ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Khazanchi Jewellers Ltd.

Mar 31, 2026

1 Summary of Material Accounting Policies

i) The financial statements have been prepared in
accordance with the Indian Accounting Standards
(Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015, and the
relevant amendment rules issued thereunder, as
prescribed under Section 133 of the Companies
Act, 2013, read with other recognised accounting
practices and policies to the extent applicable.
The Company has adopted Ind AS for the first time with
effect from April 01, 2025, with a transition date of April
01, 2024. These financial statements, including the
comparatives for the year ended March 31, 2024, have
been prepared in accordance with Ind AS 101 — First¬
time Adoption of Indian Accounting Standards.

ii) Basis of Preparation of Financial Statements

The financial statements have been prepared in
conformity with the generally accepted accounting
principles in India to comply with all material respects
with the notified Accounting Standards under Section
133 of the Companies Act, 2013. The financial statements
have been prepared under the historical cost convention
on an accrual basis. The accounting policies have
been consistently applied by the Company and are
consistent with those used in the previous year except
for the change in accounting policies explained below.
The complete financial statements have been prepared
along with all disclosures

iii) Use of Estimates

The preparation of financial statements requires
estimates and assumptions to be made that affect the
reported amount of assets and liabilities on the date
of the financial statements and the reported amount
of revenues and expenses during the reporting period.
Difference between the actual results and estimates
are recognised in the period in which the results are
known/materialized.

iv) Revenue Recognition

Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless
of when the payment is being made. Revenue towards
satisfaction of a performance obligation is measured
at the amount of transaction price (net of variable
consideration) allocated to that performance obligation.
The transaction price of goods sold and services
rendered is net of variable consideration on account
of various discounts and schemes offered by the
Company as part of the contract, taking into account
contractually defined terms of payment and excluding
taxes or duties collected on behalf of the government.
The revenue is recognised net of Goods and Service tax
(if any).

Revenues from customer contracts are considered
for recognition and measurement when the contract
has been approved by the parties, in writing, to the
contract, the parties to contract are committed
to perform their respective obligations under the
contract, and the contract is legally enforceable.
Revenue is recognised upon transfer of control
of promised products or services (“performance
obligations”) to customers in an amount that reflects
the consideration the Company has received or
expects to receive in exchange for these products or
services (“transaction price”). When there is uncertainty
as to collectability, revenue recognition is postponed
until such uncertainty is resolved.”

v) Property, Plant & Equipment

Property, Plant and Equipment are stated at cost, net
of GST input tax credit availed, or at revalued amounts
where applicable, less accumulated depreciation and
accumulated impairment losses, if any. Cost comprises
the purchase price and all directly attributable
expenditure incurred to bring the asset to its intended
location and working condition for its intended use.
Borrowing costs directly attributable to the acquisition
or construction of qualifying assets are capitalized as
part of the cost of such assets up to the date the asset
is ready for its intended use. Exchange differences
arising on long-term foreign currency monetary items
attributable to the acquisition of Property, Plant and
Equipment, to the extent applicable, are also capitalized.
Where an item of Property, Plant and Equipment
comprises individual components with costs that are
significant in relation to the total cost of the item, such
components are recognised and depreciated separately
in accordance with the component accounting approach
prescribed under Ind AS 16. The residual values, useful
lives and methods of depreciation of property, plant
and equipment are reviewed at each financial year end
and adjusted prospectively, if appropriate. Depreciation
is provided pro-rata from the month of Capitalization.

vi) Depreciation

Depreciation on Property, Plant & Equipment is
provided to the extent of depreciable amount on Written
Down value (WDV) method in the manner prescribed in
Schedule II to the Companies Act, 2013 over their useful
life.

The residual values, useful lives and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate. Depreciation is provided
pro-rata from the month of Capitalization

vii) Impairment of Assets

An asset is treated as impaired when the carrying cost
of asset exceeds its recoverable value. An impairment
of loss is charged to the Profit & Loss Account in the
year in which an asset is identified as impaired. The
impairment loss recognised in the prior accounting
period is reversed if there has been a change in the
estimate of recoverable value.

viii) Foreign Currency transactions

(a) Transactions denominated in foreign currencies
are recorded at the exchange rate prevailing on the
date of the transaction or that approximates the
actual rate at the date of transaction.

(b) Monetary items denominated in foreign currencies
at the year end are restated at year end rates.
In case of items which are covered by forward
exchange contracts, the difference between the
year end rate and the rate on the date of the
contract is recognised as exchange difference
and the premium paid on forward contracts is
recognised over the life of the contract.

(c) Non monetary foreign currency items are carried at
cost.

(d) Any income or expense on account of exchange
difference either on settlement or on translation is
recognised in the Profit and Loss account except
in case of long term liabilities, where they relate
to acquisition of Property, Plant & Equipments, in
which case they are adjusted to the carrying cost
of such assets.

ix) Borrowing costs

Borrowing costs that are attributable to the acquisition
or construction of qualifying assets are capitalized as
part of the cost of such assets. A qualifying asset is one
that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are
charged to Profit and Loss account. Borrowing cost also
includes exchange differences to the extent regarded
as an adjustment to the borrowing costs.

x) Current versus Non-current classification

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:

• Expected to be realised or consumed in normal
operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after
the reporting period, or

• Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the
reporting period, or

• There is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period.

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
and cash equivalents. The Company has identified
twelve months as its operating cycle.

xi) Taxation

Provision for Current tax is based on the liability
computed in accordance with the relevant tax rates
and tax laws. Deferred tax assets are recognised
for all deductible temporary differences, the carry
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the

extent that it is probable that taxable profit will be
available against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilized, except:
When the deferred tax asset relating to the deductible
temporary difference arises from the initial
recognition of an asset or liability in a transaction
that is not a business combination and, at the time
of the transaction, affects neither the accounting
profit nor taxable profit or loss. The carrying amount of
deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilized.
Unrecognised deferred tax assets are re-assessed at
each reporting date and are recognised to the extent
that it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.

---

Mar 31, 2025

1 Significant Accouting Policies

i) Basis of Preparation of Financial Statements

The financial statements have been prepared in conformity
with the generally accepted accounting principles in India
to comply with all material respects with the notified
Accounting Standards under Section 133 of the Companies
Act, 2013. The financial statements have been prepared
under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied
by the Company and are consistent with those used in the
previous year except for the change in accounting policies
explained below. The complete financial statements have
been prepared along with all disclosures

ii) Use of Estimates

The preparation of financial statements requires
estimates and assumptions to be made that affect the
reported amount of assets and liabilities on the date of the
financial statements and the reported amount of revenues
and expenses during the reporting period. Difference
between the actual results and estimates are recognised
in the period in which the results are known/materialised.

iii) Revenue Recognition

Revenue is recognised only when it can be reliably
measured and it is reasonable to expect ultimate
collection. The aboslute figures on the face of Financial
Statements with respect to outward and inward supply
is exclusive of all applicable taxes if any. Interest income
on deposits and income bearing securities is recognized
on time proportionate method. Rental Income has been
recognized on time proportionate method over a period of
12 months.

iv) Property, Plant & Equipment

Property, Plant & Equipment are stated at cost net of
GST and includes amounts added on revaluation, less
accumulated depreciation and impairment loss if any. All
costs, including financing costs till commencement of
commercial production, net charges on foreign exchange
contracts and adjustments arising from exchange
rate variations attributable to the Property, Plant &

Equipmentss are capitalised. Each part of an item of
property, plant & equipment with a cost that is significant
in relation to the total cost of the item is depreciated
seperately.

v) Depreciation

Depreciation on Property, Plant & Equipment is provided
to the extent of depreciable amount on Written Down value
(WDV) method in the manner prescribed in Schedule II to
the Companies Act, 2013 over their useful life.

vi) Impairment of Assets

An asset is treated as impaired when the carrying cost
of asset exceeds its recoverable value. An impairment of
loss is charged to the Profit & Loss Account in the year in
which an asset is identified as impaired. The impairment
loss recognised in the prior accounting period is reversed
if there has been a change in the estimate of recoverable
value.

vii) Foreign Currency transactions

(a) Transactions denominated in foreign currencies are
recorded at the exchange rate prevailing on the date
of the transaction or that approximates the actual
rate at the date of transaction.

(b) Monetary items denominated in foreign currencies at
the year end are restated at year end rates. In case
of items which are covered by forward exchange
contracts, the difference between the year end rate
and the rate on the date of the contract is recognised
as exchange difference and the premium paid on
forward contracts is recognised over the life of the
contract.

(c) Non monetary foreign currency items are carried at
cost.

(d) Any income or expense on account of exchange
difference either on settlement or on translation
is recognised in the Profit and Loss account except
in case of long term liabilities, where they relate to
acquisition of Property, Plant & Equipmentss, in
which case they are adjusted to the carrying cost of
such assets.

viii) Borrowing costs

Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part
of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready
for its intended use. All other borrowing costs are charged
to Profit and Loss account.

ix) Taxation

Provision for Current tax is based on the liability computed
in accordance with the relevant tax rates and tax laws.

Provision for Deferred tax is made for timing differences
arising between are taxable income and accounting
income computed at the rates enacted or substantively
enacted by the balance sheet date. Deferred tax assets
are recognised only if there is a reasonable/ virtual
certainty that they will be realised and are reviewed for
the appropriateness of their respective carrying values at
each balance sheet date.

---

Mar 31, 2024

Corporate Information

M/s Khazanchi Jewellers Limited ("the Company) formerly known as "Khazanchi Jewellers Private Limited", is engaged in the business of buying and selling of Gold ornaments, Gold bullion.

Khazanchi Jewellers Limited, a limited company domiciled in India and incorporated under the Companies Act, 2013 on 25^th day of March 1996 and is having its registered office in at No 130 NSC Bose Road, Sowcarpet, Chennai - 600079.

1 Significant Accouting Policies

i) Basis of Preparation of Financial Statements

The financial statements have been prepared in conformity with the generally accepted accounting principles in India to comply with all material respects with the notified Accounting Standards under Section 133 of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year except for the change in accounting policies explained below. The complete financial statements have been prepared along with all disclosures

ii) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

iii) Revenue Recognition

Revenue is recognised only when it can be reliably measured and it is reasonable to expect ultimate collection. The aboslute figures on the face of Financial Statements with respect to outward and inward supply is exclusive of all applicable taxes if any.

Interest income on deposits and income bearing securities is recognized on time proportionate method. Rental Income has been recognized on time proprtionalte method over a period of 12 months.

iv) Property, Plant & Equipment

Property, Plant & Equipment are stated at cost net of GST and includes amounts added on revaluation, less accumulated depreciation and impairment loss if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Property, Plant & Equipmentss are capitalised. Each part of an item of property,plant & equipment with a cost that is significant in relation to the total cost of the item is depreciated seperately. Assets useful life is same as Schedule II

v) Depreciation

Depreciation on Property, Plant&Equipment is provided totheextentof depreciableamounton Written Down vale (WDV) method in the manner prescribed in Schedule II to the Companies Act, 2013 over their useful life.

vi) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment of loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in the prior accounting period is reversed if there has been a change in the estimate of recoverable value.

vii) Foreign Currency transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

(c) Non monetary foreign currency items are carried at cost.

(d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of Property, Plant & Equipments, in which case they are adjusted to the carrying cost of such assets.

viii) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.

ix) Taxation

Provision for Current tax is based on the liability computed in accordance with the relevant tax rates and tax laws.

Minimum Alternate Tax (MAT) under the provisions of Income tax act, 1961 is recogised as current tax in the statement of Profit & Loss. The Credit available in respect of MAT is recognised as an asset only when and to the extent that there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability.

Provision for Deferred tax is made for timing differences arising between are taxable income and accounting income computed at the rates enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only if there is a reasonable/ virtual certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

x) Provisions and Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date and are not discounted to present value.

Contingent Liabilities are not recognized but disclosed in Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

xi) Employee Benefits Short Term

Short term employee benefits are recognised as an expense as per the company''s scheme based on expected obligations.

Post Retirement

Post retirement benefits comprise of provident fund and gratuity which are accounted as follows :

Provident Fund

This is a defined contribution plan. Contributions remitted to provident fund authorities in accordance with the relevant statute/rules are charged to statement of profit and loss as and when due. The company has no further obligations other than its monthly contributions.Presently, the company has not deducted any amount towards Provident fund.

Gratuity

This is a defined benefit plan. The liability is determined based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions are recognised immediately in the statement of profit and loss. Presently,the company has recognized gratuity expenses based on the actuarial valuation report by Mr G N Agarwal dated 15th May, 2024. However, the company has recognized Gratuity reserve as liability in the Balance Sheet but not yet deposited in any gratuity trust fund.

Compensated Absence

The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.Presently, the company has not deducted any amount towards Compensated Absence. The company has not provided for the provision as per AS-15

xii) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shareholders.