Notes to Accounts of Rajnish Retail Ltd.

Mar 31, 2023

Provisions, Contingent Liabilities and Contingent Assets Provisions

Provisions are recognized when thempany has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of economic benefits will be required to settle the obligation and
reliable estimate ca be made of the amount of the obligatiorProvisions are determined by discounting the
expected future cash flows at a -tax rate that reflects current market assessments of the time value c
money and the risks specific to the liability. Provision determined based on the best estimate required to
settle the obligation at the balance sheet date.

Contingent Liabilities

Contingent liabilities are not recognized but disclosed in Notes to the Accountsthehenompany has
possible obligation due to pat events and existence of the obligation depends upon occurreoneeion-
occurrence of future events not wholly within the cont rbfe ofcmpany

Contingent liabilities are assessed continuously to determine whether outflow of economic resources have
become probable. If the outflow becomeprobable, then relative provision is recogatZin the financial
statements .

Contingent Liabilities are disclosed in the General Notes forming part of the accounts
Contingent Assets

Contingent Assets are not recogrd in the financial statementSuch contingent assets are assessed
continuously and are disclosed in Notes when tineflow of economic benefits becomeprobable. If it is
certain that inflow of economic benefit will arise then such asset and the insdotinveshall be recognised in
financial statements.

Taxation

Taxes on Income comprises of current tax and deferred tax. Current tax and deferred tax are recognized
profit and loss, except to the extent that it relates to items recognized in mpEeherosive income or
directly in equity. In this case, the tax expense is also recognized in other comprehensive income or directly i
equity, respectively .

Current tax

The tax currently payable is based on taxable profit for the year. Taxable pffiofitfrdim ‘profit before tax’
as reported in the statement of profit or loss and other comprehensxve/iitatement of profit or loss
because of items of income or expense that are taxable or deductible in other years and items that are nev
taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amountst sofanidslaabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferr
tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are genera
recognized for all deductible temporary differences to the extent that it is probable that taxable profits will 1
available against which those deductible tempora differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the endi ofeporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of t
asset to be recovere d.

Deferred tax liabilities and assets are measured at the tax rates thatected expapply in the period in
which theliability issettled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

Current and deferred tax for the year

Current andeferred tax are recognized in profit or loss, except when they relate to items that are recognize
in other comprehensive income or directly in equity, in which case, the current and deferred tax are als
recognized in other comprehensive income or didycin equity respectively.

Financial instruments(i) Financial Assets

Initial recognition and measurement:

All financial assets are recognised initially at fair value plus transaction costs that are attributable to
acquisition of the financial assetcept in the case of financial assets recorded at fair value through Profit an<
Loss.

Financial assets are classified, at initial recognition, as financial assets measured at fair value or as finan
assets measured at amortised cost.

Subsequent measurement:

For purposes of subsequent measurement financial assets are classified in two broad categories:

• F inancial assets at fair value

• Financial assets at amortised c ost

Where assets are measured at fair value, gains and losses are either recognised ienttihe statement of
profit and loss (i.e. fair value through profit or loss), or recognised in other comprehensive income (i.e. fa
value through other comprehensive income).

A financial asset that meets the following two conditions is measured latisieriocost (net of any write down
for impairment) unless the asset is designated at fair value through profit or loss under the fair value option

• Business model test: The objective of the Company’s business model is to hold the financial asset to
collect the contractual cash flows (rather than to sell the instrument prior to its contractual maturi
realise its fair value change s).

• Cash flow characteristics test: The contractual terms of the financial asset give rise on specified
dates to cashflows that are solely payments of principal and interest on the principal amount
outstanding.

A financial asset that meets the following two conditions is measured at fair value through othe
comprehensive income unless the asset is designated at fair valuughhprofit or loss under the fair value
option.

• Business model test: The financial asset is held within a business model whose objective is achieved
by both collecting contractual cash flows and selling financial assets.

• Cash flow characteristics test: The contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

Even if an instrument meets the two requirements to be measured at amoEtiffledfcor value through other
comprehensive income, a financial asset is measured at fair value through profit or loss if doing so eliminati
or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an ‘accounting
mismatch’) that would otherwise arise from measuring assets or liabilities or recognising the gains and losses
on them on different bases.

All other financial asset is measured at fair value through profit or loss.

All equity investments are measured at valne in the balance sheet, with value changes recognised in the
statement of profit and loss, except for those equity investments for which the entity has elected to pres
value changes in ‘other comprehensive income.

If an equity investment is noil difor trading, an irrevocable election is made at initial recognition to measure
it at fair value through other comprehensive income with only dividend income recognised in the statement o
profit and loss.

De - recognition:

A financial asset (or, wheapplicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognised (i.e. removed from the Company’s statement of financial position) when:

• The rights to receive cash flows from the asset have expired; or

• The Company has transferred its rights to receive cash flows from the asset or has assumed
obligation to pay the received cash flows in full without material delay to a third party under a ‘pass -
through’ arrangement, and either:

(a) the Company has transfedrsarbstantially all the risks and rewards of the asset; or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of 1
asset, but has transferred control of the asset.

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

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the l<
of the original carryingmount of the asset and the maximum amount of consideration that the Company
could be required to r epay.

(ii) Financial Liabilities

Initial recognition and measurement:

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

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

Subsequent measurement:

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

Financial liabilities at fair value through profit or loss.

Financial liabilities at fair value through profit or loss include financial liabilities Ibieadifig and financial
liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in
near term. This categon^o includes derivative financial instruments entered into by the Company that are
not designated as hedging instruments in hedge relationships as defined by Ind AS 19. Separated embedded
derivatives are also classified as held for trading unless rhedeaignated as effective hedging instruments.

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

Financial liabilities designated upon initial recognition at fair value through profit or loss artedeatigtnae
initial date of recognition, and only if the criteria in Ind AS 19 are satisfied.

Loans and borrowings:

After initial recognition, inter-betiring loans and borrowings are subsequently measured at amortised cost
using the EIR method.

Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through th
EIR amortisation process.

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

De - recognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When anexisting financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange c
modification is treated as the-riecognition of the originalability and the recognition of a new liability. The
difference in the respective carrying amounts is recognized in the statement of profit and loss.

(iii) Offsetting of Financial Instruments

F inancial assets and financial liabilities are offset and the nuntaia reported in the balance sheet if there is
a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
basis, to realise the assets and settle the liabilities simultane ously.

Impairment of Asset

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairme
Loss is charged to the Profit & Loss Account in the year in which the asset is identified as impaired. T
impairment loss recognized in priorcoanting year is reversed if there has been a change in the estimate of
recoverable amount .

Impairment of financial assets:

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the report
date to the amout that is required to be recognised is recognized as an impairment gain or loss in profit o
loss.

Impairment of non- financial assets:

As at each balance sheet date, the Company assesses whether there is an indication that an asset may ''
impaired and also whether there is an indication of reversal of impairment loss recognised in the previous
periods. If any indication exists, or when annual impairment testing for an asset is required, if any, th
Company determines the recoverable amount and impairmeoss is recognised when the carrying amount of
an asset exceeds its recoverable amou nt.

Recoverable amount is determine d:

• In the case of an individual asset, at the higher of the fair value less scofc tand the value in use
and

• In the case of cashgenerating unit (a group of assets that generates identified, independent cash
flows), at the higher of the cash generating unit’s fair value less cost to sell and the value in use.

In assessing value in use, the estimated future cash flows are discC)artt^ee^ir present value using a -pas
discount rate that reflects current market assessments of the time value of money and the risks specific t
asset. In determining fair value less costs of disposal, recent market transactions are taken rtti.t d facnoou
such transactions can be identified, an appropriate valuation model is used. These calculations are
corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair
value indicators. Impairment loss eof continuing operations, including impairment on inventories, are
recognised in profit and loss section of the statement of profit and loss, except for properties previous
revalued with the revaluation taken to Other Comprehensive Income (the ‘OCI’). F or such properties, the
impairment is recognised in OCI up to the amount of any previous revaluation.

Earnings per share

Basic earnings per share

A basic earnings per share is computed by dividi ng

• the net profit attributable to thdte-quhareholdes of the company

• by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
account:

• the afteiincome tax effect of interest and other financing costs associated withe dbhttantial equity
shares, and

• the weighted average number of additional equity shares that would been outstanding assuming the
conversion of all dilutive potential equ Shares .

The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares bee
actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potent:
equity shares are deemedonverted as at the beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period pres ented

The number of equity shares and potentially dilutive equity shares are adjusted retrelspfoti all periods
presented for any share splits and bonus shares issues including for changes effected.

Fair Value Measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is he price that would be received to sell an asset or paid to transfer a liability in an orderl
transaction between market participants at the measurement date. The fair value measurement is based on •
presumption that the transaction to sell the asstatansfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must cbes siible by the Company. The fair value of an asset
or a liability is measured using the assumptions that market participants would use when pricing the asset
liability, assuming that market participants act in their economic best interest.

A fair valu measurement of a nofmancial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participa
that would use the asset in its highest bant use.

The company uses valuation techniques that are appropriate in the circumstances and for which sufficient da
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing
of unobservable inputs.

Cash flow statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects
transactions of a nonash nature, any deferrals or accruals of past or future operating cash receipts o
payments and itm of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and darhadeposits with banks which are sh-tetm,
highly liquid investments that are readily convertible into known amounts of cash and which are subject t
insignificant risk of changes in value.

Employee Benefit

All employee benefits payable wholly withirwfelve months rendering services are classified as short term
employee benefits. Benefits such as salaries, wages, s-hortn compensated absences, performance
incentives etc., and the expected cost of bonus,''-gratia are recognised during the period in ichhthe
employee renders related service.

Leases

The Company evaluates each contract or arrangement, whether it qualifies as lease as defined under Ind A

16.

The Company as a lessee

The Company enters into arrangemerfbr lease which are generally or a fixed period but may have
extension or termination options. The Company assesses, whether the contract is, or contains, a lease, at i
inception. A contract is, or contains, a lease if the contract conveys the r-ight to

a) control the use of an idefied asset,

b) obtain substantially all the economic benefits from use of the identified asset, and

c) direct the use of the identified asset

The Company determines the lease term as the-aamcellable period of a lease, together with periods
covered by an option to extend the lease, where the Company is reasonably certain to exercise that option.

The Company at the commencement of the lease contract recognizes a-R-Uhse (RoU) asset at cost and
corresponding lease liability, except for leases withm of less than twelve months (short term leases) and
low-value assets. For these short term and low value leases, the Company recognizes the lease payments as a
operating expense on a straighine basis over the lease ter m.

The cost of the rig-of-use asset comprises the amount of the initial measurement of the lease liability, any
lease payments made at or before the inception date of the lease, plus any initial direct costs, less any leas
incentives received. Subsequently, the right-use asset sare measured at cost less any accumulated
depreciation and accumulated impairment losses, if any. The rf-utse assets are depreciated using the
straightline method from the commencement date over the shorter of lease term or useful lif-oif-frsieight
asset. The estimated useful life of ^plant and equipment. The Company applies Ind AS 36 to determine whether an RoU asset is impaired and
accounts for any identified impairments sl.o

For lease liabilities at the commencement of the leas eC, tohmepany measures the lease liability at the present
value ofthe lease payments that arotipaid at that date. The leasaeyments are discounted using the interest
rate implicit in thlease, if that rate can be readdet ermined, if that rate is notadily determined, the lease
payments are discounted usinlgie incremental borrowing rateat the Company would have 1pay to borrow
funds, including the consideration of factors suchthenature of the asset and location, collateral, market
termsand conditions, as applicable iia similar economic environment.

After the commencement date, the amount of lease liabilitiincrsased to reflect the accretion interest
and reduced for thlse ase payments made .

The Company recognizes the amount of th-measurement ofease liability as an adjustment to the regf-t
use assets. Wherthe carrying amount of the r-gh-use asset is reduced to zenod there is a further
reduction in the meurement of the leaiEability, the Company recognes any remaining amount of the-
measurement in statement of profit and loss.

Lease liability payments are daisied as cash used in financingtivities in the statement of cash flows.

The Company as a lessor

Leases under which the Company is a lessor are classifiednance or operating leases. Lease contracts
where all the risland rewards are substantiaMyansferred to the lessee, thase contracts are classified as
finance leases. All oth leasesare classified as operating leas es.

For leases under which the Company is an intermediate leth-Company accounts for the heheise and
the sublease as two separate contracts. Thieb-lease is further classified: her as a finance lease an
operating lease by reference the RoU asset arising from the hkade.

Exceptional Items

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary
activities of the Company is such that its oliucfe improves the understanding of the performance of the
Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes
accompanying to the financial statements.

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Mar 31, 2014

1 CORPORATE INFORMATION

SHEETAL DIAMONDS LIMITED ("the company") is engaged in the trading of Loose Diamonds & Jewellery.

Note 2: Contingent Liabilities and Commitments

All Known Liabilities are provided for in the accounts excepts liabilities of Contingent nature which hav e been adequately disclosed in accounts

Note 3: Segment Information for the year ended March 31, 2014

As the Company is engaged only in one business segment i.e. Trading of Loose Diamonds & Jewellery goods and there are no geo graphical segments, the Balance Sheet as at March 31,2014 and the Profit and Loss Account for the year ended March 31,2014 pertain to one business segment and related activities as per Accounting Standard (AS) 17 on "Segment Reporting".

Note 4: Balances of Sundry Debtors, Sundry Creditors, Deposits, Loans and Advances are subjected to reconciliation and confirmation, necessary adjustment if required, will be made after reconciliation. The management does not expect any material difference affecting the current year''s financial statements.

Note 5: In the opinion of the Board and to the best of their knowledge and belief all the Current Assets, Loan s and Advances have value on realisation at least of an amount at which they are stated in Balance Sheet.

Note 6: Liability In respect of gratuity and leave encashment are accounted on cash basis which is not in conformity with Accounting Standard (AS)15 (Revised 2005) on Employee Benefits as issued by the Institute of Chartered Accountant of India, which requires that gratuity and Leave Encashment Liabilities be accounted for on actuarial basis.

Note 7: The Amount due to Small Scale Industries is NIL as on 31st March, 2014 and hence disclosure requirements in this regard as per schedule VI of the Companies Act, 1956 is not being provided.

Note 8: Previous Year figures

Figures of previous year are regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year

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Mar 31, 2013

1 CORPORATE INFORMATION

SHEETAL DIAMONDS LIMITED ("the company") is engaged in the trading of Loose Diamonds & Jewellery.

Note 2: Balances of Sundry Debtors, Sundry Creditors, Deposits, Loans and Advances are subjected to reconciliation and confirmation, necessary adjustment if required, will be made after reconciliation. The management does not expect any material difference affecting the current year''s financial statements.

Note 3: In the opinion of the Board and to the best of their knowledge and belief all the Current Assets, Loans and Advances have value on realisation at least of an amount at which they are stated in Balance Sheet.

Note 4: Liability In respect of gratuity and leave encashment are accounted on cash basis which is not in conformity with Accounting Standard (AS)15 (Revised 2005) on Employee Benefits as issued by the Institute of Chartered Accountant of India, which requires that gratuity and Leave Encashment Liabilities be accounted for on actuarial basis.

Note 5: The Amount due to Small Scale Industries is NIL as on 31st March, 2013 and hence disclosure requirements in this regard as per schedule VI of the Companies Act, 1956 is not being provided.

Note 6: During the year company has sold investment of Rs 1,82,00,000 at Rs 1,46,25,000 & incurred loss of Rs 35,75,000

Note 7: Previous Year figures

Figures of previous year are regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year

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Mar 31, 2012

1 CORPORATE INFORMATION

SHEETAL DIAMONDS LIMITED ("the company") is engaged in the trading of Loose Diamonds & Jewellery.

Note 2: Balances of Sundry Debtors' Sundry Creditors' Deposits' Loans and Advances are subjected to reconciliation and confirmation' necessary adjustment if required' will be made after reconciliation. The management does not expect any material difference affecting the current year's financial statements.

Note 3: In the opinion of the Board and to the best of their knowledge and belief all the Current Assets' Loans and Advances have value on realisation at least of an amount al which they are stated in Balance Sheet.

Note 4: Liability In respect of gratuity and leave encashment are accounted on cash basis which is not in conformity with Accounting Standard (AS)I5 (Revised 2005) on bmpluyee Benefits as issued by the Institute of Chartered Accountant of India' which requires that gratuity and Leave Encashment Liabilities be accounted for on actuarial basis

Note 5: The Amount due to Small Scale Industries is NIL as on 31st March' 2012 and hence disclosure requirements in this regard as per schedule VI of the Companies Act' 1956 is not being provided

Note 6: Previous Vear figures

Figures of previous year are regrouped' rearranged and reclassified wherever necessary to correspond to figures of the current year.

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Mar 31, 2010

1. ACCOUNTING STANDARDS:

a) Accounting Standard 17:

The Company is mainly engaged in trading activity and the major revenue comes from the said activity, where as the other activities of investment and financial services form very negligent part. So the segment wise information is of no significant use, hence not given.

b) Related parties disclosure as per Accounting Standard 18:

List of the relative party with whom transaction took place during the year:

The Company has not made any transaction with any related party during the year.

c) Lease Agreement as per Accounting Standard 19:

The Company has not entered into any Agreement of Lease during the year.

2. Contingent Liabilities:

All known liabilities are provided for in the accounts except liabilities of contingent nature which have been adequately disclosed in the accounts.

3. Previous year figures have been rearranged regrouped wherever necessary with figures of the current year.

4. The figures have been rounded off to the nearest multiple of Rupee.

5. Balances of deposits, Advances and unsecured loans etc. are subject to confirmation.

6. In the opinion of the Board of Directors of the company, the current assets, loan and advances have value at least equal to the amount at which they are stated in Balance Sheet, if realized in ordinary course of business.

7. There is no employee who is in receipt of remuneration, which in aggregate was not less than Rs. 24, 00,000/- p.a. If employed through out the year, Previous year (NIL), and Rs. 2,00,000/- p.m. in aggregate if employed for the part of the year, Previous year (NIL).

8. During the year, transactions with small scale undertaking is Nil.

9. Amount due to Small Scale Industries Rs. NIL as on 31/03/10.

10. Additional information as required under part IV of schedule VI to the companies Act 1956.

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Mar 31, 2009

1. ACCOUNTING STANDARDS:

a) Accounting Standard 17:

The Company is mainly engaged in trading activity and the major revenue comes from the said activity, where as the other activities of investment and financial services form very negligent part. So the segment wise information is of no significant use, hence not given.

b) Related parties disclosure as per Accounting Standard 18:

List of the relative party with whom transaction took place during the year:

The Company has not made any transaction with any related party during the year.

c) Lease Agreement as per Accounting Standard 19:

The Company has not entered into any Agreement of Lease during the year.

e) Taxes on Income Tax as per Accounting Standard 22:

i) Provision for Income Tax is made in accordance with the Income Tax Act, 1961

ii) Deferred Tax Assets/Liability are not recognized in the current year as there is a virtual certainty and evidence that there will not be any future taxable income which will be available against which such Deferred Tax Assets/ Liabilities could be realized or adjusted.

2. Contingent Liabilities:

All known liabilities are provided for in the accounts except liabilities of contingent nature which have been adequately disclosed in the accounts.

3. Previous year figures have been rearranged egrouped wherever necessary with figures of the current year.

4. The figures have been rounded off to the nearest multiple of Rupee.

5. Balances of deposits, Advances and unsecured loans etc. are subject to confirmation.

6. In the opinion of the Board of Directors of the company, the current assets, loan and advances have value at least equal to the amount at which they are stated in Balance Sheet, if realized in ordinary course of business.

7. There is no employee who is in receipt of remuneration, which in aggregate was not less than Rs. 24,00,000/- p.a. If employed through out the year, Previous year (NIL), and Rs. 2,00,000/- p.m. in aggregate if employed for the part of the year, Previous year (NIL).

8. During the year, transactions with small scale undertaking is Nil.

9. Amount due to Small Scale Industries Rs. NIL as on 31/03/09.

10. Additional information as required under part IV of schedule VI to the companies Act 1956.