(xvi) Provisions and contingencies

Provisions: 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.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of time value of
money is material).

Contingent liabilities: Contingent liabilities
are not recognised but are disclosed in notes
to accounts.

(xvii) Investment in subsidiaries

Investments representing investments in
subsidiaries are measured at cost.

(xviii) Financial instruments

Financial assets and financial liabilities are
recognised when the Company becomes a party
to the contractual provisions of the instruments.

Financial assets and liabilities are initially
recognised at fair value. Transaction costs that
are directly attributable to financial assets and
liabilities [other than financial assets and liabilities
measured at fair value through profit and loss
(FVTPL)] are added to or deducted from the
fair value of the financial assets or liabilities, as
appropriate on initial recognition. Transaction
costs directly attributable to acquisition of
financial assets or liabilities measured at FVTPL
are recognised immediately in the statement of
profit and loss.

a) Non-derivative Financial assets: All regular
way purchases or sales of financial assets
are recognised and derecognised on a
trade date basis. Regular way purchases
or sales are purchases or sales of financial
assets that require delivery of assets within
the time frame established by regulation or
convention in the marketplace.

All recognised financial assets are
subsequently measured in their entirety at
either amortised cost or fair value, depending
on the classification of the financial assets.

Financial assets at amortised cost

A financial asset is measured at amortised
cost if both of the following conditions
are met:

a) The financial asset is held within a
business model whose objective is to
hold financial assets in order to collect
contractual cash flows and

b) The contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments
of principal and interest (SPPI) on the
principal amount outstanding.

Effective interest method

The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income
over the relevant period. The effective
interest rate is that which exactly discounts
estimated future cash receipts through the
expected life of the debt instrument, or,
where appropriate, a shorter period, to the
net carrying amount on initial recognition.

Income is recognised on an effective interest
basis for debt instruments other than
those financial assets. Interest income is
recognised in profit or loss and is included in
the “Other income” line item.

b) Derecognition of financial assets: A

financial asset is derecognised only when
the Company

- has transferred the rights to receive cash flows
from the financial asset or

- retains the contractual rights to receive the
cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to
one or more recipients.

When the entity has transferred an asset,
the Company evaluates whether it has
transferred substantially all risks and rewards
of ownership of the financial asset. In such
cases, the financial asset is derecognised.
Were the entity has not transferred
substantially all risks and rewards of
ownership of the financial asset, the financial
asset is not derecognised.

Where the entity has neither transferred a
financial asset nor retains substantially all

risks and rewards of ownership of the financial
asset, the financial asset is derecognised if
the Company has not retained control of the
financial asset. When the Company retains
control of the financial asset, the asset is
continued to be recognised to the extent of
continuing involvement in the financial asset.

c) Foreign exchange gains and losses: The

fair value of financial assets denominated
in a foreign currency is determined in that
foreign currency and translated at the spot
rate at the end of each reporting period.

For foreign currency denominated financial
assets measured at amortised cost and
FVTPL, the exchange differences are
recognised in statement of profit and loss.

d) Financial liabilities: All financial liabilities
are subsequently measured at amortised
cost using the effective interest method or
at FVTPL.

Financial liabilities at FVTPL

Financial liabilities at FVTPL are stated at
fair value, with any gains or losses arising
on remeasurement recognised in statement
of profit and loss. The net gain or loss
recognised in statement of profit and
loss incorporates any interest paid on the
financial liability and is included in the 'Other
income/Other expenses' line item.

Financial liabilities subsequently measured at
amortised cost

Financial liabilities that are not held-for-
trading and are not designated as at FVTPL
are measured at amortised cost at the end
of subsequent accounting periods. The
carrying amounts of financial liabilities that
are subsequently measured at amortised
cost are determined based on the effective
interest method.

The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense
over the relevant period. The effective
interest rate is the rate that exactly discounts
estimated future cash payments through
the expected life of the financial liability, or
(where appropriate) a shorter period, to the
net carrying amount on initial recognition.

Foreign exchange gains and losses

For financial liabilities that are denominated
in a foreign currency and are measured at
amortised cost at the end of each reporting
period, the foreign exchange gains and losses
are determined based on the amortised cost
of the instruments and are recognised in the
statement of profit and loss.

The fair value of financial liabilities
denominated in a foreign currency is
determined in that foreign currency and
translated at the spot rate at the end of
the reporting period. For financial liabilities
that are measured as at FVTPL, the foreign
exchange component forms part of the fair
value gains or losses and is recognised in the
statement of profit and loss.

Derecognition of financial liabilities

The Company derecognises financial
liabilities when, and only when, the
Company's obligations are discharged,
cancelled or have expired.

An exchange between with a lender of debt
instruments with substantially different
terms is accounted for as an extinguishment
of the original financial liability and the
recognition of a new financial liability.

[xix) Hedge accounting

The Company designates certain hedging
instruments as fair value hedges. At the
inception of the hedge relationship, the entity
documents the relationship between the hedging
instrument and the hedged item, along with its
risk management objectives and its strategy
for undertaking various hedge transactions.
Furthermore, at the inception of the hedge and
on an ongoing basis, the Company documents
whether the hedging instrument is highly
effective in offsetting changes in fair values of
the hedged item attributable to the hedged risk.

Fair value hedges

Derivatives are initially recognised at fair value
at the date the derivative contracts are entered
into and are subsequently remeasured to their
fair value at the end of each reporting period.
The resulting gain or loss is recognised in
statement of profit and loss immediately unless

the derivative is designated and effective as a
hedging instrument, in which event the timing of
the recognition in profit or loss depends on the
nature of the hedging relationship and the nature
of the hedged item.

Hedge accounting is discontinued when the
hedging instrument expires or is sold, terminated,
or exercised, or when it no longer qualifies for
hedge accounting. The fair value adjustment to
the carrying amount of the hedged item arising
from the hedged risk is amortised to profit or loss
from that date.

Cash flow hedges

Derivative financial instruments to manage risks
associated with gold and foreign currency price
fluctuations relating to certain existing liabilities,
highly probable forecasted transactions, foreign
currency fluctuations relating to certain firm
commitments fall under the category of cash flow
hedges. The Group has designated derivative
financial instruments taken for gold and foreign
currency price fluctuations as cash flow hedges
relating to certain existing liabilities and highly
probable forecast transactions.

Hedging instruments are initially measured at
fair value, and are re-measured at subsequent
reporting dates. Changes in the fair value of
these derivatives that are designated and
effective as hedges of future cash flows are
recognised in other comprehensive income
and accumulated under the heading hedging
reserve and the ineffective portion is recognised
immediately in the statement of profit and loss.
For forecasted transactions, any cumulative gain
or loss on the hedging instrument recognised
in hedging reserve is retained until the forecast
transaction occurs upon which it is recognized in
the statement of profit and loss.

(xx) If a hedged transaction is no longer expected
to occur, the net cumulative gain or loss
accumulated in hedging reserve is recognized
immediately to the statement of profit and loss.
The Group has designated derivative financial
instruments taken for gold price fluctuations
as cash flow hedges relating to highly probable
forecasted transactions under the previous
GAAP.

(xxi) Segment reporting

Operating segments are reported in the manner
consistent with the internal reporting to the chief

operating decision maker (CODM). The Company
is reported at an overall level, and hence there
are no separate reportable segments as per Ind
AS 108.

(xxii) Cash and cash equivalents

Cash comprises cash on hand and demand
deposits with banks. Cash equivalents are short¬
term balances (with an original maturity of three
months or less from the date of acquisition)
and highly liquid investments that are readily
convertible into known amounts of cash and
which are subject to insignificant risk of changes
in value.

For the purposes of the cash flow statement,
cash and cash equivalents include cash on hand,
in banks and demand deposits with banks, net of
outstanding bank overdrafts that are repayable
on demand, book overdraft and are considered
part of the Company's cash management system.

(xxiii) Earnings per share (EPS)

Basic earnings per share are computed using
the weighted average number of equity shares
outstanding during the period.

Diluted EPS is computed by dividing the profit
or loss attributable to ordinary equity holders
by the weighted average number of equity
shares considered for deriving basic EPS and
also weighted average number of equity shares
that could have been issued upon conversion
of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted
as of the beginning of the period, unless issued
at a later date. Dilutive potential equity shares
are determined independently for each period
presented. The number of equity shares and
potentially dilutive equity shares are adjusted for
bonus shares, as appropriate

(xxiv) Asset classified as held for sale

The Company classifies a non-current asset (or
disposal group) as held for sale if its carrying
amount will be recovered principally through a
sale transaction rather than through continuing
use when the asset (or disposal group) is available
for immediate sale in its present condition subject
only to terms that are usual and customary for
sales of such assets (or disposal groups) and its
sale is highly probable. The Company measures
a non-current asset (or disposal group) classified

as held for sale at the lower of its carrying amount
and fair value less costs to sell.

(xxv) Operating Cycle

Based on the nature of products/activities of
the Company and the normal time between
acquisition of assets and their realisation in cash
or cash equivalents, the Company has determined
its operating cycle as 12 months for the purpose
of classification of its assets and liabilities as
current and non-current.

(xxvi) Dividend payments

Dividend distributions payable to equity
shareholders are debited directly to equity, net
of any related income tax benefit. It is included
in other liabilities when the dividends have been
approved in a general meeting but not distributed
prior to the reporting date.

(xxvii) Employee stock option plan

The Company operates equity-settled share-
based remuneration plans for its employees.
None of the Company's plans are cash-settled.

All goods and services received in exchange
for the grant of any share-based payment are
measured at their fair values.

Where employees are rewarded using share-
based payments, the fair value of employees'
services is determined indirectly by reference to
the fair value of the equity instruments granted.
This fair value is determined with the assistance of
an external valuer at the grant date and excludes
the impact of non-market vesting conditions (for
example profitability and sales growth targets
and performance conditions).

Non-market vesting conditions are included in
assumptions about the number of options that
are expected to become exercisable. Estimates
are subsequently revised if there is any indication
the number of share options expected to vest
differs from previous estimates. Any adjustment
to cumulative share-based compensation
resulting from a revision is recognised in the
current period. The number of vested options
ultimately exercised by holder does not impact
the expense recorded in any period.

Market conditions are taken into account
when estimating the fair value of the equity
instruments granted.

All share-based remuneration is recognised as
an expense in profit or loss with a corresponding
credit to share based payment reserve. If vesting
periods or other vesting conditions apply, the
expense is allocated over the vesting period,
based on the best available estimate of the
number of share options expected to vest.

Upon exercise of share options, the proceeds
received, net of any directly attributable
transaction costs, are allocated to share capital
up to the nominal (or par) value of the shares
issued with any excess being recorded as
share premium.

(xxviii) Recent Accounting Pronouncements

The Ministry of Corporate Affairs notifies new
standards or amendment to existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. Following
are the amendments which are effective from
1 April 2024:

(i) Amendments to Ind AS 116 - Lease liability in
a sale and leaseback

The amendments require an entity to
recognise lease liability including variable
lease payments which are not linked to index
or a rate in a way it does not result into gain
on Right of Use asset it retains.

(ii) Introduction of Ind AS 117 - MCA notified
Ind AS 117, a comprehensive standard that
prescribe, recognition, measurement and
disclosure requirements, to avoid diversities
in practice for accounting insurance
contracts and it applies to all companies i.e.,
to all “insurance contracts” regardless of the
issuer. However, Ind AS 117 is not applicable
to the entities which are insurance companies
registered with IRDAI.

The Company has reviewed the new
pronouncements and based on its evaluation
has determined that these amendments
do not have a significant impact on the
Company's standalone financial statements.

(i) The Company's investment properties consist of six properties in the nature of freehold land in India
and therefore no depreciation is chargeable. As at 31 March 2025 and 31 March 2024, the fair value of
the properties is H 1,334.70 million and H 2,181.64 million respectively. These are based on valuations
performed by independent valuers for the purposes of bank financing at the time availing/renewing
such financing facility. These valuers are registered valuers as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017. The fair value hierarchy is at level 2, which is derived
using the market comparable approach based on recent market prices without any significant
adjustments being made to the market observable data. (Refer Note 36(b) for note on fair value
hierarchy).

(i) There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the
related parties other than those disclosed in this note.

(ii) 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 persons or entities, including foreign
entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that
the Intermediary shall 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 provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries other than the loans given
to its subsidiary Kalyan Jewellers FZE, UAE (intermediary) which has in turn advanced the funds to
another subsidiary Kalyan Jewellers LLC, UAE (ultimate beneficiary) where the same was utilised for
working capital purpose as under:

(i) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares. The ordinary equity shares are entitled to receive
dividend as declared from time to time after payment of dividend to preference shareholders.
The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion
to shareholders' share of the paid-up equity capital of the Company. Voting rights cannot
be exercised in respect of shares on which any call or other sums presently payable have not
been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual
assets of the Company, remaining after distribution of all preferential amounts in proportion to the
number of equity shares held.

(i) Details of interest rate and securities provided for loans repayable to various banks

(a)Charge on the entire current assets of the Company viz. raw materials, stocks in process, finished
goods, trade stocks, receivables and other current assets (excluding deposits kept as cash margins
towards specific facilities sanctioned by banks on paripassu basis with the member bank(s) in the
working capital consortium. (b) Personal guarantees by Promoter Directors - Mr. T.S. Kalyanaraman,
Mr. T.K. Seetharam, Mr. T.K. Ramesh and their relatives N.V. Ramadevi and T.K. Radhika (c) Certain
land and buildings belonging to the Company and Promoter Directors - Mr.T.S. Kalyanaraman,
Mr.T.K Seetharam, Mr.T.K Ramesh and their relatives N.V.Ramadevi and T.K.Radhika are offered as
collateral security to the working capital consortium. (d) Rate of interest for short-term borrowings
is variable and is depending on the prevailing MCLR/T Bill rates plus spread as per the sanction letter
with respective banks and the interest charged by the banks in the consortium starts from 8.05% per
annum (previous year 8.00% per annum) payable on monthly intervals.

(ii) Details of supplier factoring arrangements - unsecured

Supplier factoring arrangements dues represents bill discounting facility availed with bank. The
facility is unsecured and the term of bill discounting facility ranges from 90 days to 180 days with
interest ranging from 8% per annum to 8.15% per annum.

(iii) There are no defaults in the repayment of principal or interest to lenders as at 31 March 2025 and
31 March 2024.

(iv) The Company has utilised the borrowings from banks and financial institutions for the specific
purpose for which it was taken at the balance sheet date and previous year end.

(v) There are no creation of charges or satisfaction of charges yet to be registered with ROC beyond
the statutory period for current year and previous year.

(vi) The Company has not been declared as a 'wilful defaulter' by any bank or financial institution.

(vii) The Company has working capital limit exceeding H 50 million during the year and the Company
has submitted quarterly statement of identified current assets to the bankers, and there are no
differences between the amounts as per books and amounts reflected in the statements.

The above unspect amount pertains to ongoing project undertaken by the Company through Kalyan
Jewellers Foundation. This has been transferred to 'Unspent CSR account' within 30 days from the end of
the financial year, in accordance with CSR rules.

Notes:

(a) The Company successfully completed the construction of the dialysis centre, a multi-year ongoing
infrastructure project, through its implementing agency, Kalyan Jewellers Foundation as on
March 31,2025 and has transferred an amount of H 67.50 million (31 March 2024: H 22.71 million) as
current year allocation to the project.

(b) Apart from the multi-year ongoing project, the CSR activities undertaken by the Company consists
of numerous projects and contributions towards promoting health care, promoting education,
eradication of poverty, rural development projects and women empowerment.

(i) The Company has issued a letter of financial support to its subsidiary company, Enovate Lifestyles
Private Limited, assuring to provide financial assistance, as required, to enable the subsidiary company
to continue as a going concern.

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

34 EMPLOYEE BENEFIT PLANS

(a) Defined contribution plans

The Company makes contributions to provident fund and employee state insurance schemes which are
defined contribution plans, for qualifying employees. Under the schemes, the Company is required to
contribute a specified percentage of the payroll cost to fund the benefits. The contributions payable to
these plans by the Company are at rates specified in the rules of the schemes and the company has no
obligations beyond its contributions. The contributions recognized in the statement of profit and loss
during the year are as under

(b) Defined benefit plans

The Company offers gratuity benefits, a defined employee benefit scheme to its employees. The said
benefit plan is exposed to actuarial risks such as longevity risk and salary risk. The Company has not
funded its gratuity obligations. The following table sets out the status of the defined benefit schemes and
the amount recognised in the standalone financial statements as per the actuarial valuation done by an
independent actuary.

The above figures do not include provisions for encashable leave, gratuity and pension, as separate
actuarial valuation are not available.

(iii) The Company has issued a letter of financial support to its subsidiary company, Enovate Lifestyles
Private Limited, assuring to provide financial assistance, as required, to enable the subsidiary company
to continue as a going concern.

(iv) Transactions with related parties are on terms equivalent to those that prevail in arm's length
transactions.

(v) The above information has been determined to the extent such parties have been identified on the
basis of information available with the Company and relied upon by the auditors.

36 FINANCIAL INSTRUMENTS

Categories of financial instruments

This Section gives an overview of the significance of financial instruments for the Company and provides
additional information on balance sheet items that contain financial instruments. The details of material
accounting policies, including the criteria for recognition, the basis of measurement and the basis on
which income and expenses are recognised in respect of each class of financial asset, and financial liability
are disclosed in Note 2(xviii).

(a) Financial assets and liabilities

The accounting classification of each category of financial instruments and their carrying amounts, are
set out below:

The management assessed that fair values of cash and cash equivalents, trade receivables, other financial
assets, trade payables and other financial liabilities recorded at amortised cost is considered to be a
reasonable approximation of fair value.

Following methods and assumptions were used to estimate fair values:

Fair values of the Company's interest-bearing borrowings are determined by using EIR method using
discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The own non¬
performance risk as at reporting date was assessed to be insignificant.

b) Fair value hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial
instruments by valuation techniques. The three levels are defined based on the observability of significant
inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

Quantitative disclosures fair value measurement hierarchy

The derivative instruments in designated hedge accounting relationships is measured at fair value at
level 1, with valuation technique being use of market available inputs such as gold prices and foreign
exchange rates.

37 FINANCIAL RISK MANAGEMENT OBJECTIVE

The Company's activities expose it to a variety of financial risks. The Company's primary focus is to
foresee the unpredictability of such risks and seek to minimize potential adverse effects on its
financial performance.

The Company has a robust risk management process and framework in place. The Company's board of
directors has overall responsibility for the establishment and oversight of the risk management framework.
The Company's board of directors oversee how management monitors compliance with the risk
management policies and procedures, and reviews the adequacy of the risk management framework in
relation to the risks faced by the Company. The committee is assisted in its oversight role by internal audit.
Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures,
the results of which are reported to the audit and risk management committee.

Market risk - price risk

The Company is exposed to fluctuations in gold price (including fluctuations in foreign currency) arising
on purchase/sale of gold. The Company's business objective includes safe-guarding its earnings against
adverse price movements of gold as well as foreign exchange risks.

The Company has adopted a structured risk management process to hedge these risks within an acceptable
risk limit and an approved hedge accounting framework which allows for fair value hedges/cash flow
hedges, as designated at the inception of the hedge. The forward contracts which are not designated as
above are marked to market at each balance sheet date and corresponding gain/ loss is recognised in the
Statement of Profit and Loss. The risk management strategy against gold price fluctuation also includes
procuring gold on loan basis, with a flexibility to fix price of gold at any time during the tenor of the loan.
The Company does not enter into or trade financial instruments including derivative financial instruments,
for speculative purposes.

The table below shows the position of hedging against probable forecast sales (commodity price risk)
and currency forwards (currency risk) as of the balance sheet date.

(ii) Assets

The Company's financial assets are carried at amortised cost and are at fixed rate only. They are, therefore,
not subject to interest rate risk since neither the carrying amount nor the future cash flows will fluctuate
because of a change in market interest rates.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay
amounts due to the Company causing financial loss. It arises from cash and cash equivalents, deposits
with banks and financial institutions, security deposits, loans given and principally from credit exposures
to customers relating to outstanding receivables. The Company's maximum exposure to credit risk is
limited to the carrying amount of financial assets recognised at reporting date.

I n respect of trade and other receivables, the Company is not exposed to any significant credit risk
exposure to any single counterparty or any company of counterparties having similar characteristics.
Credit risk on receivables is limited as the nature of the business is cash and carry except for franchisee
partners where there is adequate controls in place. The Company has very limited history of customer
default, and considers the credit quality of trade receivables that are not past due or impaired to be good.

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of its
customer base, including the default risk of the industry.

Credit risk has always been managed by the Company through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers based on which the Company agrees
on the credit terms with customers in the normal course of business. On account of adoption of Ind AS
109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company
uses a provision matrix to compute the expected credit loss allowance for trade receivables and contract
assets. The provision matrix takes into account available external and internal credit risk factors and
the Company's historical experience for customers. The movement of provision for expected credit loss
during the year is given below:

The credit risk for cash and cash equivalents, bank deposits, security deposits and loans is considered
negligible, since the counterparties are reputable organisations with high quality external credit ratings.

No significant changes in estimation techniques or assumptions were made during the reporting period.
Liquidity risk

The Company requires funds both for short-term operational needs as well as for long-term expansion
programmes. The Company remains committed to maintaining a healthy liquidity ratio, deleveraging and
strengthening the balance sheet. The Company manages liquidity risk by maintaining adequate support
of facilities from its holding company, and by continuously monitoring forecast and actual cash flows and
by matching the maturity profiles of financial assets and liabilities.

The Company's treasury department is responsible for liquidity, funding as well as settlement management.
In addition, processes and policies related to such risks are overseen by senior management.

The Company's financial liability is represented significantly by long-term and short-term borrowings from
banks and trade payables. The maturity profile of the Company's short-term and long term borrowings
and trade payables based on the remaining period from the date of balance sheet to the contractual
maturity date is given in the table below.

(iii) Capital management

The Company's capital management objectives are

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

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

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

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

Note (i) - The Company has investments in the equity shares of subsidiaries and there are no dividends
or other returns from the subsidiaries for the current year and previous year as such these have not been
considered for ratio calculation as above.

39 LEASES

(i) The Company has taken building premises on long-term lease from various parties for operating its
showrooms and some of the office premises. The leases typically run for a period of 5 years to 15 years with
lock in period ranging from 3 to 5 years. Refer Notes 4 and 16 for movement of right-of-use assets and
lease liabilities. The maturity analysis of undiscounted contractual cash flows pertaining to these leases is
given below:

43 OTHER STATUTORY INFORMATION:

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

ii) The Company has not traded or invested in crypto currency or virtual currency during the current
year and previous year.

iii) There Company does not have any transactions which are not recorded in the books of accounts that
have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
during the current year and previous year.

iv) There are no Schemes of Arrangements which are either pending or have been approved by the
Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the current
year and previous year.

v) No funds have been received by the Company from any persons or entities, including foreign
entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the Company shall, 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 provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

44 Pursuant to the approval of the Board of Directors on 31 March 2023, the Company had taken a decision
to dispose off two aircrafts owned by it as part of management's overall strategy to dispose off non-core
assets and accordingly, the fair value of the aircrafts amounting to Rs. 1,339.10 million was classified as
'Assets held-for-sale' as on 31 March 2024 in accordance with Ind AS 105 “Non-current Assets Held for
Sale and Discontinued Operations”. During the current year, the Company has obtained the approval from
the Director General of Civil Aviation (DGCA) and sold both the aircrafts at the agreed consideration of
Rs. 1,339.10 million.

45 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the
proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts)
Amendment Rules 2021 requiring companies which uses accounting software for maintaining its books
of account, shall use only such accounting software which has a feature of recording audit trail of each
and every transaction, creating an edit log of each change made in the books of account along with the
date when such changes were made and ensuring that the audit trail cannot be disabled. Further, the
provision also specifies a statutory requirement for record retention.

With respect to the accounting software used for maintaining the Company's accounting records,
once a transaction is posted, it cannot be edited. The application logs of the transaction at the time
of posting, and any subsequent edits, deletions, or insertions of transactional data are also logged.

There is no functionality to enable or disable logging for specific activities. Once posted, a transaction
cannot be edited by any user, and the edit log captures all relevant information. For certain masters at
the application level, the audit trail feature was enabled after the beginning of the current year due to
operational challenges, and consequently, the logs of audit trail are maintained only from those dates. The
audit trail feature has not been enabled at database level for capturing direct data changes for accounting
software to log any direct data changes due to operational challenges.

The audit trail feature was not enabled at both application level and database level for accounting
software used for maintenance of the day-to-day operations, payroll records and records in connection with
gold purchase scheme due to operational challenges.

The Company is currently migrating from on-premises to a cloud database and is evaluating all feasible
solutions to enable audit trail at both the application and database levels for all software.

46 Approval of financial statements: The standalone financial statements were approved for issue by the
board of directors on 8 May 2025.

47 Prior year comparatives have been regrouped/reclassified where necessary to conform with the current
year classification. The impact of such regroupings/ reclassifications is not material to these standalone
financial statements.

As per our report of even date attached

For Walker Chandiok & Co LLP For and on behalf of Board of Directors of Kalyan Jewellers India Limited

Chartered Accountants

(Firm's Registration Number: 001076N/N500013)

Krishnakumar Ananthasivan T.S. Kalyanaraman T.K. Ramesh T.K. Seetharam

Partner Managing Director Director Director

(Membership No. 206229) DIN: 01021928 DIN: 01021868 DIN: 01021898

Sanjay Raghuraman V. Swaminathan Jishnu R.G.

Chief Executive Officer Chief Financial Officer Company Secretary

Place: Thrissur Place: Thrissur

Date: 08 May 2025 Date: 08 May 2025