అకౌంట్స్ గమనికలుLalithaa Jewellery Mart Ltd.

During the previous year, the Company has reviewed the recoverability of capital advances outstanding as at the balance sheet date. Based on this assessment, certain capital advance was identified as doubtful of recovery and accordingly, a provision has been made for such doubtful capital advances. Further, as of reporting date, the management is confident of recovering the full amount of Rs. 151.23 million based on the legal opinion sought. However, the management is retaining the provision based on the conservation principle.

For cost of materials consumed refer note 24.

The mode of valuation has been stated in Note 2j.

The Company has various schemes with customers under which it is obligated to sell jewellery to such customers at pre-agreed prices. Considering these customer scheme obligations towards the firm sales contracts where the pre-agreed realizable prices are lower than the value of finished goods - gold jewellery as at March 31, 2026, the company has reduced finished goods and stock in trade by Rs. 1,955.66 million and Rs. 769.64 million and carried at the net realizable value. (March 31, 2025: NIL). The Management believes that this write down is in accordance with IND AS 2 - Inventories and sufficient to meet the obligations towards the firm sales contracts.

The carrying value of finished goods and stock in trade as at March 31, 2026 before the write down is Rs. 54,585.05 million and Rs. 21,779.43 million respectively. There were no reversals of write-down of Inventory during the current year and the previous year.

The Company is holding 629.29 kgs (March 31, 2025 - 289.71 kgs) of gold jewellery and 70.22 kgs of silver jewellery (March 31, 2025 -42.20 kgs) as on March 31, 2026 as stock in custody on behalf of scheme customers who had not taken delivery on sales. The said stock is not included in the closing invcntorics.(also refer note 17).

During the year ended March 31, 2025, one of the smiths through whom the Company used to manufacture gold ornaments has absconded. The carrying value of the inventory as on March 31, 2025 was Rs. 41.59 million. The Company has filed a First Information Report with the Department of Police, and simultaneously intimated to the Insurance Company. The Insurance Company has approved the claim to the extent of Rs. 36.00 million and received in April 2025. The Company has reported for the balance as loss in the financial statements for the year ended March 31, 2025.

During the year ended March 31, 2026, two smiths through whom the Company used to manufacture gold ornaments have absconded. The Company has written off inventory amounting to Rs. 17.03 million and accounted loss in the financial statements for the year ended March 31, 2026. The Company has filed a First Information Report with the Department of Police, and simultaneously intimated to the Insurance Company. Income to the extent of Insurance claim be recognised upon receipt of approval from the Insurance company.

i) Pursuant to the resolution passed by the Board of directors of the Company and subsequent approval of the members at the extraordinary general meeting of the Company held on March 18, 2024, each equity share of nominal face value of Rs. 10 each was sub-divided to two equity shares of Rs.5 each. The effective date for the said sub-division was March 18, 2024.

ii) Pursuant to a resolution of Board of Directors dated April 10, 2024 and the shareholders meeting dated May 2, 2024 approved the issuance of 20 bonus shares of face value Rs. 5 each for every I existing fully paid-up equity shares of face value Rs. 5 each. Accordingly, 47,61,68,720 bonus shares were issued and allotted on June 24, 2024.

h. Rights, Preferences and restrictions attached to equity shares

The Company has only one class of equity shares having par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors will be subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preference amounts. The distribution will be proportionate to the number of equity shares held by the shareholders.

Mr. Moolchand Kiran Kumar Jain, one of the promoters of the Company, is offering part of his holding in the equity shares through the Offer for Sale. Share issue expenses disclosed above in the note 14 is after netting off the expenses to be borne by selling share holder. (Also refer Note 11C and Note 32).

14.1 Nature and purpose of reserve

(a) Securities Premium

Securities premium is used to record the premium received on issue of shares. This Reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

(b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. Items included under general reserve shall not be reclassified back in to the Statement of profit and loss.

(c) Retained earnings

Represents the cumulative profits of the Company. This Reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

(d) Other Comprehensive Income Keineasiirenient of defined benefit plans

It represents the gain/(loss) on rcmcasurcmcnt of Defined Benefit Obligation and of Plan assets

17.1 Supplier finance arrangements

The company participates in a reverse factoring arrangement available under which it may elect to make early payment to suppliers through a participating bank. Under the arrangement, the Bank agrees to pay the amount due to the suppliers in respect of invoices owed by the Company and the Company repays the bank at a later date with Interest ranging from 6.50% to 9.50%. The Company has derecognised the original trade payables since the participating banks arc only entitled to receive the payment from company, once a formal notice of assignment is made by them. The terms of arrangement provide an extended credit period than the usual supplier terms. Considering this, the company has presented the amount payable to Banks with respect to these arrangements as part of Current Borrowings.

The Cash Credit and Working Capital Facilities from Consortium of Banks led by State Bank of India which are secured by hypothecation of stocks, receivables, fixed deposits, plant and machinery and equitable mortgage of immovable properties of the Company, equitable mortgage of specific properties of Mr. M Kiran Kumar & Mrs. Hemaa Kiran Kumar and personal guarantee of all Directors except independent directors of the Company, Corporate guarantee and equitable mortgage of specific properties of Lalitha Castle Private Limited and property of Centigrade Apparels Private Limited for the year ended March 31,2026.

Rate of interest for short-term borrowings is variable and is depending on the prevailing MCLR/T Bill rates plus spread as per the sanction letter with respective banks and the interest charged by the banks in the consortium starts from 9.40% to 12.10% per annum (previous year 9.50% to 11.85% per annum) payable on monthly intervals.

The Company has entered into lease agreements for buildings for business purpose which are expected to commence in next Financial year as at the respective reporting dates. As of the reporting date, the lease agreements are signed but the lease term has not commenced These lease commitments will be recognized as lease liabilities and right-of-use assets upon commencement of the lease in accordance

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities Notes

a. Disputed Income Tax demands

During November 2025, the Company received favourable judgment from the Hon’ble Madras High Court dismissing the Income Tax Department’s appeal relating to the addition of share capital /share premium under Section 68 and under section 56(2)(vii(b)) of the Income-tax Act, 1961 and other disallowances made during assessments under Section 153A of the Income Tax Act, 1961 for Assessment Years 2012-13 to 2015-16 where the tax amount which was under appeal was Rs. 1,076.02 million

The Hon’ble Madras High Court upheld the findings Income Tax Appellate Tribunal (“ITAT”), confirming that the Company had established the identity, genuineness and creditworthiness of the investors and that the transactions were through banking channels. Consequently, the Hon’blc Madras High Court affirmed that the additions made by the Assessing Officer were unsustainable in law.

Alter considering the favourable High Court orders, the outstanding direct tax litigation aggregates to Rs. 14.19 million.

b. Disputed Goods and Service Tax Demands

(i) The Company had received a demand notice from the Goods and Services Tax (GST) authorities amounting to Rs. 1,066.38 million vide order dated January 8, 2025 and demand relates to excess input tax credit availed due to typo error during the financial year 2017-18. However, (he Company had already reversed the excess ITC claimed, amounting to Rs. 533.17 million, through the electronic credit ledger and electronic cash ledger.

On August 16, 2018, an investigation was carried out by the GST department which noted that the Company had wrongly availed excess ineligible input tax credit (“ITC”) of Rs. 533.17 million, of which Rs. 20.71 million was utilized for payment of GST on outward supplies. The Company maintained sufficient balance in its electronic cash ledger and, therefore, no portion of the liability was required to be discharged through an additional cash payment. However, pursuant to the directions of the GST department, the Company reversed ITC amounting to Rs. 512.46 million through Form GST DRC-03 and remitted an additional Rs. 20.71 million in cash through Form GST PMT-06, despite having sufficient balance in its electronic cash ledger.

Subsequently, on April 23, 2022, the Commissioner of Central Tax, GST Commissionerate, Tirupati (“GST Commissioner”) issued a show cause notice alleging suppression of facts and proposing recovery of tax, interest, and penalties. The Company filed a detailed reply on June 04, 2022, explaining that the error was purely clerical and denying any intent to evade tax. However, by an order dated January 8, 2025 (“Order”), the GST Commissioner confirmed the demand of Rs. 533.17 million and imposed an equivalent penalty, resulting in a total liability of Rs. 1,066.38 million. Although the Order acknowledged that Rs. 533.17 million had already been paid and appropriated, the summary of order in Form GST DRC-07 dated January 30, 2025 continued to reflect the full demand of Rs. 1,066.38 million. The Company has submitted a representation seeking rectification of the summary of order in Form GST DRC-07 to exclude the amount already paid and reflect only interest and penalty, and has filed an appeal before the Commissioner of Central Tax and Customs (Appeals) on March 18, 2025 against the said Order.

During January 2026, the Company received the Ordcr-in-Appeal, which partially allowed the appeal by setting aside the interest demand on Rs. 512.46 million relating to wrongly availed Input Tax Credit (ITC) that had not been utilised, in terms of Section 50(3) of the CGST Act. However, the Commissioner upheld the demand for interest on Rs. 20.71 million in respect of wrongly availed and utilised ITC.

The Company filed a writ petition before the High Court on February 17, 2026, challenging the aforesaid demand. Subsequently, vide its order dated March 11, 2026, the High Court granted a stay on the recovery proceedings by issuing a writ of Certiorari, which shall remain in force until the disposal of the writ petition.

The Management believes that it has a strong case and that the likelihood of an outflow of economic resources is remote. Accordingly, no provision has been recognised in the financial statements in respect of this matter. However, the disputed amount of Rs. 538.19 million (including interest of Rs. 4.97 million) has been disclosed as a contingent liability.

(ii) The Company has received demand notices in respect of input tax credit (ITC) claimed in Tamil Nadu, Puducherry and Karnataka amounting to Rs. 7.37 million in earlier years, against which appeals have been filed and are pending adjudication. During the current year, the Company also received an order from the Superintendent, Puducherry, disallowing ITC amounting to Rs. 0.60 million, against which an appeal has been filed.

Based on management''s assessment, the Company believes that it has a strong case on merits and that the likelihood of an outflow of economic resources is remote. Accordingly, no provision has been recognised in the financial statements in respect of these matters.

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

d. The Company does not expect any reimbursements in respect of the above contingent liabilities.

e. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters above pending resolution of the

arbilration/appellate proceedings. _____

35 Disclosure of Amount Spent on Corporate social responsibility (CSR) Activities

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, healthcare, destitute care and rehabilitation, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

36 Employee Benefit Obligations (i) Defined contribution plan:

The Company''s provident fund, employee state insurance corporation and labour welfare fund are the defined contribution plan. An amount ofRs 182.45 million being contribution made to recognised provident fund is recognised as expense for the period ended March 31, 2026 (March 31, 2025: 175.27 million) and included under Employee benefit expenses in the standalone statement of profit and loss.

Eligible employees of the Company receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee’s salary.

(ii) Defined benefit plans:

The Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment with the Company.

Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary, at each Balance Sheet date using the projected unit credit method. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation, based upon which the Company makes contributions to the Gratuity Fund maintained with SB1 Life Insurance Company Limited.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/ (asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the standalone statement of Profit and Loss.

Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The portion is contributed to the government administered pension fund.

a) These plans typically expose the Company to actuarial risks such as: investment risks, interest rate risks, longevity risks and salary risk.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

There in no change in the method of valuation and assumptions for the prior periods in preparing the sensitivity analysis.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation asset recognised in the balance sheet. _r r ,—

37 Impact of Labour codes

On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020, (‘Labour Codes’) which consolidate twenty-nine existing labour laws into a unified framework governing employee benefits during employment and post-employment. The Labour Codes, amongst other things introduces changes, including a uniform definition of wages and enhanced benefits relating to leave. The Company has assessed the financial implications of these changes which has resulted in increase in gratuity liability arising out of past service cost by Rs. 4.99 million. The Company continues to monitor the developments pertaining to Labour Codes and will evaluate impact if any on the measurement of the employee benefits liability.

38 Leases

The Company’s lease asset primarily consist of leases for buildings.

These arrangements are non-cancellable in nature and the lease period varies from 2 year to 30 years. There are no extension options available. The effective interest rate for lease liabilities is 10%.

39. Risk Management Disclosure under Ind AS 107 (Financial Risk Management)

The Company''s principal financial liabilities is borrowings, trade and other payables. The main purpose of these financial liabilities is to raise finance for the Company''s operations. The Company has various financial assets such as trade and other receivables and cash which arise 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. The Company’s primary risk management focus is to minimize potential adverse effects of liquidity and credit risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The following disclosures summarises the Company''s exposure to financial risks.

A. Credit Risk:

Credit risk arises from investments carried at amortized cost as well as credit exposures to customers in the form of outstanding receivables.

Credit Risk Management:

Credit risk is managed at the corporate level. For selecting banks and financial institutions, only high rated banks/ institutions are accepted as per the Management''s evaluation. The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase on an ongoing basis throughout each reporting date. It considers available reasonable and supportive forward-looking information like the following.

Management''s evaluation which is based on actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change-to the business''s ability to meet its obligations.

Actual or expected significant changes in the operating results of the business.

Significant increase in credit risk on other financial instruments of the same business.

Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements

Significant changes in the expected performance and behaviour of the business, including changes in the payment status and changes in the operating results.

Macroeconomic information such as regulatory changes, market interest rate or growth rate is considered.

Trade receivables

Customer credit risk is managed based on the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date. The calculation is based on historical data. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, trade receivables are wriltcn-off if past due for more than one year and are not subject to enforcement activity. The Company does not hold collateral as security except advance received from customers in certain cases. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several locations and operate in largely independent markets. The Company does not provided for expected credit losses.

Financial Instruments and cash deposits

Credit risk from balances with banks and financial institutions and in respect of loans is managed by the Company in accordance with the Company’s policy. __''

B. Liquidity Risk:

Prudent liquidity management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to closeout market positions. Due to the dynamic nature of the underlying businesses, the Company''s treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows and this is generally carried out by the Treasury Management function of the Group. The Chief Operating Decision Maker periodically reviews the treasury plans and directs the treasury function suitably.

C.Market Risk

Market risk for the Company can stem from various factors, including economic conditions, consumer preferences, competition, and advancement in technology, as mentioned below:

i) Price risk: The Company is exposed to fluctuations in gold price arising on purchase/ sale of gold. The Company’s business objective includes safe-guarding its earnings against adverse price movements of gold. The risk management strategy against gold price fluctuation also includes procuring gold using working capital and cash credit basis, with a flexibility to fix price of gold at any time during the tenor of the loan. The Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

ii) Economic Conditions: Economic downturns can significantly impact the consumer spending on luxury items like Jewellery. During recessions or periods of high unemployment, consumers may prioritize essential purchases over discretionary spending, leading to a decrease in Jewellery sales.

iii) Consumer Preferences: Shifts in consumer tastes and preferences can affect the demand for certain types of Jewellery. Changes in fashion trends, cultural preferences, or environmental concerns (such as the sourcing of materials) can impact the popularity of specific designs or materials.

iv) Competition: Intense competition within the Jewellery industry can exert downward pressure on prices and profit margins. Competitors may offer similar products at lower prices or differentiate themselves through branding, customer service, or marketing strategies.

v) Regulatory Changes: Changes in regulations related to trade, taxation, environmental standards, or consumer protection can impact Jewellery businesses. Compliance with new regulations may require additional resources or lead to changes in business practices.

vi) Seasonal Variations: Jewellery sales often exhibit seasonal patterns, with demand peaking during holidays, weddings, and other special occasions. Fluctuations in seasonal demand can affect inventory management, cash flow, and profitability.

vii) Technology Disruption: Advancements in technology, such as 3D printing, online retailing, and virtual try-on tools, can disrupt traditional business models in the jewellery industry. Businesses that fail to adapt to technological changes risk losing market share to more innovative competitors.

To mitigate these market risks, the Company employs various strategies such as diversifying product offerings, maintaining strong relationships with suppliers, staying abreast of consumer trends, investing in marketing and branding efforts, and implementing effective risk management practices. Additionally, the Company also focuses on maintaining the financial flexibility, monitoring industry developments, and adapting quickly to changing market conditions for long-term success in the Jewellery business.

D.Capital Management

The Company’s capital management objectives are

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

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

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

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

40. Operating Segments

The Chief Operating Decision Maker (CODM) of the Company examines the performance from the perspective of the Company as a whole viz. ''jewellery business'' and hence there are no separate reportable segments as per Ind AS 108.

There are no material individual markets outside India and hence the same is not disclosed for geographical segments for the segment revenues or results or assets. During the years ended March 31, 2026 and March 31, 2025 respectively, revenue from transactions with a single external customer did not amount to 10 percent or more of the Company''s revenues from the external customers.

41. Financial Asset - Classification and Measurement

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements.

The management assessed that fair value of cash and cash equivalents, trade receivables, other current financial assets, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of loans, lease liabilities and borrowings is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. The same would be sensitive to a reasonably possible change in the forecast cash flows or the discount rate.

Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

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

Level 2 - Inputs other than quoted prices included within Level I that are observable to the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

There have been no transfers between Level 1 & Level 2 during the year.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents, Other Bank Balances, other current financial assets, Borrowings and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature. The fair values for Loans were calculated based on cash flows discounted using a risk adjusted discount rate. They are classified as level 3 fair valuation in their fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk. _r

43. Other Notes

i.The Company did not have any pending litigations other than those disclosed in Note 31 which would impact its financial position.

it. The Company was not required to make any provision for material foreseeable losses on long term contracts and the Company has not entered into any derivative contracts.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv. No funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any other pcrson(s) or entity(s), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

vi. The Company has not traded or invested in crypto currency or virtual currency.

vii. Their Company does not have any transactions which are not recorded in the books of account that have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961.

viii. There are no Schemes of Arrangements which arc either pending or have been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013.

ix. The Title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) arc held in the name of the Company.

x. The Company does not have any investment property and hence its related disclosure is not applicable.

xi. The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), which are repayable on demand or without specifying any terms or period of repayments.

xii. The Company has been sanctioned facilities from banks on the basis of security of current assets. The monthly returns filed by the Company with such banks are in agreement with the unaudited books of accounts of the Company.

xiii. The Company has adhered to debt repayment and interest service obligations on time. Wilful defaulter related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable. The Company has utilized borrowings from bank for the specified purpose for which it was taken.

xiv. There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956.

xv. All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been filed. No registration or satisfaction is pending.

44. Subsequent events

Pursuant to the Resolution dated April 10, 2026, the Board has resolved to invest an amount of Rs. 171.14 million in Lalithaa Jewellery (M) SDN. BHD, a company domiciled in Malaysia. Except for this, there are no subsequent events that require a disclosure/adjustment.

45. Audit Trail

The Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2026, which has a feature of recording an audit trail (edit log) facility. The audit trail feature has operated throughout the year for all relevant transactions recorded in such software. Further, the audit trail feature has not been tampered with, and the audit trail has been preserved by the Company in accordance with the statutory requirements for record retention.

However, in respect of one of the accounting systems, namely Jilaba, the audit trail at the database level is currently not maintained. Accordingly, tracking of changes capturing old values and new values is not evidenced for this application. The Management is in the process of implementing necessary measures to enable database-level audit trail functionality and will retain such audit trail for future periods.

46. Internal financial control systems and their adequacy

The Company has comprehensive internal control mechanism and also has in place adequate policies and procedures for the governance of orderly and efficient conduct of its business, including adherence to the Company’s policies, safeguarding its assets, prevention, and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures. The Company’s internal control systems are commensurate with the nature of its business, and the size and complexity of its operations and such internal financial controls concerning the Financial Statements are adequate. The Company has a strong and independent in-house Internal Audit department that functionally reports to the Chairman of the Audit Committee and the Managing Director of the Company, thereby maintaining its objectivity.

47. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

48. Approval by Board of Directors

These standalone financial statements were approved for issue by the Board of Directors on June 20, 2026.