of the change in use.

2) In isolation, a change in management''s intentions for the use of a property does not provide evidence of a change in use.

The amendment will come into force from April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.

xvi. Recent Accounting Pronouncement: Issued and not effective

Ind AS 115- Revenue from Contract with Customers: The Company is in the process of assessing the detailed impact of Ind AS 115. Consistent with the current practice, recognition of revenue will continue to occur when the significant risks and rewards of ownership have been transferred to the buyer, which is also when the control of the asset is transferred to the customer under Ind AS 115.

Certain new standards, amendments to standards and interpretations are not yet effective for annual periods beginning after April 1 2018, and have not been applied in preparing these standalone financial statements. New standards, amendments to standards and interpretations that could have potential impact on the standalone financial statements of the Company are:

Ind AS 116 - Leases

On March 30, 2019, Ministry of Corporate Affairs notified Ind AS 116, Leases. Ind AS 116 will replace the existing leases Standard, Ind AS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The Standard also contains enhanced disclosure requirements for lessees.

The standard allows for two methods of transition:

Full retrospective approach, requires entities to retrospectively apply the new standard to each prior reporting period presented and the entities need to adjust equity at the beginning of the earliest comparative period presented, or

Modified retrospective approach, under which the date of initial application of the new leases standard, lessees recognise the cumulative effect of initial application as an adjustment to the opening balance of equity as of annual periods beginning on or after April 1, 2019.

The Company will adopt this standard using modified retrospective method effective April 1, 2019, and accordingly, the comparative for year ended March 31, 2018 and 2019, will not be retrospectively adjusted. The Company has elected certain available practical expedients on transition.

The company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

Appendix C to Ind AS 12 - Uncertainty over income tax treatments

On March 30, 2019, Ministry of Corporate Affairs issued Appendix C to Ind AS 12, which clarifies the accounting for uncertainties in income taxes. The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. The entity has to consider the probability of the relevant taxation authority accepting the tax treatment and the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates would depend upon the probability. The effective date for adoption of Appendix C to Ind AS 12 is April 1, 2019. The Company will apply Appendix C to Ind AS 12 prospectively from the effective date and the effect on adoption of Appendix C to Ind AS 12 on the standalone financial statement is insignificant.

Amendment to Ind AS 12 - Income Taxes

On March 30, 2019, Ministry of Corporate Affairs issued amendments to Ind AS 12 — Income Taxes. The amendments clarify that an entity shall recognise the income tax consequences of dividends on financial instruments classified as equity should be recognised according to where the entity originally recognised those past transactions or events that generated distributable profits were recognised. The effective date of these amendments is annual periods beginning on or after April 1, 2019.

Amendment to Ind AS 19 - Plan Amendment, Curtailment or Settlement

On March 30, 2019, Ministry of Corporate Affairs issued amendments to Ind AS 19, ''Employee Benefits'', in connection with accounting for plan amendments, curtailments and settlements requiring an entity to determine the current service costs and the net interest for the period after the remeasurement using the assumptions used for the remeasurement; and determine the net interest for the remaining period based on the remeasured net defined benefit liability or asset. These amendments are effective for annual reporting periods beginning on or after April 1, 2019. The Company will apply the amendment from the effective date and the effect on adoption of the amendment on the standalone financial statement is insignificant.

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Mar 31, 2018

1 The Company Information and significant accounting Polices

i. Reporting Entity:

1. Rajesh Export Limited (REL) with registered office at #4, Batavia Chambers, Kumara Krupa Road, Kumara park East, Bengaluru-560 001 is an Indian public company limited by shares incorporated under the provisions of The Companies Act 1956. The Company’s shares are publicly traded on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). REL is in the business of gold refining, gold jewellery and various gold products manufacturing, gold jewellery and gold products exports, wholesale and retail. REL is a seamlessly integrated company across the value chain of gold from mining to retailing. REL retails its products through its own retail showrooms under the brand name of “SHUBH Jewellers”. REL has setup various manufacturing facilities in India and other countries.

ii. Basis of Preparation

A. Statement of Compliances

The standalone financial Statements are prepared on accrual basis of accounting except for the statement of cash flows and comply with the Indian Accounting Standards (Ind AS) notified under the companies (Indian Accounting Standards ) Rules 2015 and subsequent Amendments thereto, The companies Act 2013( to the extent notified and applicable), other relevant provisions of the Act and Guidelines issued by the Security Exchange Board of India (SEBI).

B. Basis of Measurement:

The Financial statement have been prepared on a historical cost basis except

- Defined benefit plan - plan assets measured at fair value.

- Certain Financial Assets and Liabilities measured at fair market value

C. Functional and Presentation Currency

The Financial statements are presented in Indian Rupees (INR), which is the company’s functional currency . All financial information presented in INR has been rounded off to the nearest in Lakhs

D. Use of Estimate and Judgments

In preparing these financial statements, management has made judgments, estimates and assumptions, and reported certain items. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.

Judgments

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is included in the following notes:

Note : 2 :- Lease Classification

Assumption and Estimation Uncertainties

Information about assumptions and estimation uncertainties that have a risk significant of resulting in material adjustments in the year ended 31st March 2018 is included in following notes:

- Note 1 and 2 : Depreciation and amortization method and useful life of items of properties, Plant & Equipments and Investment properties

- Note 1 & 22 : Measurement of defined benefit obligations : Key actuarial assumptions

- Note 1, 18 & 25 : Reorganization and measurement of provisions and contingencies : Key assumptions about the likelihood and magnitude of an outflow of resources.

1 E. Measurement of Fair Value

Some of the company’s accounting policies and disclosures required the measurement of fair values, for both financial and Non financial assets and liabilities

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

iii. Significant accounting Policies:

a) Property, Plant and Equipments

Reorganization and Measurement

Fixed assets are stated at historical cost less accumulated depreciation and impairment loss if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure on fixed assets after its purchase/ completion is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Intangible assets are stated at cost less accumulated amortization and impairment.

Intangible assets are amortized over their respective individual estimated useful life on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on number of factors including the effects of obsolescence, demand, competition and other economic factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful life are reviewed periodically including at each financial year end. Expenditure on research and development eligible for capitalization is carried as intangible assets under development where such assets are not yet ready for their intended use.

Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

Depreciation :

The Company has provided depreciation on straight line method over the useful lives of the assets estimated by the management as per Schedule II of the Companies Act, 2013. Depreciation on additions or extensions to existing assets is provided so as to co-terminate with the life of the original asset if it becomes internal part of the existing asset or on the useful life of the asset if it is capable of independent use.

1 b) Investment Property

Investment property is property held either to earn rental income or for capital appreciation or for both , but not for sale in the ordinary course of the business , use in the production or supply of goods or services or for administrative purposes. upon initial reorganization , investment property is measured at cost .subsequent to initial reorganization, investment property is measured at cost less accumulated depreciation and accumulated impairment losses ,if any

c) Impairment of Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

iv. Inventories

Raw materials and stores, work-in-progress, traded and finished goods are stated at the lower of cost, calculated on weighted average basis, and net realizable value. Cost of raw materials and stores comprise of cost of purchases. Cost of work-in-progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other cost incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Items held for use in the production of inventory are not written below cost if the finished product in which these will be incorporated are expected to be sold at or above cost.

v. Revenue Reorganization

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates, sales tax, value added taxes, Goods & Service Tax (GST) and amounts collected on behalf of third parties.

a) Revenue from sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, revenue can be measured reliably ,the cost incurred can be measured reliably.

b) Dividend Income

Dividend income on investments is accounted for when the right to receive the payment is established, which is generally when shareholders approve the dividend.

c) Interest Income

For all financial instruments measured at amortized cost, interest income is recognized using the effective interest rate (EIR), which is the rate that exactly discounts the

1 estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. Interest income is included in Other Income in the Statement of Profit and Loss.

vi. Leases

At inception of an arrangement, company determines whether the arrangement is or contains a lease

1. Assets Held under lease

The assets held under lease don’t transfer the company sustainably all risks and rewards of ownership (Operating Lease) are not considered in company’s balance sheet.

2. Lease Payments

Payments made under operating leases are generally recognized in profit or loss on straight line basis over the term of lease. Minimum lease payment made under financial leases are apportioned between finance charge and deduction of the outstanding liability.

3. Lease Income

Lease income from operating leases where the group is a lessor is recognized in income on actual basis over the lease term. Since the lease receipts are in line with general inflation rate.

vii. Financial Instruments

a) Financial Assets :

Recognization and Measurement:

Trade Receivables and debt securities issued are initially recognized when they originate. All other financial assets and financial liabilities are initially recognized when the company becomes the party to the contractual provisions of the instruments.

b) Financial Liabilities :

Recognization and Measurement

Financial Liabilities initially recognized at fair value less transaction cost, that are directly attributable and subsequently measured at amortized cost

Classification

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability at least 12 months after the reporting period.

viii. Employee Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period as and when the contribution to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Company’s employees are not participants in Superannuation Schemes/ Plan.

The company provides for gratuity, a defined benefit retirement plan (the Gratuity plan) covering eligible employees. The gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on respective employee salary and tenure of employment with the company. Liabilities with regard to the gratuity plan are determined by actuarial valuation, performed by independent actuary, at each balance sheet date using the projected unit credit method.

The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

ix. Foreign Currency Transactions :

For its import and export transactions the company is exposed to currency fluctuations on foreign currency transactions, the company hedges its foreign exchange transactions against its own imports and exports and also by way of forward contracts with banks.

Premium paid on forward contracts is recognized over the life of the contracts.

x. Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets are not recognized for temporary differences between the carrying amount and tax bases of investments in subsidiaries where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively For operations carried out in Special Economic Zones which are entitled to tax holiday under the Income tax Act, 1961 no deferred tax is recognized in respect of timing differences which reverse during the tax holiday period, to the extent company’s gross total income is subject to deduction during the tax holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is recognized in the year in which timing difference originate.

an

Deferred Tax Assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognized as deferred tax asset in the Balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realized.

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

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

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 a result of an obligating event based on a reliable estimate of such obligations.

Disclosures of contingent liability is present obligation as a result of past obligation events.

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.

xiv. Amendment to Ind AS 21 The effect of changes in Foreign exchange Rates

On March 28, 2018 , Ministry of Corporate Affairs (‘MCA”)has notified the companies (Indian Accounting Standards ) Amendment Rule ,2018 containing Appendix B to Ind AS 21.

- Appendix B to Ind AS 21 applies when

a) Pays or receives consideration denominated or Priced in a foreign currency and

b) Recognized a non monetary obligation prepayment asset or deferred income liability -eg: Non-refundable advance consideration before recognizing the related items at later date.

- Date of transaction for the purpose of determination of the exchange rate to use on initial recognition of the related asset, expenses or income (or part of it) is the date on which an entity initially recognizes the non monetary assets or liability arising from the payment or receipt of the advance consideration.

- If there are multiple payments or receipts in advance , the entity should determine a date of the transaction for each payment or receipt of advance consideration.

The amendment will come into force from April 1, 2018 . The Company has evaluated the effects of this on the financial statements and the impact is not material.

xv. Amendment to Ind AS 40 Investment Property

The Amendment lays down the principle with regard to when a company should transfer an asset to or form, investment property

- A transfer made when and only when :

a) There is an actual change of use i.e an asset meets or ceases to meet definition of the investment property.

b) There is evidence of the change of use.

- In isolation, a change in management intention for the use of property does not provide evidence of change in use.

The amendment will come into force from April 1, 2018. The Company has evaluated the effects of this on the financial statements and the impact is not material

xvi. Amendment to Ind AS 12 Income Tax

- Decrease below the cost in the carrying amount of a fixed rate of debts instrument measured at fair value for which the tax base remains at cost gives rise to deductable temporary difference, this applies irrespective of whether debt instrument holders expect to recover the carrying amount of the instruments by sale or by use i.e continuing to hold it, or whether its probable that the issuer will pay all contractual cash flows.

- The amendment explains that determining temporary difference and estimating probable future taxable profit against which deductable temporary difference are assessed for utilization are two separate steps.

- Carrying amount of the asset is relevant only to determining temporary difference. It does not limit the estimation of probable future taxable profits.

The amendment will come into force from April 1, 2018. The Company has evaluated the effects of this on the financial statements and the impact is not material.

xvii. Recent Accounting Pronouncement:

Ind AS 115- Revenue from Contract with Customers: The Company is in the process of assessing the detailed impact of Ind AS 115. Consistent with the current practice, recognition of revenue will continue to occur when the significant risks and rewards of ownership have been transferred to the buyer, which is also when the control of the asset is transferred to the customer under Ind AS 115.

The company intends to adopt the standard using the modified retrospective approach which means that the cumulative impact of the adoption will be recognized in retained earnings as of 1 April 2018 and that comparatives will not be restated.

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Mar 31, 2017

Company Overview

Rajesh Exports Limited (“The Company”) is an Indian public Company incorporated under the provisions of Companies Act, 1956. The Company is a leading gold refiner and manufacturer of all kinds of Gold Products. The Company exports its products to various countries around the world and it also sells its products in whole sale and retail in India and also through its own retail showrooms under the brand name of SHUBH Jewellers.

The Company is head quartered in Bangalore and manufacturing units at Whitefield, SIDCUL Division at Uttarakhand and SEZ Unit at Cochin and subsidiary M/s.REL Singapore Pte Ltd at Singapore.

The Financial Statements are approved for issue by the Company’s Board of Directors on 26th May 2017.

1. Significant Accounting policies.

i. Basis of preparation of Standalone financial statements

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis. The Ind AS are prescribed under Section 133 of the Companies Act 2013(“Act”) read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

ii. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgments, estimates and assumptions that affect the application accounting policies and the reported amounts of Assets and Liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of income and expenses during the year. Estimates and underlying assumptions are reviewed on an ongoing basis.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

iii. Fixed assets and Capital work-in-progress

a. Fixed Assets (Tangible/Intangible Assets):

Fixed assets are stated at historical cost less accumulated depreciation and impairment loss if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure on fixed assets after its purchase/ completion is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful life on a straight line basis, from the date that they are available for useful. The estimated useful life of an identifiable intangible asset is based on number of factors including the effects of obsolescence, demand, competition and other economic factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful life are reviewed periodically including at each financial year end. Expenditure on research and development eligible for capitalization is carried as intangible assets under development where such assets are not yet ready for their intended use.

b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iv. Depreciation and Amortization Cost

The Company has provided depreciation on straight line method over the useful lives of the assets estimated by the management as per Schedule II of the Companies Act, 2013. Depreciation on additions or extensions to existing assets is provided so as to co-terminate with the life of the original asset if it becomes internal part of the existing asset or on the useful life of the asset if it is capable of independent use.

For Assets whose unit cost does not exceed Rs. 5,000 /- depreciation is provided at the rate of 100% in the year of capitalization.

v. Inventories

Stock in trade is valued at cost or net realizable value, whichever is less. The cost formula used for this purpose is first in first out (FIFO) method. Cost of inventories comprises all costs of purchase, cost of conversion and the cost incurred in bringing the items of inventory to their present location and condition. Cost of work in progress and finished goods include material cost and appropriate share of manufacturing overheads. Material in transit is valued at cost price or market price, whichever is lower.

vi. Revenue Recognition Sale of Goods:-

Income from sale of goods is recognized when transfer of risks and rewards of ownership to the goods which generally coincide with dispatch. Sales exclude taxes and Levis. Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of Goods, interest income on fixed deposits and interest on Mutual Funds made for margin purposes for the sake of procurement of Raw Materials/Buyer’s Credit. Sales are recorded net of trade discounts, rebates and value added tax if any. Making charges income is recognized on dispatch of goods. Interest on bank deposits is accounted on accrual basis. Dividend income on investment is accounted as and when the right to receive the payment is established. Cost of goods include the purchase of raw material, labour charges, wastage charges, interest and other charges levied by the seller and foreign exchange hedging cost.

Other Income:-

Other income is comprised primarily of interest income on ICD’s, rent received, gains/ loss on investments. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive the payment is established.

Dividends:-

The final dividend on shares is recorded as a liability on the date of approval by the shareholders, and interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors. Since Board of Directors of the company is not proposed any dividend and hence no provision has been made in the financial statements.

vii. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

viii. Foreign Currency Transactions

a. For its import and export transactions the company is exposed to currency fluctuations on foreign currency transactions, the company hedges it’s foreign exchange transactions against it’s own imports and exports and also by way of forward contracts with banks.

b. Premium paid on forward contracts is recognized over the life of the contracts.

c. The Company enters into derivative contracts in the nature of foreign currency options, forward contracts with an intention to hedge its existing assets and liabilities, firm commitments and highly probable transactions. All other derivative contracts are marked and losses are recognized in the statement of profit and loss. Gains arising on same are not recognized until realized on grounds of prudence.

ix. Employees Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period as and when the contribution to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Company’s employees have not participated in Superannuation Schemes/ Plan.

The company provides for gratuity a defined benefit retirement plan (the Gratuity plan) covering eligible employees. The gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on respective employee salary and tenure of employment with the company. Liabilities with regard to the gratuity plan or determined by actuarial valuation, performed by independent actuary, at each balance sheet date using the projected unit credit method. The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

x. Taxation

The current charge for Income taxes is calculated in accordance with the relevant tax regulations. Tax liability is computed under Minimum Alternate Tax (MAT). MAT credit are being recognised if there convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant asset can be measured to reliably. The excess tax paid under MAT provision being over and above regular tax liability can be carried forward for a period of 10 years from the year of recognition and is available for set off against future tax liabilities computed under regular tax provisions, to the extent of MAT liability.

Deferred tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets/ liabilities in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that such deferred tax Asset/ liability can be realized against future taxable profits.

xi. Segment reporting policies

The Company and other Companies in the group are mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by The Institute of Chartered Accountants of India are considered to constitute one single primary segment.

xii. 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.

(a) Basic

Basic earnings per share is calculated by dividing the net profit for the year by the weighted average number of ordinary shares outstanding during the financial year held by the Company.

(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:

xiii. 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. The Company does not recognize a contingent liability in the financial statements, but is disclosed in the notes.

xiv. Provisions

A provision is recognized when the Company has a present obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xv. Investments

Investments are made to enhance the company’s business interest. Investments are either classified as current or long term based on management’s intention. Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value. Cost for Overseas investments comprises the Indian rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment

xvi. Cash Flow Statement

Cash Flow statement is reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flow. The cash flow from operating, investing and financing activities of company is segregated based on the available information.

xvii. Investment in Properties and Leases

Investment in properties include those portions of office buildings that are held for long term rental yields and/or for capital appreciation and land under operating leases that is held for long-term capital appreciation or for a currently indeterminate use. Investment in properties include properties that are being constructed or developed for future use as investment properties.

Lease payments under operating Leases are recognized as an expense in the statement of Profit and Loss over a Lease term.

Lease rentals recovered on assets given under operating leases are recognized in the profit and loss account.

xvii. Cash and cash equivalents

Cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term balances (Including all bank deposits and Mutual funds), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

ix. Impairment of Assets

An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

ii. Leases Operating lease:

The Company has let-out and taken premises under cancelable 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. 8,16,595/- (Previous year Rs. 8,65,507/-) and total lease rentals paid recognized as expenditure is Rs.44,04,173/-(Previous year Rs. 47,84,436/-).

iii. Capital and other commitments

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

iv. Micro and Small Enterprises dues

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

v. Contingent Liabilities

The following contingent liabilities are not provided for

vii. Directors remuneration includes remuneration payable to Executive chairman and Managing director of Rs. 2,39,976/- (Previous Year Rs. 219,978/-)

viii. 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)

ix. In Accordance with the Accounting Standards on “Income Taxes” issued by the Institute of Chartered Accountant of India, The Company has recognized the Deferred tax liabilities on account of timing differences of Rs. 4,62,68,574/- as on 31st March 2017 (Previous Year Rs. Nil/-) as there is no virtual certainty that such deferred assets can be realized against future taxable profits. The breakup of deferred tax liabilities not recognized is furnished here under:

x. Company has identified that there is no material impairment of assets and as such no provision is required as per Accounting Standards issued by the ICAI.

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

xii. Unclaimed dividend accounts are subject to reconciliation.

xiii. Previous year figures have been regrouped or reclassified wherever necessary to conform to the current year’s grouping or classification

xiv. Current Tax includes MAT credit utilization of Rs.80,156,731/- (Previous year Rs.166,779,349/-)

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Mar 31, 2016

COMPANY OVERVIEW

Rajesh Exports Limited ("The Company") is an Indian public Company and incorporated under the provisions of Companies Act, 1956. The Company is a leading gold refiner and manufacturer of all kinds of Gold Jewellery, medallions and other Gold Products. The Company exports its products to various countries around the world and it also sells in whole sale and retail its products in India and also through its own retail showrooms under the brand name of SHUBH Jewellers.

The Company is having head quarters in Bangalore and manufacturing units at Whitefield, Associate firm M/s. A one Exports, Bangalore and subsidiary M/s.REL Singapore Pte Ltd at Singapore.

i. Basis of preparation of Standalone financial statements

The Stand alone financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) to comply with the accounting standards Specified under the Section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014, and relevant provisions of Companies Act, 2013 ("the 2013Act")/Companies Act, 1956 as applicable. The financial statements have been prepared under the historical cost convention on the accrual basis (except for interest income on interest bearing Advances). The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

ii. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of Assets and Liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of income and expenses during the year. Estimates and underlying assumptions are reviewed on an ongoing basis.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

iii. Fixed assets and Capital work-in-progress a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation and impairment loss if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price.

24 b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iv. Depreciation

The Company has provided depreciation on straight line method over the useful lives of the assets estimated by the management as per Schedule II of the Companies Act, 2013. Depreciation on additions or extensions to existing assets is provided so as to co-terminate with the life of the original asset if it becomes internal part of the existing asset or on the useful life of the asset if it is capable of independent use.

For Assets whose unit cost does not exceed Rs. 5,000 /- depreciation is provided at the rate of 100% in the year of capitalisation.

v. Inventories

Stock in trade is valued at cost or net realisable value, whichever is less. The cost formula used for this purpose is first in first out (FIFO) method. Cost of inventories comprises all costs of purchase, cost of conversion and the cost incurred in bringing the items of inventory to their present location and condition. Cost of work in progress and finished goods include material cost and appropriate share of manufacturing overheads. Material in transit is valued at cost price or market price, whichever is lower.

vi. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of Goods and interest income on fixed deposits made for margin purposes for procurement of Raw Materials. Sales are recorded net of trade discounts, rebates and value added tax if any and Export sales are accounted at notional rate and difference will be recorded at the realized foreign currency rates or year end rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits are accounted on accrual basis and other interest bearing loans and rent receivable are accounted on cash basis. Dividend income on investment is accounted as and when the right to receive the payment is established. Cost of goods include the purchase of raw material, labour charges, wastage charges, interest and other charges levied by the seller and foreign exchange hedging cost.

vi. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

viii. Foreign Currency Transactions

a. For its import and export transactions the company is exposed to currency fluctuations on foreign currency transactions, the company hedges it''s foreign exchange transactions against it''s own imports and exports and also by way of forward contracts with banks.

b. Initially all Imports and exports of goods (foreign exchange transactions) are recorded at notional rate at Rs.45/- Completed foreign exchange transactions are recorded at the actual exchange rate paid/ received and pending foreign exchange transactions, (the notional rates) are converted in to prevailing rates at the end of the year.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account.

viii. Employees Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period as and when the contribution to the respective fund is due. The Company has no obligation, other

24 than the contribution payable under the respective scheme. Company''s employees have not participated in Superannuation Schemes/ Plan. Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation. The Company does not provide leave encashment and carry forward of accumulated leave next year to its employees.

x. Taxation

The current Income tax is calculated in accordance with the relevant tax regulations. MAT credits are being recognised if there convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant asset can be measured to reliably. The excess tax paid under MAT provision being over and above regular tax liability can be carried forward for a period of 10 years from the year of recognition and is available for set off against future tax liabilities computed under regular tax provisions, to the extent of MAT liability. Deferred tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets/ liabilities in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that such deferred tax Asset/ liability can be realised against future taxable profits.

xi. Segment reporting policies

The Company and other Companies in the group are mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by The Institute of Chartered Accountants of India are considered to constitute one single primary segment.

xii. Earning per share

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

xiii. 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. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xiv. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xv. Investments

The Investments are made to enhance the company''s business interest. Investments are either classified as current or long term based on management''s intention. Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value. Cost for Overseas investments comprises the Indian rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment.

xvi. Cash Flow Statement

Cash Flow statement is reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of non cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flow. The cash flow from operating, investing and financing activities of company are segregated based on the available information.

xvii. Leases

Lease payments under operating Leases are recognised as an expense in the statement of Profit and Loss over a Lease term.

Lease rentals recovered on assets given under operating leases are recognised in the profit and loss account.

xvii. Cash and cash equivalents

Cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term balances (Including all bank deposits), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

xviii. Impairment of Assets

An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2015

COMPANY OVERVIEW

Rajesh Exports Limited ("The Company") is an Indian public Company, incorporated under the provisions of Companies Act, 1956. The Company is a leading gold refiner and manufacturer of all kinds of Gold Jewellery, medallions and other Gold Products. The Company exports its products to various countries around the world and it also retails its products in India through its own retail showrooms under the brand name of SHUBH Jewellers.

The Company is having head quarters in Bangalore and manufacturing units at Whitefield, Associate firm M/s. A one Exports, Bangalore and subsidiary M/s.REL Singapore Pte Ltd at Singapore.

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) to comply with the accounting standards Specified under the Section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules,2014,and relevant provisions of Companies Act, 2013 ("the 2013Act")/Companies Act,1956 as applicable. The financial statements have been prepared on accrual basis (except in interest income on interest bearing Advances) under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

i. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

ii. Fixed assets and Capital work-in-progress

a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price.

b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iii. Depreciation

The Company has provided depreciation on straight line method over the useful lives of the assets estimated by the management as per Schedule II of the Companies Act, 2013. Depreciation on additions or extensions to existing assets is provided so as to co-terminate with the life of the original asset if it becomes internal part of the existing asset or on the useful life of the asset if it is capable of independent use.

For Assets whose unit cost does not exceed Rs. 5,000 /- depreciation is provided at the rate of 100% in the year of capitalisation.

iv. Inventories

Stock in trade is valued at cost or net realisable value, whichever is less. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition. Material in transit is valued at cost price or market price, whichever is lower.

v. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of goods and interest received on fixed deposits made for margin purposes of procurement of Raw Materials. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits are accounted on accrual basis and other interest bearing loans are accounted on cash basis. Dividend income on investment is accounted as and when the right to receive the payment is established. Cost of goods include the purchase of raw material, labour charges, wastage charges, interest and other charges levied by the seller and foreign exchange hedging cost.

vi. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

vii. Foreign Currency Transactions

a. For its import and export transactions the company is exposed to foreign exchange transactions, the company hedges it's foreign exchange transactions against it's own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid and pending foreign exchange transactions are recorded at notional rates, the notional rates are converted in to prevailing rates at the end of the year(Valued at Rs. 62.50 per USD) and the difference is recorded as fluctuation in foreign exchange. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account. Premium in respect of foreign exchange option contracts is charged to the Profit and Loss Account as and when the contracts are entered in to but the gain on such option contracts, is recognised only on maturity/ cancellation of such option contracts.

viii. Employees Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period when the contributions to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Superannuation Schemes is not applicable to the Company at present.

Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation.

The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

ix. Taxation

Provision for current tax is made on the basis of Taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets/ liabilities in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that such deferred tax Asset/ liability can be realised against future taxable profits.

x. Segment reporting policies

The Company and other Companies in the group are mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by The Institute of Chartered Accountants of India are considered to constitute one single primary segment.

xi. Earning per share

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

xii. 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. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xiii. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xiv. Investments

The Investments are made to enhance the company's business interest. Investments are either classified as current or long term based on management's intention. Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value. Cost for Overseas investments comprises the Indian rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment.

xv. Cash Flow Statement

Cash Flow statement are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of non cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flow. The cash flow from operating, investing and financing activities of company are segregated based on the available information.

xvi. Leases

Lease payments under operating Leases are recognised as an expense in the statement of Profit and Loss over a Lease term.

Lease rentals recovered on assets given under operating leases are recognised in the profit and loss account.

xvii. Cash and cash equivalents

Cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term balances (Including all bank deposits), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

xviii. Impairment of Assets

An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2014

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) under the historical cost convention. The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules,2006, (as amended) and the relevant provisions of the Companies Act, 1956. The provisions of Companies Act,2013 ( to the extent notified and applicable and other generally accepted accounting principles in India.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

i. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

ii. Fixed assets and Capital work-in-progress

a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price.

b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iii. Depreciation

The Company has provided depreciation on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use during the year.

Assets individually costing Rs. 5,000 /- or less are depreciated fully in the period / year of purchase.

iv. Inventories

Stock in trade is valued at cost or net realisable value ( International standard rate as on 31.03.2014), whichever is less for SEZ units and in respect of other units at cost or net realisable value ( Rate prevailing at Bangalore Market as on 31.03.2014), whichever is lower. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

v. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of goods and interest received on fixed deposits made for margin purposes for sake of procurement of raw materials. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits are accounted on accrual basis and other interest bearing loans are accounted on cash basis. Dividend income on investment is accounted as and when the right to receive the payment is established.

vi. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

vii. Foreign Currency Transactions

a. For its import and export transactions the company is exposed to foreign exchange transactions, the company hedges it’s foreign exchange transactions against it’s own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid and pending foreign exchange transactions are recorded at notional rates, the notional rates are converted in to prevailing rates at the end of the year and the difference is recorded as fluctuation in foreign exchange. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account.

viii. Employees Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period when the contributions to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Superannuation Schemes is not applicable to the Company at present.

Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation.

The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

xi. Taxation

Provision for current tax is made on the basis of Taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets/ liabilities in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that such deferred tax Asset/ liability can be realised against future taxable profits.

xii. Segment reporting policies

The Company and the other Companies in the group are mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by the institute of chartered accounts, India are considered to constitute one single primary segment.

xiii.Micro and Small enterprises dues

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

xiv. Earning per share

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

xv. 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. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xvi. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xvii. Investments

Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value.

xviii. Cash Flow Statement

The Cash Flow statement is prepared by the indirect method setout in the accounting standards on cash flow statement. Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand.

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Mar 31, 2013

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) under the historical cost convention. The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for adoption of revised schedule VI, as detailed below.

i. Adoption of Revised Schedule VI

During the year ended March 31, 2013, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current period.

ii. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcome requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

iii. Fixed assets and Capital work-in-progress

a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, Any trade discounts and rebates are deducted in arriving at the purchase price.

b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iv. Depreciation

The Company has provided depreciation on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use during the year.

Assets individually costing Rs. 5000 /- or less are depreciated fully in the period / year of purchase.

v. Inventories

Stock in trade is valued at cost or net realisable value ( International standard rate as on 31.03.2013), whichever is less for E.O.U. and SEZ units and in respect of other units at cost or net realisable value ( Rate prevailing at Bangalore Market as on 31.03.2013), whichever is lower. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

vi. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of goods and interest received on fixed deposits made for margin purposes. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits and other interest bearing loans is accounted on accrual basis. Dividend income on investment is accounted for when the right to receive the payment is established.

vii. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

viii. Foreign Currency Transactions

a. For it''s import and export transactions the company is exposed to foreign exchange transactions, the company hedges it''s foreign exchange transactions against it''s own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid and pending foreign exchange transactions are recorded at notional rates, the notional rates are converted into prevailing rates at the end of the year and the difference is recorded as fluctuation in foreign exchange. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account. Premium in respect of foreign exchange option contracts is charged to the Profit and Loss Account as and when the contacts are entered in to but the gain on such option contracts, is recognized only on maturity / cancellation of such option contracts.

ix. Employees Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period when the contributions to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Superannuation Scheme is not applicable to the Company at present.

Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation.

The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

x. Taxation

Provision for current tax is made on the basis of Taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that such deferred tax asset can be realized against future taxable profits.

xi. Segment reporting policies

The Company is mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by the institute of chartered accounts, India are considered to constitute one single primary segment.

xii. Micro and Small enterprises dues

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

xiii. Earning per share

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

xiv. 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. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xv. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xvi. Investments

Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value, xvi. Cash Flow Statement

The Cash Flow statement is prepared by the indirect method setout in the accounting standard 3 on cash flow statement. Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and cash in hand.

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Mar 31, 2012

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) under the historical cost convention. The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules,2006, (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for adoption of revised schedule VI, as detailed below.

i. Adoption of Revised Schedule VI

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current period.

ii. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

iii. Fixed assets and Capital work-in-progress a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes fnancing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, Any trade discounts and rebates are deducted in arriving at the purchase price.

b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iv. Depreciation

The Company has provided depreciation on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use during the year.

Assets individually costing Rs. 5000 /- or less are depreciated fully in the period / year of purchase.

v. Inventories

Stock in trade is valued at cost or net realisable value ( International standard rate as on 31.03.2012), whichever is less for E.O.U, SEZ and SIDCUL units and in respect of other units at cost or net realisable value ( Rate prevailing at Bangalore Market as on 31.03.2012), whichever is lower. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

vi. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of goods and interest received on fixed deposits made for margin purposes. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits and other interest bearing loans is accounted on accrual basis. Dividend income on investment is accounted for when the right to receive the payment is established.

vii. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the Profit and loss account.

viii. Foreign Currency Transactions

a. For it's import and export transactions the company is exposed to foreign exchange transactions, the company hedges it's foreign exchange transactions against it's own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid and pending foreign exchange transactions are recorded at notional rates, the notional rates are converted into prevailing rates at the end of the year and the difference is recorded as fluctuation in foreign exchange. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account. Premium in respect of foreign exchange option contracts is charged to the Profit and Loss Account as and when the contacts are entered in to but the gain on such option contracts, is recognized only on maturity / cancellation of such option contracts.

ix. Employees Benefits

Provident Fund contributions are charged to the Statement of Profit and loss of the period when the contributions to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Superannuation Scheme is not applicable to the Company at present.

Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation.

The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

x. Taxation

Provision for current tax is made on the basis of Taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that such deferred tax asset can be realized against future taxable Profits.

xi. Segment reporting policies

The Company is mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by the institute of chartered accounts, India are considered to constitute one single primary segment.

xii. Micro and Small enterprises dues

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

xiii. Earning per share

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

xiv. 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. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xv. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xvi. Investments

Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fare market value.

xvi. Cash Flow Statement

The Cash Flow statement is prepared by the indirect method setout in the accounting standard 3 on cash flow statement. Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and cash in hand.

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Mar 31, 2011

1. Accounting convention:

a. The annual accounts have been prepared on the historical cost basis and confirms to the statutory provisions of the Companies Act, 1956, the General accounting practices prevailing in the country and applicable accounting standards. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

2. Fixed assets:

a. Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation/ amortisation. All Costs relating to the acquisition, construction and installation of Fixed Assets are capitalized and include financing costs, if any, relating to borrowed funds attributable to construction or acquisition of Fixed Assets, up to the date the asset is ready for intended use, net of adjustments arising from exchange rate differences relating to specific borrowings, wherever applicable, attributable to those Fixed Assets.

b. Depreciation on fixed assets is provided on straight-line method basis at the rates and in the manner prescribed in Schedule XTV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use.

3. Borrowing cost:

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the Profit & Loss Account.

4. Foreign currency transactions including futures and option contracts thereon: Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities without forward foreign exchange contract are translated at year-end exchange rates. Foreign currency monetary assets and liabilities with forward foreign exchange contract are recorded at forward exchange rates. The resulting exchange gain/loss on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise in the profit and loss account. Exchange differences attributable to the acquisition of the fixed assets, if any, are adjusted to cost of the respective assets. Premium in respect of forward foreign exchange contract is charged to the Profit & Loss Account. Premium in respect of foreign exchange option contracts is charged to the Profit & Loss Account as and when the contacts are entered into but the gain on such option contracts, if any, is recognized only on maturity/cancellation of such option contracts.

5. Investments:

Long-term investments are stated at cost after deducting provision, if any, made for permanent diminution in the values.

Current investments are stated at lower of cost and market/fair value.

6. Revenue recognition:

Sales are recorded net of trade discounts, rebates and value added tax, if any and are recorded at the realized foreign currency rates. Some of the goods have been imported on provisional basis without fixing the gold price. Some of the goods have also been exported on provisional basis without fixing the price of gold. All the provisional imports and exports have been accounted for as per the custom's assessment of the goods. When the price of import shipment is fixed or when price of the export shipment is fixed, the final invoice is submitted to the customs; the differential is accounted for as purchase or sales. Making charges income is recognized on despatch of goods.

Interest on bank deposits and other interest bearing loans is accounted on accrual basis. However, since previous financial year the company has adopted the'accounting policy with regard to accounting of interest income on interest bearing loans other than bank deposits to cash basis instead of accrual basis due to which the profit for the year has been understated by Rs.33,08,58,068/- Dividend income on investments is accounted for when the right to receive the payment is established.

7. Employees benefits:

Retirement benefits in the form of Provident Fund and Superannuation Schemes are not applicable to the company at present.

Gratuity liability for the year under the Payment of Gratuity Act is accounted on the basis of Actuarial valuation.

The company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

8. Taxation:

Provision for current tax is made on the basis of taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized; on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that such deferred tax asset can be realized against future taxable profits.

9. Valuation of inventories:

Stock in trade is valued at cost or net realisable value (International standard rate as on 31.03.2011), whichever is less for E.O.U, SEZ & SIDCUL units and in respect of other units at cost or net realisable value (Rate prevailing at Bangalore Market as on 31.03.2011), whichever is lower. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

10. Book debts and advances:

Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the Management.

11. Cash flow statement:

The cash flow statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statement.

12. Business segments

The company is mainly engaged in the business of gold and gold products. These, in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.

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Mar 31, 2010

1. Accounting convention:

a. The annual accounts have been prepared on historical cost basis and confrm to the statutory provisions of the Companies Act, 1956, the General accounting practices prevailing in the country and applicable accounting standards. All income and expenditure having a material bearing on the fnancial statements are recognized on accrual basis.

2. Fixed assets:

a. Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation/ amortisation. All Costs relating to the acquisition, construction and installation of Fixed Assets are capitalized and include fnancing costs, if any, relating to borrowed funds attributable to construction or acquisition of Fixed Assets, up to the date the assets is ready for intended use, net of adjustments arising from exchange rate differences relating to specifc borrowings, wherever applicable, attributable to those Fixed Assets.

b. Depreciation on fxed assets is provided on straight-line method basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use.

3. Borrowing cost:

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use.

Other borrowing costs are charged to the Proft & Loss Account.

4. Foreign currency transactions including futures and option contracts thereon:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities without forward foreign exchange contract are translated at year-end exchange rates. The resulting exchange gain/loss on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise in the proft and loss account. Exchange differences attributable to the acquisition of the fxed assets, if any, are adjusted to the cost of the respective assets. Premium in respect of foreign exchange option contracts is charged to the Proft & Loss Account as and when the contacts are entered into but the gain on such option contracts, if any, is recognized only on maturity/cancellation of such option contracts.

5. Investments:

Long-term investments are stated at cost after deducting provision, if any, made for permanent diminution in the values.

Current investments are stated at lower of cost and market/fair value.

6. Revenue recognition:

Sales are recorded net of trade discounts, rebates and value added tax, if any and are inclusive of foreign currency fuctuation. Some of the goods have been imported on provisional basis without fxing the gold price. Some of the goods have also been exported on provisional basis without fxing the price of gold. All the provisional imports and exports have been accounted for as per the customs assessment of the goods. When the price of import shipment is fxed or when the price of the export shipment is fxed, the fnal invoice is submitted to the customs; the differential is accounted for as purchase or sales. However during the year the management has changed the accounting policy and accounted for the additional liability on account of increase in gold price as prevalent on 31st March 2010 in the case of all outstanding provisional imports and due to this change in accounting policy the proft for the year has been understated by Rs. 31,93,21,126.

Making charges income is recognized on dispatch of goods.

Interest on bank deposits and other interest bearing loans are accounted on accrual basis. However during the year the management has changed the accounting policy with regard to accounting of interest income on interest bearing loans other than bank deposits to cash basis due to which the proft for the year has been understated by Rs.14,82,02,244/- Dividend income on investments is accounted for when the right to receive the payment is established.

7. Employees benefts:

Retirement benefts in the form of Provident Fund and Superannuation Schemes are not applicable to the company at present.

Gratuity liability for the year under the Payment of Gratuity Act is accounted on the basis of Actuarial valuation.

The company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

8. Taxation:

Provision for current tax is made on the basis of taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized; on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that such deferred tax asset can be realized against future taxable profts.

9. Valuation of inventories:

Stock in trade is valued at cost or net realisable value (International standard rate as on 31.03.2010), whichever is less for E.O.U, SEZ & SIDCUL units and in respect of other units at cost or net realisable value (Rate prevailing at Mumbai as on 31.03.2010), whichever is lower. The cost formula used for this purpose is frst in frst out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

10. Book debts and advances:

Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the Management.

11. Cash fow statement:

The cash fow statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statement.

12. Business segments

The company is mainly engaged in the business of gold and gold products. These, in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.

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Mar 31, 2000

I. GENERAL :

a. The annual accounts have been prepared on the historical cost basis and confirms to the statutory provision of the Companies Act, 1956, and the general practies prevailng in the Country.

b. The accounts have been prepared accounted on cash basis.

ii. FIXED ASSETS :

a. Fixed assets have been accounted for at their historical cost.

b. Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule XIV the Companies Act, 1956.

iii. VALUATION OF INVENTORIES :

Stock in Trade is valued at bullion price as per Mumbai standard rates as on 31.3.2000 and making charges as per cost,

iv. BOOK DEBTS AND ADVANCES :

Write-off of doubtful and unrecoverable book debts nnd advances have been made to the Satisfaction of auditors

v. As certified by the management all the correal assets mentioned in the Balance Sheet are realisable in ordinary course of business of the company.

vi. PROFIT AND LOSS ACCOUNT :

No provision has been made towards present liabilities of future payments of gratuity payable to employees and liability in this regard has not been ascertained. The same will be accounted as and when paid.

G. PURCHASE MENTIONED AMOVE ARE MAINLY IMPORTED

Note : Previous years figures are furnished in brackets.