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A Oneindia Venture

Nifty 26,132.60 +0.64%

22k Gold ₹ 12,400 /gm

Sensex 85,428.59 +0.59%

Nifty 26,132.60 +0.64%

22k Gold ₹ 12,400 /gm

Sensex 85,428.59 +0.59%

Nifty 26,132.60 +0.64%

22k Gold ₹ 12,400 /gm

Notes to Accounts of Thangamayil Jewellery Ltd.

Mar 31, 2025

xxi. Provisions & Contingent Liabilities

Provisions are recognized in respect of obligations
where, based on the evidence available, their existence
at the balance sheet date is considered probable.
Contingent liabilities are disclosed by way of Notes on
accounts in respect of obligation where, based on the
evidence available, their existence at the balance sheet

date is considered not probable. Contingent assets are
not recognized in the accounts.

xxii. Financial instruments

Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the instruments.

Financial assets and liabilities are initially recognised
at fair value. Transaction costs that are directly
attributable to financial assets and liabilities [other
than financial assets and liabilities measured at fair
value through profit and loss (FVTPL)] are added to
or deducted from the fair value of the financial assets
or liabilities, as appropriate on initial recognition.
Transaction costs directly attributable to acquisition
of financial assets or liabilities measured at FVTPL are
recognised immediately in the statement of profit and
loss.

1. Non-derivative Financial assets:

All regular purchases or sales of financial assets are
recognised and derecognised on a trade date basis.
Regular way purchases or sales are purchases
or sales of financial assets that require delivery
of assets within the time frame established by
regulation or convention in market place.

2. Impairment of financial assets

The Company recognizes loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or
loss. Loss allowance for trade receivables with no
significant financing component is measured at an
amount equal to life time ECL. For all other financial
assets, expected credit losses are measured at an
amount equal to the 12-month ECL, unless there has
been a significant increase in credit risk from initial
recognition in which case those are measured at
lifetime ECL. The amount of expected credit losses
(or reversal) that is required to adjust the loss
allowance at the reporting date to the amount that
is required to be recognised is recognized as an
impairment gain or loss in the statement of profit
and loss.

3. Foreign exchange gains and losses

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

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

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

Financial liabilities

1. Financial liabilities

All financial liabilities are subsequently measured at
amortised cost using the effective interest method
or at FVTPL. However, financial liabilities that arise
when a transfer of a financial asset does not qualify
for de-recognition or when the continuing involvement
approach applies, financial guarantee contracts issued
by the Company, and commitments issued by the
Company to provide a loan at below-market interest
rate are measured in accordance with the specific
accounting policies set out below.

2. Financial liabilities at FVTPL

Financial liabilities at FVTPL are stated at fair value,
with any gains or losses arising on re-measurement
recognised in statement of profit and loss. The net
gain or loss recognised in statement of profit and loss
incorporates any interest paid on the financial liability
and is included in the ''Other income/other expenses''
line item.

3. Foreign exchange gains and losses

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

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

b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having par value of ?10 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of
Directors is subject to approval by the shareholders at the ensuing Annual General Meeting.

In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution
of all preferential amounts, in proportion of their shareholdings.

c) Information regarding aggregate number of equity shares during the five years immediately preceding the
date of Balance Sheet.

The aggregate number of equity shares allotted as fully paid up by way of Rights shares in financial year 2024-25 are
36,42,857.

The Company has not allotted any shares pursuant to contract without payment being received in cash.There are no calls
unpaid on equity shares and no equity shares have been forfeited.

Securities premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the
provisions of the Act.

General Reserve

General Reserve is the retained earnings of the Company which are kept aside out of the Company''s profits to meet future
(Known or unknown) obligations.

Retained earnings

Retained earnings comprise of the Company''s prior years undistributed earnings after taxes.

Distributions made and proposed

The Board of Directors at its meeting held on 15th May ,2025 have recommended a dividend of ^12.50 (i.e. 125%) per equity
share of the face value of ?10 each for the financial year ended 31st March, 2025. If approved, total dividend payout for the
FY 2024-25 amounting to X 3,885.25 lakhs as against the total dividend payout for the FY 2023-24 amounting to ?2743.91
lakhs.

The above working capital loans extended by multiple banking system are secured by a pari passu charge on stocks and
book debts of the company .

The loan extended by banks are further collaterally secured by equitable mortgage of Company''s properties in the case
of HDFC Bank properties at Trichy, Tuticorin, Madurai, Ramnad and in the case of ICICI Bank and Kotak Mahindra Bank
property at Coimabtore on pari-passu basis and in the case of Axis Bank property at Salem and in the case of Yes Bank
property at Alwarpuram, Pudukkottai and vacant land @ Vandiyur (Madurai) in the case Federal Bank property at Nethaji
Road and Solanguruni at Madurai.

Gold Metal loan from Banks against Fixed deposit and SBLC of the respective bank.

All the above mentioned collateral securities owned by the company given to the respective banks as indicated above are
given on exclusive basis and on a pari passu charge basis and also is in accordance with sanction terms and conditions of
the respective banks.

All the above loans are further secured by personal guarantee of whole time of directors of the company.

The Company availed un-secured loan from directors, which are repayable on demand and carries interest @ 6% p.a
The cash credit is repayable on demand and carries interest of 8.00% to 9.80% p.a.

Fixed Deposits from public are repayable within 12 Months from the reporting date.

The Gold Metal Loan carries interest @ 1.90% to 2.75% p.a.

b. An order for demand of less payment of Customs duty on imported goods pertaining to financial year 2011-12 for ^154
Lakhs passed by principal Commissioner of Customs, Chennai. The company has moved a Writ petition against the
order with Honourable High Court of Madras for quashing the order passed by the Authority. The writ was admitted,
and status quo is maintained. Direction is given by High court of Madras to approach Appellate Tribunal / Commissioner
(Appeals) to complete the appeals and accordingly company filed appeal which is pending. The company is advised that
it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this
liability if any is considered as contingent in nature.

c. In respect of - outstanding Letter of Credit given to bankers X Nil (previous year X 1,800 lakhs )

d. The Commercial Tax office, Madurai has issued a notice for the Asst year 2011-12 and 2012-13 on the matter of payment
of Sec 12 purchase tax and others made a claim aggregating to ? 41 Lakhs. The Company got a favourable order with the
Appellate Authority.

Against this order, the Commercial Tax office, Madurai has filed an appeal to Sales tax Appellate Tribunal, Madurai (A.B)
which is pending for hearing. The company is advised that it has got a more than a reasonable chance for success and
therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

e. The Company has received a demand notice from the income tax department amounting to ^591 lakhs for the year
2016-17 and ^858 lakhs for the year 2017-18 related to dispute of beaten gold wastage treatment in the books of
accounts from the assessing officer, as per order under Section 143 (2) of the Income Tax Act ,1961. Company is in
appeal before Commissioner of Appeals against said orders. This dispute arises on account of wrongful understanding
of the Accounting of wastage in refining and melting process by the assessing officer. Though the facts are so obvious
and consistently followed by the company and completed assessment in the earlier years as per similar submissions
made. In the subsequent assessment order for FY 19-20 and FY 20-21, the Company on the same matter got the order
without any addition by the assessing officers. Therefore, the company is advised that it has got more than a reasonable
chance for success in appeal and therefore no provision is made in the books. Hence, this liability if any is considered as
contingent in nature.

f. The Company has received demand notice from the income tax department amounting to ^106 lakhs for the year
2020-21 related to dispute of disallowance of legitimate purchases due to no response from the vendor as per order
under Section 143(2) of the Income Tax Act ,1961. The Company is in appeal before Commissioner of Appeals against
said order. This being a rectifiable in nature, the company is advised that it has got a more than a reasonable chance for
success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

g. The Company has received a demand notice under Section 156 of the Income Tax Act, 1961 amounting to ^7,017 lakhs
for the Assessment Year 2021-22. The demand arises from the disallowance of expenditure incurred on the purchase of
old gold in exchange for new ornaments from customers, which was alleged to be unaccounted income under Section
69(3) of the Act. This exchange of old gold for new ornaments is a well-established and widespread trade practice across
the jewellery industry, and the transactions involved over 1.13 lakh customers during the relevant year.

The Assessing Officer, despite submission of supporting documentation and clarifications, applied an arbitrary purity
rate of 18 carats to the old gold exchanged, instead of considering the actual purity and prevailing market rates adopted
by the Company. This resulted in an erroneous disallowance of ^7,216 lakhs and taxation under Section 115BBE,
significantly inflating the tax liability.

Challenging this, the Company filed a writ petition before the Hon''ble High Court of Madras (Madurai Bench), which
initially granted an interim stay on the demand. However, the single bench dismissed the writ without fully appreciating
the principles of natural justice under Article 14 of the Constitution. Pursuant to legal advice, the Company filed an
appeal before the Division Bench of the same court on 12th March 2025, which has admitted the appeal and granted an
interim stay, with the next hearing scheduled for 10th June 2025.

In the event of a favourable decision, the matter will be reassessed based on merits by the Faceless Assessment Unit.
Alternatively, the Company retains its right to pursue statutory remedies through appellate forums. Since the matter is
sub judice and an interim stay is in force, and considering the strong merits of the case, no provision for liabilityâreal
or contingentâis considered necessary in the financial statements.

h) The Company has received demand notice under Section 11A(4) of the Central Excise Act, 1944 from Directorate General
of GST Intelligence, Coimbatore Zonal Unit, Coimbatore relating to non-payment of Central excise duty on for Sale of
branded gold coins amounting to ?97 lakhs and Sale of silver jewellery amounting to ? 31 lakhs and dispute on input
service tax credit taken amounting to ? 145 lakhs aggregating to X 274 lakhs for the period from 01.03.2016 to 30.06.2017.
The company has filed an appeal with Customs, Excise and Service Tax Appellate Tribunal. The company is advised that it
has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability
if any is considered as contingent in nature.

Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said

Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to

guidelines of IRDA.

39. The company is collecting advances from customers both in the form of gold and money and no value addition is
charged as per terms of agreement at the time of sale of ornaments. The liability for receipt of customer advances in
this category is accounted as and when received by the company. A sum of ? 60,744 lakhs (Previous year ?41,916 lakhs) is
outstanding in such scheme as on 31st March 2025. The discount if any payable in future on redemption will be treated
as reduction in sales realization. This treatment in accounts is consistently followed by the Company with no material
deviation in accounting.

40. Survey was conducted by The Assistant Commissioner of Customs, Customs Preventive Unit, Madurai at the
manufacturing units and purchase premises of the company in FY 2020-21. Gold Coin weighing 1,643 grams was taken
over by the official under the protest of certain scratches appeared in the items and also resemblance of foreign origin
of the items. By virtue of accepting coins from customers after taking due declaration, the company at different point
of time accepted the coins that fulfilled purity and other regulatory essentials. The company has received notice from
the department and appeared before the Appropriate Authority and produced necessary documents and explanation.
The company is of the view that with the submissions made to the authorities, it will come out of the legal tangle, and
hence no provision is made in the books of account. The above said quantity was included in the closing stock as of 31st
March 2025.

41. In the opinion of the management, there is no impairment in the carrying cost of property, plant and equipment of
the Company in terms of the Indian Accounting Standard (Ind AS) 36 "Impairment of Assets" issued by the Institute of
Chartered Accountants of India except for those disclosed in note no. 32.

III) Financial risk management

The Company''s principal financial liabilities comprise of loans and borrowings, lease liabilities, trade and other payables.
The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial
assets include cash, trade and other receivables that derive directly from its operations.

The Company is exposed to market risk, interest rate risk, foreign currency risk, credit risk and liquidity risk. The Company''s
senior management oversees the management of these risks. The Company''s senior management assesses the financial
risks and the appropriate financial risk governance framework in accordance with the Company''s policies and risk objectives.
The Board of Directors review and agree on policies for managing each of these risks, which are summarised below.

a. Market risk

Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect
on realizable fair values or future cash flows to the Company. The Company''s activities expose it primarily to the
financial risks of changes in price and interest rates as future specific market changes cannot be normally predicted
with reasonable accuracy.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates are
managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings.
Hence, interest rate sensitivity is not material to the financial statements.

The fair values of the Company''s interest-bearing borrowings and loans are determined under amortised cost
method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. These
rates are considered to reflect the market rate of interest and hence the carrying value are considered to be at fair
value.

ii. Price risk

The Company is exposed to fluctuations in gold price (including fluctuations in foreign currency) arising on purchase/
sale of gold.

To manage the variability, the Company enters into derivative financial instruments to manage the risk associated
with gold price fluctuations relating to the inventory lying with the Company. Such derivative financial instruments
are primarily in the nature of future commodity contracts and forward foreign exchange contracts. The risk
management strategy against gold price fluctuation also includes procuring gold on loan basis, with a flexibility to
fix price of gold at any time during the tenor of the loan.

The use of such derivative financial instruments is governed by the Company''s policies approved by the Board
of Directors, which provide written principles on the use of such instruments consistent with the Company''s risk
management strategy

As the value of the derivative instrument generally changes in response to the value of the hedged item, the
economic relationship is established.

The following table gives details of contracts as at the end of the reporting period:

b. Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this
risk for various financial instruments, for example trade receivables, placing deposits, investment etc. the Company''s
maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting period,
as summarised below:

The Company continuously monitors defaults of customers and other counterparties, identified either individually or
by the Company, and incorporates this information into its credit risk controls. The Company''s policy is to transact only
with counterparties who are highly creditworthy which are assessed based on internal due diligence parameters.

Trade receivables are typically unsecured and are derived from revenue from customer. Credit risk has been managed
by the Company through proper approvals which continuously monitors the creditworthiness of the customer to
whom the Company grant credit terms in the normal course of business.

The credit risk for cash and cash equivalents are considered negligible, since the counterparties are reputable banks
with high quality external credit ratings.

Other financial assets mainly comprises of rental deposits and are assessed by the Company for credit risk on a
continuous basis.

c. Liquidity risk

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs
by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows
and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used
in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and
week-to-week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash
requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This
analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.

The Company''s objective is to maintain cash and bank''s short term credit facilities to meet its liquidity requirements for
30-day periods at a minimum. This objective was met for the reporting periods. Funding for long-term liquidity needs
is additionally secured by an adequate amount of committed credit facilities.

The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular
its cash resources and trade receivables.

As at 31 March, the Company''s non-derivative financial liabilities have contractual maturities as summarised below:

Additional regulatory Disclosures as Per Schedule III of Companies Act, 2013

Additional Regulatory Information pursuant to Clause 6L of General instructions for preparation of Balance sheet as given
in part I of Division II of schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than
those given elsewhere in any other notes to the Financial Statement.

a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property.

b. The company has-fund based and non-fund-based Limits of Working capital from Banks and financial institutions.
For the said facility, the revised submissions made by the Company to its multiple bankers based on closure of books
of accounts at the year end, the revised quarterly returns or statements comprising stock statements, book debt
statements, credit monitoring arrangement reports, statements on ageing analysis of the debtors/others receivables,
and other stipulated financial information filed by the Company with such banks or financial institutions are in agreement
with the unaudited books of account of the company of the respective quarters and no material discrepancies have
been observed.

c. The company have not been declared as a wilful defaulter by any lender who has powers to declare a company as a
wilful defaulter at any time during the financial year or after the end of reporting period but before the date when the
financial statements are approved.

d. The company has not entered into any transactions with companies struck off under section 248 of the companies
Act,2013 or section 560 of company Act, 1956.

e. The company has complied with the number of layers prescribed under clause (87) of section 2 of the companies
(Restrictions on number of layers) Rules, 2017.

f. The company has not advanced or loaned or invested funds to any other persons(s) or entity (is), including foreign
entities (intermediaries), with the understanding that the intermediary shall;

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by on behalf of
the company (Ultimate Beneficiaries) or

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries

g. The company has not received any funds from any persons(s) or entity (ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the company shall;

i. Directly and indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding party (Ultimate beneficiaries) or

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

h. The Company does not have any transactions which is not recorded in the books of accounts but has been surrendered
or disclosed as income during the year in the tax assessments under the income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the income Tax Act, 1961).

i. The Company has not traded or invested in crypto currency or virtual Currency during the financial year.

Note-49 Capital Management

For the purpose of the Company capital management, capital includes issued equity capital and other equity reserve
attributable to the equity shareholders of the Company. The primary objective of the company''s capital management is to
maximise the shareholder value.

The company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day to day
need with a focus on total equity so as to maintain investor, creditors and market confidence.

The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt is calculated as
borrowing less cash and cash equivalents and other bank balances.

All figures have been rounded off to the nearest rupees in lakhs

Previous y ear figures have been regrouped / reclassified to make them comparable with that current year.

Subject to our report of even date

For B. Thiagarajan & Co., For Thangamayil Jewellery Limited

Chartered Accountants Balarama Govinda Das Ba. Ramesh N. B. Kumar

Firm''s Registration No: 004371S Managing Director DIN: 00266424 Joint Managing Director DIN: 00266368 Joint Managing Director DIN: 01511576

D. Aruchamy Yamuna Vasini Deva Dasi J. Rajakumari S.M. Chandrasekaran

Partner Non-Executive Director DIN: 01388187 Independent Director DIN: 08860956 Independent Director DIN: 08719332

M.No.219156 N.Jegatheesan K.Thiruppathi Rajan

Independent Director DIN: 01876113 Independent Director DIN: 02822620

Place - Madurai V. Vijayaraghavan B. Rajeshkanna

Date - 15/05/2025 Company Secretary Chief Financial Officer DIN: 01334048

Mar 31, 2024

Mode of Valuation

Inventories including company''s stock held with gold smiths are valued at lower of cost or net realizable value. The cost of raw material inventories is computed on a FIFO basis. The cost of finished goods and work in progress includes cost of conversion and other cost incurred in bringing the Inventories to their present location and condition.

Cost is generally determined on FIFO basis and wherever required, appropriate direct on cost are taken into account. Net Realizable Value is the estimated selling price in the ordinary course of business less the estimated cost necessary to make the sale.

b) Rights, preferences and restrictions attached to equity shares

In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholdings.

c) Information regarding aggregate number of equity shares during the five years immediately preceding the date of Balance Sheet.

The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended March 31, 2024 are 137.19 lakhs (previous period of five years ended March 31, 2023 : Nil )

The Company has not allotted any shares pursuant to contract without payment being received in cash.There are no calls unpaid on equity shares and no equity shares have been forfeited.

d) Capital Management

The primary objective of the Company''s Capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios to support its business and maximize shareholders value. The Company makes adjustments to its capital structure based on the business environments and its economic conditions.To maintain/ adjust the capital structure the company may make adjustments to dividend paid to its share holders and issue new shares.

Securities premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Act.

General Reserve

General Reserve is the retained earnings of the Company which are kept aside out of the Company''s profits to meet future (Known or unknown) obligations.

Retained earnings

Retained earnings comprise of the Company''s prior years undistributed earnings after taxes.

Distributions made and proposed

The Board of Directors, at their meetings held on 23rd January , 2023 declared an interim dividend of ''6.00 ( i.e. 60%) per equity share of the face value of ''10 each. The Board of Directors at its meeting held on 22nd May ,2023 declared a final dividend of ''6.00 (i.e. 60%) per equity share of the face value of ''10 each for the financial year ended 31st March, 2023. The total dividend (interim and final dividend) for the financial year 2022-2023 will be ''12 (i.e. 120%) per equity share of the face value of ''10 each.

The Board of Directors, at their meetings held on 1st February , 2024 declared an interim dividend of ''4.00 ( i.e. 40%) per equity share of the face value of ''10 each. The Board of Directors at its meeting held on 20th May ,2024 have recommended a payment of final dividend of '' 6.00 (i.e. 60%) per equity share of the face value of ''10 each for the financial year ended 31st March, 2024. If approved, the total dividend on the enhanced share capital (interim and final dividend) for the financial year 2023-2024 will be '' 10 (i.e. 100%) per equity share of the face value of ''10 each .

Term loan from banks - Federal Bank, Axis Bank and HDFC bank .The term loan availed under Emergency Credit Line Guarantee Scheme( ECLGS) to meet the working capital needs under COVID 19 pandemic situation.

â¢ The above loans are repayable in 60 months with 12 to 24 months moratorium and carries interest of 5.90% to 7.80%

â¢ Regarding securities refer note no 17

â¢ Vehicle Loan secured by Hypothecation of specific assets purchased out of the loans.

## '' 2,273.05 lakhs ('' 2,706.51 lakhs) Fixed Deposit carry interest @7.5% and are repayable 2 years from the respective years.

'' 3,838.38 lakhs ('' 2,196.43 lakhs) Fixed Deposit carry interest @8 % and are repayable 3 years from the respective years.

â¢ The Company availed un-secured loan from directors, which are repayable on demand and carries interest @ 6% p.a

The above working capital loans extended by multiple banking system are secured by a pari passu charge on stocks and book debts of the company .

property at Coimabtore on pari-passu basis and in the case of Axis Bank property at Salem and in the case of Yes Bank property at Alwarpurm and in the case Federal Bank property at Nethaji Road and Solanguruni at Madurai.

0.68% (1,25,000 shares) promoters share holding in the company has been pledged as collateral security for IDBI loan.

0.73 % (1,35,000 shares) promoters share holding in the company has been pledged as collateral security for Yes bank loan.

0.97 % (1,80,000 shares) promoters share holding in the company has been pledged as collateral security for Axis bank loan.

Gold Metal loan from Banks against Fixed deposit and SBLC of the respective bank.

All the above mentioned collateral securities owned by the company given to the respective banks as indicated above are given on exclusive basis and not on a pari passu charge basis and also is in accordance with sanction terms and conditions of the respective banks.

All the above loans are further secured by personal guarantee of whole time of directors of the company.

The cash credit is repayable on demand and carries interest of 7.00% to 9.00% p.a.

Fixed Deposits from public are repayable within 12 Months from the reporting date.

The Gold Metal Loan carries interest @ 1.80% to 2.80% p.a.

b. An order for demand of less payment of Customs duty on imported goods pertaining to financial year 2011-12 for ''154 Lakhs passed by principal Commissioner of Customs, Chennai. The company has moved a Writ petition against the order with Honourable High Court of Madras for quashing the order passed by the Authority. The writ was admitted, and status quo is maintained. Direction is given by High court of Madras to approach Appellate Tribunal / Commissioner (Appeals) to complete the appeals and accordingly company filed appeal which is pending. The company is advised that

it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

c. In respect of - outstanding Letter of Credit given to bankers '' 1,800 Lakhs (previous year ''1,900 lakhs)

d. The Commercial Tax office, Madurai has issued a notice for the Asst year 2011-12 and 2012-13 on the matter of payment of Sec 12 purchase tax and others made a claim aggregating to '' 41 Lakhs. The Company got a favourable order with the Appellate Authority.

Against this order, the Commercial Tax office, Madurai has filed an appeal to Sales tax Appellate Tribunal, Madurai (A.B) which is pending for hearing. The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

e. The Company has received a demand notice from the income tax department amounting to ''591 lakhs for the year 2016-17 and ''858 lakhs for the year 2017-18 related to dispute of beaten gold wastage treatment in the books of accounts from the assessing officer, as per order under Section 143 (2) of the Income Tax Act ,1961. Company is in appeal before Commissioner of Appeals against said orders. This dispute arises on account of wrongful understanding of the Accounting of wastage in refining and melting process by the assessing officer. Though the facts are so obvious and consistently followed by the company and completed assessment in the earlier years as per similar submissions made. In the subsequent assessment order for FY 19-20 and FY 20-21, the Company on the same matter got the order without any addition by the assessing officers. Therefore, the company is advised that it has got more than a reasonable chance for success in appeal and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

f. The Company has received demand notice from the income tax department amounting to ''106 lakhs for the year 2020-21 related to dispute of disallowance of legitimate purchases due to no response from the vendor as per order under Section 143(2) of the Income Tax Act ,1961. The Company is in appeal before Commissioner of Appeals against said order. This being a rectifiable in nature, the company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

g. The company has received a demand notice u/s.156 from the Income tax department amounting to '' 7,018 lakhs for the year 2021-22 relating to disallowance of legitimate expenditure incurred on buying of old gold in exchange to new ornaments from the customers at large U/s.69(3) of the Income tax act. The company has moved a writ petition against the order with Honourable High Court of Madras (Madurai bench). The Honourable court had stayed the order and consequently the demand also for an interim period of 6 weeks from the date of order i.e. 24/04/2024. Subsequent to that based on the arguments and merits of legality of the writ, the request called for by the company in quashing the said order will be determined by the Honourable court. For the purpose of better understanding and clarity on the matter by the shareholders, we give hereunder the facts of the dispute. The company in the ordinary course of business used to take the old gold ornaments for exchange into new gold ornaments. This is the trade practice throughout the country. We determine the gold price based on the purity parameters for old gold and apply the rate prevailing on the date of exchange with new ornaments. The assessing officer in spite of our submission of a lot of documentary evidences and clarifications wrongly applied 18ct purity rate for such old gold purchases instead of accepting the real value determined by the proceeds of purity and rate criterion. By wrongly assuming the purity at 18ct the assessing officer disallowed a sum of to '' 7,216 lakhs as excessively paid without considering the actual facts as submitted by us. A great injustice unwittingly caused on the company. Hence, by quoting legal position the writ was filled and the stay was granted. If was "prima facie" a wrong addition to the income and more than the disallowance, the assessing officer went on to tax the so called imaginary disallowance u/s 115E at a highest rate of tax. For the facts stated above, we dealt with 113527 customers at different times in that year with whom no money was involved as actual payout but only by sale of new ornaments.

The Company is confident that in the restoration of natural justice, the Honourable high court finally will revert it back to the faceless assessing department for fresh orders after taking into consideration the facts of the dispute. For the elaborate reasons stated and based on writ admittance and stay obtained no need to provide any real or contingent liabilities for the same.

h) For the financial years 2019-20, 2020-21, and 2021-22, the company has received a show-cause notice under sections 73(5) of the CGST Act and SGST Act 2017. The notice pertains to an additional tax liability on consultancy services received from foreign countries and remuneration paid to directors, along with issues related to the excess input tax

credit claimed by the company. The matter is currently under review and the company has been granted an adjournment with a scheduled hearing on May 21, 2024. The management, in consultation with tax advisors, is actively addressing the queries raised and is preparing to present its case at the upcoming hearing. Given the ongoing nature of the proceedings and based on legal advice, no liability has been recognized in the financial statements as of now, as the outcome is still uncertain. The company will continue to monitor the situation closely and will comply with all statutory requirements in resolving this matter.

Additionally, for the financial year 2018-19, an order has been passed imposing an additional tax liability of ''13.04 Lakhs. The company has decided to appeal this order to the Deputy Commissioner of State Taxes (GST Appeal). The company believes that it has valid grounds for the appeal. Therefore, no provision has been made in the financial statements regarding this matter as the final outcome is yet to be determined.

i) The Company has received demand notice under Section 11A(4) of the Central Excise Act, 1944 from Directorate General of GST Intelligence, Coimbatore Zonal Unit, Coimbatore relating to non-payment of Central excise duty for Sale of branded gold coins amounting to '' 97 lakhs and Sale of silver jewellery amounting to '' 31 lakhs and dispute on input service tax credit taken amounting to '' 145 lakhs aggregating to '' 274 lakhs for the period from 01.03.2016 to 30.06.2017. The company has filed an appeal with Customs, Excise and Service Tax Appellate Tribunal. The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

Note 36 - Segment Report

The company is engaged in the business of Gold Jewellery, Diamond and Silver Articles, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Indian Accounting Standard (Ind AS) 108- "Segment Reporting" issued by The Institute of Chartered Accountants of India.

Provision for gratuity fund of '' 38 lakhs (Previous year '' 163 lakhs) being the net liability recognized as per actuarial valuation of gratuity fund.

The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

The assumption of future salary increase, are considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

the material accounting policies of the company as the real time sale is contingent on redemption. As sum of '' 41,916 lakhs (Previous year '' 24,956 lakhs) is outstanding in such scheme as on 31st March 2024. The discount if any payable in future on redemption will be treated as reduction in sales realization. This treatment in accounts is consistently followed by the Company with no material deviation in accounting.

39. Survey was conducted by The Assistant Commissioner of Customs, Customs Preventive Unit, Madurai at the manufacturing units and purchase premises of the company in FY 2020-21. Gold Coin weighing 1,643 grams was taken over by the official under the protest of certain scratches appeared in the items and also resemblance of foreign origin of the items. By virtue of accepting coins from customers after taking due declaration, the company at different point of time accepted the coins that fulfilled purity and other regulatory essentials. The company has received notice from the department and appeared before the Appropriate Authority and produced necessary documents and explanation. The company is of the view that with the submissions made to the authorities, it will come out of the legal tangle, and hence no provision is made in the books of account. The above said quantity was included in the closing stock as of 31st March 2024.

40. In the opinion of the management, there is no impairment in the carrying cost of property, plant and equipment of the Company in terms of the Indian Accounting Standard (Ind AS) 36 "Impairment of Assets" issued by the Institute of Chartered Accountants of India except for those disclosed in note no. 31.

Note 44

consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

Note 45 - Financial Risk Management Framework

The Company is exposed predominantly to liquidity risk and market risk which may adversely impact the fair value of its financial instruments. The company assess the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company. The risks and mitigating actions are also placed before the Audit Committee of the Company.

Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities when due without incurring unacceptable losses.

The company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis. The company regularly monitors the rolling forecasts to ensure it has sufficient cash on an ongoing basis to meet operational requirements. Any short term surplus cash generated, over and above the amount required for working capital management and other operational needs, is retained as undrawn from limits ( to the extent required) to ensuring sufficient liquidity to meet liabilities. The company expects to meet their obligations from operating cash flows.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market places. Market risk comprises two types of risk: Interest rate risk, and price risk. Financial instruments affected by market risk include loans and borrowings and deposits.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This risk exists mainly on account of borrowing of the Company. However, all these borrowings are at flexible interest rate and based on the limit availment and hence the exposure to change in interest rate is insignificant in the current syndrome.

Price risk

Gold price fluctuation risk could arise on account of frequent changes in gold prices either up or downside momentum. It could have adverse impact on earnings. We are maintaining our inventory price hedging around 76:24 basis. This will help the company with any gold price fluctuation. Your Board will take appropriate action in managing the fluctuation impact in gold price movement from time to time to increase to 89:11 basis.

Note 46 - Additional regulatory Disclosures as Per Schedule III of Companies Act, 2013

Additional Regulatory Information pursuant to Clause 6L of General instructions for preparation of Balance sheet as given in part I of Division II of schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statement.

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

b) The company has-fund based and non-fund-based Limits of Working capital from Banks and financial institutions. For the said facility, the revised submissions made by the Company to its multiple bankers based on closure of books of accounts at the year end, the revised quarterly returns or statements comprising stock statements, book debt statements, credit monitoring arrangement reports, statements on ageing analysis of the debtors/others receivables, and other stipulated financial information filed by the Company with such banks or financial institutions are in agreement with the unaudited books of account of the company of the respective quarters and no material discrepancies have been observed.

c) The company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved.

d) The company has not entered into any transactions with companies struck off under section 248 of the companies Act,2013 or section 560 of company Act, 1956.

e) The company has compiled with the number of layers prescribed under clause (87) of section 2 of the companies (Restrictions on number of layers) Rules, 2017.

f) The company has not advanced or loaned or invested funds to any other persons(s) or entity (is), including foreign entities (intermediaries), with the understanding that the intermediary shall;

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by on behalf of the company (Ultimate Beneficiaries) or

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries

g) The company has not received any funds from any persons(s) or entity (ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall;

i. Directly and indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (Ultimate beneficiaries) or

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

h) The Company does not have any transactions which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the income Tax Act, 1961).

i) The Company has not traded or invested in crypto currency or virtual Currency during the financial year.

Note-48 Capital Management

For the purpose of the Company capital management, capital includes issued equity capital and other equity reserve attributable to the equity shareholders of the Company. The primary objective of the company''s capital management is to maximise the shareholder value.

The company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day to day need with a focus on total equity so as to maintain investor, creditors and market confidence.

The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt is calculated as borrowing less cash and cash equivalents and other bank balances.

All figures have been rounded off to the nearest rupees in lakhs

Previous year figures have been regrouped / reclassified to make them comparable with that current year. Subject to our report of even date

Mar 31, 2023

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental expense recorded for short-term leases was ''132 lakhs ( PY 56.2 lakhs) for the year eneded March 31, 2023.

Interest on lease liabilities is ''219 lakhs (PY 137 lakhs) for the year ended March 31, 2023.

Capital Advances includes a sum of ''25 lakhs due from a party and secured by immovable property valued around ''60.00 lakhs for which the company has initiated legal recourse for recovery. Hence being secured no provision is made as in the opinion of directors the amount is fully recoverable.

Mode of Valuation

Packing materials and Gift items are valued at cost on FIFO basis.

No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. There are no trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having par value of ''10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting. In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholdings.

c) Information regarding aggregate number of equity shares during the five years immediately preceding the date of Balance Sheet.

The Company has not issued for consideration other than cash and has not bought back any shares during the past five years.

The Company has not allotted any shares pursuant to contract without payment being received in cash.There are no calls unpaid on equity shares and no equity shares have been forfeited.

d) Capital Management

The Company monitors capital using the metric of net debt to Equity. Net debt is defined as borrowing less cash and cash equivalents, fixed deposits.

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Act.

General Reserve is the retained earnings of the Company which are kept aside out of the Company''s profits to meet future (Known or unknown) obligations.

Retained earnings

Retained earnings comprise of the Company''s prior years undistributed earnings after taxes.

Distributions made and proposed

The Board of Directors, at their meetings held on 27th January, 2022 declared an interim dividend of ''5 ( i.e. 50%) per equity share of the face value of ''10 each. The Board of Directors at its meeting held on 19th May, 2022 declared a final dividend of '' 5 (i.e. 50%) per equity share of the face value of ''10 each for the financial year ended 31st March, 2022. The total dividend (interim and final dividend) for the financial year 2021-2022 will be '' 10 (i.e. 100%) per equity share of the face value of ''10 each.

The Board of Directors, at their meetings held on 23th January, 2023 declared an interim dividend of ''6 ( i.e. 60%) per equity share of the face value of ''10 each. The Board of Directors at its meeting held on 22nd May, 2023 have recommended a payment of final dividend of ''6 (i.e. 60%) per equity share of the face value of ''10 each for the financial year ended 31st March, 2023. If approved, the total dividend (interim and final dividend) for the financial year 2022- 23 will be ''12 (i.e. 120%) per equity share of the face value of ''10 each.

Total dividend payout for the FY 2022-23 amounting to ''1,646 lakhs as against the total dividend of ''10 (i.e. 100%) per equity share in the previous year (total dividend payout for the year FY 2021-22 amounting to ''1372 lakhs )

Term Loan From Banks - Federal Bank,Axis Bank and HDFC bank .The term loan availed under Emergency Credit Line Guarantee Scheme( ECLGS) to meet the working capital needs under COVID 19 pandemic situation.

â¢ The above loans are repayable in 60 months with 12 to 24 months moratorium and carries interest of 5.90% to 7.80%

â¢ Regarding securities refer note no 17

â¢ Vehicle Loan secured by Hypothecation of specific assets purchased out of the loans.

## ''2,706 lakhs (''979 lakhs) Fixed Deposit carry interest @8.00% (7.50%) and are repayable 2 years from the respective years.

'' 2,196 lakhs (''2,684 lakhs) Fixed Deposit carry interest @9.00% (8.00%) and are repayable 3 years from the respective years.

â¢ The Company availed un-secured loan from directors, which are repayable on demand and carries interest @ 6% p.a.

The above working capital loans extended by multiple banking system are secured by a pari passu charge on stocks and book debts of the company .

The loan extended by banks are further collaterally secured by equitable mortgage of Company''s properties in the case of HDFC Bank properties at Trichy, Tuticorin, Madurai, Ramnad and in the case of Axis Bank property at Salem and in the case of Yes Bank property at Alwarpurm and in the case Federal Bank property at Nethaji Road and Solanguruni at Madurai.

â¢ 1.36% (1,25,000 shares) promoters share holding in the company has been pledged as collateral security for IDBI loan.

â¢ 3.26 % (3,00,000 shares) promoters share holding in the company has been pledged as collateral security for Yes bank loan.

â¢ 3.26 % (3,00,000 shares) promoters share holding in the company has been pledged as collateral security for Axis bank loan.

â¢ 2.71 % (2,50,000 Shares) promoters share holding in the company has been pledged as collateral security for Kotak Mahindra Bank loan.

Gold Metal loan from Banks against Fixed deposit and SBLC of the respective bank.

All the above loans are further secured by personal guarantee of whole time directors of the company.

The cash credit is repayable on demand and carries interest of 7.00% to 9.00% p.a.

The Gold Metal Loan carries interest @ 1.80% to 2.80% p.a.

Fixed Deposits from public are repayable within 12 Months from the reporting date.

b. An order for demand of less payment of Customs duty on imported goods pertaining to earlier year for ''154 Lakhs passed by principal Commissioner of Customs, Chennai. The company has moved a Writ petition against the order with Honourable High Court of Madras for quashing the order passed by the Authority. The writ was admitted, and status quo is maintained. Direction is given by High court of Madras to approach Appellate Tribunal / Commissioner (Appeals) to complete the appeals. The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

c. In respect of - outstanding Letter of Credit given to bankers ''1,900 Lakhs (previous year Nil )

Against this order, the Commercial Tax office, Madurai has filed an appeal to Sales tax Appellate Tribunal, Madurai (A.B) which is pending for hearing. The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

e. The Company has received a demand notice from the income tax department amounting to ''591 lakhs for the year 2016-17 and ''858 lakhs for the year 2017-2018 related to dispute of beaten gold wastage treatment in the books of accounts from the assessing officer, as per order under Section 143 (2) of the Income Tax Act ,1961. Company is in appeal before Commissioner of Appeals against said orders. This dispute arises on account of wrongful understanding of the Accounting of wastage in refining and melting process by the assessing officer. Though the facts are so obvious and consistently followed by the company and completed assessment in the earlier years as per similar submissions made. In the subsequent assessment order for FY 19-20 and FY 20-21, the Company on the same matter got the order without any addition by the assessing officers. Therefore, the company is advised that it has got more than a reasonable chance for success in appeal and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

f. The Company has received demand notice from the income tax department amounting to ''106 lakhs for the year 20202021 related to dispute of disallowance of legitimate purchases due to no response from the vendor as per order under Section 143(2) of the Income Tax Act ,1961. The Company is in appeal before Commissioner of Appeals against said order. This being a rectifiable in nature, the company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

g) The Company has received demand notice under Section 11A(4) of the Central Excise Act, 1944 from Directorate General of GST Intelligence, Coimbatore Zonal Unit, Coimbatore relating to non-payment of Central excise duty on for Sale of branded gold coins amounting to ''97 lakhs and Sale of silver jewellery amounting to ''31 lakhs and dispute on input service tax credit taken amounting to ''145 lakhs aggregating to ''274 lakhs for the period from 01.03.2016 to 30.06.2017. The company has filed an appeal with Customs, Excise and Service Tax Appellate Tribunal. The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

Provision for gratuity fund of ''163 lakhs (Previous year ''214 lakhs) being the net liability recognized as per actuarial valuation of gratuity fund.

The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Investment Details

38. The company is collecting advances from customers both in the form of gold and money and no value addition is charged as per terms of agreement at the time of sale of ornaments. The liability for receipt of customer advances in this category is accounted as and when received by the company. At the time of redemption entire value addition will be given as discount to the customers and no provision for such future discount is made in the accounts in accordance with the significant accounting policies of the company as the real time sale is contingent on redemption. As sum of ''24,956 lakhs (Previous year ''14,255 lakhs) is outstanding in such scheme as on 31st March 2023. The discount if any payable in future on redemption will be treated as reduction in sales realization. This treatment in accounts is consistently followed by the Company with no material deviation in accounting.

40. In the opinion of the management, there is no impairment in the carrying cost of non-financial assets of the Company in terms of the Indian Accounting Standard (Ind AS) 36 "Impairment of Assets" issued by the Institute of Chartered Accountants of India except for those disclosed in note 31.

Note 44

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

Note 45 - Financial Risk Management Framework

Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities when due without incurring unacceptable losses.

The company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis. The company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on- going basis to meet operational requirements. Any short term surplus cash generated, over and above the amount required for working capital management and other operational needs, is retained as undrawn from limits ( to the extent required) to ensuring sufficient liquidity to meet liabilities. The company expects to meet their obligations from operating cash flows.

Market Risk

Interest rate risk

Price risk

Note 46 - Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its financial statements.

Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its financial statement.

Note-48 Capital Management

For the purpose of the Company capital management, capital includes issued equity capital and other equity reserve attributable to the equity shareholders of the Company. The primary objective of the company''s capital management is to maximise the shareholder value.

The company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day to day need with a focus on total equity so as to maintain investor, creditors and market confidence.

The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt is calculated as borrowing less cash and cash equivalents and other bank balances.

All figures have been rounded off to the nearest rupees in lakhs.

Previous year figures have been regrouped / reclassified to make them comparable with that current year.

Mar 31, 2022

b) Rights, preferences and restrictions attached to equity shares

c) Information regarding aggregate number of equity shares during the five years immediately preceding the date of Balance Sheet.

The Company has not issued for consideration other than cash and has not bought back any shares during the past five years.

The Company has not allotted any shares pursuant to contract without payment being received in cash.There are no calls unpaid on equity shares and no equity shares have been forfeited.

d) Capital Management

The Company monitors capital using the metric of net debt to Equity. Net debt is defined as borrowing less cash and cash equivalents, fixed deposits.

Securities premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Act.

General Reserve

General Reserve is the retained earnings of the Company which are kept aside out of the Company''s profits to meet future (Known or unknown) obligations.

Retained earnings

Retained earnings comprise of the Company''s prior years undistributed earnings after taxes.

Distributions made and proposed

The Board of Directors of the Company in their meeting held on 2nd March 2021, declared an interim dividend of INR 6 (i.e. 60%) per equity share of Rs 10 each on the paid up equity share capital of the Company for the financial year ended 31 March 2021 amounting to Rs. 823 lakhs. The Board of Directors at its meeting held on 24th June, 2021 declared a final dividend of ''4.00 (i.e. 40%) per equity share of the face value of ''10 each for the financial year ended 31st March, 2021.The total dividend (interim and final dividend) for the financial year 2020-2021 of ''10 (i.e. 100%) per equity share of the face value of ''10 each.

The Board of Directors, at their meetings held on 27th January, 2022 declared an interim dividend of ''5.00 (i.e. 50%) per equity share of the face value of ''10 each. The Board of Directors at its meeting held on 19th May ,2022 have recommended a payment of final dividend of ''5.00 (i.e. 50%) per equity share of the face value of ''10 each for the financial year ended 31st March, 2022. If approved, the total dividend (interim and final dividend) for the financial year 2021-2022 will be ''10 (i.e. 100%) per equity share of the face value of ''10 each (''10.00 (i.e. 100%) per equity share of the face value of '' 10 each was paid as total dividend for the previous year).

Total dividend payout for the FY 2021-22 amounting to ''1,371.96 lakhs) as against the total dividend of ''10 (i.e. 100%) per equity share in the previous year (total dividend payout for the year FY 2020-21 amounting to ''1371.96 lakhs)

Term Loan From Banks - Federal Bank, Axis Bank and HDFC bank. The term loan availed under Emergency Credit Line Guarantee Scheme(ECLGS) to meet the working capital needs under COVID 19 pandemic situation.

â¢ The above loans are repayable in 60 months with 12 to 24 months moratorium and carries interest of 5.90% to 6.75%

â¢ Regarding securities refer note no 17

â¢ Vehicle Loan secured by Hypothecation of specific assets purchased out of the loans.

## 979.48 lakhs (281.99 lakhs) Fixed Deposit carry interest @7.5% (7.50%) and are repayable 2 years from the respective years.

2,683.56 lakhs (1,626.49 lakhs) Fixed Deposit carry interest @8 % (8.00%) and are repayable 3 years from the respective years.

â¢ The Company availed un-secured loan from directors, which are repayable on demand and carries interest @ 6% p.a

The loan extended by banks are further collaterally secured by equitable mortgage of Company''s properties in the case of HDFC Bank properties at Trichy, Tuticorin, Madurai, Ramnad and in the case of Karur Vysya Bank property at Oppanakara Street at Coimbatore, and in the case of Axis Bank property at Bazaar Street, Salem and in the case of Yes Bank property at Alwarpurm and in the case Federal Bank property at Nethaji Road and Solanguruni at Madurai.

Security for Tamilnadu Mercantile Bank property at Madurai owned by Managing Director of the Company and for Axis Bank loan secured by whole time directors properties at Madurai.

â¢ 5.97% (5,46,220 shares) promoters share holding in the company has been pledged as collateral security for IDBI loan.

â¢ 3.28% (3,00,000 shares) promoters share holding in the company has been pledged as collateral security for Yes bank loan.

â¢ 5.53% (5,05,560 shares) promoters share holding in the company has been pledged as collateral security for Federal Bank loan.

Gold Metal loan from Banks against Fixed deposit of the respective bank.

All the above mentioned collateral securities owned by the company and by the respective whole time directors are given to the respective banks as indicated above are given on exclusive basis and not on a pari passu charge basis and also is in accordance with sanction terms and conditions of the respective banks.

All the above loans are further secured by personal guarantee of whole time of directors of the company.

The cash credit is repayable on demand and carries interest of 6.20% to 10.00% p.a.

The Gold Metal Loan carries interest @ 1.90% to 3.00% p.a.

b. An order for demand of less payment of Customs duty on imported goods pertaining to earlier year for ''154 Lakhs passed by principal Commissioner of Customs, Chennai. The company has moved a Writ petition against the order with Honourable High Court of Madras for quashing the order passed by the Authority. The writ was admitted, and status quo is maintained. Direction given by High court of Madras to approach Appellate Tribunal / Commissioner (Appeals) to complete the appeals. The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

c. In respect of - outstanding Letter Credit given to bankers '' Nil (previous year '' Nil Lakhs)

d. The Commercial Tax office, Madurai has issued a notice for the Asst year 2006 -07 to 2012-13 on the matter of payment of Sec 12 purchase tax and others made a claim aggregating to ''492 Lakhs. The notice is erroneous as the law permits to adjust the excess input credit available at every point of time with that of purchase tax payable. The company even after adjusting regularly the purchase tax due with the excess input credit available has also paid by remittances for balance if any. Accordingly, at no point of time, the company failed to pay purchase tax u/s 12. Against this frivolous notice, the company took the matter to Honourable Madras High Court, Madurai bench and obtained stay and also restrained the authorities to pass any orders without the court direction.

However, commercial tax officer has passed order to nullify demand amount of ''436 lakhs as on 5th March 2020. The balance amount of ''56 lakhs company has proposed appeal with Appellate Authorities at Madurai. Hence, the liability if any is considered as Contingent in nature.

e. The Company has received demand notice from the income tax department amounting to '' 590.59 lakhs for the year 2016-17 and '' 857.59 lakhs for the year 2017-2018 related to dispute of wastage treatment in the books of accounts from the assessing officer, as per order under Section 143 (2) of the Income Tax Act ,1961. Company is in appeal before Commissioner of Appeals against said order. This dispute arises on account of wrongful understanding of the accounting of wastage in production by the assessing officer. Though the facts so obvious and consistently followed by the company and obtained orders in the earlier years as per same submissions made. The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

f. Show-cause notice was received under Section 11A(4) of the Central Excise Act, 1944 from Directorate General of GST Intelligence, Coimbatore Zonal Unit, Coimbatore relating to non-payment of Central excise duty on for Sale of branded gold coins amounting to ''715.90 lakhs and Sale of silver jewellery amounting to ''391.35 lakhs and dispute on input service tax credit amounting to ''145.45 lakhs aggregating to ''1252.70 lakhs for the period from 01.03.2016 to

30.06.2017. The company is waiting for a personal hearing with the Additional Director General (Adjudication), DGGI, Mumbai and the outcome of the case is still awaited.

The company is of the view that with the submissions made to the authorities, it will come out of the legal tangle, and hence no provision is made in the books of account. And hence, this liability if any is considered as contingent in nature.

Note 36 - Segment Report

Provision for gratuity fund of '' 213.93 lakhs (Previous year '' 182.19lakhs) being the net liability recognized as per actuarial valuation of gratuity fund.

The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

The assumption of future salary increase, are considered in actuarial valuation, taking into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Investment Details

The company is collecting advances from customers both in the form of gold and money and no value addition is charged as per terms of agreement at the time of sale of ornaments. The liability for receipt of customer advances in this category is accounted as and when received by the company. At the time of redemption entire value addition will be given as discount to the customers and no provision for such future discount is made in the accounts in accordance with the significant accounting policies of the company as the real time sale is contingent on redemption. A sum of ''14,255.10 lakhs (Previous year '' 12,427.68 lakhs) is outstanding in such scheme as on 31st March 2022. The discount if any payable in future on redemption will be treated as reduction in sales realization.

During the year a survey was conducted by The Assistant Commissioner of Customs, Customs Preventive Unit, Madurai at the manufacturing units and purchase premises of the company. Gold Coin weighing 1643 grams was taken over by the official under the protest of certain scratches appeared in the items and also reflecting foreign origin of the items. By virtue of accepting coins from customers after taking due declaration, the company scratches a different point of time accepted the coin that fulfilled purity and other regulatory essentials. The company has received notice from the department and appeared to the Appropriate Authority and produced necessary documents and explanation. The company is of the view that with the submissions made to the authorities, it will come out of the legal tangle, and hence no provision is made in the books of account. The above said quantity was included in the closing stock as of 31st March 2022.

In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Indian Accounting Standard (Ind AS) 36 "Impairment of Assets" issued by the Institute of Chartered Accountants of India except Impairment assets value of ''Nil lakhs (previous year ''33.35 lakhs).

Note 41

Note 42 - Financial Risk Management Framework

The Company is exposed predominantly to liquidity risk and market risk which may adversely impact the fair value of its financial instruments. The company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company. The risks and mitigating actions are also placed before the Audit Committee of the Company.

Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities when due without incurring unacceptable losses.

The company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis. The company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on- going basis to meet operational requirements. Any short term surplus cash generated, over and above the amount required for working capital management and other operational needs, is retained as undrawn from limits (to the extent required) to ensuring sufficient liquidity to meet liabilities. The company expects to meet it their obligations from operating cash flows.

Market Risk

Interest rate risk

Price risk

Gold price fluctuation risk could arise on account of frequent changes in gold prices either up or downside momentum. It could have adverse impact on earnings. We are maintaining our inventory price hedging around 72:28 basis. This will help the company with any gold price fluctuation. Your Board will take appropriate action in managing the fluctuation impact in gold price movement from time to time to increase to 75:25 basis.

Risk due to outbreak of COVID 19 pandemic

The Company has taken into account external and internal information for assessing possible impact of COVID-19 on various elements of its Financial Statements, including recoverability of its assets.

Estimation uncertainty relating to the global health pandemic on COVID-I9

The Company has considered the possible effects that may result from the pandemic relating to COVID 19 on the financial results of the company. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the company as at the date of approval of these financial results has used internal and external sources of information. The company has performed an analysis on the assumptions used and based on current estimates expects the carrying amount of its assets will be recovered. The Company has made detailed assessments of its liquidity position for the next one year and of the recoverability and carrying values of its assets comprising property, plant and equipment, inventories, receivables and other current assets as at the balance sheet date and on the basis of evaluation based on the current estimates has concluded that no material adjustments as required in the financial results. The impact of COVID-19 on the Company''s financial results may differ from that estimated as at the date of approval of these financial statements.

Earnings Available for debt service**

**Net Profit after taxes Non cash operating expenses Interest Other adjustments @the reduction due to reduction of inventory profit for the FY 2022

Capital Management

For the purpose of the Company capital management, capital includes issued equity capital and other equity reserve attributable to the equity share holders of the Company. The primary objective of the company''s capital management is to maximise the shareholder value.

The company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day to day need with a focus on total equity so as to maintain investor, creditors and market confidence.

All figures have been rounded off to the nearest rupees in thousands.

Previous year figures have been regrouped / reclassified to make them comparable with that current year.

Mar 31, 2018

In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholdings.

c ) Of the above the following shares were issued and allotted for consideration other than cash: d) Details of shareholders holding more than 5% equity shares in the company

Securities premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

General Reserve

General Reserve is the retained earnings of the Company which are kept aside out of the Company''s profits to meet used to record future ( Known or unknown) obligations.

Retained earnings

Retained earnings comprise of the Company''s prior years undistributed earnings after taxes.

Distributions made and proposed

The Board of Directors at its meeting held on May 25, 2016 had declared a dividend of Rs. 1 per Equity shares of par value of ''10 each and the same was paid during the year ended 31st March 31, 2017. The proposal was approved by shareholders at the Annual General Meeting held on July 27, 2016. This has resulted in a total outflow of Rs.165 lakhs including corporate dividend tax of Rs.28 lakhs. The Board of Directors at its meeting held on May 18, 2017 had declared a dividend of Rs.2 per Equity shares of par value of Rs.10 each and the same was paid during the year ended 31st March 31, 2017. The proposal was approved by shareholders at the Annual General Meeting held on July 26, 2017. This has resulted in a total outflow of Rs.335 lakhs including corporate dividend tax of Rs.61 lakhs.

The Board of Directors in its meeting held on May 25, 2018 have proposed a dividend of Rs.3.5 per Equity shares of par value of Rs.10 each for the financial year ended March 31, 2018. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on August 1, 2018 and if approved would results in a cash outflow of approximately Rs.579 lakhs including corporate dividend tax of Rs.99 lakhs.

Term Loan from KVB secured by equitable mortgage of company land and building at Oppanakara Street, Coimbatore. The loan is secured by property owned by whole time directors and their close relatives and further secured by personal guarantee of whole time of directors of the company.

The Term loan is repayable on demand and carries interest of 11.50% p.a

Fixed deposit includes Rs.762.65 lakhs (Rs.777.25 lakhs) secured by all movable properties such as furniture, fixtures, computers, Fiffing excluding plant and machinery of the company.

Rs.1212.45 lakhs (Rs.8.25 lakhs) Fixed Deposit carry interest @9.5% and are repayable 2 years from the respective years. Rs.536.24 lakhs (Rs. 2310.69 lakhs ) Fixed Deposit carry interest @11.5% and are repayable 3 years from the respective years Vehicle Loan is secured by the respective vehicles

The above working capital loans extended by multiple banking system are secured by a pari passu charge on stocks and book debts of the company.

The loan extended by banks are further collaterally secured by equitable mortgage of Company''s properties in the case of HDFC Bank properties at Trichy, Tuticorin, Madurai and in the case of Karur Vysya Bank property at Oppanakara Street at Coimbatore and in the case of Indusind Bank property at Ramnad and in the case of Axis Bank property at Bazaar Street, Salem and in the case of Yes Bank property at alwarpuram and in the case Federal Bank property at Nethaji Road, Madurai. Security for Tamilnadu Mercantile Bank property at Madurai owned by Managing Director of the Company and Karur Vysya Bank loan collaterally secured by property owned by Whole time Director and their close relatives and for Axis Bank loan secured by whole time directors properties at Madurai.

Advances from customers includes an amounts of Rs.14,554.20 lakhs ( As on 31st March 2017 Rs.7,460.67 lakhs, As on 1st April 2016 Rs.6,564.77 lakhs) received towards sale of jewellery products under various sale initiatives/retail customer schemes.

Advance from Customers are redeemable by way of sale alone within 11 Months from the reporting date.

b) An order for demand of less payment of Customs duty on imported goods pertaining to earlier year for Rs.154 Lakhs passed by principal Commissioner of Customs, Chennai. The company has moved a Writ petition against the order with Honourable High Court of Madras for quashing the order passed by the Authority. The writ was admitted and status quo is maintained. The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

c) In respect of - outstanding Letter Credit given to bankers Rs.4928.94 Lakhs (previous year Rs.6085.00 Lakhs)

d) The Commercial Tax office, Nethaji Road Circle, Madurai has passed order and raised demand for payment under the TNVAT, 2006 for the year 2006-07 to 2009-10 of Rs.49.96 Lakhs towards liability of disallowance of input tax and classification of goods. The company has filed an appeal against the aforesaid order with appellate Authorities and the matter is pending for disposal.

e) The Commercial Tax office, Madurai has issued a notice for the Asst year 2006 -07 to 2012-13 on the matter of payment of Sec 12 purchase tax and others made a claim aggregating to Rs.492 Lakhs . The notice is erroneous as the law permits to adjust the excess input credit available at every point of time with that of purchase tax payable. The company even after adjusting regularly the purchase tax due with the excess input credit available has also paid by remittances for balance if any. Accordingly, at no point of time, the company failed to pay purchase tax u/s 12 . Against this frivolous notice, the company took the matter to Honourable Madras High Court, Madurai bench and obtained stay and also restrained the authorities to pass any orders without the court direction. However, commercial tax officer has not passed any order even earlier to this injunction and no action is taken for converting into orders for such notices sent by them. As the dues were already paid with thee tax input credits available, no real time liability for any further payment would be necessary. Hence, the liability if any is considered as Contingent in nature.

f) Tax demand of Rs.55.32 lakhs raised by assessing officer, as per order under Section 143 (2) of the Income Tax Act 1961 due to disallowance pertaining to amortisation of Initial Public Offer (IPO) expenses under section 35D for Assessment Years 2010-11 to 2014-15. Company is in appeal before ITAT against said order.

1. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

2. Segment Report

b) Defined Benefit Plan

The company provides for gratuity, a defined benefit plan (the Gratuity Plan), to its employees. The Gratuity Plan provides for a lump sum payment to vested employees at retirement or termination of employment, whichever is earlier, based on the respective employee''s last drawn salary and years of employment with the Company. The employee''s gratuity funds are managed by Insurance Company.

a. Provision for gratuity fund of Rs.4.36 Lakhs (Previous year Rs.9.74 Lakhs) being the net liability recognized as per actuarial valuation of gratuity fund.

b. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

c. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

d. Investment Details The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

3. The Company has entered in to leasing arrangements for its branch show room, manufacturing works and corporate office facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs.345.06 Lakhs (Previous year Rs.369.95 Lakhs).

4. The company is collecting advances from customers both in the form of gold and money and no value addition is charged as per terms of agreement at the time of sale of ornaments. The liability for receipt of customer advances in this category is accounted as and when received by the company. At the time of redemption entire value addition will be given as discount to the customers and no provision for such future discount is made in the accounts in accordance with the significant accounting policies of the company as the real time sale is contingent on redemption. As sum of Rs.14554.20 Lakhs (Previous year Rs.7460.67 Lakhs) is outstanding in such scheme as on 31st March 2018. The discount if any payable in future on redemption will be treated as reduction in sales realization.

5.In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Indian Accounting Standard (Ind AS) 36 " Impairment of Assets" issued by the Institute of Chartered Accountants of India except Impairment assets value of Rs.47.15 Lakhs for renovation of existing show rooms during the year.

6. The Company has no dues to micro and small enterprises during the year ended March 2018 and March 2017.

7. Financial Risk Management Framework

Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities when due without incurring unacceptable losses.

The company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis. The company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on- going basis to meet operational requirements. Any short term surplus cash generated, over and above the amount required for working capital management and other operational needs, is retained as undrawn from limits ( to the extent required) to ensuring sufficient liquidity to meet liabilities. The company expects to meet it their obligations from operating cash flows.

For long term borrowings, the company also focuses on maintaining/ improving its credit ratings to ensure that appropriate refinancing options are available on the respective due dates.

Market risk

Interest rate risk

Price risk

Gold price fluctuation risk could arise on account of frequent changes in gold prices either up or downside momentum. It could have adverse impact on earnings. We are maintaining our inventory price hedging around 65:35 basis. This will help the company with any gold price fluctuation of gold price. The company will take appropriate action in managing the fluctuation impact in gold price movement from time to time to increase to 75:25 basis.

8. Capital Management

For the purpose of the Company capital management, capital includes issued equity capital and other equity reserve attributable to the equity share holders of the Company. The primary objective of the company''s capital management is to maximise the shareholder value.

The company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day to day need with a focus on total equity so as to maintain investor, creditors and market confidence.

9.FIRST TIME ADOPTION OF IND AS Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet as at 1 April 2016 (the transition date). In preparing its opening Ind AS balance sheet, the Company has made adjustments to the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provision of the Act (previous GAAP or Indian GAAP). Further, in view of the classification of current and non-current items adopted in accordance with the criteria specified in Ind AS 1 Presentation of Financial Statements the corresponding figures of the previous years have been appropriately reclassified where so ever necessary. An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

Optional Exemptions

1) Deemed cost - Property, plant and equipment and intangible assets were carried in the balance sheet prepared under previous GAAP as at March 31, 2016. The Company has elected to regard such carrying amount as deemed cost at the date of transition i.e. April 01, 2016. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

2) Leases - Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/ arrangements.

Under previous GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under Ind AS, the actuarial gains and losses form part of re measurement of the defined benefit liability/asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in the Other Comprehensive Income under Ind AS.

Under previous GAAP, liability for dividend and dividend distribution tax thereof is recognised in the period to which the dividend relates, even though the dividend may be approved by the shareholders subsequent to the reporting date. Under Ind AS, dividend is recognised in the year in which the obligation to pay is established.

Estimates - An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP (after adjustments to reflect any difference in accounting policies) apart from certain new estimates that were not required under previous GAAP.

NOTES TO FIRST TIME ADOPTION:

1. Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability.

Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of nil as at 31 March 2017 (1 April 2016: Rs.165.13 lakhs) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity is increased by an equivalent amount.

2. Deferred tax

Under the previous GAAP, deferred tax accounting is done using income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 Income Taxes requires to accounting for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on temporary differences which were not required under previous GAAP in addition to the various temporary differences consequent to Ind AS transitional adjustments. Consequently, deferred tax assets (net) is reduced by Rs.216 lakhs as at 1st April 2016 and total equity decreased by Rs.216 lakhs as at 1st April 2016.

3. Excise duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of products is presented inclusive of excise duty. The excise duty paid is as expenses on the statement of profit and loss. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 Rs.581.08 lakhs. There is no impact on the total equity and profit.

4.Remeasurment of defined benefit plans

Under Ind AS, re measurements on defined benefit plans i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss under the previous GAAP, these re measurements were forming part of the profit or loss for the year.

As a result of this change, the profit for the year ended 31 March 2017 is increased by Rs.2.21 lakhs. There is no impact on the total equity as at 31 March 2017.

5.Other comprehensive income

Under the previous GAAP, there was no concept of other comprehensive income. under Ind AS, specified item of income, expense, gains or losses are required to be presented in other comprehensive income.

6.Retained earnings

Retained earnings as at 1 April 2016 has been adjusted consequent to the above Ind AS transition adjustments.

10. All figures have been rounded off to the nearest thousands.

11. Previous year figures have been regrouped / reclassified to make them comparable with that current year.

Mar 31, 2017

1. Contingent Liabilities

2. Capital Commitments

b) An order for demand of less payment of Customs duty on imported goods pertaining to earlier year for Rs.154 Lakhs passed by principal Commissioner of Customs, Chennai. The company has moved a Writ petition against the order with Honorable High Court of Madras for quashing the order passed by the Authority. The writ was admitted and status quo is maintained. The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

3. In respect of - outstanding Letter Credit given to bankers Rs.6085.00 Lakhs (previous year Rs.3911.66 Lakhs)

4. The Commercial Tax office, Nethaji Road Circle, Madurai has passed order and raised demand for payment under the TNVAT, 2006 for the year 2006-07 to 2009-10 of Rs.49.96 Lakhs towards liability of disallowance of input tax and classification of goods. The company has filed an appeal against the aforesaid order with appellate Authorities and the matter is pending for disposal.

5. The Commercial Tax office, Madurai has issued a notice for the Asst year 2006 -07 to 2012-13 on the matter of payment of Sec 12 purchase tax and others made a claim aggregating to Rs.492 Lakhs . The notice is erroneous as the law permits to adjust the excess input credit available at every point of time with that of purchase tax payable. The company even after adjusting regularly the purchase tax due with the excess input credit available has also paid by remittances for balance if any. Accordingly, at no point of time, the company failed to pay purchase tax u/s 12 .

Against this frivolous notice, the company took the matter to Honourable Madras High Court, Madurai bench and obtained stay and also restrained the authorities to pass any orders without the court direction. However, commercial tax officer has not passed any order even earlier to this injunction and no action is taken for converting into orders for such notices sent by them. As the dues were already paid with thee tax input credits available, no real time liability for any further payment would be necessary. Hence, the liability if any is considered as Contingent in nature.

6. Tax demand of Rs.Nil raised by assessing officer, as per order under Section 143 (2) of the Income Tax Act 1961 due to disallowance pertaining to amortization of Initial Public Offer (IPO) expenses under section 35D for Assessment Year 2014-15. Company is in appeal before ITAT against said order.

7. Segment Report

The company is engaged in the business of Gold Jewellery, Diamond and Silver Articles, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17- "Segment Reporting" issued by The Institute of Chartered Accountants of India

8. Defined Benefit Plan

9. Advance Recoverable in cash or kind includes Rs.9.74 Lakhs (Previous year Rs.12.81 Lakhs) being the net assets recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15-"Employee Benefits".

10. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

11. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

12. Investment Details

13. The company accepted from third parties gold (22Ct in Purity) in metal form for Job work conversion into gold ornaments to be delivered as per terms agreed upon. The closing weight of such Job Work gold physically held by the Company as at 31/03/2017 is 171.22 Kgs (Previous year 110.11 Kgs). This being gold taken on Job Work basis, the same is not forming part of inventory of the Company.

14. The Company has entered in to leasing arrangements for its branch show room, manufacturing works and corporate office facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs.369.95 Lakhs (Previous year Rs.390.59 Lakhs).

15. Accounting Standard (AS) - 25"Interim financial reporting"

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

16. Advance recoverable in cash or kind includes a sum of Rs.42.60 Lakhs as customs duty refund recoverable from State Bank of India, Madurai. The pending amount resulted on account of difference on customs duty rate applicable for metal loan purpose and it is a part amount due out of full amount claimed and SBI is processing our claims for settlement.

17. During the year the company has capitalized borrowing costs amounting to Rs.Nil ( Previous year Rs.119.10 Lakhs) in accordance with AS 16"Borrowing Costs"issued by The Institute of Chartered Accountants of India.

18. The Income tax assessments up to financial year 2013-14 were completed without any demand. The other current asset includes a sum of Rs.1015.13 Lakhs towards MAT Credit entitlement and advance tax paid for the pending assessment years. Once, the assessments are completed in normal course, due to carry over losses of earlier years, the advance payment of taxes is refundable from the department.

19. The company is collecting advances from customers both in the form of gold and money and no value addition is charged as per terms of agreement at the time of sale of ornaments. The liability for receipt of customer advances in this category is accounted as and when received by the company. At the time of redemption entire value addition will be given as discount to the customers and no provision for such future discount is made in the accounts in accordance with the significant accounting policies of the company as the real time sale is contingent on redemption. As sum of Rs.6373.73 Lakhs (Previous year Rs.5886.90 Lakhs) is outstanding in such scheme as on 31st March 2017. The discount if any payable in future on redemption will be treated as reduction in sales realization.

20. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 "Impairment of Assets" issued by the Institute of Chartered Accountants of India except Impairment assets value of Rs.21.33 Lakhs for renovation of existing show rooms during the year.

21. Deferred Tax Assets

The Company is of the view that the business environment has become conducive to earn adequate profits in future years and will be able to recover fully the unabsorbed business and depreciation losses as per Income Tax Act and consequently the virtual certainty of recovering these losses being established, deferred tax asset in accordance with Accounting Standard- 22 is recognized in the books in respect of these losses.

22.The Board of Directors of the Company has recommended the final dividend of Rs.2/- per share of the face value of Rs.10/- each. The final dividend, if declared at the ensuing Annual General Meeting will result in cash outflow of Rs.335 Lakhs.

During the previous year, the company has made a provision for the dividend declared by the Board of Directors as per requirement of pre-revised Accounting Standard 4 (AS-4) contingencies and events occurring after the balance sheet date. However as per the requirements of revised AS-4 the Company is not required to provide for dividend proposed / declared after the balance sheet date.

Consequently, no provision has been made in respective of the aforesaid dividend proposed by the Board of Directors for the year ended 31st March 2017. Had the company continue with the creation of provision for the proposed dividend as at the balance sheet, its balance in surplus would have been lower by Rs.335 Lakhs and short term provision would have been higher by Rs.335 Lakhs including Dividend Distribution Tax.

23.The Company has no dues to micro and small enterprises during the year ended March 2017 and March 2016.

24 .In accordance with the provisions of Section 135 of the Companies Act, 2013 the company has paid a sum of Rs.19.66 Lakhs (Previous year Rs.Nil) towards approved CSR activities. The said amount stands debited to the "Donation and others " under the head"Other expenses"

25. All figures have been rounded off to the nearest thousands.

26. Previous year figures have been regrouped / reclassified to make them comparable with that current year.

Mar 31, 2016

b) A technical dispute in percentage of TDS applicability for hall marking services raised by TDS Authorities even though fully paid as per their demand for Asst year 2013-14 and 2014-15 a sum of Rs, 7.37 lakhs and Rs, 7.15 lakhs for respective years. The company went on appeal to IT Appeals Madurai against the demand for necessary relief.

The appeal is pending for disposal before the Appellate Authority. As the entire demand was paid there is no liability pending on this dispute. The said sum of Rs, 14.52 lakhs is kept under loans and advances category.

c) An order for demand of less payment of Customs duty on imported goods pertaining to earlier year for Rs, 154 lakhs passed by principal Commissioner of Customs, Chennai.

The company has moved a Writ petition against the order with Honourable High Court ofMadras for quashing the order passed by the Authority. The writ was admitted and status quo is maintained.

The company is advised that it has got a more than a reasonable chance for success and therefore no provision is made in the books. Hence, this liability if any is considered as contingent in nature.

d) In respect of - outstanding Letter Credit given to bankers Rs, 3911.66 lakhs (previous year Rs, 1407.45 lakhs )

e) The Commercial Tax office, Nethaji Road Circle, Madurai has passed order and raised demand for payment under the TNVAT, 2006 for the year 2006-07 to 2009-10 of Rs, 49.96 lakhs towards liability of disallowance of input tax and classification of goods. The company has filed an appeal against the aforesaid order with appellate Authorities and the matter is pending for disposal.

f) The Commercial Tax office, Madurai has issued a notice for the Asst year 2006 -07 to 2012-13 on the matter of payment of Sec 12 purchase tax and others made a claim aggregating to Rs,492 lakhs .

The notice is erroneous as the law permits to adjust the excess input credit available at every point of time with that of purchase tax payable.

The company even after adjusting regularly the purchase tax due with the excess input credit available has also paid by remittances for balance if any.

Accordingly, at no point of time, the company failed to pay purchase tax u/s 12 dues. Against this frivolous notice, the company took the matter to Honourable Madras High court, Madurai bench and obtained stay and also restrained the authorities to pass any orders without the court direction.

However, commercial tax officer has not passed any order even earlier to this injunction and no action is taken for converting into orders for such notices sent by them.

As the dues were already paid with the tax input credits available, no real time liability for any further payment would be necessary. Hence, the liability if any is considered as Contingent in nature.

1.Related Party Disclosures

^{a) Key Management Personnel} - Balarama Govinda Das - Managing Director (KMP)

- Ba. Ramesh - Joint Managing Director

- N. B. Kumar - Joint Managing Director

- Yamuna Vasini Deva Dasi (Wife of Managing Director)

b) Relatives of KMP

- B. Rajeshkanna (General Manager), B. Prasannan (General Manager), N. B. Arun (General Manager)

(Sons of Managing Director)

- B. R. Sumati (Wife of Ba. Ramesh, JMD)

- Y. Darmini (Daughter of Ba. Ramesh, JMD)

- S.K. Yadeenthranathan (Son-in-Law of Ba. Ramesh - JMD)

- R. Gokul (General Manager) (Son of Ba. Ramesh, JMD)

- K. Thamaraiselvi (Wife of N. B. Kumar, JMD)

- B.K. Kishore Lal (Son of N. B. Kumar, JMD)

c) Enterprises over which Key - Thangamayil Gold and Diamond Private Limited

^{Managerial Personnel (KMP) and} - Balusamy Silvears Jewellery Private Limited

their relatives have substantial interest

a. Advance Recoverable in cash or kind includes Rs, 7.98 lakhs (Previous year Rs, 10.99 lakhs) being the net assets recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15-"Employee Benefits".

b. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

d. Investment Details

2. Segment Report

The company is engaged in the business of Gold Jewellery, Diamond and Silver Articles, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17-"Segment Reporting" issued by The Institute of Chartered Accountants of India.

3. The company accepted from third parties gold (22C in Purity) in metal form for Job work conversion into gold ornaments to be delivered as per terms agreed upon. The closing weight of such Job Work gold physically held by the Company as at 31/03/2016 is 110.11 Kgs (Previous year 34.11 Kgs). This being gold taken on Job Work basis, the same is not forming part of inventory of the Company.

4. The Company has entered in to leasing arrangements for its branch show room, manufacturing works and corporate office facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs, 390.59 Lakhs (Previous year Rs, 365.39 Lakhs).

5.Accounting Standard (AS) - 25"Interim financial reporting"

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

6. Advance recoverable in cash or kind includes a sum of Rs, 42.60 lakhs as customs duty refund recoverable from State Bank of India, Madurai. The pending amount resulted on account of difference on customs duty rate applicable for metal loan purpose and it is a part amount due out of full amount claimed and SBI is processing our claims for settlement.

7. The Income tax assessments up to financial year 2012-13 were completed without any dispute/ demand. The other current assets includes a sum of Rs, 413.21 lakhs towards advance tax paid for the pending assessment years. Once, the assessments are completed in normal course, due to carry over losses of last two years, the entire amount is refundable from the department.

8. The company is collecting advances from customers both in the form of gold and money and no value addition is charged as per terms of agreement at the time of sale of ornaments. The liability for receipt of customer advances in this category is accounted as and when received by the company.

At the time of redemption entire value addition will be given as discount to the customers and no provision for such future discount is made in the accounts in accordance with the significant accounting policies of the company as the real time sale is contingent on redemption. As sum of Rs, 5886.90 lakhs is outstanding in such scheme as on 31st March 2016. The discount if any payable in future on redemption will be treated as reduction in sales realization.

9. Rates and taxes include a sum of Rs, 27.29 lakhs payable towards newly applicable central excise duty on manufacturing of gold ornaments. The company has not collected from the customers and suffered the incidence of 1% excise duty by itself.

10. During the year, the company transferred from Capital work in progress (net ) to fixed assets a sum of Rs,647.67 lakhs consists of Furniture and Fitting of Rs, 528.66 lakhs and balance comprises of computers and electrical fitting.

All these assets are installed / kept in the centralized purchase division location of the company. The division commenced its activities from March 2016 onwards.

11. During the year the company has capitalized borrowing costs amounting to '' 119.10 lakhs in accordance with AS 16"Borrowing Costs âissued by The Institute of Chartered Accountants of India.

12. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

13. Deferred Tax Assets

The Company is of the view that the business environment will become conducive to earn adequate profits in future years and will be able to recover fully the unabsorbed business and depreciation losses as per Income Tax Act and consequently the virtual certainty of recovering these loses being established.

Deferred Tax Asset in accordance with Accounting Standard- 22 is recognized in the books in respect of these loses.

14. The Company has no dues to micro and small enterprises during the year ended March 2016 and March 2015.

15. All figures have been rounded off to the nearest thousands.

16. Previous year figures have been regrouped / reclassified to make them comparable with that current year.

Mar 31, 2015

1 The above Cash Flow Statement has been complied from and is based on the Balance Sheet as at March 31,2015 and the relative Profit and Loss Account for the year ended on that date.

2 Out of the above Cash equivalents at the end of the year Rs. 119.84 lakhs is not available for use for purposes other than repayment of fixed deposits, as the said amount has been invested pursuant to Companies (Acceptance of Deposits) Rules 1974

3 The above Cash Flow Statement has been prepared in consonance with the requirements of Accounting Standard (AS) -3 on Cash Flow Statements and the reconciliations required forthe purpose are as made by the company.

4 Previous year's figures have been regrouped / reclassified wherever necessary in order to confirm with current year's classification.

2. Contingent Liabilities

a) Capital commitments

Description 2014-15 2013-14

Estimated va ue of Contract 25.00 75.00 remaining to be executed on capital account net of advances not provided for

b) Show cause notice for a demand of less payment of customs duty on imported goods pertaining to last year for Rs. 154 lakhs received by the company. The company has filed an appeal against the aforesaid show cause notice with appropriate authority. The company is advised that it has got more than reasonable chance for success and hence no provision is made in the books.Therefore, the liability if any is contingent in nature.

c) In respect of-outstanding Letter Credit given to bankersRs. 1407.45 lakhs (previous yearRs. Nil)

d) The Commercial Tax office, Nethaji Road Circle, Madurai has issued a notice of demand/ recovery notice under the TNVAT, 2006 for the year 2006-07 to 2009-10 for the payment of Rs.50.70 lakhs towards liability of disallowance of input tax and classification of goods. The company has filed an appeal against the aforesaid notice.The matter is currently pending with the High court of Madras and with various appellate authorities.

3. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Directors / Key management Personnel

a) Key Management Personnel - Balarama Govinda Das - Managing Director

(KMP) - Ba. Ramesh - Joint Managing Director

- N. B. Kumar - Joint Managing Director

b) Relatives of KMP - Yamuna Vasini Deva Dasi (Wife of Managing Director)

- B. Prasannan (Manager), B. Rajeshkanna (Manager), N. B. Arun (Sons of Managing Director)

- B. R. Sumati (Wife of Ba. Ramesh, JMD)

- Ba.R.Darmini (Daughter of Ba.Ramesh, JMD)

- S.K.Yadeenthranathan (Son-in-Law of Ba. Ramesh - JMD)

- R. Gokul (Son of Ba. Ramesh, JMD)

- K. Thamaraiselvi (Wife of N. B. Kumar, JMD)

- K. Kishore Lai (Son of N. B. Kumar, JMD)

c) Enterprises over which Key - Thangamayil Gold and Diamond Private Limited Managerial Personnel (KMP) and their relatives have - Balusamy Silvears Jewellery Private substantial Limited interest ,

a. Advance Recoverable in cash or kind includes Rs.10.99 lakhs (Previous year Rs. 32.04 lakhs) being the net assets recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15- "Employee Benefits".

b. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

c. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

d. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

4.Segment Report

The company is engaged in the business of Gold Jewellery, Diamond and Silver Articles, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17- "Segment Reporting" issued by The Institute of Chartered Accountants of India.

5. The company accepted from third Parties gold (22Kt. in Purity) in metal form for Job work conversion into gold ornaments to be delivered as per terms agreed upon.The closing weight of such Job Work gold physically held by the Company as at 31/03/2015 is 34.11 Kgs. This being gold taken on Job Work basis, the same is not forming part of inventory of the Company.

6.The Company has entered in to leasing arrangements for its branch show room, manufacturing works and corporate office facilities.These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs. 365.39 Lakhs (Previous year Rs. 298.50 Lakhs).

The future minimum lease payments for non - cancelable operating leases are given below;

Finance leases

The Company has taken vehicles on finance lease basis and in respect of these assets the total of minimum lease payments and its present value as at the balance sheet date is as under:

7. Accounting Standard (AS) - 25"lnterim financial reporting"

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

8. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

9. Deferred Tax Assets

The Company is of the view that the business environment will become conducive to earn adequate profits in future years and will be able to recover fully the unabsorbed business and depreciation losses as per Income Tax Act and consequently the virtual certainty of recovering these loses being established. DeferredTax Asset in accordance with Accounting Standard- 22 is recognized in the books in respect of these loses.

10. Pursuant to implementation of change in depreciation methodology as per the Companies Act 2013, adopted in this year by your company has impacted results as follows.

a) The Value of Assets whose useful life is exhausted as on 01 -04-2014, calculated under the Companies Act, 2013, amounting to Rs.100.25 lakhs (excluding Deferred Tax amount of Rs. 48.15lakhs) have been adjusted to opening balance of retained earnings.

b) The depreciation for the year ended 31st March 2015 is higher by 212.12 lakhs when compared to the calculation of depreciation under erstwhile Companies Act, 1956.

11. The Company has no dues to micro and small enterprises during the year ended March 2015 and March 2014.

12. All figures have been rounded off to the nearest thousands.

13. Previous year figures have been regrouped / reclassified to make them comparable with that currentyear.

Mar 31, 2014

1. Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having par value of' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting.

2. In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholdings.

3. Mode of Valuation

Inventories including company's stock held with goldsmiths are valued at lower of cost or net realizable value. The cost of raw material inventories is computed on a FIFO basis. The cost of finished goods and work in progress includes cost of conversion and other cost incurred in bringing the Inventories to their present location and condition.

4. Cost is generally determined on FIFO basis and wherever required, appropriate direct on cost are taken into account. Net Realizable Value is the estimated selling price in the ordinary course of business less the estimated cost necessary to make the sale.

5. Hedging mechanism of entering into forward contract against appropriate underlying assets is primarily used by the company to hedge the price fluctuation exposure of those underlying assets. The fair value adjustment arising out of such transactions is forming part of cost of assets procured.

Packing materials and Gift items are valued at cost on FIFO basis.

6. Contingent Liabilities

a) Capital commitments

Rs in lakhs

Description 2013-14 2012-13

Estimated value of Contract remaining to be executed on capital 75.00 100.00 account net of advances not provided for.

7. Show cause notice for a demand of less payment of customs duty on imported goods pertaining to last year for ' 154 lakhs received by the company. The company has filed an appeal against the aforesaid show cause notice with appropriate authority. The company is advised that it has got more than reasonable chance for success and hence no provision is made in the books. Therefore, the liability if any is contingent in nature.

8. In respect of - outstanding Letter Credit given to bankers ' Nil ( previous year '10,977 lakhs )

9. The Commercial Tax office, Nethaji Road Circle, Madurai has issued a notice of demand/ recovery notice under the TNVAT, 2006 for the year 2006-07 to 2009-10 for the payment of ' 50.70 lakhs towards liability of disallowance of input tax and classification of goods. The company has filed an appeal against the aforesaid notice. The matter is currently pending with the High court of madras under Writ and with various appellate authorities.

10. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

11. Directors and Key Management Personnel

* Balarama Govinda Das - Managing Director

Key Management Personnel (KMP)

* Ba. Ramesh - Joint Managing Director * N. B. Kumar - Joint Managing Director

12. Relatives of KMP

* Annamayil (Mother of Managing and Joint Managing Directors) * Yamuna Vasini Deva Dasi (wife of Managing Director) * B. Prasannan, B. Rajesh Kanna (Managers), N. B. Arun (Sons of Managing Director)

* B. R. Sumati (wife of Ba. Ramesh, JMD) * Ba.R.Darmini (Daughter of Ba.Ramesh, JMD) * S.K.Yadeenthranathan (Son-in-Law of Ba. Ramesh - JMD) * R. Gokul (Son of Ba. Ramesh, JMD) * K. Thamarai Selvi (Wife of N. B. Kumar, JMD) * K. Kishore Lal (Son of N. B. Kumar, JMD)

13. Enterprises over which Key Managerial Personnel (KMP) and their reiatives have substantial interest

* Thangamayil Gold and Diamond Private Limited * Balusamy Silvears Jewellery Private Limited

14. Defined Benefit Plan

The company provides for gratuity, a defined benefit plan (the Gratuity Plan), to its employees. The Gratuity Plan provides for a lump sum payment to vested employees at retirement or termination of employment, whichever is earlier, based on the respective employee's last drawn salary and years of employment with the Company. The employee's gratuity funds are managed by Insurance Company.

15. Advance Recoverable in cash or kind includes ' 32.04 lakhs (Previous year ' 6.70 lakhs) being the net assets recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15- "Employee Benefits".

16. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

17. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

18. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

19. Segment Report

The company is engaged in the business of Gold Jewellery, Diamond and Silver Articles, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17- "Segment Reporting" issued by The Institute of Chartered Accountants of India.

20. The Company has entered in to leasing arrangements for its branch showroom, manufacturing works and corporate office facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is ' 334.50 Lakhs (Previous year ' 205.44 Lakhs). The future minimum lease payments for non - cancelable operating leases are given below;

21. Accounting Standard (AS) - 25 "Interim financial reporting'

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

22. Other Income includes restatement of liabilities for advance received from customer for future purchase inclusive of certain sundry long pending credits taken to income amounting to '357 lakhs.

23. Assets used as interiors in Vellakovil branch have been treated as impaired due to merger of the outfit for operational convenience with the Dharapuram branch .The amount of ' 19.63 lakhs is written off as expenses in the books. Apart from this, in the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

24. MANAGERIAL REMUNERATION

Due to inadequacy of profits, Managing Director and two Joint Managing Directors being whole tir Directors of the Company could not draw remuneration as approved by the shareholders. As per Schedi XIII of the Companies Act 1956, they are entitled to draw only up to ? 48 lakhs each. The remuneration tl was paid in excess of the eligibility criterion under the Act, even though it permits the full payment subjt to Central Government permission, the three whole time Directors of the company surrendered such exce payment of? 126 lakhs voluntarily to the Company.

25. The Company has no dues to micro and small enterprises during the year ended March 2014 and March 2013.

26. All Figures have been rounded off the nearest thousand. previous year figures have been regrouped / reclassified to make them comparable with that of current year

Mar 31, 2013

The accounts have been prepared on accrual basis, in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, which have been prescribed by the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act 1956, to the extent applicable.

Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized. The Accounts are prepared under the Historical Cost Convention and materially comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. The significant accounting policies followed by the Company are stated below:

1. Contingent Liabilities

a) Capital commitments (Rs. in lakhs)

Description 2012-13 2011-12

Estimated value of Contracts remaining to be executed on 100.00 80.00

capital account net of advances not provide for

b) Show cause notice for a demand of less payment of customs duty on imported goods pertaining to last year for Rs.154 lakhs received by the company for which a Writ is preferred with Honorable High Court pf Madras by the company. The company is advised that it has got more than reasonable chance for success and hence no provision is made in the books. Therefore, the liability if any is contingent in nature.

c) In respect of - outstanding Letter Credit given to bankers Rs. 10,977 lakhs (previous year ^ 1,151 lakhs)

d) The Commercial Tax office, Nethaji Road Circle, Madurai has issued a notice of demand/ recovery notice under the TNVAT, 2006 for the year 2006-07 to 2009-10 for the payment of Rs. 50.70 lakhs towards liability of disallowance of input tax and classification of goods. The company has filed an appeal against the aforesaid notice. The matter is currently pending with the High court of madras under Writ and with various appellate authorities.

2. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Note: The below information has been determined to the extent such parties have been identified on the basis of information provided by the company, which has been relied upon by the auditors.

Figure in the brackets pertains to previous year.

3. Segment Report

The company is engaged in the business of Gold Jewellery, Diamond and Silver Articles, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17- "Segment Reporting" issued by The Institute of Chartered Accountants of India.

4. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

5. The Company has entered in to leasing arrangements for its branch show room facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs. 205.44 Lacs (Previous year Rs. 91.57 Lakhs).

6. Accounting Standard (AS) -25 "Interimfinancial reporting"

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

7. The Company has no dues to micro and small enterprises during the year ended March 2013 and March 2012.

8. All figures have been rounded off to the nearest thousands.

9. Previous year figures have been regrouped / reclassified to make them comparable with that of current year.

Mar 31, 2012

1.1) Lease hold Building is amortized over the useful life of the asset, the amortized amount being Rs.2.89lakhs.

1.2) Capital work in Progress includes Rs.38.45 Lakhs (Previous year Rs. 74.95 Lakhs) on account of Capital work in progress and Rs.179.45Lakhs (Previous year 7165.66Lakhs) for Interiors and other assets for upcoming branches.

a. Contribution to Provident Fund and Other Fund includes Provision for gratuity Rs.8,96,094

b. Advance Recoverable cash or Kind includes Rs.2,89,748 being the net assets recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15-" Employee Benefits".

c. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

d. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

e. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

2. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Note: The above information has been determined to the extent such parties have been identified on the basis of information provided by the company, which has been relied upon by the auditors.

3. IPO FUND UTILISATION

In conformity with the term of prospects, board is empowered to reschedule the place of branch and increase or decrease the CAPEX to be spent for a particular purpose vis -a- vis plans at the discretion of the management. Accordingly certain changes required in the plan got approved by the board time to time and the balance unspent amount in IPO proceeds would be spent for the same purpose with approved modification of place of branch/ manner of expenditure.

Out of the IPO proceeds from public Rs2875.25 lakhs, the Company has utilized fully up to 31/3/2012.The detailed statement of utilization of fund vis-a-vis IPO objects as given in the prospectus is given hereunder:

4. Segment Report

The company is engaged in trading of Gold Jewellery, Diamond and Silver Articles business, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17- "Segment Reporting" issued by The Institute of Chartered Accountants of India.

5. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

6. Balances in sundry debtors, including advances given and taken, and creditors (including creditors for expenses) in some cases require reconciliation / confirmation.

7. The Company has entered in to leasing arrangements for its branch show room facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs.91.57 Lacs (Previous year Rs. 44.46 Lakhs).

8. Accounting Standard (AS) - 25 "Interim financial reporting"

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

9. The Company has amortized Rs.1.50 lakhs (Previous Year Rs.1.98 lakhs) being one-fifth of Rs.7.51 lakhs being the total expenses incurred in earlier years for increase in Authorized Share Capital.

10. The Company has no dues to micro and small enterprises during the year ended March 2012 and March 2011.

11. The Company has during the year, changed the treatment of VAT in its Accounts from "Inclusive method" to "Exclusive method". Accordingly the Sales and Purchases are restated in the accounts for the current year, after excluding VAT paid/payable as the case may be. The above change doesn't have any impact on the profit of the Company.

12. Consequent to revised Schedule VI as notified under Companies Act, 1956 for the year ended 31st March 2012 becoming applicable to the Company; the Company has prepared and presented these financial statements in accordance with the requirement of the revised Schedule VI. The Company has also reclassified/ represented previous year figures to bring the same in accordance with the revised Schedule VI presentation requirement.

13. Figure in the brackets pertains to previous year.

14. All figures have been rounded off to the nearest rupee.

Mar 31, 2011

1. Contingent Liabilities (Rs. in Lakhs)

Description 2010-11 2009

Estimated value of Contract 75.00 50.00 remaining to be executed on capital account net of advances not provided for.

2. IPO FUND UTILISATION

In conformity with the term of prospects, board is empowered to reschedule the place of branch and increase or decrease the CAPEX to be spent for a particular purpose vis -a- vis current plans at the discretion of the management. Accordingly certain changes required in the plan got approved by the board and the balance unspent amount in IPO proceeds would be spent for the same purpose with approved modification of place of branch/ manner of expenditure.

The position of funds raised in IPO including Share Premium and utilization thereof as per the objectives of the issue up to 31st March 2011 is as under:

*Escalation in Printing and Advertisement cost

The unutilized amount is parked with Banks in conformity with the modification approved / consented by the empowered board and in accordance with terms of prospectus.

4. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Directors / Key management Personnel

a) Key Management - Balarama Govinda Das - Managing Director

Personnel
- N. B. Kumar - Joint Managing Director

b) Relatives of KMP - Annamayil (Mother of Managing and Joint Managing Directors)

Yamuna Vasini Deva Dasi (wife of Managing Director)

B. Prasannan, B. Rajesh Kanna (Managers), N. B. Arun (Sons of Managing Director)

- B. R. Sumati (wife of Ba. Ramesh, JMD)

Ba.R.Darmini (Daughter of Ba.Ramesh, JMD)

S.K.Yadeenthranathan (Son-in-Law of Ba. Ramesh - JMD)

- R. Gokul (Son of Ba. Ramesh, JMD)

- K. Thamarai Selvi (Wife of N. B. Kumar, JMD)

- K. Kishore Lal (Son of N. B. Kumar, JMD)

c) Enterprises over which - Thangamayil Gold and Diamond Private Limited

Key Managerial - Balusamy Silvers Jewellery Private Limited

Personnel (KMP) and their relatives have substantial interest

5. Employee Benefits

b) Defined Benefit Plan

The company provides for gratuity, a defined benefit plan (the Gratuity Plan), to its employees. The Gratuity Plan provides for a lump sum payment to vested employees at retirement or termination of employment, whichever is earlier, based on the respective employees last drawn salary and years of employment with the Company. The employees gratuity funds are managed by Insurance Company.

a. Contribution to Provident Fund and Other Fund includes Provision for gratuity ? 16.02 lakhs

b. Sundry Creditors Expense includes Rs. 1.83 Lakhs being the net liability recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15-"Employee Benefits".

c. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

d. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

e. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

10. Segment Report

The company is engaged in trading of Gold Jewellery, Diamond and Silver Articles business, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17-" Segment Reporting" issued by The Institute of Chartered Accountants of India.

11. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

12. The paid-up share capital includes 8,81,000 fully paid up equity shares issued at a premium of Rs.50 each issued by conversion of redeemable and fully convertible debenture in 2007.

13. During the year the company has capitalized borrowing costs amounting to " Nil (Previous year - 9.75 lakhs) in accordance with AS 16 "Borrowing Costs "issued by The Institute of Chartered Accountants of India.

14. The Company has entered in to leasing arrangements for its branch show room facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs. 44.46 Lacs (Previous year Rs. 12.01 Lacs).

The future minimum lease payments for non - cancelable operating leases are given below;

15. Balances in sundry debtors, including advances given and taken, and creditors (including creditors for expenses) in some cases require reconciliation / confirmation.

16. Accounting Standard (AS) - 25 "Interim financial reporting

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

19. The Company has amortized Rs. 1.98 lakhs (Previous Year Rs. 1.98 lakhs) being one-fifth of Rs. 9.92 lakhs being the total expenses incurred in earlier years for increase in Authorized Share Capital.

20. Lease hold Building is amortized over the useful life of the asset, the amortized amount being Rs.2.89 lakhs.

21. Capital advances and WIP includes Rs. 74.95 Lakhs (Previous year Rs. 78.21 Lakhs) on account of building under construction and land advance and Rs. 165.66 Lakhs (Previous year Rs. 51.27 Lakhs) for Interiors and other assets for upcoming branches.

22. Bank Balance includes Rs. 245.51 lakhs unutilized amount of IPO proceeds parked in accordance with the terms of prospectus.

23. Whole time directors of the company have provided a personal guarantee in respect of loans availed from banks included in "Schedule 3 "of the financial statements. 6.12% of promoters share holding in the company has been pledged to secure of Rs. 15.00 Crores Cash Credit loan extended by IDBI bank as collateral security.

24. The Company has no dues to micro and small enterprises during the year ended March 2011 and March 2010.

25. Previous years figures have been regrouped, wherever necessary, to confirm to this years classification / presentation.

26. Figure in the brackets pertains to previous year.

27. All figures have been rounded off to the nearest rupee.

Mar 31, 2010

1. The company has utilized the Share Premium to write off the expenses incurred in connection with Public issue to the extent of Rs.281.43 lakhs in accordance with Section 78 of Companies Act, 1956.

2. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Directors / Key management Personnel

a) Key Management Personnel (KMP)

Balarama Govinda Das - Managing Director Ba. Ramesh - Joint Managing Director N. B. Kumar - Joint Managing Director L. Sivakumar - Director*

b) Relatives of KMP

Annamayil (Mother of Managing and Joint Managing Directors)

Yamuna Vasini Deva Dasi (wife of Managing Director)

B. Prasannan, B. Rajesh Kanna (Managers), N. B. Arun (Sons of Managing Director)

- B. R. Sumati (wife of Ba. Ramesh, JMD)

- R. Gokul (Son of Ba. Ramesh, JMD)

- K. Thamarai Selvi (Wife of N. B. Kumar, JMD)

- K. Ravi Shangar (Son of N. B. Kumar, JMD)

- K. Kishore Lai (Son of N. B. Kumar, JMD)

c) Enterprises over which Key Managerial Personnel (KMP) and their relatives have substantial interest

Thangamayil Gold and Diamond Private Limited Balusamy Silvears Jewellery Private Limited

*Mr. L.Sivakumar as resigned as a director w.e.fjuly 09, 2009

3. Employee Benefits

b) Defined Benefit Plan

The company provides for gratuity, a defined benefit plan (the Gratuity Plan), to its employees. The Gratuity Plan provides for a lump sum payment to vested employees at retirement or termination of employment, whichever is earlier, based on the respective employees last drawn salary and years of employment with the Company. The employees gratuity funds are managed by Insurance Company.

a. Contribution to Provident Fund and Other Fund includes Provision for gratuity Rs.4.49 lakhs

b. Advance Recoverable in Cash or kind includes Rs.1.81 Lakhs being the asset recognized as per actuarial valuation of gratuity fund as per AS-15.

c. Adjustment for gratuity for previous years (up to 31st March 2009) is made in Profit and Loss appropriation account.

d. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

e. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

f. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

11. Segment Report

The company is engaged in trading of Gold Jewellery, Diamond and Silver Articles business, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard - 17 issued by The Institute of Chartered Accountants of India.

4. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India.

5. During the year the company has capitalized borrowing costs amounting to Rs.9.75 lakhs (Previous year - Nil) in accordance with AS 16 "Borrowing Costs "issued by The Institute of Chartered Accountants of India.

6. The paid-up share capital includes 8, 81,000 fully paid up equity shares issued at a premium of Rs.50 each issued by conversion of redeemable and fully convertible debenture in 2007.

7. The Company has changed the method of accounting of advertisement and employee costs. But for the change in accounting treatments, the net profit post taxes would have been Rs.1804.71 lakhs as against Rs.1606.70 lakhs as reported in Profit and Loss Account.

Similarly but for changing the accounting treatments, Deferred Revenue Expenditure balance remaining to be amortized would have been Rs.835.56 lakhs as against Rs.557.11 lakhs and Provision for Expenses would have been lower by Rs.20.50 lakhs.

8. Balances in sundry debtors, including advances given and taken, and creditors (including creditors for expenses) in some cases require reconciliation / confirmation.

9. AS - 25 Interim financial reporting

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

10. There are no dues to Micro, Small and Medium Enterprises which are outstanding for more than 30 days as at the Balance Sheet Date. The above information regarding Small Scale undertaking has been determined to the extent such parties have been identified on the basis of information available with the Company, and have been relied upon by the Auditors.

11. The IPO expense includes a sum of Rs.272,324 paid for Interim audit and other certification services done by the statutory auditors of the company for the purpose of IPO requirements.

12. The Company has amortized Rs. 1.98 lakhs (Previous Year Rs 1.98 lakhs) being one- fifth of Rs.9.92 lakhs being the total expenses incurred in earlier years for increase in Authorized Share Capital.

13. Lease hold Building is amortized over the useful life of the asset, the amortized amount being Rs.2.89 lakhs.

14. Capital advances and WIP includes Rs.78.21 Lakhs (Previous year Rs 79.44 Lakhs) on account of building under construction and land advance and Rs. 51.27 Lakhs (Previous year Rs 50.29 Lakhs) for Interiors and other assets for upcoming branches.

15. The Company has no dues to micro and small enterprises during the year ended March 2010, and March 2009.

16. Previous years figures have been regrouped, wherever necessary, to confirm to this years classification / presentation.

17. Figure in the brackets pertains to previous year.

18. All figures have been rounded off to the nearest rupee.

Mar 31, 2009

1. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures" the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Directors/ Key management Personnel

a) Key Management Personnel (KMP)

- Balarama Govinda Das - Managing Director

- Ba. Ramesh - Joint Managing Director

- N. B. Kumar - Joint Managing Director

- L. Sivakumar - Director

b) Relatives of KMP

- Annamayil (Mother of Managing and Joint Managing

Directors)

Yamuna Vasini Deva Dasi (wife of Managing Director) B. Prasannan, B. Rajesh Kanna (Managers), N. B. Arun (Sons of Managing Director)

- B. R. Sumati (wife of Ba. Ramesh, JMD)

Ba. R. Darmini (Daughter of Ba. Ramesh, JMD)

- R. Gokul (Son of Ba. Ramesh, JMD)

- K. Thamarai Selvi (Wife of N. B. Kumar, JMD)

- K. Ravi Shangar (Son of N. B. Kumar, JMD)

- K. Kishore Lai (Son of N. B. Kumar, JMD)

c) Enterprises over which Key Managerial Personnel (KMP) and their relatives have substantial interest

- Thangamayil Gold and Diamond Private Limited

- Balusamy Silvears Jewellery Private Limited

2. Business Takeover

The Company has acquired the business undertaking of M/s. Balusamy Silvears Jewellery Private Limited with effect from July31, 2008 for a total consideration of Rs. 300.50 Lakhs. Since the performance of the company for the current period is inclusive of business so taken over, previous years figures are not strictly comparable.

3. Segment Report

The company is engaged in trading of Gold Jewellery, Diamond and Silver Articles business, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard - 17 issued by The Institute of Chartered Accountants of India.

4. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India.

5. The paid-up share capital includes 8, 81,000 fully paid up equity shares issued at a premium of Rs.50 each issued by conversion of redeemable and fully convertible debenture in 2007.

6. Balances in sundry debtors, including advances given and taken, and creditors (including creditors for expenses) in some cases require reconciliation / confirmation.

7. There are no dues to Micro, Small and Medium Enterprises which are outstanding for more than 30 days as at the Balance sheet Date. The above information regarding Small Scale undertaking has been determined to the extent such parties have been identified on the basis of information available with the Company, and have been relied upon by the Auditors.

8. Arising out of the change in the basis of accounting the Intangible asset and the revaluation reserve stand reduced to the extent of Rs. 5,97,91,057. But for the above, the change in accounting does not have any other impact on the accounts and the profits of the company as disclosed therein.

9. Previous years figures have been regrouped, wherever necessary, to confirm to this years classification / presentation.

10. All figures have been rounded off to the nearest rupee.

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