17. Provisions, contingent assets and contingent liabilities
Provisions are recognised only when there is a present obligation (legal or constructive),
as a result of past events, and when a reliable estimate of the amount of obligation can
be made at the reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates. Provisions are discounted to their present
values, where the time value of money is material.
Contingent liability is disclosed for:
• Possible obligations which will be confirmed only by future events not wholly within
the control of the Company; or
• Present obligations arising from past events where it is not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the
amount of the obligation cannot be made.
Contingent assets are not recognised. However, when inflow of economic benefit is
probable, related asset is disclosed.
18. Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders (after deducting attributable taxes) by the weighted
average number of equity shares outstanding during the period. The weighted average
number of equity shares outstanding during the period is adjusted for events including
a bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the
period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity
shares except for anti-dilutive potential equity shares.
19. Significant management judgement in applying accounting policies and
estimation uncertainty
The preparation of the Company's financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts of income,
expenses, assets and liabilities, and the related disclosures.
Significant management judgements and estimates
The following are significant management judgements and estimates in applying the
accounting policies of the Company that have the most significant effect on the financial
statements:
Recognition of deferred tax assets - The extent to which deferred tax assets can be
recognised is based on an assessment of the probability of the future taxable income
against which the deferred tax assets can be utilised.
Evaluation of indicators for impairment of assets- The evaluation of applicability of
indicators of impairment of assets requires assessment of several external and internal
factors which could result in deterioration of recoverable amount of the assets.
Recoverability of advances/receivables - At each balance sheet date, based on
historical default rates observed over expected life, the management assesses the
expected credit loss on outstanding receivables and advances.
Defined benefit obligation (DBO) - Management's estimate of the DBO is based on
a number of critical underlying assumptions such as standard rates of inflation, medical
cost trends, mortality, discount rate and anticipation of future salary increases. Variation
in these assumptions may significantly impact the DBO amount and the annual defined
benefit expenses.
Fair value measurements - Management applies valuation techniques to determine
the fair value of financial instruments (where active market quotes are not available).
This involves developing estimates and assumptions consistent with how market
participants would price the instrument. Management uses the best information
available. Estimated fair values may vary from the actual prices that would be achieved
in an arm's length transaction at the reporting date.
Useful lives of depreciable/amortizable assets - Management reviews its estimate
of the useful lives of depreciable/amortizable assets at each reporting date, based on
the expected utility of the assets. Uncertainties in these estimates relate to technical
and economic obsolescence.
Expected Credit Loss (ECL) - The probability-weighted estimate of credit losses over
the expected life of a financial asset, reflecting the present value of all cash shortfalls
the management expects to incur.
20. Operating Segment
An operating segment is a component of the Company:
i. That engages in business activities from which it may earn revenues and incur
expenses,
ii. Whose operating results are regularly reviewed by the Chief Operating Decision
Maker (CODM) to make decisions about resources to be allocated and assess
performance, and
iii. For which discrete financial information is available.
Identification of segments:
Operating segments are identified based on the internal reports reviewed by the CODM
for making strategic decisions. The CODM is the function responsible for allocating
resources and assessing the performance of operating segments.
Measurement of segment results:
The Company measures segment performance based on profit or loss before tax and
interest, consistent with internal financial reporting to the CODM.
Inter-segment transactions:
Transactions between operating segments are conducted on an arm's length basis and
are eliminated on consolidation.
Reportable segments:
Segments meeting quantitative thresholds prescribed under IND AS 108, individually or
in aggregate, are reported separately. If the total external revenue reported by operating
segments constitutes less than 75% of the Company's revenue, additional segments
are identified as reportable until at least 75% of external revenue is included.
21. Recent accounting developments
The Ministry of Corporate Affairs vide notification dated 9 September 2024 and 28
September 2024 notified the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024 and Companies (Indian Accounting Standards) Third
Amendment Rules, 2024, respectively, which amended/ notified certain accounting
standards as mentioned below, and are effective for annual reporting periods beginning
on or after 1 April 2024:
i. Lease Liability in Sale and Leaseback - Amendments to Ind AS 116; and
ii. Insurance contracts - Ind AS 117
These amendments did not have any material impact on the amounts recognised in
prior periods and are not expected to significantly affect the current or future periods.
Notes to Standalone Financial Statements for the year ended 31st March, 2025
Estimation of Fair Value
Fair Value of freehold land and building as on 31st March, 2025 and as on 31st March, 2024
is based on fair value determined in 2018.The fair values of the property were performed
by Registered Valuer as defined under rule 2 of the Companies (Registered Valuers and
Valuation) Rules 2017. While in 2018, the valuation was based on the fair value of entire
property as no part of the building was given on lease. For year ended 31st March,2025 and
31st March, 2024 part of the building has been given on lease. Accordingly, the leased portion
has been classified as Investment Property as per Ind AS 40 - Investment Property. The
remaining portion, which is used by the Company for administrative purposes, continues to
be classified under Property, Plant and Equipment.A valuation model used in determination of
investment property fair values is in accordance with the recommended valuation techniques
by the International Valuation Standard Committee.The valuation was done based on market
feedback on values of similar properties and hence considered under “Level 2” of fair value
measurement.Although the last formal valuation was conducted in 2018, management has
assessed that there has been no material change in market conditions affecting the fair value
of the property since then.
The Company is in the process of obtaining an updated valuation from a registered valuer
in the subsequent financial year to ensure continued compliance with Ind AS 40- Investment
Property and Ind AS 113- Fair Value Measurement.
Capital Commitments
The Company has not entered into any contracts for acquisition or construction of Property,
Plant and Equipment, Capital Work-in-Progress, or Investment Property as at 31st March,
2025. Accordingly, no capital commitments are outstanding as at the reporting date.
(ii) Rights, preferences and restrictions attached to equity shares
The Company has only one class of shares referred to as equity shares having a face
value of ' 10 per share. Each shareholder is eligible for one vote per share.
The Company declares and pays dividends in Indian Rupees. The final dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. However no such dividend has been declared during
the year.In the event of liquidation of the company, the equity shareholders are eligible
to receive the remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.
Defined Benefit Plan :
The Company makes partly annual contribution to the Employees' Group Gratuity-cum-Life
Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for
qualifying employees. The scheme provides for lump sum payment to vested employees at
retirement, death while in employment or on termination of employment whichever is earlier
of an amount equivalent to 15 days service for each completed year of service or part thereof
depending on the date of joining. The benefit vests after five years of continuous service.The
liability in respect of gratuity benefits being defined benefit schemes, payable in future, are
determined by actuarial valuation as on balance sheet date.
31 Contingent Liabilities and Commitments
(i) Contingent Liabilities
a) Other money for which the company is contingently liable.
The company have deposited a sum of Rs. 5.60 Lakhs with Bombay High Court
towards the recovery suit pending against the company. The Company have
provided a sum of Rs. 2.75 Lakhs in the account & balance amount of Rs. 2.85
Lakhs is kept as deposit with Honourable High Court. This is pending since year
1993.
32 Lease Transactions
Company as a lessee
The Company has not entered into any leasing agreement where the company is identified
as a lessee.
Company as a Lessor
The Company has leased out building under non-cancellable operating leases. These
leases have terms of between 1-5 years. All leases include a clause to enable upward
revision of the rental charge on an annual basis according to prevailing market
conditions. The total lease rentals recognised as income.
Notes:
1. The Company has not identified any lease income relating to variable lease
payments that depend on an index or a rate.
2. The Company have not entered into any buy-back agreement or have received
residual value guarantee or variable lease payments for use in excess of specified
limits.
34 Segment Information
The Chief Operating Decision Maker (CODM) of the company examines the performance
from the perspective of the company as a whole viz “Jewellery Business” and hence there
are no separate reportable segments as per Ind AS 108. There are no material individual
markets outside India and hence the same is not disclosed for geographical segments for
the segment revenues or results or assets. During the year ended 31st March,2025 and 31st
March,2024 respectively, revenue from transactions with a single external customer did not
amount to 10 percent or more of the company's revenue from the external customers.
35 Related Party Disclosures :
As per Ind AS-24 Related Party Disclosures, the related parties of the Company are as
follows:
The Company's risk management is carried out by a central treasury department of the
Company under policies approved by the Board of Directors. The Board of Directors
provide written principles for overall risk management, as well as policies covering
specific areas, such as foreign exchange risk, interest rate risk, market risk, credit risk
and investment of excess liquidity.
A) Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail
to perform or pay amounts due to the Company causing financial loss. It arises from
cash and cash equivalents, security deposits, loans given and principally from credit
exposures to customers relating to outstanding receivables. The Company's maximum
exposure to credit risk is limited to the carrying amount of financial assets recognised at
reporting date.
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. Where available at reasonable cost, external credit ratings and/or
reports on customers and other counterparties are obtained and used. The Company's
policy is to deal only with creditworthy counterparties.
In respect of trade and other receivables, the Company is not exposed to any significant
credit risk exposure to any single counterparty or any company of counterparties having
similar characteristics. Trade receivables consist of a large number of customers in
Company provides for expected credit losses on financial assets by assessing individual
financial instruments for expectation of any credit losses. Since the assets have very
low credit risk, and are for varied natures and purpose, there is no trend that the
company can draws to apply consistently to entire population. For such financial assets,
the Company's policy is to provides for 12 month expected credit losses upon initial
recognition and provides for lifetime expected credit losses upon significant increase
in credit risk. For the year ended 31st March,2024, the Company does not have any
expected loss based impairment recognised on such assets considering their low credit
risk nature, though incurred loss provisions are disclosed under each sub-category of
such financial assets.
An impairment analysis is carried out on 31st March 2025, based on the conditions
existing on that date, to identify any expected losses due to the time value of money and
credit risk. The company reviews customer payment history and adjusts the estimates
to account for any possible delays or risk of non-payment.To do this, receivables are
grouped based on their type. Each group is then assessed for potential loss using
the Expected Credit Loss (ECL) model as per Ind AS 109 - Financial Instruments.
The calculation uses a provision matrix that is based on actual past data, adjusted for
future expectations. Even though defaults are uncommon, the provision matrix helps to
identify risks early, even if past losses are low.
The credit risk for cash and cash equivalents, loans and other financial assets is
considered negligible, since the counterparties are reputable organisations with high
quality external credit ratings.
i) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the
obligations associated with its financial liabilities that are proposed to be settled by
delivering cash or other financial asset. Prudent liquidity risk management implies
maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when
due. Due to the nature of the business, the Company maintains flexibility in funding by
maintaining availability under committed facilities.
Management monitors rolling forecasts of the Company's liquidity position and cash
and cash equivalents on the basis of expected cash flows. The Company takes into
account the liquidity of the market in which the entity operates
Financing arrangements
The Company had access to the following borrowing facilities at the end of the reporting
period:
of risk: interest rate risk, currency risk and other price risk, such as equity price risk.
Financial instruments affected by market risk include foreign currency receivables and
payables, borrowings and trade payables.
i) Market risk - foreign currency
The Company is exposed to foreign exchange risk arising from foreign currency
transactions, primarily with respect to US Dollar or Euro. Foreign exchange risk
arises from recognised assets and liabilities denominated in a currency that is not the
Company's functional currency. The Company, as per its overall strategy, uses forward
contracts to mitigate its risks associated with fluctuations in foreign currency, and such
contracts are not designated as hedges under Ind AS 109. The Company does not use
forward contracts and swaps for speculative purposes.
Foreign currency sensitivity
As at 31st March 2025 and 31st March 2024, the Company did not have any outstanding
foreign currency denominated monetary assets or liabilities. Accordingly, the Company
has no material foreign currency risk exposure at the reporting date, and a foreign
currency sensitivity analysis has not been presented.
ii) Market risk - 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 seeks to
mitigate such risk by maintaining an adequate proportion of floating and fixed interest
rate borrowings.
i) Liabilities
The Company's policy is to minimise interest rate cash flow risk exposures on
long-term financing. At 31st March 2025, the Company is exposed to changes in
market interest rates through bank borrowings at variable interest rates.
Interest rate risk exposure
Below is the overall exposure of the Company to interest rate risk:
Sensitivity
As at 31st March, 2025 and 31st March, 2024, financial liabilities of Rs. 886.02
Lakhs and Rs.1113.79 Lakhs respectively, were subject to variable interest rates.
Increase/decrease of 50 basis points in interest rates at the balance sheet date
would result in decrease/increase in profit/(loss) before tax of Rs.4.43 Lakhs and
Rs.5.57 Lakhs for the year ended March 31,2025 and March 31,2024 respectively.
ii) Assets
The Company's financial assets are carried at amortised cost and are at fixed rate
only. They are, therefore, not subject to interest rate risk since neither the carrying
amount nor the future cash flows will fluctuate because of a change in market
interest rates.
iii) Market risk -Price risk
Sensitivity
The sensitivity to profit or loss in case of an increase in price of the instrument by
5% keeping all other variables constant would have resulted in an impact on profits
by Rs.99.86 Lakhs (previous year Rs.135.47 Lakhs).
Exposure from trade payables:
The Company's exposure to price risk also arises from trade payables of the
Company that are at unfixed prices, and, therefore, payment is sensitive to
changes in gold prices. The option to fix gold prices are classified in the balance
sheet as fair value through profit or loss. The option to fix gold prices are at unfixed
prices to hedge against potential losses in value of inventory of gold held by the
Company.
The Company applies fair value hedge for the gold purchased whose price is to be
fixed in future. Therefore, there will no impact of the fluctuation in the price of the
gold on the Company's profit for the period.
39 Capital Management
The Company' s capital management objectives are:
- to ensure the Company's ability to continue as a going concern
- to provide an adequate return to shareholders
The Company monitors capital on the basis of the carrying amount of equity less cash
and cash equivalents as presented on the face of balance sheet.
The Management assesses the Company's capital requirements in order to maintain
an efficient overall financing structure while avoiding excessive leverage. This takes
into account the subordination levels of the Company's various classes of debt. The
Company manages the capital structure and makes adjustments to it in the light of
changes in the economic conditions and the risk characteristics of the underlying
assets. In order to maintain or adjust the capital structure, the Company may adjust
the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares, or sell assets to reduce debt.
40 While verifying the physical stock on 5th July, 2019 the management realized shortage of
Gold as compared to stock as per books. The management suspected an old employee
of the Company who misappropriated certain quantity of stock. An old employee also
confessed before management his misappropriation of Gold. The management lodged
police complaint against old employee. The Police Department is inquiring and trying to
recover as much as possible from said employee.
The loss arising on account of this misappropriation is at 900 gms of gold value about
Rs.30 Lakhs has been charged to profit and loss account during the year 2019-20.
41 Corporate Social Responsibility
Section 135 of The companies Act 2013 is not applicable to the company for current
financial year and previous financial year.
42 Other statutory information
(i) The Company does not have any Benami property, where any proceeding has
been initiated or pending against the Company for any Benami property.
(ii) The title deeds of immovable properties are held in the name of the Company.
(iii) During financial year 2024-25 and financial year 2023-24, the Company did not
have any transactions with the companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.
(iv) The Company does not have any charges or satisfaction which is yet to be
registered with ROC beyond the statutory period,
(v) The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year.
(vi) The Company has not been declared wilful defaulter by any bank or financial
institution or any other lender.
(vii) The Company has not advanced or loaned or invested funds to any other person(s)
or entity(ies), including foreign entities (Intermediaries) with the understanding that
the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)
or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries
(viii) The Company has not received any fund from any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing
or otherwise) that the Group shall:
(a) directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries,
(ix) The Company has not any such transaction which is not recorded in the books of
accounts that has been surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961
(x) The company has not entered into any Scheme of Arrangement under section 230
to 237 of the Companies Act, 2013.
(xi) The Company is not the holding Company. Hence disclosure requirements
pertaining to number of layers prescribed under clause (87) of section 2 of the
Act read with Companies (Restriction on number of Layers) Rules, 2017 are not
applicable.
44 The figures of previous year have been regrouped/rearranged wherever considered
necessary. The Company has dislcosed all the additional requirements as per Revised
Schedule III to the extent applicable.
45 Note 1 to 44 forms an integral part of Balance Sheet and Statement of Profit &
Loss Account.
This is the balance sheet referred to in our report of even date
ForJ. D. Zatakia & Co. For and on behalf of Board of Directors
Chartered accountants
FRN: 111777W
Ajay R. Gehani Arundhati R. Mali
(J.D. Zatakia - Proprietor) Managing Director Director & Chief Financial Officer
Membership No. 017669 DIN-00062989 DIN-08353618
Place : Mumbai Akshay Jain
Date : May 27, 2025 Company Secretary
UDIN : 25017669BMJABH7202 Membership No. A53737
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