ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ D P Abhushan Ltd.

Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation

• Statement of Compliance

The Standalone Ind AS Financial Statements of the Company have been prepared in compliance of
Companies (Indian Accounting Standards) Rules, 2015and other relevant provisions of Companies Act, 2013
and guidelines issued by the Securities and Exchange Board of India (SEBI) for listed public companies. The
company has prepared Standalone Financial Statement as per Indian Accounting Standards for the
Financial Year 2022-23. Accounting Policies have been applied in accordance with relevant Indian
Accounting Standard or any change in existing standard has been notified separately in other notes.The
items in the Ind AS financial statements have been classified considering the principles under Ind AS 1,
Presentation of Financial Statements.

• Functional and Presentation Currency

The Standalone Ind AS Financial Statements are presented in Indian Rupees (INR), and all the values are
rounded to the nearest Lacs with two decimals, except when otherwise indicated.

• Basis of Measurement

The Standalone Ind AS Financial Statements have been prepared on accrual basis under the historical cost
convention, except for the following assets and liabilities which have been measured at fair value as
required by relevant Ind AS:

Certain financial assets and liabilities (refer accounting policy regarding Financial Instruments), and
Defined employee benefit liability

• Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, (regardless of whether that price is
directly observable or estimated using another valuation technique). In estimating the fair value of an asset
or a liability, the company takes into account the characteristics of the asset or liability, if market participants
would take those characteristics into account when pricing the asset or liability, at the measurement date.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3
based on the degree to which inputs to the fair value measurements are observable and the significance of
the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the entity can access
at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset
or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

Fair value for measurement and/or disclosure purposes in these financial statements is determined on such
a basis, except for sharebased payment transactions that are within the scope of Ind AS 102, leasing
transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair
value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36

• Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Company''s Standalone Ind AS Financial Statements requires the management to
make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets, liabilities, the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods. Estimates and assumptions are reviewed
on periodic basis. Revisions to accounting estimates are recognised in the period in which the estimates are
revised and in any future periods affected.

The key assumptions concerning the future and other key sources of estimation, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities, within the next financial year,
are described below. The Company has based its assumptions and estimates on parameters available
when the Standalone Ind AS Financial Statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions
that have the most significant effect to the carrying amounts of assets and liabilities within the next financial
year, are included in the following notes:

A. Measurement of defined benefit obligations: The cost of the defined benefit gratuity plan and other post¬
employment retirement benefits and the present value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future salary increases and
mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date. The parameter most subject to change is the discount rate. In determining the appropriate
discount rate for plans, the management considers the interest rates of government bonds in currencies
consistent with the currencies of the post-employment benefit obligation.

B. Measurement and likelihood of occurrence of provisions and contingencies: A provision is recognised
when the Company has a present obligation as a result of past events and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. A disclosure for contingent liabilities is made where there is a possible obligation or a present
obligation that may probably not require an outflow of resources. When there is a possible or a present
obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made in the
financial statements.

C. Recognition of taxes: Deferred tax assets are recognised for unused tax losses to the extent that it is
probable that taxable profit will be available against which the losses can be utilised. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future taxable profits together with future tax planning
strategies.

D. Useful life of Property, Plant and Equipment and Intangible Assets: The Company reviews the estimated
useful lives of property, plant and equipment and intangible assets at the end of each reporting period.
During financial year ended 31 March 2023, there were no changes in useful lives of property plant and
equipment and intangible assets other than those resulting from store closures / shifting of premises.

The Company at the end of each reporting period, based on external and internal sources of information,
assesses indicators and mitigating factors of whether a store (cash generating unit) may have suffered an
impairment loss. If it is determined that an impairment loss has been suffered, it is recognised in statement of
profit or loss.

E. Going concern: During the current year ended March 31, 2023, management has performed an assessment
of the entity''s ability to continue as a going concern. Based on the assessment, management believe that
there is no material uncertainty with respect to any events or conditions that may cast a significant doubt on
the entity to continue as a going concern, hence the Standalone Ind AS Financial Statements have been
prepared on going concern basis.

F. Current and Non-Current classification: All assets and liabilities are classified into current and non-current.
Assets

An asset is classified as current when it satisfies any of the following criteria:

I. It is expected to be realised in, or is intended for sale or consumption in, the Company normal operating
cycle;

II. It is held primarily for the purpose of being traded;

III. It is expected to be realised within 12 months after reporting date; or

IV. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as
non-current.

Liabilities

A liability is classified as current when it is satisfying any of the following criteria:

I. It is expected to be settled in the Company''s normal operating cycle;

II. It is held primarily for the purpose of being traded;

III. It is due to be settled within 12 months after the reporting date; or

IV. The Company does not have as unconditional right to defer settlement of the liability for at least 12
months after the reporting date. Terms of the liability that could, at the option of the counter party, result in
its settlement by the issue of equity instrument do not affect its classification.

Current liabilities include current portion of noncurrent financial liabilities. All other liabilities are classified as
non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.

G. Operating Cycle: Based on the nature of services and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the Company has ascertained its operating
cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.

2.2 Property Plant & Equipment

Property, Plant and Equipment are carried at acquisition cost, net of accumulated depreciation and
accumulated impairment losses, if any. Subsequent expenditures related to an item of tangible asset are
added to its book value if due to such expenditure it is probable thatfuture economic benefits will arise to the
company. Gains or Losses arising from disposal of tangible assets are recognized in the Statement of Profit
and Loss.

Property, plant and equipment not ready for the intended use on the date of balance sheet are disclosed as
"Capital work-in-progress". Capital work in progress is stated at cost, net of accumulated impairment loss, if
any.

• Depreciation

Depreciation on tangible assets has been provided using straight line method over its useful life which is
incompliance with schedule Ilof Companies Act, 2013.

2.3 Leases

As per Ind AS 116- Leases, the determination of whether an arrangement is (or contains) a lease is based on
the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if
fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Where the Company is the lessee : Company recognises a Right-of-Use Asset is initially measured at Cost,
which comprises the initial amount of lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct cost incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease
incentives received.

The Right of Use asset is subsequently depreciated using the Straight-Line Method over the lease term. The
Right of Use asset is periodically reviewed for impairment losses, if any, and adjusted for certain re¬
measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, company''s incremental borrowing rate. Generally, the company uses its incremental borrowing
rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following -

- fixed payment, including in-substance fixed payments

- variable lease payments that depend on an index or a rate, initially measured using the index or rate as at
the commencement date

- amounts expected to be payable under a residual value guarantee and

- the exercise price under a purchase option that the company is reasonably certain to exercise,lease
payments is an optional renewal period if the company is reasonably certain to exercise an extension
option, and penalties for early termination of a lease unless the company is reasonably certain to terminate
early.

The lease liability is measured at amortised cost using the effective interest method. It is re-measured when
there is a change in future lease payments arising from a change in future lease payments arising from a
change in an index or rate, if there is a change in the company''s estimate of the amount expected to be
payable under a residual value guarantee, or if company changes its assessment of whether it will exercise
a purchase, extension or termination option.

Where the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying
amount of right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has
been reduced to zero.

Short term leases and leases of low-value assets

Company has elected not to recognise right-of-use asset and lease liabilities for short-term leases of real
estate properties that have a lease term of less than 12 months, the company recognises the lease payments
associated with these leases as an expense on a straight-line basis over the lease term.

Where the Company is the lessor: Leases in which the Company does not transfer substantially all the risks
and rewards of ownership of an asset are classified as operating leases. Rental income from operating
lease is recognised on a straight-line basis over the term of the relevant lease.

2.4 Intangible Assets

Intangible assets are recognised only when it is probable that the future economic benefits that are
attributable to the assets will flow to the Company and the cost of such assets can be measured reliably.
Intangible assets are stated at cost less accumulated amortisation and impairment loss, if any. All costs
relating to the acquisition are capitalised. Intangible assets are amortised in the Statement of Profit or Loss
over their estimated useful lives, from the date that they are available for use based on the expected pattern
of consumption of economic benefits of the asset.

• Amortization

Amortisation of Intangible Assets has been provided using straight line method over its useful life as per
Schedule II of the Companies Act, 2013.

2.5 Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an
individual asset, the Company estimates the recoverable amount of the cash generating unit to which the
asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets
are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest
company of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risk specific to the asset for which the
estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An
impairment loss is recognised immediately in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.

2.6 Investments in Subsidiary

The Company has elected to account for its equity investments in subsidiaries under Ind AS 27 on separate
financial statements, at cost less accumulated impairment losses, if any. Where an indication of impairment
exists, the carrying amount of the investment is assessed. On disposal of investments in subsidiaries, the
difference between net disposal proceeds and the carrying amounts are recognized in the Statement of
profit and loss.

2.7 Revenue Recognition

Revenue from sale of goods is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in
exchange for those goods or services.

• Sale of Goods

Revenue from sale of goods is recognised at the point in time when control of the goods is transferred to the
customer, generally on delivery of the goods. In determining the transaction price for the sale of product, the
Company considers the effects of variable consideration.

Other Income

• Interest Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow
to the Company and the amount of income can be measured reliably. Interest income is accrued on time
basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to that
asset''s net carrying amount on initial recognition.

2.8 Inventories

A. Inventories of Raw materials are valued at Cost. The Cost is determined on Weighted Average Cost Method
Basis.

B. Stock of Work-in-progress is valued at cost. The Cost is determined on Weighted Average Cost Method Basis.

C. Stock of Finished goods is valued at cost or net realizable value basis, whichever is lower. The Cost is
determined on Weighted Average Cost Method Basis.

The Market value of inventories is determined, verified and certified by the management of the company. In
respect of non-availability of market value of some items on balance sheet date, they are valued at their cost
only.

D. Packing Material and Consumables are valued at Cost on FIFO Basis.

Cost of inventories comprises all costs of purchase and, other duties and taxes (other than those
subsequently recoverable from tax authorities), costs of conversion and all other costs incurred in bringing
the inventory to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated
completion cost and the estimated cost necessary to make the sale.

2.9 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/ (loss) before extraordinary items and tax
is adjusted for the effects of transactions of non-cash nature and deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and financing activities of the company are
segregated based on the available information.

2.10 Foreign Currency Transactions

Transaction denominated in foreign currencies are normally recorded at exchange rate prevailing on the
date of transactions. Exchange differences arising on foreign currency transaction settled during the period
are recognised in the statement of Profit and Loss except in case where they relate to acquisition of fixed
assets, are adjusted with the carrying cost of such assets.

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated
into functional currency at the exchange rates at the reporting date. The resultant exchange differences are
recognized in the Statement of Profit and Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value is determined. The
gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items
whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss,
respectively).

2.11 Retirement and other Employee Benefits
a. Defined contribution plan

The Company''s employees are covered under state governed provident fund scheme and employees'' state
insurance scheme which are in nature of Defined Contribution Plan.

The contribution paid/payable under the schemes are recognised during the period in which the employee
renders the related service. The company''s contributions to Employees PF and ESI are charged to statement
of profit and loss.

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.

2.12 Borrowing Cost

Borrowing costs directly attributable to the acquisitions, construction or production of a qualifying asset are
capitalized. Other borrowing costs is recognized as expenses in the period in which they are incurred.

2.13 Taxation

a. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b. Deferred tax is recognized on temporary timing differences, being the difference between taxable incomes
and accounting income that originates in one period and is capable of reversal in one or more subsequent
periods.

2.14 Gold Metal Loan

The company has an arrangement with its banker for lifting gold under metal loan terms against a limit
under "price unfixed basis" and opts to fix the price for gold taken under loan within 180 days on delivery.

The price difference arising out of such transactions on actual settlement accounted in the head of cost of
purchase. The interest if any payable to bankers on such outstanding is treated as expenses on accrual
basis.

The outstanding metal loan position if any as on reporting dateis marked to market and the resulting
difference in case of Loss if any is adjusted to the Gold Metal Loan Rate Difference.

In case of Gain as on Reporting date, future gains are not recorded by Company following Convention of
Conservatism & doctrine of Prudence.

2.15 Earnings per Share

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the period and for all periods presented is adjusted for
events, such as bonus shares, other than the conversion of potential equity shares that have changed the
number of equities shares outstanding, without a corresponding change in resources. For the purpose of
calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive.

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Mar 31, 2018

2.SUMMARYOFSIGNIFICANTACCOUNTING POLICIES

2.1 Basis of Preparation

The financial statements have been prepared on the accrual basis under the historical cost convention and in accordance with Indian Generally Accepted Accounting Principles (GAAP) to comply with the Accounting Standards specified under Section 133 of Companies Act 2013 read with Rules 7 of Companies (Accounts) Rules, 2014 and guidelines issued by the Security & Exchange Board of India (SEBI). Accounting Policies have been consistently applied except where the newly issued accounting standard or change in existing standard has been notified separately in other notes.

2.2 Accounting Estimates

The preparation of financial statement in conformity with generally accepted accounting principal requires management to make estimates and assumption that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the result of operation during the reporting period. Although, these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

2.3 Fixed Assets

Tangible Assets are stated at acquisition cost, net of accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets which are carried at cost are recognized in the statement of profit and loss.

2.4 Depreciation

Depreciation on fixed assets has been provided using straight line method over its useful life which is in compliance with schedule II of Companies Act, 2013.

Asset Class (Straight Line Basis)		Useful Life
A.	Building	60 Years
B.	Plant & Machinery (Including WindmilD	15 Years
C.	Furniture & Fittings	10 Years
D.	Motor Car (4 Wheeler)	10 Years
E.	Motor Vehicle (2 Wheeler)	8 Years
F.	Computer & Computer Peripherals	3 Years

2.5 ImpairmentofAssets

The carrying amount of assets is reviewed at each Balance Sheet date to determine if there is any indication of impairment thereof based on external/internal factors. An impairment loss in accordance with Accounting Standard-28 "Impairment of Assets" is recognized wherever the carrying amount of assets exceeds its recoverable amount, which represents the greater of the net selling price of assets and their value in use.

2.6 Investments

Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Long Term Investments and Current Investments are carried in the financial statements at cost. However, provision for diminution in value is made to recognize a decline otherthan temporary in the value of the investments.

2.7 Revenue Recognition

All the expenditure and income to the extent considered payable and receivable respective unless specifically stated to be otherwise are accounted on accrual basis.

Revenue is primarily derived from sale of gold, silver & diamond ornaments & bullion and Windmill Electricity. The amount recognized as revenue is exclusive of sales tax and value added taxes (vat) and Goods & Service Tax (GST), and is net of returns, trade discounts and quantity discounts.

Revenue from sale of goods is recognized when significant risk & rewards of ownership of the goods are transferred to the buyer and no significant uncertainty with regard to collectability of the amount of consideration exists.

Revenue from services is recognized upon rendering of services to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Interest income is recognized on a time proportion basis taking into account outstanding and the interest rate applicable.

Dividend income is recognized when the right to receive payment is established.

2.8 Inventories

a) Inventories of Raw materials are valued at Cost. The Cost is determined on Weighted Average Cost Method Basis.

b) Stock of Work-in-progress is valued at cost. The Cost is determined on Weighted Average Cost Method Basis.

c) Stock of Finished goods is valued at cost or net realizable value basis, whichever is lower. The Cost is determined on Weighted Average Cost Method Basis.

The Market value of inventories is determined verified and certified by the management of the company. In respect of non-availability of marketvalueof some items on balancesheet date, they are valued at their costonly.

d) Packing Material and Consumables are valued at Cost on Fl FO Basis.

Cost of inventories comprises all costs of purchase and, other duties and taxes (other than those subsequently recoverable from tax authorities), costs of conversion and all other costs incurred in bringing the inventory to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale.

2.9 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and taxis adjusted for the effects of transactions of non-cash nature and deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.

2.10 Foreign Currency Transactions

Transaction denominated in foreign currencies are normally recorded at exchange rate prevailing at the time of transactions and any income or expenses on account of exchange difference either on settlement or on transaction is recognised in the statement of Profit and Loss except in case where they relate to acquisition of fixed assets, are adjusted with the carrying cost of such assets.

2.11 Taxation

a. Currenttaxisdeterminedasthe amount of taxpayable in respect of taxable income fortheyear.

b. Deferred tax is recognized on temporary timing differences, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversalin one or more subsequent periods.

c. Minimum Alternate Tax(MAT) Credit is recognized asanassetonly when and to the extentthere is convincing evidence that thecompany will pay normalincometaxduring specified period.Theyearin which the MAT credit becomeseligible.it is to be recognized as an asset. In accordance with recommendation contained in the guidance note issued by ICAI, said asset is created by way of credit/reversal of provisions to Profit and loss A/c and shown as MAT Credit Entitlements in Loans and Advances. The company reviews the same at each balance sheet sate and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal income tax during the specified period.

2.12 Borrowing Cost

Borrowing costs directly attributable to the acquisitions, construction or production of a qualifying asset are capitalized. Other borrowing costs is recognized as expensed in the period in which they are incurred.

2.13 IntangibleAsset

Intangible Assets are valued as per AS-26. The Amortizations Amortization period are reviewed at each Balance Sheet Date. The Company''s intangible Assets includeonly Trademark which is amortized over a period offive Years.

2.14 Gold Metal Loan

The company has an arrangement with its banker for lifting gold under metal loan terms against a limit under "price unfixed basis"and opts to fix the price forgold taken under loan within 180days at delivery.

The price difference arising out of such transactions on actual settlement accounted in the head of cost of sales. The interest if any payable to bankers on such outstanding istreated as expenses on accrual basis.

The outstanding metal loan position if any as on reporting date is marked to market and the resulting difference if any is adjusted to the Gold Metal Loan Rate Difference.

2.15 Preliminary Expenses

Preliminary expenses include public issue expenses and Company incorporation expenses are written off over 5 years. 1 /5th of expenses are charged to profit & loss account, remaining expenditure is disclosed as,"miscellaneous expenditure to the extent not written off" under head of OtherCurrentAsset on asset side of balance sheet.

2.16 Retirementand other Employee Benefits

a. Defined contribution plan

• The Company''s employees are covered under state governed provident fund scheme and employees'' state insurance scheme which are in nature of Defined Contribution Plan.

• The contribution paid\payable under the schemes are recognised during the period in which the employee renders the related service. The company''s contributions to Employees provident fund and ESI are charged to statement of profitand loss.

b. Defined Benefit Plans:

• The company has no policy of encashment and accumulation of leave. Therefore, no provision of leave encashment is being made.

• 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 on a month to month basis, bonus to employees are charges to profit and loss account on the basis of actual payment on year to year basis.

2.17 Earnings perShare

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive.

2.18 Contingent Liabilities & Provisions

The Company creates a provision when there is a present obligation as a result of past event that probably require an outflow of resourcesand 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 not requirean 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 recognized nor disclosed in the financial statements. However, contingent Assets are assessed continually and if it is virtually certain that an inflow of economic benefits willarise, the assetand related income are recognized in the period in which change occurs.