Provisions, Contingent Liabilities and Contingent
Assets

The Company creates a provision when there is a
present obligation as a result of past event that probably
require an outflow of resources and a reliable estimate
can be made of the amount of obligation. Provisions are
measured at the best estimate of the expenditure required
to settle the present obligation at the balance sheet date

and are not discounted to the present value. These are
reviewed at each year end and adjusted to reflect the best
current estimate.

A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may
or may not require an outflow of resources. When there
is a possible obligation or present obligation in respect of
which the likelihood of outflow of resources is remote, no
provision or disclosure is made.

Contingent Assets are neither recognised nor disclosed in
the financial statements.

Cash and Cash Equivalents

Cash and Cash Equivalents in the balance sheet and
for the purpose of cash flow statement comprise cash
in hand and cash at bank including fixed deposit with
original maturity period of three months and short-term
highly liquid investments with an original maturity of three
months or less as they are considered an integral part of
the Company’s cash management.

Financial Instruments

A Financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial Assets

Initial recognition and measurement:

Financial assets are classified, at initial recognition, as
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value
through profit or loss.

The classification of financial assets at initial recognition
depends on the financial asset’s contractual cash flow
characteristics and the Company’s business model for
managing them. With the exception of trade receivables
that do not contain a significant financing component
or for which the Company has applied the practical
expedient, the Company initially measures a financial
asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss, transaction
costs. Trade receivables that do not contain a significant
financing component or for which the Company has
applied the practical expedient are measured at the
transaction price determined under 115.

In order for a financial asset to be classified and measured
at amortised cost or fair value through OCI, it needs to give
rise to cash flows that are ''solely payments of principal
and interest (SPPI)’ on the principal amount outstanding.

This assessment is referred to as the SPPI test and is
performed at an instrument level.

The Company’s business model for managing financial
assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines
whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation
or convention in the market place (regular way trades)
are recognised on the trade date, i.e., the date that the
Company commits to purchase or sell the asset.”

Financial asset:

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

a) Debt instruments at amortised cost

b) Debt instruments at fair value through other
comprehensive income (FVTOCI)

c) Debt instruments, derivatives and equity
instruments at fair value through profit or loss
(FVTPL)

d) Equity instruments measured at fair value through
other comprehensive income (FVTOCI)

Debt instruments at amortised cost

A ''debt instrument’ is measured at the amortised cost if
both the following conditions are met:

a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

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

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is
included in finance income in the profit or loss. The
losses arising from impairment are recognised in the
profit or loss. This category generally applies to trade
and other receivables.”

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.

In addition, the Company may elect to designate a debt
instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency. The Company
has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are
measured at fair value with all changes recognized in the
P&L.

Equity investments

All equity investments in scope of 109 are measured at
fair value. Equity instruments which are held for trading
and contingent consideration recognised by an acquirer
in a business combination to which 103 applies are
classified as at FVTPL. For all other equity instruments,
the Company may make an irrevocable election to present
in other comprehensive income subsequent changes in
the fair value. The Company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as
at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is
no recycling of the amounts from OCI to P&L, even on sale
of investment. However, the Company may transfer the
cumulative gain or loss within equity.

Equity instruments included within the FVTPL category
are measured at fair value with all changes recognized in
the P&L.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial
asset or part of a Company of similar financial assets) is
primarily derecognised (i.e. removed from the Company’s
consolidated balance sheet) when:

a) The rights to receive cash flows from the asset have
expired, or

b) The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a ''pass¬
through’ arrangement; and either (a) the Company
has transferred substantially all the risks and

rewards of the asset, or (b) the Company has neither
transferred nor retained substantially all the risks
and rewards of the asset, but has transferred control
of the asset.

When the Company has transferred its rights to receive
cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it
has retained the risks and rewards of ownership. When
it has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred
control of the asset, the Company continues to recognise
the transferred asset to the extent of the Company’s
continuing involvement. In that case, the Company also
recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that
reflects the rights and obligations that the Company
has retained.

Continuing involvement that takes the form of a guarantee
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount of consideration that the Company could be
required to repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies
Expected Credit Loss (“ECL”) model for measurement
and recognition of impairment loss on the financial
assets measured at amortized cost and financial assets
measured at FVOCI. For financial assets other than
trade receivables, as per 109, the Company recognises
12 month expected credit losses for all originated or
acquired financial assets if at the reporting date the credit
risk of the financial asset has not increased significantly
since its initial recognition. The expected credit losses
are measured as lifetime expected credit losses if the
credit risk on financial asset increases significantly since
its initial recognition. The Company’s trade receivables
do not contain significant financing component and
loss allowance on trade receivables is measured at an
amount equal to life time expected losses i.e. expected
cash shortfall.

The impairment losses and reversals are recognised in
Statement of Profit and Loss.

Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.

ALL financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.

The Company financial liabilities include trade and
other payables, loans and borrowings including bank
overdrafts, financial guarantee contracts and derivative
financial instruments.

The measurement of financial liabilities depends on their
classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit and loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit and loss. Financial liabilities are
classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category
also includes derivative financial instruments entered
into by the Company that are not designated as hedging
instruments in hedge relationships as defined by 109.
Separated embedded derivatives are also classified as
held for trading unless they are designated as effective
hedging instruments.

Gains or losses on liabilities held for trading are recognised
in the profit and loss.

Financial liabilities designated upon initial recognition at
fair value through profit and loss are designated as such
at the initial date of recognition, and only if the criteria in
109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own credit
risk are recognized in OCI. These gains/ losses are not
subsequently transferred to P&L. However, the Company
may transfer the cumulative gain or loss within equity. ALL
other changes in fair value of such liability are recognised
in the statement of profit or loss. The Company has not
designated any financial liability as at fair value through
profit and loss.

Loans and borrowings

This is the category most relevant to the Company. After
initial recognition, interest -bearing loans and borrowings
are subsequently measured at amortised cost using the
EIR method. Gains and losses are recognised in profit
or loss when the liabilities are derecognised as well as
through the EIR amortisation process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation
is included as finance costs in the statement of profit
and Loss.

De-recognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the de¬
recognition of the original liability and the recognition of
a new liability. The difference in the respective carrying
amounts is recognised in the Statement of Profit and Loss.

Offsetting

Financial assets and financial liabilities are offset and
the net amount is presented in the Balance Sheet, if the
Company currently has a legally enforceable right to
offset the recognised amounts and there is an intention to
settle on a net basis, or to realise the assets and settle the
liabilities simultaneously.

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.

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.

Securities Premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares in accordance with provisions of the Companies Act 2013.

Share Application Money Pending Allotment

The Company has issued Equity shares against the warrants issued last year @ C 1182/- Per Warrants & out of which C 297/-
Per Warrants have been received in last year and Balance C 885/- Per Warrants have been received during the financial year.
Total Warrants issued by the Company is 217000 out of which 49500 warrants paid entire amount in last financial year and
shares have been issued against the same in last financial year, Balance 167500 warrants holder paid the balance amount
during the financial year and shares have been issued against the same. Now no warrants stands pending for conversion into
shares.

Surplus in profit and loss

Retained earnings comprise of the Company’s undistributed profits after taxes and includes re-measurement of defined
benefit plan.

Bank Guarantee

Gold on Lease taken from Digital Gold India Private Limited against the Bank Guarantee of C 750.00 Lakhs issued by the
HDFC Bank Limited. Bank Guarantee issued in Favor of Digital Gold India Private Limited. This BG shall be in addition
and without prejudice to any other indemnity or security or collateral that the Beneficiary may at any time hold for the
performance of any obligations and liabilities owed by the Applicant to the Beneficiary and may be enforced without the
Beneficiary first having recourse to any such indemnity or security or collateral taking any steps or proceedings against
the Applicant. Our liability under this BG shall not be affected by the Beneficiary giving time or other indulgence to the
Applicant, or by the Beneficiary realizing or entering into any compromise with the Applicant.

This BG shall be not be discharged by any change in our constitution or the constitution of the applicant or the Beneficiary.
Partial Drawings are allowed. However, overall liability of bank, shall not exceed the amount of this bank guarantee

2) ICICI Bank Limited:

Primary Security:

Current Assets with First Pari Passu Charge for Gold Metal Loan, Cash Credit Facility, Working Capital Demand Loan,
Bank Guarantee and Rupee Term Loan.

Current Assets with Second Pari Passu Charge for Working Capital Term Loan.

Collateral Security:

Immovable Properties (which are held with SBI Cap Trustee Limited) Details of which are given below) with First Pari
Passu Charge for Gold Metal Loan, Cash Credit Facility, Working Capital Demand Loan, Bank Guarantee and Rupee
Term Loan.

Immovable Properties (which are held with SBI Cap Trustee Limited and Details of which are given below) with Second
Pari Passu Charge for Working Capital Term Loan.

Personal Guarantee:

All the above facilities have been secured against personal guarantee of Mr. Anil Kataria (Whole Time Director),
Mr. Santosh Kataria (Managing Director), Mrs. Renu Kataria (Director), Mr. Ratanlal Kataria (Promoter), Mr. Sanjay Kataria
(Promoter), Mr. Vikas Katraia (Promoter) & Mrs. Suman Devi Kataria (Promoter)

3) State Bank of India Limited:

Primary Security:

Hypothecation: First Pari Passu charge on Co. entire present and future stocks on reciprocal basis comprising Raw
Material, Stock in Process, Finished Goods, consumable stores and spares and receivables at the co.’s Owned or
Leased premises or given for Job Work including goods in transit/shipment.

Collateral Security:

Immovable Properties (which are held with SBI Cap Trustee Limited) details of which are given below.

Personal Guarantee:

All the above facilities have been secured against personal guarantee of Mr. Anil Kataria (Whole Time Director),
Mr. Santosh Kataria (Managing Director), Mrs. Renu Kataria (Director), Mr. Ratanlal Kataria (Promoter), Mr. Sanjay Kataria
(Promoter), Mr. Vikas Kataria (Promoter) & Mrs. Suman Devi Kataria (Promoter)

4) Kotak Mahindra Bank Limited :

For Hypothecation:

First Pari Passu hypothecation charge to be shared with HDFC Bank, ICICI Bank and Other bank on all existing and

future current assets and movable fixed assets of the borrower.

For Mortgage:

1. First Pari Passu equitable/Registered mortgage charge to be shared with HDFC Bank, ICICI Bank and Other bank
on immovable property being Land and Building (which held with SBI Cap Trustee Limited) details of which are
given below.

2. All the above facilities have been secured against personal guarantee of Mr. Anil Kataria (Whole Time Director),
Mr. Santosh Kataria (Managing Director), Mrs. Renu Kataria (Director), Mr. Ratanlal Kataria (Promoter), Mr. Sanjay
Kataria (Promoter), Mr. Vikas Kataria (Promoter) & Mrs. Suman Devi Kataria (Promoter)

Details of Immovable Properties Secured against banking facilities (which held with SBI Cap Trustee Limited.) are as

follows:

1. House Bearing S.No 31/188/71 To 73, Sale Deed Dt 05.02.2007 & 10.04.2007, Dhanji Bai Ka Nohra, Bajajkhana,
Ratlam, 457001,Madhya Pradesh, India owned by Sanjay Kataria and Anil Kataria*

2. No. 101, 102, 201, 202 and 203 M G Road, Yashwant Niwas Road, First Floor And Second Floor, 569/3, M G Road, D
N R 90 Degree, Indore, 452003, Madhya Pradesh, India owned by DP Abhushan Limited*

3. New Mu No 24/116/19, Chandani Chouk Ratlam, 457001, Madhya Pradesh, India owned by Suman Devi Kataria*

4. Showroom at Bhopal Plot No. 06 Teh. Huzur, Ward No. 34, Malviya Nagar, Bhopal - 462011 owned by DP Abhushan
Limited*

5. 138, Chandani Chowk, Ratlam (M.P.)- 457001 owned by Ratanlal Kataria*

6. Survey No. 690/2, 692 & 693, Gopal Goshala Colony Dwarkapuri, Ratlam (M.P.)-457001 owned by Vikas Kataria*

The Company has not defaulted for any loans payable, and there has been no breach of any loan covenants.

33.2.2 Financial risk management

The company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payable.
The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets
include trade and other receivables and cash and cash equivalents that derive directly from its operations.

The company is exposed to market risk, credit risk and liquidity risk. The company’s senior management oversees the management
of these risks. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of
Directors reviews and agrees policies for managing each of these risks, which are summarised below.

A Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s exposures to trade receivables (mainly institutional
customers and credit sales), deposits with landlords for store properties taken on leases and other receivables including
balances with banks.

Trade receivables and other deposits

The Company’s retail business is predominantly on ''cash and carry’ basis which is largely through cash and credit card
collections. The credit risk on such credit card collections is minimal, since they are primarily owned by customers’ card
issuing banks. The Company has adopted a policy of dealing with only credit worth counterparties in case of institutional
customers and credit sales and the credit risk exposure for institutional customers and credit sales are managed by the
Company by credit worthiness checks. The Company also carries credit risk on lease deposits with landlords for store
properties taken on leases, for which agreements are signed and property possessions timely taken for store operations. The
risk relating to refunds of deposits after store shut down is managed through successful negotiations or appropriate legal
actions, where necessary.

Other financial assets

The Company maintains exposure in cash and cash equivalents and term deposits with banks. The Cash and cash equivalents
and term deposits are held with the banks with good credit ratings.

The Company’s maximum exposure to credit risk as at 31^st March 2026 and 31^st March 2025 is the carrying value of each
class of financial assets.

B Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational
needs. Any short term surplus cash generated, over and above the amount required for working capital management and
other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested
in interest bearing term deposits with appropriate maturities to optimise the cash returns on investments while ensuring
sufficient liquidity to meet its liabilities.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and include estimated interest payments:

C Market risk

i. Market risk

Market risk is the risk that changes in market prices -
such as foreign exchange rates, interest rates and equity
prices - will affect the Company’s income or the value
of its holdings of financial instruments. The objective of
market risk management is to manage and control market
risk exposures within acceptable parameters, while
optimising the return.

ii. Interest rate risk

Interest rate risk can be either fair value interest rate risk
or cash flow interest rate risk. Fair value interest rate risk
is the risk of changes in fair values of fixed interest-bearing
financial assets or borrowings because of fluctuations in
the interest rates, if such assets/borrowings are measured
at fair value through profit or loss. Cash flow interest rate
risk is the risk that the future cash flows of floating interest¬
bearing borrowings will fluctuate because of fluctuations
in the interest rates.

Exposure to interest rate risk

The interest rate profile of the Company’s interest-bearing
financial instruments as reported to the management of
the Company is as follows.

D Commodity Price Risk

The Company is exposed to price risk associated with gold,
its primary raw material. To mitigate this risk, the Company
enters into Gold Metal Loan (GML) arrangements and
Gold on Lease agreements with bullion banks. Under
these schemes, the price of gold is fixed at the time of sale
or within a contractually permitted window, effectively
creating a natural hedge against market fluctuations.

Unhedged/Unfixed Exposure:

As of the reporting date, the details of unfixed gold
liabilities that are exposed to price risk are as follows:

33.3 Capital management

The Company’s policy is to maintain a strong capital base so
as to maintain investor, creditor and market confidence and
to sustain future development of the business. Management
monitors the return on capital as well as the level of dividends
to ordinary shareholders.

The board of directors seeks to maintain a balance between
the higher returns that might be possible with higher levels
of borrowings and the advantages and security afforded
by a sound capital position. The primary objective of the
Company’s Capital Management is to maximise shareholder
value. The Company manages its capital structure and
makes adjustments in the light of changes in the economic
environment and the requirements of the financial covenants,
if any.

The Company monitors capital using a ratio of ''adjusted net
debt’ to ''equity’. For this purpose, adjusted net debt is defined
as total borrowings, comprising interest-bearing loans and
borrowings less cash and cash equivalents. Equity comprises
all components of equity.

Note - The Company has transferred unspent Corporate Social
Responsibility (CSR) amount as at the end of the previous
financial year, to a Fund specified in Schedule VII to the
Companies Act within a period of six months of the expiry of
the financial year in compliance with second proviso to sub¬
section (5) of section 135 of the said Act;

of qualifying employees towards Provident Fund
and Employees State Insurance, which are defined
contribution plans. The Company has no obligations
other than to make the specified contributions. The
contributions are charged to the Statement of Profit
and Loss as they accrue. The amount recognised as an
expense towards contribution to Provident Fund and
other funds for the year aggregated to C 193.18 Lacs (31
March 2025: C 150.78 Lacs) which is shown under notes to
financial statements 26 - ''Employee benefits expenses.

b) Defined benefit plans

Employee gratuity fund scheme is the defined benefit
plan. Provision for gratuity has been made in the accounts
in respect of employees who have completed required
number of years of service as on date of balance sheet
based on Actuarial Valuation Report obtained from
Actuarial Consultant. Gratuity is paid at the time of
retirement of employees. Short Term Employee Benefits
like leave benefit, if any, are paid along with salary and
wages as and when accrued, bonus to employees are
charged to profit and loss account on the basis of actual
payment on year to year basis.

Note: The Disclosure in respect of the amounts payable to
Micro and Small Enterprises have been made in the financial
statements based on the information received and available
with the Company. Further in view of the Management, the
impact of interest, if any, that may be payable in accordance
with the provisions of the Act is not expected to be material.
The Company has not received any claim for interest from any
supplier as at the balance sheet date. These facts have been
relied upon by the auditors.

33.12 Corporate Social Responsibility

Details of the Corporate Social Responsibility Expenditure: -

The Company does not make any CSR transaction with
related party.

Discount Rate:

The rate used to discount post-employment benefit
obligations (both funded and unfunded) shall be
determined by reference to market yields at the end of
the reporting period on high quality corporate bonds. In
countries where there is no deep market in such bonds,
the market yields (at the end of the reporting period) on
government bonds shall be used. The currency and term
of the corporate bonds or government bonds shall be
consistent with the currency and estimated term of the
post-employment benefit obligations.

The estimated term of the Obligation is around 10.66
years. The yields on the government bonds as at the 31¬
03-2026 were 7.25%.

Salary Growth Rate

This is Management’s estimate of the increases in the
salaries of the employees over the long term. Estimated
future salary increases should take account of inflation,
seniority, promotion and other relevant factors such as
supply and demand in the employment market.

The salary escalation assumption reflects the expected
‘average’ over the entire population, as well as over time.
When setting the assumption, companies must consider
what Cumulative Average Growth Rate (CAGR) in salaries
of the existing employees is expected over the duration of
the liabilities.

Rate of Return on Plan Assets

This assumption is required only in case of funded plans.
Interest income on plan assets is calculated using the rate
used to discount the defined benefit obligation.

Withdrawal Rates

This is Management’s estimate of the level of attrition in
the company over the long term. Estimated withdrawal
rates should take into account the broad economic
outlook, type of sector the company operates in and
measures taken by the management to retain/ relieve
the employees.

Mortality Rates

Mortality rate is a measure of the number of deaths (in
general, or due to a specific cause) in population, scaled
to the size of that population, per unit of time.

Reasonableness of Assumptions

The Salary growth rate & Withdrawal rate assumptions
are the expectation of the Management for the future
years. It should be noted that we have not performed
any validation check for appropriateness and adequacy

of assumptions. The importance and broad guidelines
related to assumptions were shared to clients.

The Assumptions provided by the Management have been
accepted since The Management is best aware of the
various factors that affects future trends and since It is
Management responsibility to decide the future trends.

The future accrual is not considered in arriving at the
above cash-flows.

This is Management’s estimate of the increases in the
salaries of the employees over the long term. Estimated
future salary increases should take account of inflation,
seniority, promotion and other relevant factors such as
supply and demand in the employment market.

33.14 Disclosure pursuant with SEBI (Listing
obligation and disclosure requirement, 2015) and
section 186 of the Companies Act,2013

No loans and guarantee have been given by the Company to
any third party or its subsidiary companies.

33.15 Events after the reporting period

The Company has evaluated subsequent events from the
balance sheet date through 21^st May, 2026, the date at which
the financial statement was available to be issued, and
determine that there are no material items to disclose other
than those disclosed.

33.16 Other Statutory information

(a) The Company have not advanced or loaned or investee
funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding
that the Intermediary shall:

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

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

(b) The Company have not received any fund from any
person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing
or otherwise) that the Company shall:

(i) Directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoevei
by or on behalf of the Funding Party (Ultimate
Beneficiaries) or

(ii) Provide any guarantee, security or the like on behah
of the Ultimate Beneficiaries.

(c) The Company does not have any such transaction which
is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961.

33.17 Relationship with Struck off companies

There are no balance outstanding on account of any transaction
with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act,1956.

33.18 The Standalone financial statements were
approved for issue by the Board of Directors on 21st
May, 2026.

33.19 Segment Reporting

The Company’s business activity falls within a single
primary business segment of “Jewellery” and one reportable
geographical segment which is “within India”. Accordingly_:
the company is a single segment company in accordance with
Indian Accounting Standard 108 “Operating Segment”.

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

33.21 The Company has not been declared a wilful defaulter
by any bank or financial institution or other lender (as defined
under the Companies Act, 2013) or consortium thereof, in
accordance with the guidelines on wilful defaulters issued by
the Reserve Bank of India.

33.22 The figures for the previous year have been re-grouped/
re-arranged, wherever necessary, to correspond with the
current year classification/disclosure.

33.23 Share Based Payments

The Company has Employee Stock Option Plan (‘ESOP 2024’
or the ‘Plan’) for providing compensation to its employees. As
per the Plan, the Board of Directors of the Company grants
options to the eligible employees of the Company. These
options are equity settled.

• Provisions, Contingent Liabilities and Contingent Assets

The Company creates a provision when there is a present obligation as a result of past event that probably
require an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions
are measured at the best estimate of the expenditure required to settle the present obligation at the balance
sheet date and are not discounted to the present value. These are reviewed at each year end and adjusted
to reflect the best current estimate.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may or may not require an outflow of resources. When there is a possible obligation or present obligation in
respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are neither recognised nor disclosed in the financial statements.

• Cash and Cash Equivalents

Cash and Cash Equivalents in the balance sheet and for the purpose of cash flow statement comprise cash
in hand and cash at bank including fixed deposit with original maturity period of three months and short-term
highly liquid investments with an original maturity of three months or less as they are considered an integral
part of the Company''s cash management.

• Financial Instruments

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.

FINANCIAL ASSETS

Initial recognition and measurement:

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash
flow characteristics and the Company''s business model for managing them. With the exception of trade
receivables that do not contain a significant financing component or for which the Company has applied the
practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain
a significant financing component or for which the Company has applied the practical expedient are
measured at the transaction price determined under Ind AS 115.

n order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

The Company''s business model for managing financial assets refers to how it manages its financial assets in
order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell the asset."

FINANCIAL ASSET

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

a) Debt instruments at amortised cost

b) Debt instruments at fair value through other comprehensive income (FVTOCI)

c) Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

d) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

DEBT INSTRUMENTS AT AMORTISED COST

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

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

This category is the most relevant to the Company. After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses
arising from impairment are recognised in the profit or loss. This category generally applies to trade and
other receivables."

DEBT INSTRUMENT AT FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost
or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency. The Company has not designated any debt instrument as at
FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized
in the P&L.

EQUITY INVESTMENTS

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for
trading and contingent consideration recognised by an acquirer in a business combination to which Ind
AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an
irrevocable election to present in other comprehensive income subsequent changes in the fair value. The
Company makes such election on an instrument-by-instrument basis. The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to
P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within
equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

V

\

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x V \ ^ \

DE-RECOGNITION OF FINANCIAL ASSETS

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial
assets) is primarily derecognised (i.e. removed from the Company''s consolidated balance sheet) when:

a) The rights to receive cash flows from the asset have expired, or

b) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement
and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the
Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the
Company''s continuing involvement. In that case, the Company also recognises an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the rights and obligations
that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of
the original carrying amount of the asset and the maximum amount of consideration that the Company could
be required to repay.

IMPAIRMENT OF FINANCIAL ASSETS

In accordance with Ind-AS 109, the Company applies Expected Credit Loss ("ECL") model for measurement and
recognition of impairment loss on the financial assets measured at amortized cost and financial assets
measured at FVOCI. For financial assets other than trade receivables, as per Ind AS 109, the Company
recognises 12 month expected credit losses for all originated or acquired financial assets if at the reporting
date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected
credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases
significantly since its initial recognition. The Company''s trade receivables do not contain significant financing
component and loss allowance on trade receivables is measured at an amount equal to life time expected
losses i.e. expected cash shortfall.

The impairment losses and reversals are recognised in Statement of Profit and Loss.

FINANCIAL LIABILITIES

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts, financial guarantee contracts and derivative financial instruments.

The measurement of financial liabilities depends on their classification, as described below:

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial liabilities at fair value through profit and loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit and loss. Financial liabilities are
classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category
also includes derivative financial instruments entered into by the Company that are not designated as hedging
instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also
classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit and loss are designated as
such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated
as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/
loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss
within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The
Company has not designated any financial liability as at fair value through profit and loss.

LOANS AND BORROWINGS

This is the category most relevant to the Company. After initial recognition, interest -bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit
and loss.

DE-RECOGNITION

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
de-recognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the Statement of Profit and Loss.

OFFSETTING

Financial assets and financial liabilities are offset and the net amount is presented in the Balance Sheet, if the
Company currently has a legally enforceable right to offset the recognised amounts and there is an intention to
settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

\ \

Significant Accounting Policies Fo r and On Behalf of Board of Directors of

Notes to the Standalone Financial Statements M/s D. P. ABHUSHAN LIMITED

CIN - L74999MP2017PLC043234

As per our report of even date,

For, JEEVAN JAGETIYA & CO

(Chartered Accountants)

FRN No: 121335W

Nilesh Asava Santosh Kataria Anil Kataria

Partner (Managing Director) (Whole Time Director)

M. No. 0142577 DIN: 02855068 DIN: 00092730

Date: 16^th May, 2025 Vijesh Kumar Kasera Aashi Neema

Place: Ratlam (Chief Financial Officer) (Company Secretary)

M. No. 67041

• Provisions, Contingent Liabilities and Contingent Assets

The Company creates a provision when there is a present obligation as a result of past event that probably

require an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions

\

are measured at the best estimate of the expenditure required to settle the present obligation at the balance

\ \

sheet date and are not discounted to the present value. These are reviewed at each year end and adjusted

to reflect the best current estimate.

\ \ \

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may or may not require an outflow of resources. When there is a possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are neither recognised nor disclosed in the financial statements.

• Cash and Cash Equivalents

Cash and Cash Equivalents in the balance sheet and for the purpose of cash flow statement comprise cash in hand and cash at bank including fixed deposit with original maturity period of three months and short-term highly liquid investments with an original maturity of three months or less as they are considered an integral part of the Company''s cash management.

• Financial Instruments

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

FINANCIAL ASSETS

Initial recognition and measurement:

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

The Company''s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset."

FINANCIAL ASSET

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

a) Debt instruments at amortised cost

b) Debt instruments at fair value through other comprehensive income (FVTOCI)

c) Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

d) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

DEBT INSTRUMENTS AT AMORTISED COST

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

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

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade and other receivables."

DEBT INSTRUMENT AT FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency. The Company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

EQUITY INVESTMENTS

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

\

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

\ \ \

DE-RECOGNITION OF FINANCIAL ASSETS

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognised (i.e. removed from the Company''s consolidated balance sheet) when:

a) The rights to receive cash flows from the asset have expired, or

b) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

IMPAIRMENT OF FINANCIAL ASSETS

In accordance with Ind-AS 109, the Company applies Expected Credit Loss ("ECL") model for measurement and recognition of impairment loss on the financial assets measured at amortized cost and financial assets measured at FVOCI. For financial assets other than trade receivables, as per Ind AS 109, the Company recognises 12 month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company''s trade receivables do not contain significant financing component and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e. expected cash shortfall.

The impairment losses and reversals are recognised in Statement of Profit and Loss.

FINANCIAL LIABILITIES

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

The measurement of financial liabilities depends on their classification, as described below:

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial liabilities at fair value through profit and loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit and loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit and loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

LOANS AND BORROWINGS

This is the category most relevant to the Company. After initial recognition, interest -bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

DE-RECOGNITION

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

OFFSETTING

Financial assets and financial liabilities are offset and the net amount is presented in the Balance Sheet, if the Company currently has a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

1) HDFC Bank Limited:

Primary Security:

First charge on Pari Passu basis with ICICI Bank Limited, State Bank of India Limited and Kotak Mahindra Bank Limited on Current Assets i.e. Stock of Raw Material, Stock in Process, Cinsumables stores and spares and Book Debts, bills whether documentary or clean, outstanding monies, receivables of the company both present and future.

Collateral Security:

First Pari Passu charge of HDFC Bank Limited with ICICI Bank Limited, State Bank of India Limited and Kotak Mahindra Bank Limited by way of equitable mortgage on the proprty details of which are given below, which held with SBI Cap Trustee Limited.

Personal Guarnatee:

All the above facilities have been secured against personal guarantee of Mr. Anil Kataria (Whole Time Director), Mr. Santosh Kataria (Managing Director), Mrs. Renu Kataria (Director), Mr. Ratanlal Kataria (Promoter), Mr. Sanjay Kataria (Promoter), Mr. Vikas Katraia (Promoter) & Mrs. Suman Devi Kataria (Promoter)

Auto Loan:

The vehicle loans from banks are secured by hypothecation of vehicle purchased.

2) ICICI Bank Limited:

Primary Security:

Current Assets with First Pari Passu Charge for Gold Metal Loan, Cash Crediut Facility, Working Capital Demand Loan, Bank Guarantee and Rupee Term Loan.

Current Assets with Second Pari Passu Charge for Working Capital Term Loan.

Collateral Security:

Immovable Properties (which are held with SBI Cap Trustee Limited) Details of which are given below) with First Pari Passu Charge for Gold Metal Loan, Cash Credit Facility, Working Capital Demand Loan, Bank Guarantee and Rupee Term Loan.

Immovable Properties (which are held with SBI Cap Trustee Limited and Details of which are given below) with Second Pari Passu Charge for Working Capital Term Loan.

Personal Guarnatee:

All the above facilities have been secured against personal guarantee of Mr. Anil Kataria (Whole Time Director), Mr. Santosh Kataria (Managing Director), Mrs. Renu Kataria (Director), Mr. Ratanlal Kataria (Promoter), Mr. Sanjay Kataria (Promoter), Mr. Vikas Katraia (Promoter) & Mrs. Suman Devi Kataria (Promoter)

3) State Bank of India Limited:

Primary Security:

Hypothecation: First Pari Passu charge on Co. entire present and future stocks on raciprocal basis comprising Raw Material, Stock in Process, Finished Gooods, consumable stores and spares and receivables at the co.''s Owned or Leased premises or given for Job Work including goods in transit/shipment.

Collateral Security:

Immovable Properties (which are held with SBI Cap Trustee Limited) details of which are given below.

Personal Guarnatee:

All the above facilities have been secured against personal guarantee of Mr. Anil Kataria (Whole Time Director), Mr. Santosh Kataria (Managing Director), Mrs. Renu Kataria (Director), Mr. Ratanlal Kataria (Promoter), Mr. Sanjay Kataria (Promoter), Mr. Vikas Katraia (Promoter) & Mrs. Suman Devi Kataria (Promoter)

4) Kotak Mahindra Bank Limited :

For Hypothecation:

First Pari Passu hypothecation charge to be shared with HDFC Bank, ICICI Bank and Other bank on all existing and future current assets and movable fixed assets of the borrower.

For Mortgage:

1. First Pari Passu equitable/Registered mortgage charge to be shared with HDFC Bank, ICICI Bank and Other bank on immovable property being Land and Building (which held with SBI Cap Trustee Limited) details of

which are given below.

2. All the above facilities have been secured against personal guarantee of Mr. Anil Kataria (Whole Time Director), Mr. Santosh Kataria (Managing Director), Mrs. Renu Kataria (Director), Mr. Ratanlal Kataria (Promoter), Mr. Sanjay Kataria (Promoter), Mr. Vikas Katraia (Promoter) & Mrs. Suman Devi Kataria (Promoter)

Details of Immovable Properties Secured against banking facilities (which held with SBI Cap Trustee Limited.) are as follows:

1. House Bearing S.No 31/188/71 To 73, Sale Deed Dt 05.02.2007 & 10.04.2007, Dhanji Bai Ka Nohra, Bajajkhana, Ratlam, 457001,Madhya Pradesh, India owned by Sanjay Kataria and Anil Kataria*

2. No. 101, 102, 201, 202 and 203 M G Road, Yashwant Niwas Road, First Floor And Second Floor, 569/3, M G Road, D N R 90 Degree, Indore, 452003, Madhya Pradesh, India owned by DP Abhushan Limited*

3. New Mu No 24/116/19, Chandani Chouk Ratlam, 457001, Madhya Pradesh, India owned by Suman Devi Kataria*

4. Showroom at Bhopal Plot No. 06 Teh. Huzur, Ward No. 34, Malviya Nagar, Bhopal - 462011 owned by DP Abhushan Limited*

5. 138, Chandani Chowk, Ratlam (M.P.)- 457001 owned by Ratanlal Kataria*

6. Survey No. 690/2, 692 & 693, Gopal Goshala Colony Dwarkapuri, Ratlam (M.P.)-457001 owned by Vikas Kataria*

The Company has not defaulted for any loans payable, and there has been no breach of any loan covenants.

33.2.2 Financial risk management

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

The company is exposed to market risk, credit risk and liquidity risk. The company''s senior management oversees the management of these risks. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

A. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s exposures to trade receivables (mainly institutional customers and credit sales), deposits with landlords for store properties taken on leases and other receivables including balances with banks.

TRADE RECEIVABLES AND OTHER DEPOSITS

The Company''s retail business is predominantly on ''cash and carry'' basis which is largely through cash and credit card collections. The credit risk on such credit card collections is minimal, since they are primarily owned by customers'' card issuing banks. The Company has adopted a policy of dealing with only credit worth counterparties in case of institutional customers and credit sales and the credit risk exposure for institutional customers and credit sales are managed by the Company by credit worthiness checks. The Company also carries credit risk on lease deposits with landlords for store properties taken on leases, for which agreements are signed and property possessions timely taken for store operations. The risk relating to refunds of deposits after store shut down is managed through successful negotiations or appropriate legal actions, where necessary.

OTHER FINANCIAL ASSETS

The Company maintains exposure in cash and cash equivalents and term deposits with banks. The Cash and cash equivalents and term deposits are held with the banks with good credit ratings.

The Company''s maximum exposure to credit risk as at 31st March 2024 and 31st March 2023 is the carrying value of each class of financial assets.

B. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31 March, 2024 and 31 March, 2023. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

EXPOSURE TO LIQUIDITY RISK

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments:

MARKET RISK

i. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

ii. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

33.3 Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. The primary objective of the Company''s Capital Management is to maximise shareholder value. The Company manages its capital structure and makes adjustments in the light of changes in the economic environment and the requirements of the financial covenants, if any.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''equity''. For this purpose, adjusted net debt is defined as total borrowings, comprising interest-bearing loans and borrowings less cash and cash equivalents. Equity comprises all components of equity.

33.6

In the opinion of director, the value on realization of current assets, loans and advances, if realized in the ordinary course of the business, shall not be less than the amount, which is stated in the current year balance sheet.

The provisions for all known liabilities are reasonable and not in excess of amount considered reasonably necessary.

|33.7

Figures have been rounded off to the nearest '' in lacs and have been regrouped, rearranged and reclassified wherever necessary.

|33.8

Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the representation given by management of the company.

33.13 Gratuity and Other Post-employment benefit plans

(a) Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund and Employees State Insurance, which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to the Statement of Profit and Loss as they accrue. The amount recognised as an expense towards contribution to Provident Fund and other funds for the year aggregated to '' 116.16 Lacs (31 March 2023: '' 90.57 Lacs) which is shown under notes to financial statements 26 - ''Employee benefits expenses''.

(b) Defined benefit plans

Employee gratuity fund scheme is the defined benefit plan. Provision for gratuity has been made in the accounts in respect of employees who have completed required number of years of service as on date of balance sheet based on Actuarial Valuation Report obtained from Actuarial Consultant. Gratuity is paid at the time of retirement of employees. Short Term Employee Benefits like leave benefit, if any, are paid along with salary and wages as and when accrued, bonus to employees are charged to profit and loss account on the basis of actual payment on year to year basis.

DISCOUNT RATE

The rate used to discount post-employment benefit obligations (both funded and unfunded) shall be determined by reference to market yields at the end of the reporting period on high quality corporate bonds. In countries where there is no deep market in such bonds, the market yields (at the end of the reporting period) on government bonds shall be used. The currency and term of the corporate bonds or government bonds shall be consistent with the currency and estimated term of the post-employment benefit obligations.

The estimated term of the Obligation is around 10.85 years. The yields on the government bonds as at the 31-032024 were 7.20%.

SALARY GROWTH RATE

This is Management''s estimate of the increases in the salaries of the employees over the long term. Estimated future salary increases should take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

The salary escalation assumption reflects the expected ''average'' over the entire population, as well as over time. When setting the assumption, companies must consider what Cumulative Average Growth Rate (CAGR) in salaries of the existing employees is expected over the duration of the liabilities.

RATE OF RETURN ON PLAN ASSETS

This assumption is required only in case of funded plans. Interest income on plan assets is calculated using the rate used to discount the defined benefit obligation.

WITHDRAWAL RATES

This is Management''s estimate of the level of attrition in the company over the long term. Estimated withdrawal rates should take into account the broad economic outlook, type of sector the company operates in and measures taken by the management to retain/ relieve the employees.

MORTALITY RATES

Mortality rate is a measure of the number of deaths (in general, or due to a specific cause) in population, scaled to the size of that population, per unit of time.

REASONABLENESS OF ASSUMPTIONS

The Salary growth rate & Withdrawal rate assumptions are the expectation of the Management for the future years. It should be noted that we have not performed any validation check for appropriateness and adequacy of assumptions. The importance and broad guidelines related to assumptions were shared to clients.

The Assumptions provided by the Management have been accepted since The Management is best aware of the various factors that affects future trends and since It is Management responsibility to decide the future trends.

33.14 Disclosure pursuant with SEBI (Listing obligation and disclosure requirement, 2015) and section 186 of the Companies Act,2013

No loans and guarantee have been given by the Company to any third party or its subsidiary companies.

33.15 Events after the reporting period

The Company has evaluated subsequent events from the balance sheet date through 21^st May, 2024, the date at which the financial statement was available to be issued, and determine that there are no material items to disclose other than those disclosed.

33.16 Other Statutory information

(a) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

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

(b) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) 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

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

(c) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

33.17 Relationship with Struck off companies

There are no balance outstanding on account of any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act,1956.

33.18 The Standalone financial statements were approved for issue by the Board of Directors on 21st May, 2024.

33.19 Segment Reporting

The Company''s business activity falls within a single primary business segment of "Jewellery" and one reportable geographical segment which is "within India". Accordingly, the company is a single segment company in accordance with Indian Accounting Standard 108 "Operating Segment".

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

33.21 The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

33.22 The figures for the previous year have been re-grouped/ re-arranged, wherever necessary, to correspond with the current year classification/disclosure.

As per our report of even date, For, M/s D.P. ABHUSHAN LIMITED

CIN - L74999MP2017PLC043234

For, JEEVAN JAGETIYA & CO Santosh Kataria Anil Kataria

(Chartered Accountants) (Managing Director) (Whole Time Director)

FRN No: 121335W DIN: 02855068 DIN:- 00092730

NILESH ASAVA Vijesh Kumar Kasera A_ashi N_eema

P^artner _h ,_U0„₇ ^{(Chief Financial Officer)} (Company Secretary)

^Membership ^N°: ¹⁴²⁵⁷⁷ _M |\|_{o A6704}1

UDIN: 24142577BKBQRQ9073 ^{M No}'' ^A6/041

Date: 21^st May, 2024 Place: Ratlam

Provisions, Contingent Liabilities and Contingent Assets

The Company creates a provision when there is a present obligation as a result of past event that probably
require an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions
are measured at the best estimate of the expenditure required to settle the present obligation at the
balance sheet date and are not discounted to the present value. These are reviewed at each year end
and adjuste to reflect the best current estimate.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may or may not require an outflow of resources. When there is a possible obligation or present obligation in
respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are neither recognised nor disclosed in the financial statements. However, contingent
Assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the
asset and related income are recognised in the period in which change occurs.

2.17 Cash and Cash Equivalents

Cash and Cash Equivalents in the balance sheet and for the purpose of cash flow statement comprise cash
in hand and cash at bank including fixed deposit with original maturity period of three months and short-term
highly liquid investments with an original maturity of three months or less net of outstanding bank over drafts
as they are considered an integral part of the Company''s cash management.

2.18 Financial Instruments

• Initial Recognition

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability of
equity instrument of another entity. Financial assets and financial liabilities are recognised when the
Company becomes a party to the contractual provisions of the instruments.

• Financial Assets and Financial Liabilities are Initially Measured at Fair Value

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

• Subsequent Measurement

I. 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 market place.

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.

II. Financial assets carried at amortized cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a
business whose objective is to hold these assets in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.

III. Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held
within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.

On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument basis to

present the subsequent changes in fair value in other comprehensive income pertaining to investments in

equity instruments, other than equity investment which are held for trading. Subsequently, they are measured

at fair value with gains and losses arising from changes in fair value recognised in other comprehensive

income and accumulated in the ''Reserve for equity instruments through other comprehensive income''. The

cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

\

v \

IV. Financial assets at fair value through profit or loss

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on
initial recognition to present subsequent changes in fair value in other comprehensive income for
investments in equity instruments which are not held for trading.

Other financial assets are measured at fair value through profit or loss unless it is measured at amortised
cost or at fair value through other comprehensive income on initial recognition. The transaction costs
directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are
immediately recognised in profit or loss.

V. Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial
assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance.
The Company recognises lifetime expected losses for all contracts assets and/or all trade receivables that
do not constitute a financing transaction. For all other financial assets, credit losses are measured at an
amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit
losses if the credit risk on the financial assets has increased significantly since initial recognition.

VI. Financial liabilities and equity instruments

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except
for contingent consideration recognized in a business combination, which is subsequently measured at fair
value through profit or loss. For trade and other payables maturing within one year from the Balance Sheet
date, the carrying amounts approximate fair value due to the short maturity of these instruments.

a) Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements and the definitions of a financial liability
and an equity instrument.

b) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments are issued by the Company are recognised at the proceeds
received, net of direct issue costs.

VII. Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for Derecognition under Ind
AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance
Sheet when the obligation specified in the contract is discharged or cancelled or expires.

• Recent Accounting Pronouncements

On 23rd March, 2022, the Ministry of Corporate Affairs(MCA) has notified certain amendment to existing Ind
AS. These amendments shall be applicable to the Company from 1st April, 2022. Amendment to Existing
issued Ind AS the MCA has carried out amendments of the following accounting standards.

Company as a lessee

Effective 1st April, 2019, the Company has adopted Ind AS 116 "Leases" and applied the standard to all lease contracts existing on the date of initial application i.e. April 01, 2019. The Company has used the modified retrospective approach for transitioning to Ind AS 116 with the cumulative effect of initially applying the standard recognized as an adjustment to the opening balance of retained earnings at the date of initial application. Accordingly, comparatives for the year ended March 31, 2019 have not been retrospectively adjusted.

At the commencement date of a lease, the Company has recognized a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). The Company has separately recognized the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

\ \ \

The Company shall remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The Company will generally recognize the amount of the re-measurement of the lease liability as an adjustment to the right of- use asset.

The operating leases recorded on the balance sheet following implementation of Ind AS 116 are principally in respect of leasehold land and other identified assets representing right to use as per contracts excluding low value assets and short term leases of 12 months or less.

The Company has recognized right of use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases of low-value assets. The right of use assets for most leases were recognized based on the carrying amount as if the standard had always been applied since the inception of lease, apart from the use of incremental borrowing rate at the date of initial application. For new lease entered in current year, the right of use assets was recognized based on the amount equal to the lease liabilities, adjusted for any related prepaid and accrued lease payments previously recognized. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application.

The Company has also applied the available practical expedients wherein it:

• Used a single discount rate to a portfolio of leases with reasonably similar characteristics

• Relied on its assessment of whether lease''s are onerous immediately before the date of initial application.

• Applied the short-term leases exemptions to leases with lease term that ends within 12 months at the date of initial application.

• Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

• Used hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

The Company has adopted modified retrospective approach as per para C8 (c)(i) of IND AS 116 - Leases to its leases, effective from annual reporting period beginning April 01, 2019. This has resulted in recognizing a Right of Use assets of '' 429 Lacs in standalone Financial Statements and Lease Liability of '' 317 Lacs in standalone Financial statements as on April 1, 2019 and difference between Right of Use Assets and Lease Liability of '' 97 Lacs (including deferred tax liability of '' 15 Lacs) in standalone Financial Statements has been adjusted in retained earnings amounting to '' 78 lacs and ''19 lacs in Security deposits balance in financial assets.

• The Company has inaugurated its Ujjain Showroom during Financial Year 2020-21. Showroom is fully operational w.e.f. 12-August-2020.

• The Banswara showroom is yet to be operational. Therefore all assets are held as Capital Work In Progress

Accounting classification and fair values

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below.

The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements)

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

Risk Management Framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors along with the top management are responsible for developing and monitoring the Company''s risk management policies.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company''s audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company,

a. Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s trade receivables, certain loans and advances and other financial assets.

The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables

""The Company has developed guidelines for the management of credit risk from trade receivables. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. "

Cash and cash equivalents

The Company held cash and cash equivalents with credit worthy banks and financial institutions as at the reporting dates which has been measured on the 12-month expected loss basis. The credit worthiness of such banks and financial institutions are evaluated by the management on an ongoing basis and is considered to be good with low credit risk. Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and are not past due.

Other financial assets

Other financial assets mainly include security deposits as well as other advances receivable on demand where the credit risk is envisaged to be minimal. The Company has not acquired any credit impaired asset. There was no modification in any financial assets.

The Company''s maximum exposure to credit risk as at 31st March 2021 and 31st March 2020 and 1 April 2019 is the carrying value of each class of financial assets.

33.3 Financial Instruments - Risk Management (Continued)

b. Liquidity Risks

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company has current financial assets which the management believes is sufficient to meet all its liabilities maturing during the next 12 months.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, including contractual interest.

c. Market Risks

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), interest rate risk and the market value of its investments. Thus the Company''s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

33.5 Capital Management & Gearing Ratio

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize 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. From time to time, the Company reviews its policy related to dividend payment to shareholders. The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of its long-term and short-term goals. Its Capital structure consists of net debt (borrowings as detailed in notes below) and total equity.

34.6

In the opinion of director, the value on realization of current assets, loans and advances, if realized in the ordinary course of the business, shall not be less than the amount, which is stated in the current year balance sheet.

The provisions for all known liabilities are reasonable and not in excess of amount considered reasonably necessary.

34.7

Figures have been rounded off to the nearest ? in lacs and have been regrouped, rearranged and reclassified wherever necessary.

34.8

Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the representation given by management of the company.

27. NOTES FORMING THE PART OF ACCOUNTS:

27.1 Contingent Liabilities not provided for

TDS Liability

Penalty under Section 272A(2)(c) of lncome Tax Act,1961 for 2013-14 & 2014-15

A penalty under Demand Oder dated 27.06.2017 was passed against the Company by the officer of Additional Commissioner of Income Tax, Indore, for an amount of 46,900/- under Section 272A (2) (c) of the Income Tax Act, 1961. The penalty was imposed for years 2013-14 and 2014-15 for not furnishing information u/s 133(6) of the Act for the verification of TDS deducted on payment made to authorize Hallmarking Centres for obtaining Hallmark certificates by the Company. The Company has filed an appeal dated 30.07.2017 against the said penalty order before the Commissioner of Income-Tax (Appeals), Bhopal under Section 246A of the Income Tax Act, 1961. The total liability in the matteris 46,900/- only. The mater is under appeal for disposal.

Indirect Taxes Liabilities A. Value Added Tax Period of Assessment: 01/04/2012 to 31 /03/2013

An Appeal was filed by the Company on 14.07.2016 before the Rajasthan Tax Board, Ajmer under Section 83 of Rajasthan VAT Act, 2003 against Order of the Office of Additional Commissioner, Appeals, Commercial Tax Department, Udaipur dated 24.05.2016, wherein the penalty of Rs 76,40,776/- imposed on Company by the Order of the Assistant Commissioner dated 29.09.2015 was removed and the additional liability on Company to pay Rs 51,95,728/- as tax and interest was confirmed. In pursuance to filing appeal in Rajasthan Tax Board, the Company has made payment of Rs 51, 95,728 towards tax and interest Under Protest.

However, Company''s contention is that the Department has erred in levying Purchase Tax liability on it as it has taken a valid exemption certificate for lump sum payment u/s 5 of the RVAT Act. For the period under review, Company used to buy old jewellery from unregistered dealers and send it to their Madhya Pradesh based headquarters, where new jewellery was made from the said old jewellery and was sold, after due payment of VAT on lump sum basis. Hence, in this situation. Company''s contention is that there is no liability of payment of tax under Section 4(2) of the Rajasthan Value Added Tax, 2003. The appeal is pending before the Board.

Cross Appeal has been filed on 17.8.2016 before Rajasthan Tax Board, Ajmer against the Company by the Assistant Commissioner, Udaipur to Re-impose the penalty of Rs. 76,40,776 on the Company and is against the Order of Add. Comm. Appeal, Commercial Tax Department Udaipur dated 24/05/2016, wherein the penalty was removed.

Period of Assessment: 01/04/2013 to 31/03/2014

An Appeal was filed by the Company on 14.07.2016 before the Rajasthan Tax Board, Ajmer under Section 83 of Rajasthan VAT Act, 2003 against Order of the Office of Additional Commissioner, Appeals, Commercial Tax Department, Udaipur dated 24.05.2016, wherein the penalty of Rs. 1,84,79,276/- imposed on Company by the Order of the Assistant Commissioner dated 29.09.2015 was removed and the additional liability on Company to pay Rs 1,16,41,944/- as tax and interest was confirmed. In pursuance to filing appeal in Rajasthan Tax Board, the Company has made payment of Rs. 1,16,41,944 towards tax and interest Under Protest.

However, Company''s contention is that the Department has erred in levying Purchase Tax liability on it as it has taken a valid exemption certificate for lump sum payment u/s 5 of the RVAT Act. For the period under review, Company used to buy old jewellery from unregistered dealers and send it to their Madhya Pradesh based headquarters, where new jewellery was made from the said old jewellery and was sold, after due payment of VAT on lump sum basis. Hence, in this situation. Company''s contention is that there is no liability of payment of tax under Section 4(2) of the Rajasthan Value Added Tax, 2003. The appeal is pending before the Board.

Cross Appeal has been filed on 02.8.2016 before Rajasthan Tax Board, Ajmer against the Company by the Assistant Commissioner, Udaipur to Re-impose the penalty of Rs. 1,84,79,276 on the Company and is against the Order of Add. Comm. Appeal, Commercial Tax Department Udaipur dated 24/05/2016, wherein the penalty was removed.

Period of Assessment: 01/04/2014 to 31/03/2015

An Appeal was filed by the Company on 14.07.2016 before the Rajasthan Tax Board, Ajmer under Section 83 of Rajasthan VAT Act, 2003 against Order of the Office of Additional Commissioner, Appeals, Commercial Tax Department, Udaipur dated 24.05.2016, wherein the penalty of Rs. 1,35,76,980/- imposed on Company by the Order of the Assistant Commissioner dated 01.12.2015 was removed and the additional liability on Company to pay Rs. 77,38,880/- as tax and interest was confirmed. In pursuance to filing appeal in Rajasthan Tax Board, the Company has made payment of Rs. 77,38,880 towards tax and interest Under Protest.

However, Company''s contention is that the Department has erred in levying Purchase Tax liability on it as it has taken a valid exemption certificate for lump sum payment u/s 5 of the RVAT Act. For the period under review, Company used to buy old jewellery from unregistered dealers and send it to their Madhya Pradesh based headquarters, where new jewellery was made from the said old jewellery and was sold, after due payment of VAT on lump sum basis. Hence, in this situation. Company''s contention is that there is no liability of payment of tax under Section 4(2) of the Rajasthan Value Added Tax, 2003. The appeal is pending before the Board.

Cross Appeal has been filed on 02.8.2016 before Rajasthan Tax Board, Ajmer against the Company by the Assistant Commissioner, Udaipur to Re-impose the penalty of Rs. 1,35,76,980/- on the Company and is against the Order of Add. Comm. Appeal, Commercial Tax Department Udaipur dated 24/05/2016, wherein the penalty was removed.

Period of Assessment: 01/04/2015 to 31 /03/2016

The Assistant Commissioner (SO - II passed order u/s 23(1) r.w.s. 24(2) of RVAT Act for FY 2015-16 levying the Purchase Tax Rs. 14,34.008/- & Interest thereon Rs 5,21,271/-u/s 55 of RVAT Act 2003. For the period under review, Company used to buy old jewellery from unregistered dealers and send it to their Madhya Pradesh based headquarters, where new jewellery was made from the said old jewellery and was sold, after due payment of VAT on lump sum basis. However Asst. Commissioner (SO - II levied purchase tax (@1% and interest u/s 55 on old jewellery sent to M.P. for manufacturing of jewellery.

Company''s contention is that there is no liability of payment of tax under Section 4(2) of the RVAT ACT, therefore appealed against the said order. The appeal is pending before the Appellate Authority.

27.2 Related Party Disclosures

RELATED PARTY TRANSACTION DETAILS (Rs |n Lakhs)

27.3 Segment Reporting

The Company has identified one business segment as reportable segment i.e. Windmill Segment. The Accounting Policies adopted for Segment Reporting are in line with accounting policies of the Company for Segment Reporting.

Company has installed 5 wind turbine generators of 750 KW each in village Bagia & Naveli, Ratlam, Madhya Pradesh in Sept.''12. In Jan.''! 3, the Company entered into an agreement with MPPMCL (M.P. Power management Co. Ltd.) for exclusive sale of power, generated from wind turbine generators to MPPMCL. Company has outsourced all operations and maintenance activities relating to wind turbines to a third party.

27.5 Quantitative information for the year ended 31st March 2018

27.6The Company was not following the Provisions of Accounting Standard-15 for Employees Benefits till 02/05/2017 the date from which it was converted from Partnership Firm to Public Limited Company. However, the Company has adopted the AS-15 during the period. A change in accounting policy consequent upon the adoption of Accounting Standard should be accounted for in accordance with the specific transitional provisions contained in that accounting standard. Accordingly liability existed on the date of adoption of AS-15, should be adjusted against opening balance of revenue reserve and surplus. Since D.P. Abhushan Ltd was earlier partnership firm, there was no revenue reserve as on the date of conversion of firm into company. Therefore, Gratuity Liability up to the date of Conversion of Firm into Public Limited Company as per Actuarial Valuation debited to profit and loss account.

27.7 D.P. Abhushan Limited came into existence on 02/05/2017 by way conversion of partnership firm M/s D.P. Abhushan. All the fixed assets that existed in books of D. P. Abhushan Limited were previously acquired by M/s D.P. Abhushan. Provisions of Schedule II of Companies Act, 2013 became applicable to D. P. Abhushan Limited w.e.f. 02.05.2017 the date on which firm converted into Public Limited Company.

As per note 7 to part Cof schedule II,

(i) If remaining life of assets as on 02.05.2017 is Nil as per schedule II, the carrying amount has to be adjusted in the opening balance of retained earnings in the balance sheet after retaining the residual value as per note 7 (b),

(ii) If remaining life of assets as on 02.05.2017 is not Nil as per schedule II, no effect of restating the carrying amount will need to be given. The remaining WDV of asset will continue depreciating as per the prescribed rates under the Companies Act on the basis of remaining useful life of assets.

As the balance in retained earnings was nil on conversion, the fixed assets having no useful life on 02.05.2017 were written off and transferred to Profit & Loss A/c.

27.8 In the opinion of director, the value on realization of current assets, loans and advances, if realized in the ordinary course of the business, shall not be less than the amount, which is stated in the current year balance sheet.

The provisions for all known liabilities are reasonable and not in excess of amount considered reasonably necessary.

27.9 Figures have been rounded off to the nearest Rs. in lacs and have been regrouped, rearranged and reclassified wherever necessary.

27.10 This is the first year of the company after the conversion of the Partnership Firm into Public Limited Company, hence previous year figures are not available.

27.11 Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the representation given by management of the company.

27.12 In the absence of information regarding dues of MICRO or Small Scale Industrial Enterprise(s) as per the Micro, Small and Medium Enterprise Development Act, the Company has not disclosed the same as required by Schedule III to the Companies Act, 2013.

27.13 Earnings per Share

The numerators and denominators used to calculate Basic\Diluted Earnings per share: