25. Significant Accounting Policies:

a. Basis of Preparation and Accounting:

These financial statements of the Company have been prepared in accordance with the
Indian Accounting Standard (herein after referred to as the Ind AS) as notified by Ministry
of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (“the Act”) read
with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and
the relevant provisions of the Act.

b. Functional and presentation currency:

The financial statements are presented in Indian Rupees (INR), which is Company’s
functional currency. All amounts disclosed in the financial statements and notes have been
rounded off to the nearest thousands rupee as per the requirement of Schedule III of the
Companies Act, 2013, unless otherwise indicated.

c. Use of judgments and estimates

The preparation of the financial statements in conformity with Ind AS requires
management to make certain estimates, judgments and assumptions. These affect the
application of accounting policies, the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at the reporting date of the financial
statements and reported amounts of income and expenses during the period. Accounting
estimates could change from period to period and the actual results could differ from those
estimates. These are reviewed by the management on an on-going basis and appropriate
changes in estimates are made prospectively as management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are reflected in the financial
statements in the period in which changes are made and, if material, their effects are
disclosed in the notes to the financial statements.

The management believes that the estimates used in preparation of these financial
statements are just, prudent and reasonable.

d. Property, plant and equipment

All the items of property, plant and equipment are stated at cost less depreciation and
impairment, if any. Historical cost includes expenditure that is directly attributable to the
acquisition of the items.

When significant parts of property, plant and equipment are required to be replaced at
intervals, the company derecognizes the replaced part and recognizes the new part with its
own associated useful life and it is depreciated accordingly. Likewise, when a major
inspection is performed, its cost is recognized in the carrying amount of the plant and
equipment. All others repairs and maintenance cost are recognized in the statement of profit
and loss as incurred. Subsequent cost are included in the asset’s carrying amount or
recognized as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item that will flow to the company and the cost of the items
can be measured reliably. Expenses directly related to construction activity or incidental
thereto, are allocated to fixed assets at the time of completion of the project.

The charge in respect of periodic depreciation is derived after determining an estimate of
an asset’s expected useful life and the expected residual value at the end of its life. The
useful lives and residual values of company's assets are determined by management at the
time the asset is acquired and the assets residual values, useful lives and method of
depreciation are reviewed at each financial year end and adjusted prospectively, if
appropriate. The lives are based on historical experience with similar assets as well as
anticipation of future events, which may impact their life, such as changes in technology.
Depreciation on Property, Plant and Equipment, other than Freehold Land is provided over
the useful life of the asset as specified in schedule II to the Companies Act, 2013. Property
, Plant and Equipment which are added / disposed off during the year , depreciation is
provided on pro rata basis with reference to the month of addition and deletion. Assets to
be disposed off are reported at the lower of the carrying value or the fair value less cost to
sell.

The estimated useful lives of assets are as follows:

The residual values are not more than 5% of the original cost of the asset. The assets residual
values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.

In case of pre-owned assets, the useful life is estimated on a case to case basis.

Gains and losses on disposals are determined by comparing proceeds with carrying amount.
These are included in the Statement of Profit and Loss.

e. Depreciation and amortization:

Depreciation has been provided on the basis of straight line method as per schedule II of
the Companies Act 2013. The residual values are not more than 5% of the original cost of
the asset.

f. Impairment of Assets:

At each balance sheet date, the company reviews the carrying amounts of its fixed assets
to determine whether there is any indication that those assets suffered an impairment loss.
If any such indication exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss. An impairment loss is charged to Profit and Loss
account in the year which an asset is identified as impaired.

g. Inventories:

The inventories comprises of “Commodities and Securities”. Commodities primarily
includes Gold and Silver Bullion and traded at MCX which are prominent national
commodity Exchanges. Commodities are valued at cost price or net realizable value
whichever is lower. Cost of commodities are comprises of cost of purchase and other costs
incurred to bring them at their respective present location and condition. Securities are
valued at cost price, determined on FIFO basis, or net realizable value whichever is lower.

h. Revenue Recognition:

Revenue is recognized when the significant risks and rewards of ownership of
Commodities and Securities have been passed to the buyer. Revenue from derivatives
comprises of realized profit/loss on exchange traded derivative instruments. Realized
profit/ loss on closed positions of derivative instruments is recognized on final settlement
on squaring up of the contracts. Interest income is recognized on the basis of bank
statements received from the Bank. Dividend is recognized when right to receive payment
is established. Revenue from services is recognized on completion of such services.

i. Financial Derivatives and Commodity Hedging Transactions:

In respect of derivatives contracts, premium paid, gain/ loss on settlement and losses on
restatements are recognized in the profit & loss account statement.

j. Leases :

Operating Leases: Rentals are recognized as an expense with reference to lease terms and
other considerations.

k. Employees Benefit:

Provisions for statutory/ contractual liability benefit on retirement/ death of employees are
accounted for as and when paid.

l. Tax on Income:

Tax expenses comprises of current tax & deferred tax.

Current Tax: The provision for current income tax liability is ascertained on the basis of
assessable profit computed in accordance with the provision of Income Tax Act,1961.

Deferred Tax: Deferred tax assets and liabilities arising on account of timing difference
and which are capable of reversal in subsequent periods, are recognized using the tax rates
and tax laws that have been enacted or substantively enacted as on the Balance Sheet date.
Deferred Tax Assets are recognized and carried forward only if there is a virtual certainty
that they will be realized and are reviewed for the appropriateness of their respective
carrying values at each Balance Sheet date.

m. Earnings Per Share:

The Company reports basic and diluted earnings per share in accordance with accounting
standard 20-“ Earnings Per Share” Notified under section 133 of the companies Act 2013,
read together with paragraph 7 of the companies (Accounts) Rules, 2014. Basic earnings

per share are computed by dividing the net profit after tax attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

n. Borrowing Cost:

Financing and borrowing costs are charged to revenue in the year in which these are
incurred.