Kalyan Jewellers India Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

(xvi) Provisions and contingencies

Provisions: A provision is recognised when the
Company has a present obligation as a result of

past events and it is probable that an outflow of
resources will be required to settle the obligation,
in respect of which a reliable estimate can
be made.

The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of time value of
money is material).

Contingent liabilities: Contingent liabilities
are not recognised but are disclosed in notes
to accounts.

(xvii) Investment in subsidiaries

Investments representing investments in
subsidiaries are measured at cost.

(xviii) 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.

a) Non-derivative Financial assets: All regular
way 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 the marketplace.

All recognised financial assets are
subsequently measured in their entirety at
either amortised cost or fair value, depending
on the classification of the financial assets.

Financial assets at amortised cost

A financial asset is measured at amortised
cost if both of the following conditions
are met:

a) The financial asset is held within a
business model whose objective is to
hold financial assets in order to collect
contractual cash flows and

b) The contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments
of principal and interest (SPPI) on the
principal amount outstanding.

Effective interest method

The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income
over the relevant period. The effective
interest rate is that which exactly discounts
estimated future cash receipts through the
expected life of the debt instrument, or,
where appropriate, a shorter period, to the
net carrying amount on initial recognition.

Income is recognised on an effective interest
basis for debt instruments other than
those financial assets. Interest income is
recognised in profit or loss and is included in
the “Other income” line item.

b) Derecognition of financial assets: A

financial asset is derecognised only when
the Company

- has transferred the rights to receive cash flows
from the financial asset or

- retains the contractual rights to receive the
cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to
one or more recipients.

When the entity has transferred an asset,
the Company evaluates whether it has
transferred substantially all risks and rewards
of ownership of the financial asset. In such
cases, the financial asset is derecognised.
Were the entity has not transferred
substantially all risks and rewards of
ownership of the financial asset, the financial
asset is not derecognised.

Where the entity has neither transferred a
financial asset nor retains substantially all

risks and rewards of ownership of the financial
asset, the financial asset is derecognised if
the Company has not retained control of the
financial asset. When the Company retains
control of the financial asset, the asset is
continued to be recognised to the extent of
continuing involvement in the financial asset.

c) 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.

d) Financial liabilities: All financial liabilities
are subsequently measured at amortised
cost using the effective interest method or
at FVTPL.

Financial liabilities at FVTPL

Financial liabilities at FVTPL are stated at
fair value, with any gains or losses arising
on remeasurement 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.

Financial liabilities subsequently measured at
amortised cost

Financial liabilities that are not held-for-
trading and are not designated as at FVTPL
are measured at amortised cost at the end
of subsequent accounting periods. The
carrying amounts of financial liabilities that
are subsequently measured at amortised
cost are determined based on the effective
interest method.

The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense
over the relevant period. The effective
interest rate is the rate that exactly discounts
estimated future cash payments through
the expected life of the financial liability, or
(where appropriate) a shorter period, to the
net carrying amount on initial recognition.

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.

Derecognition of financial liabilities

The Company derecognises financial
liabilities when, and only when, the
Company''s obligations are discharged,
cancelled or have expired.

An exchange between with a lender of debt
instruments with substantially different
terms is accounted for as an extinguishment
of the original financial liability and the
recognition of a new financial liability.

[xix) Hedge accounting

The Company designates certain hedging
instruments as fair value hedges. At the
inception of the hedge relationship, the entity
documents the relationship between the hedging
instrument and the hedged item, along with its
risk management objectives and its strategy
for undertaking various hedge transactions.
Furthermore, at the inception of the hedge and
on an ongoing basis, the Company documents
whether the hedging instrument is highly
effective in offsetting changes in fair values of
the hedged item attributable to the hedged risk.

Fair value hedges

Derivatives are initially recognised at fair value
at the date the derivative contracts are entered
into and are subsequently remeasured to their
fair value at the end of each reporting period.
The resulting gain or loss is recognised in
statement of profit and loss immediately unless

the derivative is designated and effective as a
hedging instrument, in which event the timing of
the recognition in profit or loss depends on the
nature of the hedging relationship and the nature
of the hedged item.

Hedge accounting is discontinued when the
hedging instrument expires or is sold, terminated,
or exercised, or when it no longer qualifies for
hedge accounting. The fair value adjustment to
the carrying amount of the hedged item arising
from the hedged risk is amortised to profit or loss
from that date.

Cash flow hedges

Derivative financial instruments to manage risks
associated with gold and foreign currency price
fluctuations relating to certain existing liabilities,
highly probable forecasted transactions, foreign
currency fluctuations relating to certain firm
commitments fall under the category of cash flow
hedges. The Group has designated derivative
financial instruments taken for gold and foreign
currency price fluctuations as cash flow hedges
relating to certain existing liabilities and highly
probable forecast transactions.

Hedging instruments are initially measured at
fair value, and are re-measured at subsequent
reporting dates. Changes in the fair value of
these derivatives that are designated and
effective as hedges of future cash flows are
recognised in other comprehensive income
and accumulated under the heading hedging
reserve and the ineffective portion is recognised
immediately in the statement of profit and loss.
For forecasted transactions, any cumulative gain
or loss on the hedging instrument recognised
in hedging reserve is retained until the forecast
transaction occurs upon which it is recognized in
the statement of profit and loss.

(xx) If a hedged transaction is no longer expected
to occur, the net cumulative gain or loss
accumulated in hedging reserve is recognized
immediately to the statement of profit and loss.
The Group has designated derivative financial
instruments taken for gold price fluctuations
as cash flow hedges relating to highly probable
forecasted transactions under the previous
GAAP.

(xxi) Segment reporting

Operating segments are reported in the manner
consistent with the internal reporting to the chief

operating decision maker (CODM). The Company
is reported at an overall level, and hence there
are no separate reportable segments as per Ind
AS 108.

(xxii) Cash and cash equivalents

Cash comprises cash on hand and demand
deposits with banks. Cash equivalents are short¬
term balances (with an original maturity of three
months or less from the date of acquisition)
and highly liquid investments that are readily
convertible into known amounts of cash and
which are subject to insignificant risk of changes
in value.

For the purposes of the cash flow statement,
cash and cash equivalents include cash on hand,
in banks and demand deposits with banks, net of
outstanding bank overdrafts that are repayable
on demand, book overdraft and are considered
part of the Company''s cash management system.

(xxiii) Earnings per share (EPS)

Basic earnings per share are computed using
the weighted average number of equity shares
outstanding during the period.

Diluted EPS is computed by dividing the profit
or loss attributable to ordinary equity holders
by the weighted average number of equity
shares considered for deriving basic EPS and
also weighted average number of equity shares
that could have been issued upon conversion
of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted
as of the beginning of the period, unless issued
at a later date. Dilutive potential equity shares
are determined independently for each period
presented. The number of equity shares and
potentially dilutive equity shares are adjusted for
bonus shares, as appropriate

(xxiv) Asset classified as held for sale

The Company classifies a non-current asset (or
disposal group) as held for sale if its carrying
amount will be recovered principally through a
sale transaction rather than through continuing
use when the asset (or disposal group) is available
for immediate sale in its present condition subject
only to terms that are usual and customary for
sales of such assets (or disposal groups) and its
sale is highly probable. The Company measures
a non-current asset (or disposal group) classified

as held for sale at the lower of its carrying amount
and fair value less costs to sell.

(xxv) Operating Cycle

Based on the nature of products/activities of
the Company and the normal time between
acquisition of assets and their realisation in cash
or cash equivalents, the Company has determined
its operating cycle as 12 months for the purpose
of classification of its assets and liabilities as
current and non-current.

(xxvi) Dividend payments

Dividend distributions payable to equity
shareholders are debited directly to equity, net
of any related income tax benefit. It is included
in other liabilities when the dividends have been
approved in a general meeting but not distributed
prior to the reporting date.

(xxvii) Employee stock option plan

The Company operates equity-settled share-
based remuneration plans for its employees.
None of the Company''s plans are cash-settled.

All goods and services received in exchange
for the grant of any share-based payment are
measured at their fair values.

Where employees are rewarded using share-
based payments, the fair value of employees''
services is determined indirectly by reference to
the fair value of the equity instruments granted.
This fair value is determined with the assistance of
an external valuer at the grant date and excludes
the impact of non-market vesting conditions (for
example profitability and sales growth targets
and performance conditions).

Non-market vesting conditions are included in
assumptions about the number of options that
are expected to become exercisable. Estimates
are subsequently revised if there is any indication
the number of share options expected to vest
differs from previous estimates. Any adjustment
to cumulative share-based compensation
resulting from a revision is recognised in the
current period. The number of vested options
ultimately exercised by holder does not impact
the expense recorded in any period.

Market conditions are taken into account
when estimating the fair value of the equity
instruments granted.

All share-based remuneration is recognised as
an expense in profit or loss with a corresponding
credit to share based payment reserve. If vesting
periods or other vesting conditions apply, the
expense is allocated over the vesting period,
based on the best available estimate of the
number of share options expected to vest.

Upon exercise of share options, the proceeds
received, net of any directly attributable
transaction costs, are allocated to share capital
up to the nominal (or par) value of the shares
issued with any excess being recorded as
share premium.

(xxviii) Recent Accounting Pronouncements

The Ministry of Corporate Affairs notifies new
standards or amendment to existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. Following
are the amendments which are effective from
1 April 2024:

(i) Amendments to Ind AS 116 - Lease liability in
a sale and leaseback

The amendments require an entity to
recognise lease liability including variable
lease payments which are not linked to index
or a rate in a way it does not result into gain
on Right of Use asset it retains.

(ii) Introduction of Ind AS 117 - MCA notified
Ind AS 117, a comprehensive standard that
prescribe, recognition, measurement and
disclosure requirements, to avoid diversities
in practice for accounting insurance
contracts and it applies to all companies i.e.,
to all “insurance contracts” regardless of the
issuer. However, Ind AS 117 is not applicable
to the entities which are insurance companies
registered with IRDAI.

The Company has reviewed the new
pronouncements and based on its evaluation
has determined that these amendments
do not have a significant impact on the
Company''s standalone financial statements.

(i) The Company''s investment properties consist of six properties in the nature of freehold land in India
and therefore no depreciation is chargeable. As at 31 March 2025 and 31 March 2024, the fair value of
the properties is H 1,334.70 million and H 2,181.64 million respectively. These are based on valuations
performed by independent valuers for the purposes of bank financing at the time availing/renewing
such financing facility. These valuers are registered valuers as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017. The fair value hierarchy is at level 2, which is derived
using the market comparable approach based on recent market prices without any significant
adjustments being made to the market observable data. (Refer Note 36(b) for note on fair value
hierarchy).

(i) There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the
related parties other than those disclosed in this note.

(ii) The Company has not advanced or loaned or invested funds (either borrowed funds or share
premium or any other sources or kind of funds) to any other persons or entities, including foreign
entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that
the Intermediary shall 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 provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries other than the loans given
to its subsidiary Kalyan Jewellers FZE, UAE (intermediary) which has in turn advanced the funds to
another subsidiary Kalyan Jewellers LLC, UAE (ultimate beneficiary) where the same was utilised for
working capital purpose as under:

(i) The Company generally operates on a cash and carry model except in the case of franchisee partners
where there are adequate controls in place. The concentration of credit risk is also limited due to the
fact that the customer base is large and unrelated.

(ii) Details of trade receivables pledged as security: Refer Note 15

(iii) Presumption that there have been significant increases in credit risk since initial recognition when
financial assets are more than 30 days past due, has been rebutted based on the past experience of
realisation of the debtors.

(iv) There are no significant increase in credit risk as at the reporting date.

(v) There are no unbilled receivables as at the current and previous balance sheet dates.

(vi) There are no outstanding debts due from directors or other officers of the Company.

(i) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares. The ordinary equity shares are entitled to receive
dividend as declared from time to time after payment of dividend to preference shareholders.
The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion
to shareholders'' share of the paid-up equity capital of the Company. Voting rights cannot
be exercised in respect of shares on which any call or other sums presently payable have not
been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual
assets of the Company, remaining after distribution of all preferential amounts in proportion to the
number of equity shares held.

(i) Details of interest rate and securities provided for loans repayable to various banks

(a)Charge on the entire current assets of the Company viz. raw materials, stocks in process, finished
goods, trade stocks, receivables and other current assets (excluding deposits kept as cash margins
towards specific facilities sanctioned by banks on paripassu basis with the member bank(s) in the
working capital consortium. (b) Personal guarantees by Promoter Directors - Mr. T.S. Kalyanaraman,
Mr. T.K. Seetharam, Mr. T.K. Ramesh and their relatives N.V. Ramadevi and T.K. Radhika (c) Certain
land and buildings belonging to the Company and Promoter Directors - Mr.T.S. Kalyanaraman,
Mr.T.K Seetharam, Mr.T.K Ramesh and their relatives N.V.Ramadevi and T.K.Radhika are offered as
collateral security to the working capital consortium. (d) Rate of interest for short-term borrowings
is variable and is depending on the prevailing MCLR/T Bill rates plus spread as per the sanction letter
with respective banks and the interest charged by the banks in the consortium starts from 8.05% per
annum (previous year 8.00% per annum) payable on monthly intervals.

(ii) Details of supplier factoring arrangements - unsecured

Supplier factoring arrangements dues represents bill discounting facility availed with bank. The
facility is unsecured and the term of bill discounting facility ranges from 90 days to 180 days with
interest ranging from 8% per annum to 8.15% per annum.

(iii) There are no defaults in the repayment of principal or interest to lenders as at 31 March 2025 and
31 March 2024.

(iv) The Company has utilised the borrowings from banks and financial institutions for the specific
purpose for which it was taken at the balance sheet date and previous year end.

(v) There are no creation of charges or satisfaction of charges yet to be registered with ROC beyond
the statutory period for current year and previous year.

(vi) The Company has not been declared as a ''wilful defaulter'' by any bank or financial institution.

(vii) The Company has working capital limit exceeding H 50 million during the year and the Company
has submitted quarterly statement of identified current assets to the bankers, and there are no
differences between the amounts as per books and amounts reflected in the statements.

The above unspect amount pertains to ongoing project undertaken by the Company through Kalyan
Jewellers Foundation. This has been transferred to ''Unspent CSR account'' within 30 days from the end of
the financial year, in accordance with CSR rules.

Notes:

(a) The Company successfully completed the construction of the dialysis centre, a multi-year ongoing
infrastructure project, through its implementing agency, Kalyan Jewellers Foundation as on
March 31,2025 and has transferred an amount of H 67.50 million (31 March 2024: H 22.71 million) as
current year allocation to the project.

(b) Apart from the multi-year ongoing project, the CSR activities undertaken by the Company consists
of numerous projects and contributions towards promoting health care, promoting education,
eradication of poverty, rural development projects and women empowerment.

31 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 31 March 2025 and
31 March 2024 respectively, revenue from transactions with a single external customer did not amount to
10 % or more of the Company''s revenues from the external customers.

(i) The Company has issued a letter of financial support to its subsidiary company, Enovate Lifestyles
Private Limited, assuring to provide financial assistance, as required, to enable the subsidiary company
to continue as a going concern.

(ii) Future cash flows in respect of the above matters are determinable only on receipt of judgements/
decisions pending at various forums/authorities. Management is hopeful of successful outcome in the
appellate proceedings. Disputed tax dues are appealed before concerned appellate authorities. The
Company is advised that the cases are likely to be disposed off in favour of the Company and hence
no provision is considered necessary therefor.

34 EMPLOYEE BENEFIT PLANS

(a) Defined contribution plans

The Company makes contributions to provident fund and employee state insurance schemes which are
defined contribution plans, for qualifying employees. Under the schemes, the Company is required to
contribute a specified percentage of the payroll cost to fund the benefits. The contributions payable to
these plans by the Company are at rates specified in the rules of the schemes and the company has no
obligations beyond its contributions. The contributions recognized in the statement of profit and loss
during the year are as under

(b) Defined benefit plans

The Company offers gratuity benefits, a defined employee benefit scheme to its employees. The said
benefit plan is exposed to actuarial risks such as longevity risk and salary risk. The Company has not
funded its gratuity obligations. The following table sets out the status of the defined benefit schemes and
the amount recognised in the standalone financial statements as per the actuarial valuation done by an
independent actuary.

The above figures do not include provisions for encashable leave, gratuity and pension, as separate
actuarial valuation are not available.

(iii) The Company has issued a letter of financial support to its subsidiary company, Enovate Lifestyles
Private Limited, assuring to provide financial assistance, as required, to enable the subsidiary company
to continue as a going concern.

(iv) Transactions with related parties are on terms equivalent to those that prevail in arm''s length
transactions.

(v) The above information has been determined to the extent such parties have been identified on the
basis of information available with the Company and relied upon by the auditors.

36 FINANCIAL INSTRUMENTS

Categories of financial instruments

This Section gives an overview of the significance of financial instruments for the Company and provides
additional information on balance sheet items that contain financial instruments. The details of material
accounting policies, including the criteria for recognition, the basis of measurement and the basis on
which income and expenses are recognised in respect of each class of financial asset, and financial liability
are disclosed in Note 2(xviii).

(a) Financial assets and liabilities

The accounting classification of each category of financial instruments and their carrying amounts, are
set out below:

The management assessed that fair values of cash and cash equivalents, trade receivables, other financial
assets, trade payables and other financial liabilities recorded at amortised cost is considered to be a
reasonable approximation of fair value.

Following methods and assumptions were used to estimate fair values:

Fair values of the Company''s interest-bearing borrowings are determined by using EIR method using
discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non¬
performance risk as at reporting date was assessed to be insignificant.

b) Fair value hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial
instruments by valuation techniques. The three levels are defined based on the observability of significant
inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

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

Quantitative disclosures fair value measurement hierarchy

The derivative instruments in designated hedge accounting relationships is measured at fair value at
level 1, with valuation technique being use of market available inputs such as gold prices and foreign
exchange rates.

37 FINANCIAL RISK MANAGEMENT OBJECTIVE

The Company''s activities expose it to a variety of financial risks. The Company''s primary focus is to
foresee the unpredictability of such risks and seek to minimize potential adverse effects on its
financial performance.

The Company has a robust risk management process and framework in place. The Company''s board of
directors has overall responsibility for the establishment and oversight of the risk management framework.
The Company''s board of directors oversee how management monitors compliance with the risk
management policies and procedures, and reviews the adequacy of the risk management framework in
relation to the risks faced by the Company. The committee is assisted in its oversight role by internal audit.
Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures,
the results of which are reported to the audit and risk management committee.

Market risk - price risk

The Company is exposed to fluctuations in gold price (including fluctuations in foreign currency) arising
on purchase/sale of gold. The Company''s business objective includes safe-guarding its earnings against
adverse price movements of gold as well as foreign exchange risks.

Foreign currency sensitivity analysis

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and
adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number
below table an increase in profit where the H strengthens 10% against the relevant currency. For a 10%
weakening of the H against the relevant currency, there would be an equal and opposite impact on profit
and equity. The following table details the Company''s sensitivity to a 10% increase and decrease in the
H against the relevant respecitve foreign currency receivables/ payables are given below:

The Company has adopted a structured risk management process to hedge these risks within an acceptable
risk limit and an approved hedge accounting framework which allows for fair value hedges/cash flow
hedges, as designated at the inception of the hedge. The forward contracts which are not designated as
above are marked to market at each balance sheet date and corresponding gain/ loss is recognised in the
Statement of Profit and Loss. 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 Company does not enter into or trade financial instruments including derivative financial instruments,
for speculative purposes.

The table below shows the position of hedging against probable forecast sales (commodity price risk)
and currency forwards (currency risk) as of the balance sheet date.

(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.

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, deposits
with banks and financial institutions, 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.

I n 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.
Credit risk on receivables is limited as the nature of the business is cash and carry except for franchisee
partners where there is adequate controls in place. The Company has very limited history of customer
default, and considers the credit quality of trade receivables that are not past due or impaired to be good.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of its
customer base, including the default risk of the industry.

Credit risk has always been managed by the Company through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers based on which the Company agrees
on the credit terms with customers in the normal course of business. On account of adoption of Ind AS
109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company
uses a provision matrix to compute the expected credit loss allowance for trade receivables and contract
assets. The provision matrix takes into account available external and internal credit risk factors and
the Company''s historical experience for customers. The movement of provision for expected credit loss
during the year is given below:

The credit risk for cash and cash equivalents, bank deposits, security deposits and loans is considered
negligible, since the counterparties are reputable organisations with high quality external credit ratings.

No significant changes in estimation techniques or assumptions were made during the reporting period.
Liquidity risk

The Company requires funds both for short-term operational needs as well as for long-term expansion
programmes. The Company remains committed to maintaining a healthy liquidity ratio, deleveraging and
strengthening the balance sheet. The Company manages liquidity risk by maintaining adequate support
of facilities from its holding company, and by continuously monitoring forecast and actual cash flows and
by matching the maturity profiles of financial assets and liabilities.

The Company''s treasury department is responsible for liquidity, funding as well as settlement management.
In addition, processes and policies related to such risks are overseen by senior management.

The Company''s financial liability is represented significantly by long-term and short-term borrowings from
banks and trade payables. The maturity profile of the Company''s short-term and long term borrowings
and trade payables based on the remaining period from the date of balance sheet to the contractual
maturity date is given in the table below.

(iii) Capital management

The Company''s capital management objectives are

- to ensure the Company’s ability to continue as a going concern.

- to create value for shareholders by facilitating the meeting of long term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled
with long term and short-term strategic expansion plans. The funding needs are met through equity, cash
generated from operations, long term and short-term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile
of the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and
cash equivalents and other bank balances (including non-current earmarked balances).

Note (i) - The Company has investments in the equity shares of subsidiaries and there are no dividends
or other returns from the subsidiaries for the current year and previous year as such these have not been
considered for ratio calculation as above.

39 LEASES

(i) The Company has taken building premises on long-term lease from various parties for operating its
showrooms and some of the office premises. The leases typically run for a period of 5 years to 15 years with
lock in period ranging from 3 to 5 years. Refer Notes 4 and 16 for movement of right-of-use assets and
lease liabilities. The maturity analysis of undiscounted contractual cash flows pertaining to these leases is
given below:

43 OTHER STATUTORY INFORMATION:

i) The Company does not have any Benami property and there are no proceeding initiated or pending
against the Company for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and the rules made thereunder.

ii) The Company has not traded or invested in crypto currency or virtual currency during the current
year and previous year.

iii) There Company does not have any transactions which are not recorded in the books of accounts that
have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
during the current year and previous year.

iv) There are no Schemes of Arrangements which are either pending or have been approved by the
Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the current
year and previous year.

v) No funds have been received by the Company from any persons or entities, including foreign
entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the Company shall, 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 provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

44 Pursuant to the approval of the Board of Directors on 31 March 2023, the Company had taken a decision
to dispose off two aircrafts owned by it as part of management''s overall strategy to dispose off non-core
assets and accordingly, the fair value of the aircrafts amounting to Rs. 1,339.10 million was classified as
''Assets held-for-sale'' as on 31 March 2024 in accordance with Ind AS 105 “Non-current Assets Held for
Sale and Discontinued Operations”. During the current year, the Company has obtained the approval from
the Director General of Civil Aviation (DGCA) and sold both the aircrafts at the agreed consideration of
Rs. 1,339.10 million.

45 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the
proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts)
Amendment Rules 2021 requiring companies which uses accounting software for maintaining its books
of account, shall use only such accounting software which has a feature of recording audit trail of each
and every transaction, creating an edit log of each change made in the books of account along with the
date when such changes were made and ensuring that the audit trail cannot be disabled. Further, the
provision also specifies a statutory requirement for record retention.

With respect to the accounting software used for maintaining the Company''s accounting records,
once a transaction is posted, it cannot be edited. The application logs of the transaction at the time
of posting, and any subsequent edits, deletions, or insertions of transactional data are also logged.

There is no functionality to enable or disable logging for specific activities. Once posted, a transaction
cannot be edited by any user, and the edit log captures all relevant information. For certain masters at
the application level, the audit trail feature was enabled after the beginning of the current year due to
operational challenges, and consequently, the logs of audit trail are maintained only from those dates. The
audit trail feature has not been enabled at database level for capturing direct data changes for accounting
software to log any direct data changes due to operational challenges.

The audit trail feature was not enabled at both application level and database level for accounting
software used for maintenance of the day-to-day operations, payroll records and records in connection with
gold purchase scheme due to operational challenges.

The Company is currently migrating from on-premises to a cloud database and is evaluating all feasible
solutions to enable audit trail at both the application and database levels for all software.

46 Approval of financial statements: The standalone financial statements were approved for issue by the
board of directors on 8 May 2025.

47 Prior year comparatives have been regrouped/reclassified where necessary to conform with the current
year classification. The impact of such regroupings/ reclassifications is not material to these standalone
financial statements.

As per our report of even date attached

For Walker Chandiok & Co LLP For and on behalf of Board of Directors of Kalyan Jewellers India Limited

Chartered Accountants

(Firm''s Registration Number: 001076N/N500013)

Krishnakumar Ananthasivan T.S. Kalyanaraman T.K. Ramesh T.K. Seetharam

Partner Managing Director Director Director

(Membership No. 206229) DIN: 01021928 DIN: 01021868 DIN: 01021898

Sanjay Raghuraman V. Swaminathan Jishnu R.G.

Chief Executive Officer Chief Financial Officer Company Secretary

Place: Thrissur Place: Thrissur

Date: 08 May 2025 Date: 08 May 2025

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Mar 31, 2024

(i) The Company''s investment properties consist only of free hold land and therefore no depreciation is chargeable.

The Company''s investment properties consist of six properties in the nature of freehold land in India. As at 31 March 2024 and 31 March 2023, the fair value of the properties is INR 2,181.64 million and INR 1,886.80 million respectively. These are based on valuations performed by independent valuers for the purposes of bank financing at the time availing/renewing such financing facility. These valuers are registered valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair value hierarchy is at level 2, which is derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data. (Refer Note 36(b) for note on fair value hierarchy).

(i) The value of investment in Kalyan Jewelers Inc. is INR 31.10 only as at 31 March 2023 on account of the standalone financial statements being rounded off to the nearest INR millions, the above item is presented as ‘0.00'' million.

(ii) The Company has complied with the number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 during the current year and previous year.

(i) There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties other than those disclosed in this note.

(ii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries other than the loan given during the previous year to its subsidiary Kalyan Jewellers FZE, UAE (intermediary) which has in turn advanced the funds to another subsidiary Kalyan Jewellers LLC, UAE (ultimate beneficiary) where the same was utilised for working capital purpose as under:

(i) The Company generally operates on a cash and carry model except in the case of franchisee partners where there are adequate controls in place, and hence the expected credit loss allowance for trade receivables is insignificant. The concentration of credit risk is also limited due to the fact that the customer base is large and unrelated.

(i) Pursuant to a Confirmation Order dated 07 August 2019 under Section 233 of the Companies Act, the Regional Director, Ministry of Corporate Affairs, Chennai had confirmed the scheme of amalgamation between Kalyan Jewellers Mini Stores Private Limited and Kalyan Jewellers India Limited and consequent to that the authorised capital of the Company was increased to INR 14,005 divided into 1,20,05,00,000 equity shares of INR 10 each and 20,00,00,000 compulsorily convertible preference shares of INR 10 each. During the year ended 31 March 2021, the authorised share capital was further increased to INR 20,005 divided into 1,80,05,00,000 equity shares of INR 10 each and 20,00,00,000 compulsorily convertible preference shares of INR 10 each pursuant to the Initial Public Offering.

(ii) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares. The ordinary equity shares are entitled to receive dividend as declared from time to time after payment of dividend to preference shareholders. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to shareholders'' share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

(v) Nature and purpose of other reserve

Securities premium: Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

Retained earnings: Retained earnings are the profits / loss that the Company has earned / incurred till date, less any transfers to other reserves, dividends or other distributions paid to its equity shareholders.

Employee stock option reserve represents the reserve created towards equity-settled employee stock options.

Items of other comprehensive income consists of effective portion of gain and loss on designated portion of hedging instruments in a cash flow hedge and remeasurement of net defined benefit liability/asset.

(i) Details of interest rate and securities provided for loans repayable on demand from various banks

(a) Charge on the entire current assets of the Company viz. raw materials, stocks in process, finished goods, trade stocks, receivables and other current assets (excluding deposits kept as cash margins towards specific facilities sanctioned by banks on paripassu basis with the member bank(s) in the working capital consortium. (b) Personal guarantees by Promoter Directors - Mr.T.S. Kalyanaraman, Mr.T.K Seetharam, Mr.T.K Ramesh and their relatives N.V.Ramadevi and T.K.Radhika (c) Certain land and buildings belonging to the Company and Promoter Directors - Mr.T.S. Kalyanaraman, Mr.T.K Seetharam, Mr.T.K Ramesh and their relatives N.V.Ramadevi and T.K.Radhika are offered as collateral

security to the working capital consortium. (d) Rate of interest for short-term borrowings is variable and is depending on the prevailing MCLR/T Bill rates plus spread as per the sanction letter with respective banks and the interest charged by the banks in the consortium starts from 8.00% per annum payable on monthly intervals.

(ii) Details of supplier factoring arrangements - unsecured

Supplier factoring arrangements dues represents bill discounting facility availed with bank. The facility is unsecured and the term of bill discounting facility ranges from 90 days to 180 days with interest ranging from 8% per annum to 8.15% per annum.

(iii) There are no defaults in the repayment of principal or interest to lenders as at 31 March 2024 and 31 March 2023.

(iv) The Company has utilised the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date and previous year end.

(v) There are no creation of charges or satisfaction of charges yet to be registered with ROC beyond the statutory period for current year and previous year.

(vi) he Company has not been declared as a ''wilful defaulter'' by any bank or financial institution.

(vii) The Company has working capital limit exceeding INR 50 million during the year and the Company has submitted quarterly statement of identified current assets to the bankers, and there are no differences between the amounts as per books and amounts reflected in the statements.

(viii) Also refer Note 18 with respect to metal gold loan

(i) Represents amounts payable against gold purchased from various banks under gold on loan scheme with variable interest rates ranging from 2.25% to 3.75% (previous year 2.25% to 4.25%) payable at monthly intervals. The credit period under the aforesaid arrangement is 180 days from the date of delivery of gold. The security details are as disclosed in Note 15 (i) for loans repayable on demand.

(i) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (''Act'') which is on the basis of such parties having been identified by the management and relied upon by the auditors. Hence, disclosures relating to amount unpaid as at year end together with interest paid/payable under this Act have not been given. Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

(ii) The average credit period on purchases (other than from micro enterprises and small enterprises) is normally 90 days. No interest is charged on the trade payables. The Company has financial risk management policies in place to ensure that payables are paid within the pre-agreed credit terms.

(iii) Trade payables ageing schedule

(iii) Additional disclosure as per Ind AS 115

a) Disaggregation of revenue information

The table below presents disaggregated revenues from contracts with customers by offerings and contract type. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by industry, market and other economic factors.

(i) Expenditure towards Corporate Social Responsibility (‘CSR’)

The total expenditure incurred on CSR activities during the year ended 31 March 2024 is INR 69.15 million (31 March 2023 - INR 47.83 million). This includes INR 47.30 million (31 March 2023 - INR 18.70 million) being unspent amount pertaining to ongoing project. This has been transferred to ''Unspent CSR account'' within 30 days from the end of the financial year, in accordance with CSR rules.

(a) The Company is executing a multi-year ongoing infrastructure project through its implementing agency Kalyan Jewellers Foundation and has transferred an amount of INR 51.30 million (31 March 2023: INR 33.50 million) as current year allocation to the project and is proposed to be utilized within a period of three years.

(b) Apart from the multi-year ongoing project, the CSR activities under taken by the Company consists of numerous projects and contributions towards promoting health care, promoting education, eradication of poverty, rural development projects and women empowerment.

31 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 31 March 2024 and 31 March 2023 respectively, revenue from transactions with a single external customer did not amount to 10 percent or more of the Company''s revenues from the external customers.

33 CONTINGENT LIABILITIES
Particulars	As at
	31 March 2024	31 March 2023
Other monies for which the Company is contingently liable:
Disputed Sales Tax demands (out of which INR 13.26 million (31 March 2023: INR 512.67 million) have been deposited under protest). The demands are mainly pertaining to dispute on account of reversal of input credit on interstate stock transfer, method of compounding applied and availment of input credit through TRAN 1 among other issues for various years pending with respective appellate authorities.	3,144.29	2,458.13
Disputed Service Tax demands (out of which INR 64.22 million (31 March 2023: INR 2.47 million) have been deposited under protest). The demands are mainly pertaining to dispute on account of CENVAT credit availed, classification of services and rate of tax applied for certain services among other issues for various years pending with respective appellate authorities.	856.23	31.36
Disputed Income Tax demands (out of which Nil (31 March 2023: Nil) has been deposited under protest). The demands are arising from modifications to income mainly on account of unrealised gain on hedging transactions, transfer pricing adjustments for transactions with related parties, mismatches between income tax return and tax audit reports and reconciliation of records of supplier with company''s transactions among other issues for various years pending with respective appellate authorities.	554.80	327.99
The Company has provided Standby Letter of Credit (SBLC) to banks on behalf of its group companies (Refer Note 35)	2,259.14	1,578.33
Counter guarantee given to a bank for guarantees issued by the Company on behalf of its group companies (Refer Note 35)	10,854.51	9,715.93

(i) Future cash flows in respect of the above matters are determinable only on receipt of judgements/ decisions pending at various forums/authorities. Management is hopeful of successful outcome in the appellate proceedings. Disputed tax dues are appealed before concerned appellate authorities. The Company is advised that the cases are likely to be disposed off in favour of the Company and hence no provision is considered necessary therefor.

34 EMPLOYEE BENEFIT PLANS (a) Defined contribution plans

The Company makes contributions to provident fund and employee state insurance schemes which are defined contribution plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll cost to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes and the company has no obligations beyond its contributions. The contributions recognised in the statement of profit and loss during the year are as under

(b) Defined benefit plans

The Company offers gratuity benefits, a defined employee benefit scheme to its employees. The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk. The Company has not funded its gratuity obligations. The following table sets out the status of the defined benefit schemes and the amount recognised in the standalone financial statements as per the actuarial valuation done by an independent actuary.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The mortality rates considered are as per the published rates in the Indian Assured Lives Mortality (2006-08) Ult table.

36 FINANCIAL INSTRUMENTSCategories of financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The details of material accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, and financial liability are disclosed in Note 2(xvii).

Quantitative disclosures fair value measurement hierarchy

The derivative instruments in designated hedge accounting relationships is measured at fair value at level 1, with valuation technique being use of market available inputs such as gold prices and foreign exchange rates.

37 FINANCIAL RISK MANAGEMENT OBJECTIVE

The Company''s activities expose it to a variety of financial risks. The Company''s primary focus is to foresee the unpredictability of such risks and seek to minimise potential adverse effects on its financial performance.

The Company has a robust risk management process and framework in place. This process is coordinated by the Board, which meets regularly to review risks as well as the progress against the planned actions. The Board seeks to identify, evaluate business risks and challenges across the Company through such framework. These risks include market risks, credit risk and liquidity risk.

The management assessed that fair values of cash and cash equivalents, trade receivables, other financial assets, trade payables and other financial liabilities recorded at amortised cost is considered to be a reasonable approximation of fair value.

Following methods and assumptions were used to estimate fair values:

Fair values of the Company''s interest-bearing borrowings are determined by using EIR method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non- performance risk as at reporting date was assessed to be insignificant.

(b) Fair value hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

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

Market risk - price risk

The Company is exposed to fluctuations in gold price (including fluctuations in foreign currency) arising on purchase/ sale of gold. The Company''s business objective includes safe-guarding its earnings against adverse price movements of gold as well as foreign exchange risks.

The Company has adopted a structured risk management process to hedge all these risks within an acceptable risk limit and an approved hedge accounting framework which allows for fair value hedges/ cash flow hedges, as designated at the inception of the hedge. The forward contracts which are not designated as above are marked to market at each balance sheet date and corresponding gain/ loss is recognised in the Statement of Profit and Loss. 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 Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

Interest rate sensitivity analysis:

The sensitivity analysis below have been determined based on the exposure to interest rates for non derivative instruments at the reporting date. For floating rate borrowings, the analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year. The impact on the Company''s profit if interest rates had been 50 basis points higher/lower and all other variables were held constant:

Market risk - Foreign exchange

The Company is exposed to foreign exchange risk arising from foreign currency transactions with subsidiaries, primarily with respect to Arab Emirates Dirhams (AED). Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company''s functional currency. Exposures to foreign currency balances are periodically reviewed to ensure that the results from fluctuating currency exchange rates are appropriately managed.

Foreign currency sensitivity analysis

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below table an increase in profit where the INR strengthens 10% against the relevant currency. For a 10% weakening of the INR against the relevant currency, there would be an equal and opposite impact on profit and equity. The following table details the Company''s sensitivity to a 10% increase and decrease in the INR against the relevant AED receivables and USD Payables.

(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.

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, deposits with banks and financial institutions, 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.

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. Credit risk on receivables is limited as the nature of the business is cash and carry except for franchisee partners where there is adequate controls in place. The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired to be good.

Therefore, the Company does not expect any material risk on account of non performance by any of the Company''s counterparties.

The credit risk for cash and cash equivalents, bank deposits, security deposits and loans is considered negligible, since the counterparties are reputable organisations with high quality external credit ratings.

Liquidity risk

The Company requires funds both for short-term operational needs as well as for long-term expansion programmes. The Company remains committed to maintaining a healthy liquidity ratio, deleveraging and strengthening the balance sheet. The Company manages liquidity risk by maintaining adequate support of facilities from its holding company, and by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The Company''s financial liability is represented significantly by long term and short term borrowings from banks and trade payables. The maturity profile of the Company''s short term and long term borrowings and trade payables based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below.

(iii) Capital management

The Company''s capital management objectives are

- to ensure the Company''s ability to continue as a going concern

- to create value for shareholders by facilitating the meeting of long term and short term goals of the Company

The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic expansion plans. The funding needs are met through equity, cash generated from operations, long term and short term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents and other bank balances (including non-current earmarked balances)

Note (i) - The Company has investments only in the equity shares of subsidiaries and there are no dividends or other returns from the subsidiaries for the current year and previous year as such the disclosure of this ratio is not applicable to the Company.

39 LEASES

(i) The Company has taken building premises on lease from various parties for operating its showrooms. The leases typically run for a period of 5 years to 15 years. Refer Notes 4 and 16 for movement of right-of-use assets and lease liabilities and the amounts recognised in the statement of profit and loss. The maturity analysis of undiscounted contractual cash flows pertaining to these leases is given below:

40 During the year ended 31 March 2023, the Company renegotiated with certain landlords on the rent reduction / waiver due to the Covid-19 pandemic. The Management believes that such reduction / waiver in rent is short-term in nature and also meets the other conditions specified in the notification issued by the Central Government in consultation with National Financial Reporting Authority dated 24 July 2020 as Companies (Indian Accounting Standards) Amendment Rules, 2020 with effect from 01 April 2020. Thus, in accordance with the said notification, the Company has elected to apply exemption as the reduction / waiver does not necessitate a lease modification as envisaged in the Standard by recording in the “Other income” (net of rent expenses). Accordingly, the Company has recognised INR 6.43 million during the previous year (nil in the current year) in the Statement of Profit and Loss.

41 The Company has transactions or balances during current year with following companies whose names have been struck off by Registrar of Companies.

As per Ind AS 102, “Share-based Payment”, stock options have to be fair valued on the grant date and expense has to be recognised over the vesting period. The Company has accordingly determined the cost of the employee share-based payments considering the fair value principles. The charge on account of options granted to the employees of subsidiary is recovered from the subsidiary.

46 The Board of Directors of the Company has recommended a final dividend of INR 1.20 (12%) per equity share of INR 10 each for the financial year ended 31 March 2024 (previous year - INR 0.50 (5%)), subject to the approval of shareholders.

47 Approval of financial statements: The standalone financial statements were approved for issue by the board of directors on 10 May 2024.

ESOP expense amounting to INR 9.65 million (previous year - Nil) has been cross-charged to subsidiary

company, and the total ESOP expense for the year as per Note 26 is net of this cross-charge.

43 OTHER STATUTORY INFORMATION:

i) The Company does not have any Benami property and there are no proceeding initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

ii) The Company has not traded or invested in crypto currency or virtual currency during the current year and previous year.

iii) There Company does not have any transactions which are not recorded in the books of accounts that have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the current year and previous year.

iv) There are no Schemes of Arrangements which are either pending or have been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the current year and previous year.

v) No funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

44 During the year ended 31 March 2023, pursuant to the approval of the Board of Directors on 31 March 2023, the Company had taken a decision to dispose off the two aircrafts owned by the Company as part of management''s overall strategy to dispose off non-core assets and accordingly, the carrying value of the aircrafts amounting to INR 1,671.61 million had been reclassified from property, plant and equipment to ''Assets held-for-sale'' in accordance with Ind AS 105 - ''Non-current Assets Held for Sale and Discontinued Operations''. The estimated fair value of these aircrafts based on firm letter of intent from prospective buyers amounted to INR 1,339.10 million and accordingly, the difference between the carrying value and the fair value amounting to INR 332.51 million had been accounted for during the previous year as an exceptional item by virtue of its non-routine nature. The Company has obtained the approval from the Director General of Civil Aviation (DGCA) to complete the disposal. Subsequent to the year end, the Company has sold one of the aircrafts at the agreed consideration. As at 31 March 2024, the Company has received an amount of INR 1,103.08 million as advance towards the sale of the aircraft (Refer Note 21).

45 The Company has used accounting software for maintaining its books of account for the year ended March 31, 2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that audit trail feature was not enabled at the database level to log any direct data changes. The management is evaluating different options to comply with the requirements.

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Mar 31, 2023

(i) The Company''s investment properties consist only of free hold land and therefore no depreciation is chargeable.

The Company''s investment properties consist of six properties in the nature of free hold land in India. As at March 31, 2023 and March 31, 2022, the fair value of the properties is '' 1,886.80 million and '' 1,886.80 million respectively. These are based on valuations performed by independent valuers for the purposes of bank financing at the time availing/renewing such financing facility. These valuers are registered valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair value hierarchy is at level 2, which is derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data. (Refer note 36b for note on fair value hierarchy).

(i) The value of investment in Kalyan Jewelers, Inc., USA is '' 31.10 only on account of the standalone financial statements being rounded off to the nearest '' millions, the above item is presented as ''0.00'' millions.

(ii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 during the current year and previous year.

(i) There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties other than those disclosed in this note.

(ii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries other than the loan given during the current year (Nil for previous year) to its subsidiary Kalyan Jewellers FZE, UAE (intermediary) which has in turn advanced the funds to another subsidiary Kalyan Jewellers LLC, UAE (ultimate beneficiary) where the same was utilised for working capital

(i) The Company generally operates on a cash and carry model except in the case of franchisee partners where there are adequate controls in place, and hence the expected credit loss allowance for trade receivables is insignificant. The concentration of credit risk is also limited due to the fact that the customer base is large and unrelated.

(i) Pursuant to a confirmation order dated August 7, 2019 under Section 233 of the Companies Act, the Regional Director, Ministry of Corporate Affairs, Chennai had confirmed the scheme of amalgamation between Kalyan Jewellers Mini Stores Private Limited and Kalyan Jewellers India Limited and consequent to that the authorised capital of the Company is increased to '' 14,005 divided into 1,200,500,000 equity shares of '' 10 each and 200,000,000 Compulsorily convertible preference shares of '' 10 each. During the year ended March 31, 2021, the authorised share capital was further increased to '' 20,005 divided into 1,80,05,00,000 equity shares of '' 10 each and 20,00,00,000 compulsorily convertible preference shares of '' 10 each pursuant in connection with Initial Public Offering.

(ii) Rights, preferences and restrictions attached to shares

The Company has one classes of equity shares. The ordinary equity shares are entitled to receive dividend as declared from time to time after payment of dividend to preference shareholders. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to shareholders'' share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

(vi) The Company completed the Initial Public Offer (''IPO'') its equity shares during the previous year in March 2021 and listed its shares on Bombay Stock Exchange and National Stock Exchange on 26 March 2021. Pursuant to IPO, the Company had allotted 91,724,137 fresh equity shares of '' 10 each to public and 229,885 fresh equity shares of '' 10 each to employees of the Company at a premium of '' 77 per equity share and '' 69 per equity share respectively on 24 March 2021. The total share premium arising on IPO amounting to '' 7,078.62 millions had been accounted under securities premium reserve and the IPO related expenses amounting to '' 472.03 millions, being company''s share of total IPO expense, post all subsequent settlements ('' 10.77 millions), had been adjusted against the premium amount as above.

(iv) Nature and purpose of other reserve

Securities premium: Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

Retained earnings / Surplus: Retained earnings are the profits / loss that the Company has earned / incurred till date, less any transfers to other reserves, dividends or other distributions paid to its equity shareholders.

Items of other comprehensive income consists of effective portion of gain and loss on designated portion of hedging instruments in a cash flow hedge and remeasurement of net defined benefit liability/asset.

(ii) Details of interest rate and securities provided for loans repayable on demand from various banks

(a) First pari passu charge on the entire current assets of the Company viz. inventory, receivables and other current assets on pari passu basis with the member banks in consortium.

(b) Personal guarantees by Promoter Directors - Mr. T.S. Kalyanaraman, Mr. T.K Seetharam, Mr. T.K Ramesh and their relatives N.V. Ramadevi and T.K. Radhika

(c) Land and buildings belonging to the Company and Promoter Directors - Mr. T.S. Kalyanaraman, Mr. T.K Seetharam, Mr. T.K Ramesh and their relatives N.V. Ramadevi and T.K. Radhika are offered as collateral security to the working capital consortium.

(d) Rate of interest on these borrowings are variable and is payable at monthly intervals

(e) Other charges : No Prepayment charges & Default charges as per sanction order.

(iii) There are no defaults in the repayment of principal or interest to lenders as at March 31, 2023 and March 31, 2022.

(iv) The Company has utilised the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date and previous year end.

(v) There are no creation of charges or satisfaction of charges yet to be registered with ROC beyond the statutory period for current year and previous year.

(vi) The Company has not been declared as a ''wilful defaulter'' by any bank or financial institution.

(vii) The Company has working capital limit exceeding '' 50 million during the year and the Company has submitted quarterly statement of identified current assets to the bankers, and there are no differences between the amounts as per books and amounts reflected in the statements.

(i) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (''Act'') which is on the basis of such parties having been identified by the management and relied upon by the auditors. Hence, disclosures relating to amount unpaid as at year end together with interest paid/ payable under this Act have not been given. Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

(ii) The average credit period on purchases is normally 90 days. No interest is charged on the trade payables. The Company has financial risk management policies in place to ensure that payables are paid within the pre-agreed credit terms.

31 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 March 31, 2023 and March 31, 2022 respectively, revenue from transactions with a single external customer did not amount to 10 percent or more of the Company''s revenues from the external customers.

(b) Defined benefit plans

The Company offers gratuity benefits, a defined employee benefit scheme to its employees. The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk. The Company has not funded its gratuity obligations. The following table sets out the status of the defined benefit schemes and the amount recognised in the standalone financial statements as per the actuarial valuation done by an independent actuary.

The principal assumptions used for the purposes of the actuarial valuations of gratuity were as follows

For the year ended For the year ended

Particulars

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The mortality rates considered are as per the published rates in the Indian Assured Lives Mortality (2006-08) Ult table.

(iii) The above information has been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors.

(iv) The above figures do not include provisions for encashable leave, gratuity and pension, as separate actuarial valuation are not available.

36 Financial instruments Categories of financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, and financial liability are disclosed in Note 2(xvii).

The management assessed that fair values of cash and cash equivalents, trade receivables, other financial assets, trade payables and other financial liabilities recorded at amortised cost is considered to be a reasonable approximation of fair value.

Following methods and assumptions were used to estimate fair values:

Fair values of the Company''s interest-bearing borrowings are determined by using EIR method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non-performance risk as at reporting date was assessed to be insignificant.

(b) Fair value hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Quantitative disclosures fair value measurement hierarchy

The derivative instruments in designated hedge accounting relationships is measured at fair value at level 1, with valuation technique being use of market available inputs such as gold prices and foreign exchange rates.

37 Financial risk management objective

The Company''s activities expose it to a variety of financial risks. The Company''s primary focus is to foresee the unpredictability of such risks and seek to minimise potential adverse effects on its financial performance.

The Company has a robust risk management process and framework in place. This process is coordinated by the Board, which meets regularly to review risks as well as the progress against the planned actions. The Board seeks to identify, evaluate business risks and challenges across the Company through such framework. These risks include market risks, credit risk and liquidity risk.

Market risk - price risk

The Company is exposed to fluctuations in gold price (including fluctuations in foreign currency) arising on purchase/ sale of gold. The Company''s business objective includes safe-guarding its earnings against adverse price movements of gold as well as foreign exchange risks.

The Company has adopted a structured risk management process to hedge all these risks within an acceptable risk limit and an approved hedge accounting framework which allows for fair value hedges/cash flow hedges, as designated at the inception of the hedge. The forward contracts which are not designated as above are marked to market at each balance sheet date and corresponding gain/ loss is recognised in the Statement of Profit and Loss. 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 Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

Foreign currency sensitivity analysis

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below table an increase in profit where the INR strengthens 10% against the relevant currency. For a 10% weakening of the INR against the relevant currency, there would be an equal and opposite impact on profit and equity. The following table details the Company''s sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies.

Market risk - Foreign exchange

The Company is exposed to foreign exchange risk arising from foreign currency transactions with subsidiaries, primarily with respect to Arab Emirates Dirhams (AED). Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company''s functional currency. Exposures to foreign currency balances are periodically reviewed to ensure that the results from fluctuating currency exchange rates are appropriately managed.

(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.

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, deposits with banks and financial institutions, 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.

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. Credit risk on receivables is limited as the nature of the business is cash and carry except for franchisee partners where there is adequate controls in place. The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired to be good.

Therefore, the Company does not expect any material risk on account of non-performance by any of the Company''s counterparties.

The credit risk for cash and cash equivalents, bank deposits, security deposits and loans is considered negligible, since the counterparties are reputable organisations with high quality external credit ratings.

Liquidity risk

The Company requires funds both for short-term operational needs as well as for long-term expansion programmes. The Company remains committed to maintaining a healthy liquidity ratio, deleveraging and strengthening the balance sheet. The Company manages liquidity risk by maintaining adequate support of facilities from its holding company, and by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The Company''s financial liability is represented significantly by long term and short term borrowings from banks and trade payables. The maturity profile of the Company''s short term and long term borrowings and trade payables based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below.

(iii) Capital management

The Company''s capital management objectives are

• to ensure the Company''s ability to continue as a going concern

• to create value for shareholders by facilitating the meeting of long term and short term goals of the Company

The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic expansion plans. The funding needs are met through equity, cash generated from operations, long term and short term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents and other bank balances (including non-current earmarked balances).

as Companies (Indian Accounting Standards) Amendment Rules, 2020 with effect from 1 April 2020. Thus, in accordance with the said notification, the Company has elected to apply exemption as the reduction/ waiver does not necessitate a lease modification as envisaged in the Standard by recording in the “Other income” (net of rent expenses). Accordingly, the Company has recognised '' 6.43 million during the year ended March 31, 2023 (March 31, 2022 - '' 40.68 millions) in the statement of profit and loss.

41 The Company has transactions or balances during current year with following companies whose names have been struck off by Registrar of Companies.

Note (i) - The Company has investments only in the equity shares of subsidiaries and there are no dividends or other returns from the subsidiaries for the current year and previous year as such the disclosure of this ratio is not applicable to the Company.

39 Leases

The Company has adopted Ind AS 116 ''Leases'' with the date of initial application being 01 April 2019. Ind AS 116 replaces Ind AS 17 - Leases and related interpretation and guidance. The Company has applied Ind AS 116 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 01 April 2019. Refer balance sheet note 4 for movement of Right of use assets and note 16 for movement of lease liabilities.

(i) The Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics.

(ii) The Company has treated the leases with remaining lease term of less than 12 months as if they were “short term leases”. Expense relating to such short term leases recognised in Profit & Loss account amounts to '' 291.80 million (March 31, 2022: '' 238.77 million).

(iii) The Company has not applied the requirements of Ind AS 116 for leases of low value assets.

(iv) The Company has used hindsight, in determining the lease term if the contract contains options to extend or terminate the lease.

40 During the years ended March 31, 2023 and March 31, 2022, the Company renegotiated with certain landlords on the rent reduction/ waiver due to COVID 19 pandemic. The Management believes that such reduction/ waiver in rent is short term in nature and also meets the other conditions specified in the notification issued by the Central Government in consultation with National Financial Reporting Authority dated 24 July 2020

42 Other statutory information:

i) The Company does not have any Benami property and there are no proceeding initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

ii) The Company has not traded or invested in crypto currency or virtual currency during the current year and previous year.

iii) There Company does not have any transactions which are not recorded in the books of accounts that have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the current year and previous year.

iv) There are no Schemes of Arrangements which are either pending or have been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the current year and previous year.

v) No funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

43 During the current year, pursuant to the approval of the Board of Directors on March 31, 2023, the Company has taken a decision to dispose off the two aircrafts owned by the Company as part of management''s overall strategy to dispose of non-core assets and accordingly, the carrying value of the Aircrafts amounting to '' 1,671.61 million has been reclassified from property, plant and equipment to ''Assets held-for-sale'' in accordance with Ind AS 105 - ''Non-current Assets Held for Sale and Discontinued Operations''. The estimated fair value of these aircrafts based on firm letter of intent from prospective buyers amounted to '' 1339.10 million and accordingly the difference between the carrying value and the fair value amounting to '' 332.51 million is accounted for during the current quarter as an exceptional item by virtue of its non routine nature.

44 The Board of Directors of the Company has recommended a final dividend of ''0.50 (5%) per equity share of '' 10 each for the financial year ended March 31, 2023, subject to the approval of shareholders.

45 Approval of financial statements: The standalone financial statements were approved for issue by the board of directors on May 15, 2023.

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Mar 31, 2022

(i) There are no projects under capital work-in-progress whose completion is overdue or has exceeded its cost compared to its original plan as at March 31, 2022 and March 31, 2021.

(ii) The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets during the current year and previous year.

(iii) There are no immovable properties whose title deeds are not held in the name of the Company as at March 31, 2022 and March 31, 2021.

(i) The Company''s investment properties consist only of free hold land and therefore no depreciation is chargeable. The Company''s investment properties consist of six properties in the nature of free hold land in India. As at March 31, 2022 and March 31, 2021, the fair value of the properties is '' 1,886.80 million and '' 1,886.80 million respectively. These are based on valuations performed by independent valuers for the purposes of bank financing at the time availing/renewing such financing facility. These valuers are registered valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair value hierarchy is at level 2, which is derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data. (Refer note 35b for note on fair value hierarchy).

(i) The value of investment in Kalyan Jewelers, Inc., USA is '' 31.10 only on account of the standalone financial statements being rounded off to the nearest INR million, the above item is presented as ''0.00'' million.

(ii) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 during the current year and previous year.

The relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and the Companies Act has been complied with for the above transactions and the transactions are not violative of the Prevention of Money-Laundering Act, 2002 (15 of 2003).

(i) There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties other than those disclosed in this note.

(ii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries other than the loan given during the previous year to its subsidiary Kalyan Jewellers FZE, UAE (intermediary) which has in turn advanced the funds to another subsidiary Kalyan Jewellers LLC, UAE (ultimate beneficiary) where the same was utilised for working capital purpose as under:

(i) The Company generally operates on a cash and carry model, and hence the expected credit loss allowance for trade receivables is insignificant. The concentration of credit risk is also limited due to the fact that the customer base is large and unrelated.

The deposits maintained by the Company with banks comprise time deposits, (excluding the fixed deposits held as margin money) which can be withdrawn by the Company at any point without prior notice or penalty on the principal.

(i) Pursuant to a confirmation order dated August 7, 2019 under Section 233 of the Companies Act, the Regional Director, Ministry of Corporate Affairs, Chennai had confirmed the scheme of amalgamation between Kalyan Jewellers Mini Stores Private Limited and Kalyan Jewellers India Limited and consequent to that the authorised capital of the Company is increased to '' 14,005 divided into 1,200,500,000 equity shares of '' 10 each and 200,000,000 Compulsorily convertible preference shares of '' 10 each. During the previous year the authorised share capital was further increased to '' 20,005 divided into 1,800,500,000 equity shares of '' 10 each and 200,000,000 compulsorily convertible preference shares of '' 10 each pursuant in connection with Initial Public Offering.

(ii) Rights, preferences and restrictions attached to shares

The Company has one classes of equity shares. The ordinary equity shares are entitled to receive dividend as declared from time to time after payment of dividend to preference shareholders. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to shareholders'' share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

(vi) Pursuant to the Subscription and Share Purchase Agreement dated March 31, 2017, entered into between the Company, its Promoters, Investor and Other Sellers as defined in the agreement, the Company had issued 0.001% 119,047,619 Compulsorily Convertible Preference Shares (CCPS) of '' 10/- each at a premium of '' 32/- each to Highdell Investment Ltd. ("Investor"), the proceeds of which was used for purposes of funding the growth and expansion of the Company, meeting the working/capital expenditure and for the general corporate purposes. The preference shares were Compulsorily Convertible into equity shares based on various conversion and exit options at an agreed internal rate of return as per the terms of agreement. CCPS have been fully converted into 98,857,435 equity shares of '' 10 each on March 4, 2021 at an aggregate premium of '' 201.90 million and the corresponding credit has been accounted under securities premium reserve.

(vii) The Company completed the Initial Public Offer (''IPO'') its equity shares during the previous year in March 2021 and listed its shares on Bombay Stock Exchange and National Stock Exchange on March 26, 2021. Pursuant to IPO, the Company had allotted 91,724,137 fresh equity shares of '' 10 each to public and 229,885 fresh equity shares of '' 10 each to employees of the Company at a premium of '' 77 per equity share and '' 69 per equity share repsectively on March 24, 2021. The total share premium arising on IPO amounting to '' 7,078.62 million had been accounted under securities premium reserve and the IPO related expenses amounting to '' 472.03 million, being company''s share of total IPO expense, post all subsequent settlements ('' 10.77 million), had been adjusted against the premium amount as above.

As part of the IPO, there was also offloading of shares through Offer For Sale (''OFS'') by Mr. T.S. Kalyanaraman (''promoter'') and Highdell Investment Ltd. (''investor'') totalling to '' 1,250 million and '' 2,500 million respectively. The IPO expense attributable to OFS after all subsequent settlements is '' 227.67 million which was recovered by the Company from Promoter and Investor. As at March 31, 2021 the balance of '' 49.36 million was refundable as part of OFS to promoter and investor and the same has been disclosed under Note 19 - Other Financial Liabilities as ''Dues to promoter and investor'' which has been paid during the year ended March 31, 2022.

Details of securities provided to long-term borrowings

(iv) Nature and purpose of other reserve

Securities premium: Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

Retained earnings / Surplus: Retained earnings are the profits / loss that the Company has earned / incurred till date, less any transfers to other reserves, dividends or other distributions paid to its equity shareholders.

Items of other comprehensive income consists of effective portion of gain and loss on designated portion of hedging instruments in a cash flow hedge and remeasurement of net defined benefit liability/asset.

Term loan I - (a) First pari passu charge on the current assets of the Company along with other working capital lenders. (b) First charge over the entire movable fixed assets of the Company. (c) Exclusive first charge over the aircrafts owned by the Company. (c) Personal guarantees by Promoter Directors - Mr. T.S. Kalyanaraman, Mr. T.K. Seetharam, Mr. T.K. Ramesh and their relatives - Mrs. N.V. Ramadevi, Mrs. Maya Seetharam, Mrs. Deepa Ramesh & Mrs. T.K. Radhika.

Corporate term loan I - (a) First pari passu charge on the current assets of the Company along with other working capital lenders. (b) First charge over the entire movable fixed assets of the Company. (c) Exclusive first charge over the aircrafts owned by the Company. Personal guarantees by Promoter Directors - Mr. T.S. Kalyanaraman, Mr. T.K. Seetharam, Mr. T.K. Ramesh and their relatives - Mrs. N.V. Ramadevi, Mrs. Maya Seetharam, Mrs. Deepa Ramesh & Mrs. T.K. Radhika.

COVID term loans from three banks do not have a separate security and are part of the overall security offered for working capital limit of respective banks. Refer Sr. No. ii for details of security.

(ii) Details of interest rate and securities provided for loans repayable on demand from various banks

(a) First pari passu charge on the entire current assets of the Company viz. inventory, receivables and other current assets on pari passu basis with the member banks in consortium.

(b) Personal guarantees by Promoter Directors - Mr. T.S. Kalyanaraman, Mr. T.K. Seetharam, Mr. T.K. Ramesh and their relatives -Mrs. N.V. Ramadevi, Mrs. Maya Seetharam, Mrs. Deepa Ramesh & Mrs. T.K. Radhika.

(c) Land and buildings belonging to the Company and Promoter Directors - Mr.T.S. Kalyanaraman, Mr.T.K. Seetharam, Mr. T.K. Ramesh and their relatives - Mrs. N.V. Ramadevi, Mrs. Maya Seetharam, Mrs. Deepa Ramesh & Mrs. T.K. Radhika are offered as collateral security to the working capital consortium.

(d) Rate of interest on these borrowings are variable and is payable at monthly intervals

(e) Other charges: No Prepayment charges & Default charges as per sanction order.

(iii) There are no defaults in the repayment of principal or interest to lenders as at March 31, 2022 and March 31, 2021.

(iv) The Company has utilised the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date and previous year end.

(v) There are no creation of charges or satisfaction of charges yet to be registered with ROC beyond the statutory period for current year and previous year.

(vi) The Company has not been declared as a ''wilful defaulter'' by any bank or finanacial institution.

(vii) The Company has working capital limit exceeding '' 50 million during the year and the Company has submitted quarterly statement of identified current assets to the bankers, and there are no differences between the amounts as per books and amounts reflected in the statements.

(i) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (''Act'') which is on the basis of such parties having been identified by the management and relied upon by the auditors. Hence, disclosures relating to amount unpaid as at year end together with interest paid/ payable under this Act have not been given. Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

(ii) The average credit period on purchases is normally 90 days. No interest is charged on the trade payables. The Company has financial risk management policies in place to ensure that payables are paid within the pre-agreed credit terms.

(i) Represents amounts payable against gold purchased from various banks under gold on loan scheme with variable interest rates ranging from 1.80% to 3.75% and is payable at monthly intervals. The credit period under the aforesaid arrangement is 180 days from the date of delivery of gold. The security is same as that of short-term borrowings. Refer note 15 (ii) for details of security.

(i) Expenditure towards Corporate Social Responsibility (''CSR'')

The total expenditure incurred on CSR activities during the year ended March 31, 2022 is '' 30.73 million (March 31, 2021 - '' 38.31 million). This includes '' 18 million (March 31, 2021 - Nil) towards provision for unspent amount pertaining to ongoing project. This has been transferred to ''Unspent CSR account'' within 30 days from the end of the financial year, in accordance with CSR rules.

Notes:

(a) The Company is executing a multi-year ongoing infrastructure project through its implementing agency Kalyan Jewellers Foundation and has transferred an amount of '' 18.00 million as current year allocation to the project and is proposed to be utilised within a period of three years.

(b) Apart from the the multi-year ongoing project, the CSR activities under taken by the Company consists of numerous projects and contributions towards improvement of health care (including COVID pandemic relief), providing education and eradication of poverty.

Note: The above excludes '' 6 million towards comfort letter and expenses for prospective bond issue which is accounted in balance sheet to be amortised in future (March 31, 2021: '' 29 million towards comfort letter and other IPO related services which is accounted in balance sheet which has been offset with securities premium arising from IPO in the current year).

30 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 March 31, 2022 and March 31, 2021 respectively, revenue from transactions with a single external customer did not amount to 10 percent or more of the Company''s revenues from the external customers.

(i) Future cash flows in respect of the above matters are determinable only on receipt of judgements/ decisions pending at various forums/authorities. Management is hopeful of successful outcome in the appellate proceedings.

33 EMPLOYEE BENEFIT PLANS (a) Defined contribution plans

The Company makes contributions to provident fund and employee state insurance schemes which are defined contribution plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll cost to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes and the Company has no obligations beyond its contributions. The contributions recognized in the statement of profit and loss during the year are as under

(b) Defined benefit plans

The Company offers gratuity benefits, a defined employee benefit scheme to its employees. The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk. The Company has not funded its gratuity obligations. The following table sets out the status of the defined benefit schemes and the amount recognised in the standalone financial statements as per the actuarial valuation done by an independent actuary.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The mortality rates considered are as per the published rates in the Indian Assured Lives Mortality (2006-08) Ult table.

The current service cost and the net interest expense for the year are included in the ''Employee benefits expense'' line item in the consolidated statement of profit and loss. The remeasurement of the net defined benefit liability is included in other comprehensive income.

(c) Other short-term benefits - compensated absences

The employee leave balance which can be carried forward for a period of up to 12 months from balance sheet date is considered as short-term employee benefits and the same has been accounted on gross undiscounted basis and disclosed in financial statements under salaries and wages.

35 FINANCIAL INSTRUMENTS Categories of financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, and financial liability are disclosed in Note 2(xvii).

(iii) The above information has been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors.

(iv) The above figures do not include provisions for encashable leave, gratuity and pension, as separate actuarial valuation are not available.

(v) During the year ended March 31, 2021, 1 equity share of face value of '' 10/- was transferred to CEO.

The management assessed that fair values of cash and cash equivalents, trade receivables, other financial assets, trade payables and other financial liabilities recorded at amortised cost is considered to be a reasonable approximation of fair value.

Following methods and assumptions were used to estimate fair values:

Fair values of the Company''s interest-bearing borrowings are determined by using EIR method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non-performance risk as at reporting date was assessed to be insignificant.

(b) Fair value hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Quantitative disclosures fair value measurement hierarchy

The derivative instruments in designated hedge accounting relationships is measured at fair value at level 1, with valuation technique being use of market available inputs such as gold prices and foreign exchange rates.

(c) Financial risk management objective

The Company''s activities expose it to a variety of financial risks. The Company''s primary focus is to foresee the unpredictability of such risks and seek to minimise potential adverse effects on its financial performance.

The Company has a robust risk management process and framework in place. This process is coordinated by the Board, which meets regularly to review risks as well as the progress against the planned actions. The Board seeks to identify, evaluate business risks and challenges across the Company through such framework. These risks include market risks, credit risk and liquidity risk.

The risk management process aims to:

• improve financial risk awareness and risk transparency

• identify, control and monitor key risks

• identify risk accumulations

• provide management with reliable information on the Company''s risk situation

• improve financial returns

Market risk - price risk

The Company is exposed to fluctuations in gold price (including fluctuations in foreign currency) arising on purchase/ sale of gold. The Company''s business objective includes safe-guarding its earnings against adverse price movements of gold as well as foreign exchange risks.

The Company has adopted a structured risk management process to hedge all these risks within an acceptable risk limit and an approved hedge accounting framework which allows for fair value hedges/cash flow hedges, as designated at the inception of the hedge. The forward contracts which are not designated as above are marked to market at each balance sheet date and corresponding gain/ loss is recognised in the Statement of Profit and Loss. 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 Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

Market risk - Foreign exchange

The Company is exposed to foreign exchange risk arising from foreign currency transactions with subsidiaries, primarily with respect to Arab Emirates Dirhams (AED). Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company''s functional currency. Exposures to foreign currency balances are periodically reviewed to ensure that the results from fluctuating currency exchange rates are appropriately managed.

Foreign currency sensitivity analysis

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below table an increase in profit where the INR strengthens 10% against the relevant currency. For a 10% weakening of the INR against the relevant currency, there would be an equal and opposite impact on profit and equity. The following table details the Company''s sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies.

Market risk - Interest rate

(i) Liabilities

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. At the balance sheet date, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates. Below is the overall exposure of the Company to interest rate risk:

Particulars	As at	As at
	March 31, 2022	March 31, 2021
Variable rate borrowing	13,809.24	15,437.01
Fixed rate borrowing	-	-

The Company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The Company''s financial liability is represented significantly by long-term and short-term borrowings from banks and trade payables. The maturity profile of the Company’s short-term and long-term borrowings and trade payables based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below.

Interest rate sensitivity analysis:

The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments at the reporting date. For floating rate borrowings, the analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year. The impact on the Company''s profit if interest rates had been 50 basis points higher/lower and all other variables were held constant:

Particulars	As at March 31, 2022	As at March 31, 2021
Increase in borrowing rates by 50 basis points
Impact on profits - Increase/ (decrease)	(115.80)	(116.80)
Impact on equity (net of tax) - Increase/ (decrease)	(86.65)	(87.40)
Decrease in borrowing rates by 50 basis points
Impact on profits - Increase/ (decrease)	115.80	116.80
Impact on equity (net of tax) - Increase/ (decrease)	86.65	87.40

(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.

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, deposits with banks and financial institutions, 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.

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. Credit risk on receivables is limited as the nature of the business is cash and carry except for related parties and other large number of individual customers in various geographical areas. The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired to be good.

Therefore, the Company does not expect any material risk on account of non-performance by any of the Company’s counterparties.

The credit risk for cash and cash equivalents, bank deposits, security deposits and loans is considered negligible, since the counterparties are reputable organisations with high quality external credit ratings.

Liquidity risk

The Company requires funds both for short-term operational needs as well as for long-term expansion programmes. The Company remains committed to maintaining a healthy liquidity ratio, deleveraging and strengthening the balance sheet. The Company manages liquidity risk by maintaining adequate support of facilities from its holding company, and by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

(d) Capital management

The Company''s capital management objectives are

• to ensure the Company’s ability to continue as a going concern

• to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company

The Company determines the amount of capital required on the basis of annual business plan coupled with long-term and short-term strategic expansion plans. The funding needs are met through equity, cash generated from operations, long-term and short-term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents and other bank balances (including non-current earmarked balances).

(i) The Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics.

(ii) The Company has treated the leases with remaining lease term of less than 12 months as if they were “short-term leases”. Expense relating to such short-term leases recognised in Profit & Loss account amounts to '' 238.77 million (March 31, 2021: '' 288.30 million).

(iii) The Company has not applied the requirements of Ind AS 116 for leases of low value assets.

(iv) The Company has used hindsight, in determining the lease term if the contract contains options to extend or terminate the lease.

38 During the years ended March 31, 2022 and March 31, 2021, the Company renegotiated with certain landlords on the rent reduction/ waiver due to COVID-19 pandemic. The Management believes that such reduction/ waiver in rent is short-term in nature and also meets the other conditions specified in the notification issued by the Central Government in consultation with National Financial Reporting Authority dated July 24, 2020 as Companies (Indian Accounting Standards) Amendment Rules, 2020 with effect from April 1, 2020. Thus, in accordance with the said notification, the Company has elected to apply exemption as the reduction/ waiver does not necessitate a lease modification as envisaged in the Standard by recording in the "Other income" (net of rent expenses). Accordingly, the Company has recognised '' 40.68 million during the year ended March 31, 2022 (March 31, 2021 - '' 225.99 million) in the statement of profit and loss.

Note:

(i) The Company has investments only in the equity shares of subsidiaries and there are no dividends or other returns from the subsidiaries for the current year and previous year as such the disclosure of this ratio is not applicable to the Compay.

37 LEASES

The Company has adopted Ind AS 116 ''Leases'' with the date of initial application being April 1, 2019. Ind AS 116 replaces Ind AS 17 - Leases and related interpretation and guidance. The Company has applied Ind AS 116 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at April 01, 2019.

40 OTHER STATUTORY INFORMATION:

i) The Company does not have any Benami property and there are no proceeding initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

ii) The Company has not traded or invested in crypto currency or virtual currency during the current year and previous year.

iii) There Company does not have any transactions which are not recorded in the books of account that have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the current year and previous year.

iv) There are no Schemes of Arrangements which are either pending or have been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the current year and previous year.

41 Approval of financial statements: The standalone financial statements were approved for issue by the board of directors on May 11, 2022.