Notes to Accounts of Khazanchi Jewellers Ltd.

Mar 31, 2025

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

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

ii) 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.

ciii) Dividend

The Company recognizes dividends in the period in which
they are declared.

Interim dividends are declared and approved by the Board
of Directors and are accounted for by directly adjusting
the retained earnings (surplus in the statement of profit
and loss) at the time of declaration, in accordance with the
provisions of the Companies Act, 2013.

Accordingly, the interim dividend declared by the Board
of Directors on 30-September-2024 has been adjusted
against Reserves and Surplus during the financial year
2024-25, and no separate liability has been created in the
books.

iv) inventory

Stock is carried at the lower of cost (computed on Weighted
Average basis) or net realisable value. Cost includes the
cost of purchase including duties and taxes (other than
those refundables), inward frieght, and other expenditure
directly attributable to the purchase. Trade discounts and
rebates are deducted in determining the cost of purchase.
Net realiable value is the estimated selling price in the
ordinary course of business less the estimated cost of
completion and selling expenses.

i) The Company has not revalued its Property, Plant and Equipment since the Company has adopted cost model as its accounting
policy to an entire class of Property, Plant and Equipment.

ii) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties
that are repayable on demand or without specifying any terms or period of repayment

iii) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

iv) The Company has been sanctioned working capital limits from banks or financial institutions on the basis of security of
current assets at any point of time during the year.

v) The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.

vi) The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956 considering the information available with the Company.

vii) The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under
clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the
year under consideration.

viii) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013 during the year.

ix) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or
kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

x) The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or
disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

xii) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating
to it are not applicable.

i) The Company has not revalued its Property, Plant and Equipment since the Company has adopted cost model as its accounting
policy to an entire class of Property, Plant and Equipment.

ii) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties
that are repayable on demand or without specifying any terms or period of repayment

iii) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

iv) The Company has been sanctioned working capital limits from banks or financial institutions on the basis of security of
current assets at any point of time during the year.

v) The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.

vi) The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956 considering the information available with the Company.

vii) The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under
clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the
year under consideration.

viii) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013 during the year.

ix) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or
kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

x) The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or
disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

xii) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating
to it are not applicable.

35 : As per AS-22 Acounting for Taxes on Income,Deferred Tax Liability has been recognized due to timing difference arising

36 : Events occuring after the reporting period : NA

37 : Claims against the company not acknowledged as debt - NIL (Previous year-nil).

38 : Previous year’s figures have been regrouped, recast and reclassified wherever necessary.

39 : The financial statements were approved by the Audit committed and Board of directors on 23-May-2025

40 : Reclassification of previous year figures upon complying with Schedule III Amendments

The Company is required to comply with the amendments in Schedule III of Companies Act, 2013 notified on 24-March-2021, with
effect from 01-April-2021 Accordingly the Company has complied with the disclosure and presentation requirements as per the
aforesaid amendments and reclassified the items in the previous years, to conform to current year classification.

The accompanying notes are an integral part of these financial statements

“As Per Our Report of Even Date” For and on behalf of the Board

For M/s PSDY & Associates Khazanchi Jewellers Limited

Chartered Accountants
FRN: 010625S

Kushal Raj N Tarachand Mehta Rajesh Mehta Goutham

Partner Managing Director Chairman & Jt. Managing Director

Director

DIN:01234768 DIN: 07605326 DIN:01642002

M No 234239

UDIN: 25234239BMIZKM5753

Date: 23-May-2025 Vikas Mehta Aashish Mehta Sakshi Jain

Place: Chennai Chief Financial Chief Executive Officer Company Secretary

Officer

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

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

ii) 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.

ciii) Dividend

The Company recognizes dividends in the period in which
they are declared.

Interim dividends are declared and approved by the Board
of Directors and are accounted for by directly adjusting
the retained earnings (surplus in the statement of profit
and loss) at the time of declaration, in accordance with the
provisions of the Companies Act, 2013.

Accordingly, the interim dividend declared by the Board
of Directors on 30-September-2024 has been adjusted
against Reserves and Surplus during the financial year
2024-25, and no separate liability has been created in the
books.

iv) inventory

Stock is carried at the lower of cost (computed on Weighted
Average basis) or net realisable value. Cost includes the
cost of purchase including duties and taxes (other than
those refundables), inward frieght, and other expenditure
directly attributable to the purchase. Trade discounts and
rebates are deducted in determining the cost of purchase.
Net realiable value is the estimated selling price in the
ordinary course of business less the estimated cost of
completion and selling expenses.

i) The Company has not revalued its Property, Plant and Equipment since the Company has adopted cost model as its accounting
policy to an entire class of Property, Plant and Equipment.

ii) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties
that are repayable on demand or without specifying any terms or period of repayment

iii) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

iv) The Company has been sanctioned working capital limits from banks or financial institutions on the basis of security of
current assets at any point of time during the year.

v) The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.

vi) The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956 considering the information available with the Company.

vii) The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under
clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the
year under consideration.

viii) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013 during the year.

ix) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or
kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

x) The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or
disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

xii) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating
to it are not applicable.

i) The Company has not revalued its Property, Plant and Equipment since the Company has adopted cost model as its accounting
policy to an entire class of Property, Plant and Equipment.

ii) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties
that are repayable on demand or without specifying any terms or period of repayment

iii) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

iv) The Company has been sanctioned working capital limits from banks or financial institutions on the basis of security of
current assets at any point of time during the year.

v) The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.

vi) The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956 considering the information available with the Company.

vii) The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under
clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the
year under consideration.

viii) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013 during the year.

ix) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or
kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

x) The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or
disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

xii) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating
to it are not applicable.

35 : As per AS-22 Acounting for Taxes on Income,Deferred Tax Liability has been recognized due to timing difference arising

36 : Events occuring after the reporting period : NA

37 : Claims against the company not acknowledged as debt - NIL (Previous year-nil).

38 : Previous year’s figures have been regrouped, recast and reclassified wherever necessary.

39 : The financial statements were approved by the Audit committed and Board of directors on 23-May-2025

40 : Reclassification of previous year figures upon complying with Schedule III Amendments

The Company is required to comply with the amendments in Schedule III of Companies Act, 2013 notified on 24-March-2021, with
effect from 01-April-2021 Accordingly the Company has complied with the disclosure and presentation requirements as per the
aforesaid amendments and reclassified the items in the previous years, to conform to current year classification.

The accompanying notes are an integral part of these financial statements

“As Per Our Report of Even Date” For and on behalf of the Board

For M/s PSDY & Associates Khazanchi Jewellers Limited

Chartered Accountants
FRN: 010625S

Kushal Raj N Tarachand Mehta Rajesh Mehta Goutham

Partner Managing Director Chairman & Jt. Managing Director

Director

DIN:01234768 DIN: 07605326 DIN:01642002

M No 234239

UDIN: 25234239BMIZKM5753

Date: 23-May-2025 Vikas Mehta Aashish Mehta Sakshi Jain

Place: Chennai Chief Financial Chief Executive Officer Company Secretary

Officer

---

Mar 31, 2024

Additional Regulatory Information

i) The Company has not revalued its Property, Plant and Equipment since the Company has adopted cost model as its accounting policy to an entire class of Property, Plant and Equipment.

ii) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand or without specifying any terms or period of repayment

iii) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

iv) The Company has been sanctioned working capital limits from banks or financial institutions on the basis of security of current assets at any point of time during the year.

v) The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.

vi) The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company

vii) The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the year under consideration.

viii) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

ix) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

x) The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

xii) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.

Formula adopted for above Ratios:

Current Ratio = Current Assets / (Total Current Liabilities - Security Deposits payable on Demand - Current maturities of Long Term Debt)

Debt-Equity Ratio = Total Debt / Total Equity

Return on Equity Ratio = Total Comprehensive Income / Average Total Equity

Inventory Turnover Ratio (Average Inventory days) = 365 / (Net Revenue / Average Inventories)

Trade receivables Turnover Ratio (Average Receivables days) = 365 / (Net Revenue / Average Trade receivables)

Trade Payables Turnover Ratio (Average Payable days) = 365 / (Net Revenue / Average Trade payables)

Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade receivables turnover ratio - Trade payables turnover ratio)

Net Profit Ratio = Net Profit / Net Revenue

Return on Capital employed = (Total Comprehensive Income Interest) / (Average of (Equity Total Debt))

Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets

Long term debt to working capital = Long term borrowings / working capital

Bad debt to account receivable ratio = Bad debts / Average of Trade and other receivebles

Current Liability Ratio = Current Liailities (Excluding Current maturity of Long term debts and interest Accrued on borrowings) / Total Liabilities.

Total debt to total assets = (Non current borrowings Current borrowings)/Total Assets.

Interest service coverage ratio = EBIT / Interest on Borrowings

Debt Service coverage ratio = ( Profit or loss before Exceptional items and tax interest on borrowings )/ Interest on borrowings Repayment of Borrowings.

Net worth = Total Assets - Total Liability or Share capital Reserves and surplus.

35: The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as micro, small or medium enterprises. Consequently, the amount paid/ payable to these parties is considered to be nil.

36: As per AS-22 Acounting for Taxes on Income,Deferred Tax Liability has been recognized due to timing difference arising

37: Events occuring after the reporting period : The Board Directors has decided not to declare any dividends for the period April 2023 to March 2024

38: Claims against the company not acknowledged as debt - NIL (Previous year-nil).

39: Previous year''s figures have been regrouped, recast and reclassified wherever necessary.

40: The financial statements were approved by the Board of directors on 17^th of May 2024

41. Reclassification of previous year figures upon complying with Schedule III Amendments

The Company is required to comply with the amendments in Schedule III of Companies Act, 2013 notified on 24-03-2021, with effect from 01-04-2021. Accordingly the Company has complied with the disclosure and presentation requirements as per the aforesaid amendments and reclassified the following items in the previous years, to conform to current year classification.