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 liability—real
or contingent—is 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