Manoj Vaibhav Gems N Jewellers Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

s) 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.

t) 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.

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:

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

i i) t he 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 the Statement of profit and loss and is
included in the "Other income" line item.

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.

Where 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.

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.

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 of gains or losses and is recognized 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.

u) Segment reporting

Operating segments are reported in the manner
consistent with the internal reporting to the Chief
Financial Officer. The Company is reported at an overall
level, and hence there are no separate reportable
segments as per Ind AS 108.

v) 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.

w) 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.

x) 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.

16.4. Aggregate number and class of shares allotted as fully paid up for consideration other than cash, bonus, for
the period of 5 years immediately preceding the Balance Sheet date:

Pursuant to the approval of the members of the Company on August 10, 2022, the Board of directors at their
meeting held on August 12, 2022 have allotted bonus equity shares in the ratio of 3:1 (i.e. 3 (three) fully paid
bonus equity shares of ''10 each for every 1 (one) equity share held by them).

16.5. The Company completed the Initial Public Offer (''IPO'') of its equity shares during September, 2023 and listed
its shares on Bombay Stock Exchange and National Stock Exchange on October 03, 2023. Pursuant to IPO,
the Company allotted 97,67,441 fresh equity shares at an issue price of '' 215 per Equity share, consisting of
'' 10 and '' 205 face value and premium respectively, to public. The total securities premium arising on IPO
amounting to '' 2,002.33 million has been accounted under securities premium reserve. The IPO related
expenses amounting to '' 175.73 million (excluding GST), being company''s share of total estimated IPO expense
has been adjusted against the premium amount. During the year, the share of actual IPO related expenses
relating to "Fresh Issue" has been arrived and adjusted against the securities premium (refer note no. 17(a)).

22.1 Nature of security offered to HDFC Bank/ Axis Bank/ Federal Bank/ Yes Bank/ ICICI Bank/
Kotak Bank

a) Primary Security

For the year ended March 31, 2025 and March 31, 2024

Pari-passu first charge on current assets of the Company, both present and future.

b) Collateral Security

A. Pari passu first charge by way of equitable mortgage along with other WC lenders on:

For the year ended March 31, 2025

1. Plot No. C-536 at Kapuluppada, Vizag standing in the names of GBM Ratna Kumari, CMD
(admeasuring 605.68 Sq. Yards)

For the year ended March 31, 2025 and March 31, 2024

1. Shop Nos. A-1, A3 and A-17 at D.No. 47-15-7 Vizag standing in the name of the Company/
Mrs. GBM Ratna Kumari, CMD & 1 Other (total undivided land to the extent of 35 Sq. Yards)

2. House site at D No.7-6-12, Plot No. 15 and building thereon, at Vizag standing in the name of
Mrs. GBM Ratna Kumari, CMD (admeasuring 444 Sq. Yards)

37.4 Critical judgements in determining the lease term:

I n determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is reasonably certain to be extended
(or not terminated). Also the Company has used the discounting rate as 10% (the borrowing rate from the banks)
for the purpose of arriving at present value.

37.5 For leases of retail stores, the following factors are normally the most relevant:

(a) If any leasehold improvements are expected to have a significant remaining value, the Company is typically
reasonably certain to extend (or not terminate).

(b) Most extension options in retail leases have been included in the lease liability, because the Company
only has the right to extend the lease (only with the approval of the lessor) and has incurred lease hold
improvements in them.

(c) ''The assessment of reasonable certainty is only revised if a significant event or a significant change in
circumstances occurs, which affects this assessment, and that is within the control of the lessee.

(d) If there are significant penalty payments to terminate (or not extend), the Company is typically reasonably
certain to extend (or not terminate).

39.1(a) Due to untimely demise of Sri Mr. Manoj Kumar Grandhi, who was the Karta of our promoter Manoj Kumar
Grandhi (HUF) (now Grandhi Bharata Mallika Ratna Kumari (HUF)) ("HUF"), the bank account of the HUF had
to be closed and operations of the HUF inevitably stopped. Due to the same, the cash collections in the HUF
was stopped, and thereafter deposited in the bank account of our Company as a temporary safety measure,
and necessary accounting was carried out in the HUF including transfer entries. The Deputy Commissioner
of Income Tax ("Appellant") passed an order against our Company for recovery of C 69.91 million under
Section 271D Income Tax Act, 1961 ("Act") towards alleged violation of Section 269SS of the Act for the
Assessment Year 2013-14. The Appellant order was dismissed at The Commissioner of Income Tax (Appeals)
on February 25, 2019 and also at Income Tax Appellate Tribunal (ITAT) on November 23, 2020. The Department
filed an appeal against the same in the High Court of Andhra Pradesh, principal bench on April 1, 2021. The
case is under admission level at High court.

39.1(b) The Company had entered into term sheet to take premises, on lease basis, of M/s Hotel Jyothi Swaroopa,
a registered partnership firm ("Complainant") on September 5, 2011 and paid C 1.10 million as advance.
However, before reducing the terms into agreement and execution thereof, the Company had decided not
to be party with the agreement being the failure of the Complainant to satisfactorily prove the property
ownership title. Aggrieved by this, the Complainant filed a petition dated July 4, 2014 before the IInd
Additional District Court at Visakhapatnam. Our Company has, on December 1, 2014 filed a counter claim
petition against the Complainant for recovery of the advance paid by our Company to the Complainant, with
an interest of 24% per annum, amounting to C 1.87 million.

39.1(c) During the year, the Company has filed appeals before the Hon''ble Appellate Authority against the Order
in Original of the Office of Asst. Comm. of Central Tax, Visakhapatnam, due to classification difference wrt
to sale of watches for the financial years from 2017-18 to 2023-24 and due to point of taxation wrt royalty fee
collected from franchisees.

41. Employee benefits

41.1 Defined contribution plan

The Company makes provident and pension fund contributions, which is a defined contribution plan, for qualifying
employees. Additionally, the Company also provides, for covered employees, health insurance through the
Employee State Insurance scheme. Under the Schemes, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company
are at rates specified in the rules of the Schemes. Expenses recognized against defined contribution plans:

41.2 Defined benefit plans

The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as per the
Payment of Gratuity Act, 1972 and the benefit vests upon completion of five years of continuous service and once
vested it is payable to employees on retirement or on termination of employment. In case of death while in service,
the gratuity is payable irrespective of vesting. The present value of the defined benefit obligation, and the related
current service cost and paid service cost, were measured using the projected unit cost credit method.

G) The Indian Parliament has approved the Code on Social Security 2020, which would impact Employees
Provident Fund and Miscellaneous Provisions Act, 1952 and the Payment of Gratuity Act, 1972, etc. The
effective date from which the changes are applicable is yet to be notified and the final rules are yet to
be framed. The impact of the changes, will be assessed and recognized post notification of the relevant
provision and related rules are published.

42. Segment reporting

The Company is primarily engaged in the business of jewellery, which in the terms of Ind AS 108 on ''Operating
Segments'', constitutes a single reporting business segment. 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.

a) Risk management framework

The Company is being driven by the market forces, its businesses are subject to several risks and uncertainties
including financial risks. The Company''s documented risk management policies act as an effective tool in
mitigating the various financial risks to which the business is exposed to, in the course of their daily operations.

The risk management policies cover areas around all identified business risks including commodity price
risk, foreign exchange risk etc., Risks are identified through a formal risk management programme with
active involvement of senior management personnel and business managers. The Company has in place risk
management processes in line with the Company''s policy. Each significant risk has an owner, who coordinates
the risk management process.

The risk management framework aims to:

• Better understand our risk profile;

• Understand and better manage the uncertainties which impact our performance;

• Contribute to safeguarding Company value and interest of various stakeholders;

• Ensure that sound business opportunities are identified and pursued without exposing the business to an
unacceptable level of risk;

• Improve compliance with good corporate governance guidelines and practices as well as laws &
regulations; and

• Improve financial returns

Treasury management

The Company''s treasury function provides services to the business, co-ordinates access to domestic and
international financial markets, monitors and manages the financial risks relating to the operations of the
Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks
include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and
cash flow interest rate risk.

Treasury management focuses on capital protection, liquidity maintenance and yield maximization. The treasury
operates as per the delegation of authority from the Board. Day-to-day treasury operations are managed by
Company''s finance team. Long-term fund raising including strategic treasury initiatives are handled by a Treasury
team. The Company has a strong system of internal control which enables effective monitoring of adherence to
Company''s policies.

Commodity price risk

Fluctuation in commodity price in market affects directly or indirectly the price of raw material and components
used by the Company. The Company sells its products to consumers directly through showrooms and there is a
regular negotiation/ adjustment of prices on the basis of changes in the commodity prices.

The Company''s Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty
risk. The Company does not engage in speculative treasury activity but seeks to manage risk and optimize
interest through proven financial instruments.

i) Liquidity

The Company requires funds both for short-term operational needs as well as for long-term investment
programmes mainly in growth projects. The Company generates sufficient cash flows from the current
operations which together with the available cash and cash equivalents and short-term investments provide
liquidity both in the short-term as well as in the long-term.

The Company has been rated by ICRA Limited for its banking facilities in line norms.

The Company remains committed to maintaining a healthy liquidity, gearing ratio, deleveraging and
strengthening the Balance sheet. The maturity profile of the Company''s financial liabilities based on the
remaining period from the date of the Balance sheet to the contractual maturity date is given in the table
below. The figures reflect the contractual undiscounted cash obligation of the Company.

The Company has hypothecated its trade receivables, inventory, advances and other current assets in order
to fulfil the collateral requirements for the financial facilities in place. There are no other significant terms
and conditions associated with the use of collateral.

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange
rates relates primarily to the other payables. The risks primarily relate to fluctuations in US Dollar, GBP
against the functional currencies of the Company. The Company''s exposure to foreign currency changes for
all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations
by assessing its exposure to exchange rate risks.

iii) Credit risk

Credit risk is the risk that the counter party will not meet its obligation under a financial instrument, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with banks, foreign exchange transactions
and other financial instruments. The carrying amount of trade receivables, advances, deposits, cash and
bank balances, bank deposits and interest receivable on deposits represents the Company''s maximum
exposure to the credit risk.

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with
Company''s policy. No other financial asset carry a significant exposure with respect to the credit risk.
Bank deposits and cash balances are placed with reputable banks and deposits are with reputable
government, public bodies and others. Since the Company operates on business model of primarily cash
and carry, credit risk from receivable perspective is insignificant.

b) Capital management and gearing ratio

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity holders. The primary objective of the company''s capital
management is to maximise the shareholder value. The Company manages its capital structure and makes
adjustments in light of changes in economic conditions and the requirements of the financial covenants. The
Company monitors capital using a gearing ratio, which is debt divided by total capital. The Company includes
within debt, interest bearing loans and borrowings.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following
methods and assumptions were used to estimate the fair values:

i) The Company has disclosed financial instruments such as borrowings, trade payables, and other current liabilities,
loans, trade receivables, cash and cash equivalents and bank balances other than cash and cash equivalents at
carrying value because their short term nature.

ii) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters
such as interest rates and individual credit worthiness of the counter party.

iii) Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments
by valuation technique:

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

Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are
observable, either directly or indirectly

Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.

48. Others

(a) Title deeds of immovable properties

The title deeds of the immovable properties are held in the name of the Company.

(b) Valuation of Property, plant & equipment, intangible asset

The Company has not revalued its property, plant and equipment or intangible assets or both during the current
or previous year(s).

(c) Loans or advances to specified persons

No loans or advances in the nature of loans are granted to promoters, directors, KMP''s and the related parties
(as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on
demand or without specifying any terms or period of repayment.

(d) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(e) Borrowing secured against current assets

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or
statements of current assets filed by the Company with banks are in reconciliation with the books of accounts.

(f) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(g) Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013
or Section 560 of the Companies Act, 1956.

(h) Registration of charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the
statutory period.

(i) Compliance with number of layers of companies

The Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017
is not applicable to the Company.

(j) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year(s).

(k) Utilisation of borrowed funds and securities premium

No funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any
other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities
("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not
received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly
or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(l) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

(m) Details of crypto currency or virtual currency

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

(n) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the
purposes for which such loans were taken.

49. Previous Year''s figures have been re-grouped/re-classified/re-stated as far as practicable and wherever necessary to
confirm with current year presentation.

The accompanying notes are an integral part of the audited financial statements

For Sagar & Associates For and on behalf of the Board of Directors

Chartered Accountants
Firm''s Registration No. 003510S

CA B. Aruna GBM Ratna Kumari GS Keerthana

Partner Chairperson & Managing Director Whole time Director & Chief Financial Officer

Membership No.: 216454 DIN: 00492520 DIN: 05211918

B. Shiva Krishna

Place: Hyderabad Company Secretary Place: Visakhapatnam

Date: May 28, 2025 & Compliance Officer Date: May 28, 2025

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Mar 31, 2024

p) 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.

q) 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.

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:

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

i i) t he 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.

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.

Where 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.

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.

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,

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.

r) Segment reporting

Operating segments are reported in the manner consistent with the internal reporting to the Chief Financial Officer. The Company is reported at an overall level, and hence there are no separate reportable segments as per Ind AS 108.

s) 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.

t) 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.

u) 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.

37.3 Extension and termination options:

Extension and termination options are included in a number of property and equipment leases across the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of termination options held are exercisable only by the Company and not by the respective lessor. In case the Company wishes to extend the lease, the same can be done on mutually agreeable basis with the lessor.

37.4 Critical judgements in determining the lease term:

I n determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Also the Company has used the discounting rate as 10% (the borrowing rate from the banks) for the purpose of arriving at present value.

37.5 For leases of retail showrooms, the following factors are normally the most relevant

(a) If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonably certain to extend (or not terminate).

(b) Most extension options in retail leases have been included in the lease liability, because the Company only has the right to extend the lease (only with the approval of the lessor) and has incurred lease hold improvements in them.

(c) ''The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee.

(d) If there are significant penalty payments to terminate (or not extend), the Company is typically reasonably certain to extend (or not terminate).

a) Risk management framework

The Company is being driven by the market forces, its businesses are subject to several risks and uncertainties including financial risks. The Company''s documented risk management policies act as an effective tool in mitigating the various financial risks to which the business is exposed to, in the course of their daily operations.

The risk management policies cover areas around all identified business risks including commodity price risk, foreign exchange risk etc., Risks are identified through a formal risk management programme with active involvement of senior management personnel and business managers. The Company has in place risk management processes in line with the Company''s policy. Each significant risk has an owner, who coordinates the risk management process.

The risk management framework aims to:

• Better understand our risk profile;

• Understand and better manage the uncertainties which impact our performance;

• Contribute to safeguarding Company value and interest of various stakeholders;

• Ensure that sound business opportunities are identified and pursued without exposing the business to an unacceptable level of risk;

• Improve compliance with good corporate governance guidelines and practices as well as laws & regulations; and

• Improve financial returns

Treasury management

The Company''s treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.

Treasury management focuses on capital protection, liquidity maintenance and yield maximization. The treasury operates as per the delegation of authority from the Board. Day-to-day treasury operations are managed by Company''s finance team. Long-term fund raising including strategic treasury initiatives are handled by a Treasury team. The Company has a strong system of internal control which enables effective monitoring of adherence to Company''s policies.

Commodity price risk

Fluctuation in commodity price in market affects directly or indirectly the price of raw material and components used by the Company. The Company sells its products to consumers directly through showrooms and there is a regular negotiation/ adjustment of prices on the basis of changes in the commodity prices.

The Company''s Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk. The Company does not engage in speculative treasury activity but seeks to manage risk and optimize interest through proven financial instruments.

i) Liquidity

The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects. The Company generates sufficient cash flows from the current operations which together with the available cash and cash equivalents and short-term investments provide liquidity both in the short-term as well as in the long-term.

The Company has been rated by ICRA Limited for its banking facilities in line norms.

The Company remains committed to maintaining a healthy liquidity, gearing ratio, deleveraging and strengthening Balance sheet. The maturity profile of the Company''s financial liabilities based on the remaining period from the date of Balance sheet to the contractual maturity date is given in the table below. The figures reflect the contractual undiscounted cash obligation of the Company.

The Company has hypothecated its trade receivables, inventory, advances and other current assets in order to fulfil the collateral requirements for the financial facilities in place. There are no other significant terms and conditions associated with the use of collateral.

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the other payables. The risks primarily relate to fluctuations in US Dollar, GBP against the functional currencies of the Company. The Company''s exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

iii) Credit risk

Credit risk is the risk that the counter party will not meet its obligation under a financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments. The carrying amount of trade receivables, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents the Company''s maximum exposure to the credit risk.

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with Company''s policy. No other financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others. Since Company operates on business model of primarily cash and carry, credit risk from receivable perspective is insignificant.

b) Capital management and gearing ratio

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is debt divided by total capital. The Company includes within debt, interest bearing loans and borrowings.

48. Others

(a) Title deeds of immovable properties

The title deeds of the immovable properties are held in the name of the Company.

(b) Valuation of property, plant & equipment, intangible asset

The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year(s).

(c) Loans or advances to specified persons

No loans or advances in the nature of loans are granted to promoters, directors, KMP''s and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

(d) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(e) Borrowing secured against current assets

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks are in reconciliation with the books of accounts.

(f) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(g) Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

(h) Registration of charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

(i) Compliance with number of layers of companies

The Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017 is not applicable to the Company.

(j) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year(s).

(k) Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(l) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

(m) Details of crypto currency or virtual currency

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

(n) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.

49. Previous Year''s figures have been re-grouped/re-classified/re-stated as far as practicable and wherever necessary to confirm with current year presentation.

The accompanying notes are an integral part of the audited financial statements

As per audit our report of even date For and on behalf of the Board of Directors

For Sagar & Associates

Chartered Accountants Firm''s Registration No. 003510S

CA B. Aruna Bharata Mallika Ratna Kumari Grandhi Sai Keerthana Grandhi

Partner Chairperson & Managing Director Whole time Director & Chief Financial Officer

Membership No. 216454 DIN: 00492520 DIN: 05211918

B. Shiva Krishna

Place: Hyderabad Company Secretary Place: Visakhapatnam

Date: May 30, 2024 & Compliance Officer Date: May 30, 2024