The following discussion and analysis is intended to convey the managements perspective on our financial condition and results of operations for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024. The following information is qualified in its entirety by, and should be read in conjunction with, the more detailed financial and other information included in this Red Herring Prospectus, including the information contained in "Risk Factors", "Industry Overview", "Our Business", and "Restated Consolidated Financial Statements" beginning on pages 25, 161, 233, and 327, respectively as well as other financial and other information contained in this Red Herring Prospectus.
This Red Herring Prospectus may include forward-looking statements that involve risks and uncertainties, and our actual financial performance may materially vary from the conditions contemplated in such forward-looking statements as a result of various factors, including those described below and elsewhere in this Red Herring Prospectus. Some of the information in this section, including information with respect to our business plans and strategies, contains forward-looking statements that involve risks and uncertainties. You should read "Forward-Looking Statements" on page 23 for a discussion of the risks and uncertainties related to those statements and also the sections "Risk Factors", "Industry Overview", "Our Business", and "Financial Statements" on pages 25, 161, 233 and 320, respectively, as well as financial and other information contained in this Red Herring Prospectus as a whole, for a discussion of certain factors that may affect our business, financial condition or results of operations. Our actual results may differ materially from those expressed in or implied by these forward-looking statements.
We have also included various financial and operational performance indicators in this Red Herring Prospectus, some of which have not been derived from the Restated Consolidated Financial Statements. The manner of calculation and presentation of some of the financial and operational performance indicators, and the assumptions and estimates used in such calculations, may vary from that used by other companies in India and other jurisdictions. Our Companys financial year commences on April 1 and ends on March 31 of the subsequent year, and references to a particular fiscal year are to the 12 months ended March 31 of that particular year. Unless otherwise stated or the context otherwise requires, references in this section to "we", "us", or "our" are to Augmont Enterprises Limited on a consolidated basis, while "our Company" or "the Company" are to Augmont Enterprises Limited on a standalone basis.
Unless otherwise indicated, industry and market data used in this section has been derived from the industry report titled "Industry Report on Indias Gold Landscape: Insights into a Modernising Industry" dated August 6, 2026 (the "Technopak Report") prepared and issued by Technopak Advisors Private Limited, appointed by us pursuant to an engagement letter dated April 21, 2025 and letter of authorization dated March 24, 2026 and exclusively commissioned and paid for by us to enable investors to understand the industry in which we operate in connection with the Offer. The data included herein includes excerpts from the Technopak Report and may have been re-ordered by us for the purposes of presentation. Unless otherwise indicated, financial, operational, industry and other related information derived from the Technopak Report and included herein with respect to any particular calendar year/ Fiscal refers to such information for the relevant calendar year/ Fiscal. A copy of the Technopak Report is available on the website of our Company at https://augmont.com/investors/stakeholders#reports. For further information, see "Risk Factors - Certain sections of this Red Herring Prospectus disclose information from the Technopak Report which has been prepared exclusively for the Offer and commissioned and paid for by us exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks." on page 62. Also see, "Certain Conventions, Currency of Presentation, Use of Financial Information and Market Data - Industry and Market Data" on page 21.
OVERVIEW
For information in relation to our business, see "Our Business" on page 233.
SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS
Our results of operations and financial condition are affected by a number of important factors including:
Prices of gold and silver and our ability to procure such materials
Our business is dependent on the continuous and cost-effective procurement of gold and silver. The prices of gold and silver are affected by several interrelated factors including prices set by the LBMA, international supply and demand trends, international logistics and freight rates, the US Dollar volatility index, futures and options open positions, and volatility in alternative digital assets. Domestic factors that affect gold and silver prices include disparity between domestic and international gold and silver prices, domestic supply and demand fluctuations, premiums charged by banks, applicable central and local taxes. (Source: Technopak Report)
We procure refined gold and silver from sources such as Indian and international banks. We import dor? bars (which have lower duties on import by 0.65% as compared to directly importing refined gold) and then refine them and sell our products. We also procure scrap gold and silver from individuals and jewellers and at jewellery auctions at reduced rates for our refining operations. Further, we have set up a subsidiary, Augmont IFSC Private Limited, in GIFT City for the import of refined gold and silver through the IIBX. Our ability to procure such materials from multiple sources and in bulk quantities enables us to benefit from favourable pricing terms and sell our products throughout the year.
The majority of our cost structure is attributed to the procurement of such materials. Our cost of materials consumed, which represents the cost of the dor? bars that we import and other unrefined gold and silver for our refining operations, was ? 207,001.69 million, ? 189,480.77 million and ? 95,779.14 million or 21.96%, 28.60% and 27.41% of our total income for Fiscals 2026, 2025 and 2024, respectively. Our purchases of stock in trade, which represents the cost of the refined gold and silver that we buy and sell to customers, was ? 731,545.87 million, ? 468,497.85 million and ? 251,322.99 million or 77.59%, 70.71% and 71.91% of our total income for Fiscals 2026, 2025 and 2024, respectively.
The gold and silver that we procure is typically on a purchase order basis and our ability to procure such materials is subject to a number of risks and uncertainties. These include volatility in global commodity prices, fluctuations in foreign exchange rates, changes in import duties and tariffs, and evolving regulatory frameworks governing bullion trade. Further, geopolitical tensions, trade restrictions, or sanctions affecting key bullion-exporting countries could disrupt international supply chains and affect our ability to source adequate amounts of gold and silver. Any inability on our part to procure sufficient quantities of gold and silver and on commercially acceptable terms, could lead to a change in our sales volumes and affect our results of operations. For further details, see "Risk Factors – Our business is dependent on the continuous and cost-effective procurement of gold and silver bullion. The countries or regions we currently import bullion from, may become subject to sanctions, import duties or export controls and our inability to procure sufficient quantities of bullion may have an adverse effect on our business, results of operations and financial condition." on page 29.
Volume of products sold
The key driver in the growth of our revenue from operations has been the volume of gold and silver products sold by us. Increased sales volume favourably affects our results of operations as it enables us to benefit from economies of scale in procurement and manufacturing. In addition, in order to maximize our profits, we must maintain optimum levels of capacity utilization at our refining units and manufacturing facilities and an appropriate standard of quality in our equipment, processes and products. Attaining and maintaining this level of utilization and quality requires considerable expense and planning. If we are unable to achieve and maintain optimum levels of capacity utilization at our facilities in the future, our results of operations and financial condition may be adversely affected.
We do not enter into any long-term agreements with our customers and sell products when orders are raised by them. Hence, our actual production volumes may differ significantly from our estimates due to variations in customer demand for our products. Since the number of orders that our customers place with us may differ from quarter to quarter, our results of operations have fluctuated in the past and we expect this trend to continue in the future. Further, the demand for gold and silver is influenced by a variety of factors, including global and domestic economic conditions, inflation and interest rate trends, currency fluctuations, geopolitical tensions, and changes in disposable income and consumer sentiment. A sustained decline in gold prices or a shift in consumer or investor preference away from precious metals could reduce the attractiveness of our products and affect our sales volumes.
The following table sets forth certain details of our Augmont SPOT platform for the years indicated:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Number of transactions* | 116,644 | 206,291 | 137,147 |
| Value of transactions (? million) | 817,505.69 | 553,397.69 | 318,389.03 |
| Volume of gold sold (MT) | 53.41 | 61.84 | 44.04 |
| Volume of Silver sold | 1 049.05 | 1035.22 | 759.08 |
Including inter-company transactions.
The following table sets forth certain details of our Augmont Gold For All platform for the years indicated:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Number of transactions | 54,934,891 | 35,716,815 | 28,479,217 |
| Value of transactions (? million) | 30,120.51 | 11,834.87 | 6,389.65 |
Our distribution network
Our online platforms Augmont SPOT and Augmont Gold For All are complemented by our physical distribution network, which helps us deliver our products to customers on a pan-India basis and increase our sales volumes. For Augmont SPOT, we have 20 spot delivery centers located in key hubs across 13 states in India to deliver the gold and silver bars that are purchased by businesses, as of March 31, 2026. Of these, nine spot delivery centers are operated directly by us, while 11 are operated through franchisees. We intend to set up new physical delivery centers across Tier 3 and Tier 4 cities in India and set up 15 new centers by Fiscal 2029.
For our consumer-focused offerings vertical, our physical network comprised 106 Gold-For-All centers that are operated by our Group Company, Finkurve, as of March 31, 2026. Further, we have arrangements in the form of agreements with leading jewellers such as Kalyan Jewellers and CaratLane pursuant to which consumers can redeem digital gold at their outlets. We also serve consumers through our alliances (in the form of agreements) with platforms such as Gullak and Candere, pursuant to which consumers can place orders for digital gold and silver products directly on these platforms. If our customers opt for redemption and delivery of digital gold (primarily, coins and jewellery), we fulfil such orders and our backend systems ensure automated order confirmation, packaging and dispatch of the products. Further, our investment jewellery products are available across 3,700 physical branches of Muthoot Fincorp. (Source: Technopak Report) We have also entered into an agreement with an NBFC pursuant to which customers can purchase our jewellery and bullion products at their stores, while we handle the fulfilment and secure delivery of such orders. We have also onboarded 705 independent financial agents to increase the sale of our products as of March 31, 2026. However, most of our arrangements for our consumer-focused offerings vertical are non-exclusive and may be subject to termination or non-renewal at the discretion of the counterparties.
We seek to grow the reach of our products and increase the penetration of our products in markets in which we are currently present. Consequently, our ability to expand our distribution network and effectively manage our existing network will affect our results of operations.
Government regulations and policies
Our operations span across multiple segments of the gold and silver value chain including procurement and refining, bullion trading, digital gold offerings, jewellery manufacturing, international sales and gold-backed financial services. We operate in highly regulated industries and are required to comply with a complex and evolving framework of laws, rules, and regulations. We are required to obtain and maintain numerous approvals, registrations, and licenses from various regulatory authorities including the Directorate General of Foreign Trade, Bureau of Indian Standards, Goods and Services Tax authorities, local municipal bodies, customs authorities, and securities market regulators. Our refining and manufacturing operations are also subject to environmental, health and safety, and labor laws. Further, our business could be affected by geopolitical tensions and tariffs imposed on India by other countries. Consequently, any adverse changes in the laws and regulations that we are subject to or our inability to comply with them could affect our business and results of operations.
PRESENTATION OF FINANCIAL INFORMATION
The Restated Consolidated Financial Statements comprise the restated consolidated statement of assets and liabilities as at March 31, 2026, March 31, 2025 and March 31, 2024 and the restated consolidated statement of profit and loss (including other comprehensive income), restated consolidated cash flow statement and changes in equity for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024 of our Company and Subsidiaries together with the summary of material accounting policies, and other explanatory information thereon, derived from the consolidated audited financial statements prepared in accordance with the Ind AS for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, restated in accordance with the SEBI ICDR Regulations, Section 26 of Part I of Chapter III of the Companies Act, 2013 and the Guidance Note
SUMMARY OF MATERIAL ACCOUNTING POLICIES
Set forth below are our material accounting policies:
The Restated Consolidated Financial Information of our Company have been prepared to comply in all material respects with the Indian Accounting Standards ("Ind AS") notified under section 133 of the Companies Act, 2013 ("the Act") read with Rule 3 of the companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act as amended including presentation and disclosure requirement of Division II of Schedule III of the Act as amended time to time.
The financial statements of our Company (hereinafter referred to as "Restated Consolidated Financial Statements") for the year ended March 31, 2026 were approved and authorised for issue by the Audit Committee and Board of Directors at their respective meeting held on August 3, 2026.
The Restated Consolidated Financial Information for all periods upto and including year ended 31 March 2024 were prepared in accordance with the Companies (Accounting Standards) Rules, 2006 notified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) ("previous GAAP"). The Consolidated Financial Statements for the year ended 31 March 2024 are the first Financial Statements prepared by our Company in accordance with Ind AS.
The Restated Consolidated Financial Information have been prepared on accrual basis under the historical cost convention with the exception of certain financial assets and liabilities (including derivative instruments) which have been measured at fair value as required by relevant Ind AS.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
The statement of cash flows have been prepared under indirect method.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date.
All the assets and liabilities have been classified as current and non- current as per normal operating cycle of our Company and other criteria set out in as per the guidance set out in Schedule III to the Act. Based on nature of services, our Company ascertained its operating cycle as 12 months for the purpose of current and non- current classification of asset and liabilities.
The Restated Consolidated Financial Information have been prepared in accordance with the Indian Accounting Standards notified under Section 133 of Companies Act, 2013 (the Act) read with Companies Indian Accounting Standards (Ind AS) Rules, 2015 and other relevant provisions of the Act and rules framed thereunder.
The Restated Consolidated Financial Statements have been prepared by our Company for the purpose of proposed offerings/ fund raising at our Company level and in accordance with the applicable provisions of section 26 of the Act as amended from time to time, Paragraph A of Clause 11 (I) of Part A of Schedule VI of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended to date (the "SEBI ICDR Regulations") issued by the Securities and Exchange Board of India (the "SEBI") and the Guidance Note on Reports in Company Prospectuses (Revised 2019) ("Guidance Note") issued by The Institute of Chartered Accountants of India ("ICAI").
The Restated Consolidated Financial Statements have been prepared under the historical cost convention and on accrual basis, except for certain financial assets and liabilities measured at fair value and defined benefit plan assets that are measured at fair value as explained in accounting policies below.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, our Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.
The Restated Consolidated Financial Statements are presented in Indian Rupees, which is also our Companys functional currency. All amounts are rounded to the nearest million, unless otherwise stated.
Principles of Consolidation
The Restated Consolidated Financial Statements comprise the financial statements of our Company, Subsidiaries and Associates. The Restated Consolidated Financial Statements of our Company have been prepared in accordance with the Indian Accounting Standards on "Consolidated Financial Statements" (Ind AS 110), "Disclosure of Interest in Other Entities" (Ind AS 112), "Investment in Associates and Joint Ventures" (Ind AS 28) notified under Section 133 of the Companies Act, 2013.
a) Subsidiaries
Subsidiaries are entities controlled by our Company. Our Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Financial Statements of subsidiaries are included in the Restated Consolidated Financial Statements from the date on which controls commences until the date on which control ceases.
b) Non-Controlling Interest
Non-controlling interest in the net assets of the consolidated subsidiaries consists of:
i) The amount of equity attributable to non-controlling shareholders at the date on which the investments in the subsidiary companies were made.
b) The non-controlling share of movements in equity since the date the Parent-Subsidiary relationship comes into existence
The total comprehensive income of subsidiaries is attributed to the owners of our Company and to the non-controlling interests even if this results in the noncontrolling interest having deficit balance.
c) Loss of Control
When our Company loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any interest retained in the former subsidiary is measured at fair value at the date the control is lost. Any resulting gain or loss is recognised in the Consolidated Statement of Profit and Loss.
d) Transaction Eliminated on Consolidation
The Financial Statements of our Company used in the consolidation procedure are drawn upto the same reporting date, i.e., March 31, 2026.
The financial statements of our Company and our subsidiary companies are combined on a line-by-line basis by adding together of like-items of assets, liabilities, income and expenses, after eliminating material intragroup balances and intra-group transactions and resulting unrealised profits or losses on intra-group transactions. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
Business Combinations and Goodwill/Capital Reserve
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. Any excess of purchase consideration over the fair value of net identifiable assets is recognized as goodwill. If the net assets acquired exceed the consideration, the difference is recognized as a bargain purchase gain and treated as Capital Reserve. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For each business combination, our Company elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquirees identifiable net assets. Acquisition-related costs are expensed as incurred. The interest of non-controlling shareholders is initially measured either at fair value or at the non-controlling interests proportionate share of the acquirees identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests share of subsequent changes in equity of subsidiaries.
Business Combination under Common Control
Business combination involving entities that are ultimately controlled by the same part(ies) before and after the business combination are considered as Common control entities and are accounted using the pooling of interest method as follows:
a) The assets and liabilities of the combining entities are reflected at their carrying amounts
b) No adjustments are made to reflect the fair values, or recognise new assets or liabilities. Adjustments are made to harmonise accounting policies
c) The financial information in the Financial Statements in respect of prior periods is restated as if the business combination has occurred from the beginning of the preceding period in the Financial Statements, irrespective of the actual date of the combination
The balance of the retained earnings appearing in the Financial Statements of the transferor is aggregated with the corresponding balance appearing in the Financial Statements of the transferee or is adjusted against general reserve
The identity of the reserves is preserved and the reserves of the transferor become the reserves of the transferee. The difference if any, between the amounts recorded as share capital plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve and is presented separately from other capital reserves.
Use of estimates and judgements
The preparation of Financial Information in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the date of consolidated financial statement. Such estimates and assumptions are based on managements evaluation of relevant facts and circumstances as on the date of Restated Consolidated Financial Statements. The actual outcome may differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
This note provides an overview of the areas where there is a higher degree of judgment or complexity. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation.
Following are the areas involving critical estimates and judgements:
Judgement:
i) Leases
ii) Evaluation of recoverability of deferred tax assets, and estimation of income tax
payable and income tax expense in relation to an uncertain tax position
iii) Provisions
iv) Contingencies
Estimates:
i) Accounting for Defined benefit plans
ii) Useful lives of property, plant and equipment and intangible assets
iii) Fair value of financial instruments
iv) Valuation of inventories
Functional and presentation currency and rounding off of the amounts:
The functional and presentation currency of our Company is Indian rupees (INR). This Restated Consolidated Financial Information are presented in Indian rupees and all values are stated in millions of rupees except otherwise indicated.
Current and non-current classification
Our Company has classified all its assets and liabilities under current and non-current as required by Ind AS 1- Presentation of Financial Statements. The asset is treated as current when it is:
Expected to be realized or intended to be sold or consumed in normal operating cycle; Held primarily for purpose of trading; Expected to be realized within twelve months after the reporting period; or Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
All liabilities are current when:
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. Deferred tax assets (including Minimum Alternate Tax Credit) and liabilities are always classified as non-current assets and liabilities.
Revenue Recognition
Revenue from sale of goods
Revenue is recognised upon transfer of control of promised goods to customers and there are no longer any unfulfilled obligations in an amount that reflects the consideration which our Company expects to receive in exchange for those goods. Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer.
Revenue is measured based on the transaction price, which is the consideration, net of customer incentives, discounts, variable considerations, payments made to customers, other similar charges, as specified in the contract with the customer. Additionally, revenue excludes taxes collected from customers, which are subsequently remitted to governmental authorities.
Revenue from services
Revenue from services is recognized pro-rata over the year of the contract as and when services are rendered and the collectability is reasonably assured. The revenue is recognized net of Goods and Services tax. Income from services is accounted for on completion of rendition of service and as per terms and conditions of agreement. Commission income as a service agent is accounted for on accrual basis and as per the terms of agreement. Service fees are accounted for when the financial partner disburses the loan to the identified client. Charges on cancellation of equated monthly installments orders are accounted for on accrual basis.
Interest Income
Interest is accrued on a time proportion basis, by reference to the principle outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assets net carrying amount on initial recognition.
Dividend Income
Dividend income from investments is recognised when right to receive payment is established (provided that it is probable that the economic benefits will flow to our Company and the amount of income can be measured reliably).
Property Plant and Equipment, Intangible Assets and Depreciation
Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not depreciated.
Property, plant and equipment are stated at cost of acquisition including attributable interest and finance costs, if any, till the date of acquisition/ installation of the assets less accumulated depreciation and accumulated impairment losses, if any. The cost of property, plant and equipment comprises its purchase price/ acquisition cost, net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying property, plant and equipment up to the date the asset is ready for its intended use.
The cost and related accumulated depreciation are eliminated from the financial statements, either on disposal or when no future economic benefits are expected to arise from continued use of the asset and the resultant gain or loss are recognised in the Statement of Profit and Loss as the difference between the sales proceeds and the carrying amount of the asset.
Our Company follows cost model for measurement of items of property plant and equipment and has not revalued any items of Property Plant and Equipment
Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under "Other Non-Current Assets".
Parts of an item having different useful lives and significant value and subsequent expenditure relating to property, plant and equipment is capitalised only when it is probable that future economic benefits associated with the item will flow to our Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance costs are charged to the Consolidated Statement of Profit and Loss as incurred.
On transition to Ind AS, our Company has opted to continue with the carrying values measured under the previous GAAP as at 1 April 2022 of its Property, Plant and Equipment and use that carrying value as the deemed cost.
Depreciation on PPE is calculated on a written down value using the rates arrived at based on the useful lives prescribed in the Schedule II to the Companies Act, 2013 or the technical life estimated by the management.
Leasehold land, factory building and electrical installation constructed on leased land is amortized on a straight line basis over the period of lease or the useful life of the asset, whichever is lower. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on prospective basis.
In respect of following category of plant and machineries based on technical estimates and justifications, irrespective of the number of hours the plant and machinery has been operated the life as per management is as follows:
| Asset | Useful Life |
| Land-Lease hold | 65 years |
| Factory Building | 30 years |
| Plant & Machinery | 15 years |
| Furniture & fixtures | 10 years |
| Office Equipments | 5 years |
| Electrical Installations | 5 years |
| Computers | 3 years |
| Vehicles | 8 years |
| Motor cycle | 10 years |
8 years Leasehold Improvements Over lease period
In respect of additions to /deletions from the PPE, depreciation is calculated on pro-rata basis with reference to the month of addition/deletion of the assets.
Our Company reviews the residual value, useful lives and depreciation method annually and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.
During the year the Ideal Fiscal Services Limited has changed method of depreciation from SLM to WDV prospectively and additional depreciation due to change of method amounting to ? 286,103 is charged to profit and loss account.
Intangible Assets
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to our Company and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative impairment. Administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible assets. Intangible development costs are capitalised as and when technical and commercial feasibility of the asset is demonstrated and future economic benefits are probable.
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and impairment losses. Amortisation of the asset begins when development is complete, and the asset is available for use.
Amortisation is recognised on a straight-line basis over the useful lives of the asset from the date of capitalisation as below:
Computer software - 3 years
The estimated useful life and amortisation method is reviewed at the end of each reporting period and the effect of any changes in estimate is accounted for prospectively.
Intangible assets are derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount and recognised in the Consolidated Statement of Profit and Loss.
On transition to Ind AS, our Company has opted to continue with the carrying values measured under the previous GAAP as at 1 April 2022 of its Intangible Assets and used that carrying value as the deemed cost.
Borrowing costs
Borrowing costs, general or specific, that are directly attributable to the acquisition or construction of qualifying assets is capitalised as part of such assets. A qualifying asset is one that necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to the consolidated Statement of Profit and Loss.
Our Company determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on that borrowing during the year less any interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. In case if our Company borrows generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalisation are determined by applying a capitalisation rate to the expenditures on that asset.
Borrowing cost includes exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the finance cost.
Impairment
Impairment of Non Financial Assets
At the end of each reporting period, our Company reviews the carrying amounts of non-financial assets (other than inventories, contract asset and deferred tax assets) to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, our Company estimates the recoverable amount of the cash-generating unit to which the assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the consolidated statement of profit and loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of impairment loss is recognised immediately in the consolidated statement of profit and loss.
Impairment of Financial Assets
In accordance with Ind AS 109, our Company applies the expected credit loss ("ECL") model for measurement and recognition of impairment loss on financial assets and credit risk exposures, other than those measured at Fair Value Through Profit and Loss ("FVTPL").
Our Company follows simplified approach for recognition of impairment loss allowance on trade receivables. Simplified approach does not require our Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, our Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.
ECL is the difference between all contractual cash flows that are due to our Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR (or historical default rates). At every reporting date these historical default rates are reviewed and changes in the forward-looking estimates are analysed. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.
ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in the Consolidated Statement of Profit and Loss.
Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial Assets
Initial Recognition
Financial assets are recognised when an entity becomes a party to the contractual provisions of the instrument
Financial assets 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 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 consolidated statement of profit and loss.
In the case of financial assets, not recorded at fair value through profit or loss ("FVPL"), financial assets are recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that our Company commits to purchase or sell the asset.
On initial recognition, a financial asset is classified as measured at: amortised cost; or FVTPL Fair Value through Other Comprehensive Income ("FVTOCI")
Effective interest rate method
The effective interest rate method is a method of calculating the amortised cost of a debt instrument and allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
Financial Assets at Amortised Cost
Financial assets are subsequently measured at amortised cost, using the effective interest rate ("EIR") method less impairment, if these financial assets are held within a business model with an objective to hold these assets in order to collect contractual cash flows and 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. Interest income from these financial assets is included in finance income using the EIR method (amortization of EIR). Impairment gains or losses arising on these assets are recognised in the Consolidated Statement of Profit and Loss.
Financial Assets Measured at Fair Value Through Other Comprehensive Income (FVTOCI)
Financial assets, except trade receivables and contract assets that are measured at transaction price, are measured at fair value through OCI if these financial assets are held within a business model with an objective to hold these assets in order to collect contractual cash flows or to sell these financial assets and 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. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the Consolidated Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to consolidated Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.
On transition to Ind AS, our Company has opted to continue with the carrying values measured under the previous GAAP as at 1 April 2022 of its equity investments in subsidiaries and used that carrying value as the deemed cost of these investments on the date of transition i.e. 1 April 2022.
Financial assets measured at Fair Value Through Profit or Loss (FVTPL)
Financial asset which is not classified in the above categories are measured at FVTPL. Financial assets are reclassified subsequent to their recognition, if our Company changes its business model for managing those financial assets. Changes in business model are made and applied prospectively from the reclassification date which is the first day of immediately next reporting period following the changes in business model in accordance with principles laid down under Ind AS 109 – Financial Instruments.
On transition to Ind AS, our Company has opted to continue with the carrying values measured under the previous GAAP as at 1 April 2022 of its equity investments in subsidiaries and used that carrying value as the deemed cost of these investments on the date of transition i.e. 1 April 2022.
Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in Consolidated Statement of Profit and Loss. However, dividend on such equity investments are recognised in Consolidated Statement of Profit and loss when our Companys right to receive payment is established.
Derecognition of financial assets
Our Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party, or it neither transfers or retains substantially all of the risks and regards of ownership and it does not retain control of the financial asset and our Company recognizes its retained interest in the assets and an associated liability for amounts it may have to pay.
If our Company retains substantially all the risks and rewards of ownership of a transferred financial asset, our Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
Our Companys holding in gold ETFs is classified as financial asset under Ind AS 32 and Ind AS 109 since our Company has a contractual right to either settle the ETF units on net cash basis or by delivering physical units of equivalent gold. These are measured at fair value through profit and loss account under Ind AS 109 based on the classification and measurement criteria.
Purchase and sales of these units are presented on net basis under "Purchase of Stock-in-Trade / COGS" in the Consolidated Statement of Profit and Loss
Equity Instruments and Financial Liabilities
Financial liabilities and equity instruments issued by our Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of our Company after deducting all of its liabilities. Equity instruments which are issued for cash are recorded at the proceeds received, net of direct issue costs. Equity instruments which are issued for consideration other than cash are recorded at fair value of the equity instrument.
Repurchase of our Companys own equity instruments is recognised and deducted directly in equity. No gain or loss is recognized in Consolidated Statement of Profit and Loss on the purchase, sale, issue or cancellation of our Companys own equity instruments.
Classification as debt or equity
Debt and equity instruments issued by a Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Financial Liabilities
Initial Recognition
Financial liabilities are classified, at initial recognition, as financial liabilities at Amortised cost or FVTPL. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
Subsequent Measurement
The measurement of financial liabilities depends on their classification, as described below
Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the Consolidated Statement of Profit and Loss. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are recognised in OCI.
Financial liabilities at amortised cost
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in the Consolidated Statement of Profit and Loss.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Consolidated Statement of Profit and Loss.
De-recognition of Financial Liabilities
Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or expired. When an existing 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 or modification is treated as de-recognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognised in the Consolidated Statement of Profit and Loss.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Consolidated Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis to realise the assets and settle the liabilities simultaneously.
Derivative Financial Instrument and Hedge accounting
We use derivative financial instruments, such as forward currency contracts to mitigate its foreign currency fluctuation risks. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value at each reporting date. Gain or loss arising from changes in the fair value of heading instrument is recognized in the Consolidated Statement of Profit and Loss.
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Derecognition
On derecognition of hedged item, the unamortized fair value, of the hedging instrument adjusted to the hedged items is recognized in the Consolidated Statement of Profit and Loss.
Derivative financial instruments
Derivative instruments not designated as fair value hedges
Our Company enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks, including foreign exchange forward contracts, future contracts and Options. 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 the consolidated 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
Our Company designates certain hedging instruments as fair value hedges.
Fair Value Hedge
Our Company has adopted fair value hedge for the derivative contracts entered into and designated derivative contracts or non-derivative financial liabilities as instruments to mitigate the risk of change in fair value of hedged item due to movement in interest rates, foreign exchange rates and commodity prices. Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in the Consolidated Statement of Profit and Loss with an adjustment to the carrying value of the hedged item. Hedge accounting is discontinued when our Company revokes the hedge relationship, the hedging instrument or hedged item expires or is sold, terminated, or exercised or no longer meets the criteria for hedge accounting. Our Company designates derivative contracts as hedging instruments to mitigate the risk of change in fair value of hedged item i.e. fixed gold inventory due to movement in gold prices.
Investment in Associates and Joint Ventures
Our Company has accounted for its investments in associates and joint venture at cost less impairment loss (if any). The investments in preference shares with the right of surplus assets which are in nature of equity in accordance with Ind AS 32 are treated as separate category of investment and measured at FVTOCI.
Measurement of Fair Values
Our Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer 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.
All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).
Level 1 — quoted (unadjusted) market prices 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 or indirectly
Level 3 — inputs that are unobservable for the asset or liability
For the purpose of fair value disclosures, our Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Inventories
i) Finished Goods are valued at lower of cost or net realisable value. Cost of finished goods and work in progress are valued at standard cost which approximates actual cost.
ii) Raw Materials and traded goods are valued at lower of cost or net realisable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a FIFO basis. Cost of raw materials and traded goods comprises of cost of purchase and other cost in bringing the inventory to their present location and condition.
Cost comprises all costs of purchase including duties and taxes (other than those subsequently recoverable by our Company), freight inwards and other expenditure directly attributable to acquisition. Work-in-progress and finished goods include appropriate proportion of overheads.
Net realisable value represents the estimated selling price for inventories less costs necessary to make the sale.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.
Employee Benefits
Employee benefits include salaries, wages, contribution to provident fund, gratuity, leave encashment towards unavailed leave, compensated absences, post-retirement medical benefits and other terminal benefits.
Short-term Benefits
Short-term employee benefits such as salaries, wages, performance incentives etc. including non-monetary benefits that are expected to be settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled at the undiscounted amounts in the Consolidated Statement of Profit and Loss of the period in which the related service is rendered. Expenses on non-accumulating compensated absences is recognised in the period in which the absences occur. The liabilities are presented as current employee benefit obligations in the Consolidated balance sheet.
Post Employment Benefit
Defined Contribution Plan
Under a defined contribution plan, our Companys only obligation is to pay a fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. Contributions to defined contribution schemes such as provident fund, employees state insurance, labour welfare are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employees. The above benefits are classified as Defined Contribution Schemes as our Company has no further obligations beyond the monthly contributions.
Defined Benefit Plan
Our Company also provides for gratuity which is based on present value of defined benefit obligation, the liabilities of which is determined based on valuations, as at the consolidated balance sheet date, made by an independent actuary using the projected unit credit method. The gratuity liability of our Company is unfunded. Re-measurement, comprising of actuarial gains and losses, in respect of gratuity are recognised in the OCI, in the period in which they occur. Re-measurement recognised in OCI are not reclassified to the Consolidated Statement of Profit and Loss in subsequent periods. Past service cost is recognised in the Consolidated Statement of Profit and Loss in the year of plan amendment or curtailment. The classification of our Companys obligation into current and non-current is as per the actuarial valuation report.
Accounting for Taxation of Income
The income tax expense or credit for the period is the tax payable on the current periods taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Income tax is recognised as an expense or income in the Consolidated Statement of Profit and Loss, except to the extent it relates to items directly recognised in equity or in OCI.
Current taxes
The tax currently payable is based on taxable profit for the year. Current income tax is recognised based on the estimated tax liability (taxable profit) computed after taking credit for allowances and exemptions in accordance with the Income Tax Act, 1961. Taxable profit differs from profit before tax as reported in the Consolidated Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred taxes
Deferred tax is determined by applying the balance sheet approach. Deferred tax assets and liabilities are recognised for all deductible temporary differences between the Financial Statements carrying amount of existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities are measured using the enacted tax rates or tax rates that are substantively enacted at the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment date. Deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Such assets are reviewed at each Balance Sheet date to reassess realisation and reduced to the extent it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in Other Comprehensive Income or directly in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.
Foreign Currency Transactions
i) Foreign currency transactions are initially recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. However, for practical reasons, our Company uses a monthly average rate if the average rate approximate the actual rate at the date of the transactions.
ii) Monetary assets and liabilities denominated in foreign currencies are reported using the closing rate at the reporting date. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
iii) Exchange differences arising on settlement/ restatement of short-term foreign currency monetary assets and liabilities of our Company are recognised as income or expense in the Consolidated Statement of Profit and Loss except those arising from investment in non-integral operations.
Provisions and Contingent Liabilities
i) Provisions: A provision is recognised when our 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.
ii) Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of our Company. A contingent liability also arises, in rare cases, where a liability cannot be recognised because it cannot be measured reliably.
iii) Contingent assets are disclosed in the Financial Statements when the economic benefits is probable or inflow becomes virtually certain.
Events after reporting period
Events after the reporting period are those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the Restated Consolidated Financial Information are approved by the Board of Directors in case of a Parent company, and, by the corresponding approving authority in case of any other entity for issue. Two types of events can be identified:
i) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and
ii) those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period).
Our Company adjusts the amounts recognised in its Restated Consolidated Financial Information to reflect adjusting events after the reporting period.
Our Company does not adjust the amounts recognised in its Restated Consolidated Financial Information to reflect non-adjusting events after the reporting period.
Leases
Our Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, our Company assesses whether (i) the contract involves the use of identified asset; (ii) our Company has substantially all of the economic benefits from the use of the asset through the period of lease and (iii) our Company has right to direct the use of the asset.
As a Lessee
As per Ind AS 116 - Leases As a lessee, our Company generally recognises for all leases a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by our Company.
As a general rule, our Company separates non-lease components, such as services from lease payments.
Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, taking into account the incremental borrowing rate.
Lease payments are discounted using the interest rate implicit in the lease contracts if that rate can be determined from the lease contracts. If the discount rate cannot be readily determined, which is generally the case for leases in our Company, the lessees incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
A right-of-use asset is generally recognized at the same amount as the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. After capitalization at commencement date, whereby the right-of-use asset is measured at cost i.e. right-of-use asset at cost less accumulated depreciation and cumulative impairment, if any, the right-of-use asset is generally depreciated over the lease term using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. Lease payments are allocated between principal and finance cost. The finance cost is charged to consolidated profit and loss account over the lease period so as to produce a constant periodic rate of interest on the remaining balance of liability for each period.
Our Company exercises the exemption for lease arrangements with a maximum term of 12 months (short term leases) and low-value assets. Payments associated with such short-term leases and low-value assets are recognised as an expense in Consolidated Statement of Profit and Loss. Variable lease payments that depend on usage and/ or other variable conditions are recognised in the Consolidated Statement of Profit and Loss in the period in which the conditions that trigger those payments occur.
Earnings Per Share
Basic earnings per share is computed by dividing the consolidated net profit or loss for the period attributable to the equity shareholders of our Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.
Diluted earnings per share is computed by dividing the consolidated net profit or loss for the period attributable to the equity shareholders of our Company and weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares).
Cash and Cash Equivalents
Cash and cash equivalents comprise of cash on hand and cash at banks including fixed deposit/ highly liquid investments with original maturity period of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Cash Flow Statements
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities of group is segregated.
Segments reporting
Operating segments are reported in the manner consistent with the internal reporting to the chief operating decision maker (CODM). The accounting policies adopted for segment reporting are in line with the accounting policies of our Company. The business of our Company falls within a single line of business i.e. manufacturing and trading of gold, silver, etc. All other activities of our Company around its main business. Hence no separate reportable primary segment.
Employee stock compensation cost
Employees (including senior executives) of our Subsidiary, Augmont Goldtech Private Limited (formerly known as Augmont Precious Metals Private Limited) receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.
That cost is recognised, together with a corresponding increase in share options outstanding account in equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits expense.
The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Subsidiary Companys best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit and loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.
First Time Adoption of IND AS
These Consolidated Financial Statement includes Groups first Financial Statements prepared in accordance with Ind AS.
The accounting policies set out above have been applied in preparing the consolidated Financial Statements for the year ended March 31, 2024, the comparative information presented in these consolidated Financial Statements for the year ended March 31, 2023 and in the preparation of an opening Ind AS balance sheet as at April 1, 2022 (our Companys date of transition). In preparing its opening Ind AS balance sheet, our Company has adjusted the amounts reported previously in consolidated Financial Statements prepared in accordance with accounting standards notified under Companies(Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).An explanation of how the transition from previous GAAP to Ind AS has affected our Companys financial position, financial performance and cash flows is set out in the following notes:
Exemptions and Exceptions Availed
Ind AS optional exemptions
Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. Our Company has applied the following exemptions:
a) Deemed cost
Ind AS 101 permits a first time adopter to elect to fair value of its property, plant and equipment as recognised in consolidated Financial Statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition or apply principles of Ind AS retrospectively. Ind AS 101 also permits the first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the consolidated Financial Statements as at the date of transition to Ind AS. This exemption can be also used for intangible assets covered by Ind-AS 38.
b) For financial instruments, wherein fair market values are not available (viz. interest free and below market rate security deposits or loans) our Company has elected to adopt fair value recognition prospectively to transactions entered after the date of transition.
Ind AS mandatory exceptions
a) Estimates
An entity estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates at April 1, 2022 are consistent with the estimates as at the same date made in conformity with previous GAAP.
b) Derecognition of financial assets and financial liabilities
Ind AS 101 requires a first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. Accordingly, our Company has applied the derecognition requirement for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after date of transition to Ind AS.
c) Classification of financial assets and liabilities
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of facts and circumstances that exist on the date of transition to Ind AS. Accordingly, our Company has applied the above requirement prospectively. Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, our Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.
d) Impairment of financial assets
Ind AS 101 requires an entity to assess and determine the impairment allowance on financial assets as per Ind AS 109 using the reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments which were initially recognised and compare that to the credit risk at the date of transition to Ind AS. Our Company has applied this exception prospectively.
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. As on 12th August 2024, the MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2024, introducing a new standard, Ind AS 117 - Insurance Contracts, which replaces the existing Ind AS 104 - Insurance Contracts. Consequential amendments have also been made to the following standards to align them with Ind AS 117:
Ind AS 101 - First time Adoption of Indian Accounting Standards
Ind AS 103 - Business Combinations
Ind AS 105 - Non-current Assets Held for Sale and Discontinued Operations
Ind AS 107 - Financial Instruments : Disclosures
Ind AS 109 - Financial Instruments
Ind AS 115 - Revenue from Contracts with customers
Our Company has evaluated the impact of these amendments, and, in the opinion of the management, they do not have any material impact on its Restated Consolidated Financial Information.
CHANGES IN ACCOUNTING POLICIES
There have been no changes in our accounting policies during Fiscals 2026, 2025 and 2024.
SEGMENT REPORTING
Our business activity falls under one segment, i.e., gold refining and trading.
The following table sets forth details of our revenue from continuing operations from external customers on the basis of geographic area:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| India | 884,847.26 | 581,786.12 | 332,905.08 |
| Outside India | 57,014.86 | 80,521.67 | 16,309.84 |
| Revenue from operations | 941,862.12 | 662,307.79 | 349,214.93 |
PRINCIPAL COMPONENTS OF INCOME AND EXPENDITURE
Income
Our total income comprises revenue from operations and other income.
Revenue from operations
Our revenue from operations primarily consists of (i) sales of product (bullion and jewellery); (ii) sale of services which represents income generated from delivery charges, cancellation charges, labour charges, service charges, and software usage charges; (iii) commission income which represents income generated from technology usage; (iv) brokerage which represents income generated from facilitation of trade on IIBX for third parties; and (v) other operating revenue.
Other income
Other income primarily comprises (i) interest income on (a) deposits, (b) income tax refund, (c) investment in preference shares, (d) lease receivable, and (e) loan; (ii) foreign exchange fluctuation (net); (iii) dividend income; and (iv) miscellaneous income.
Expenses
Our expenses comprise: (i) cost of materials consumed; (ii) purchases of stock in trade; (iii) changes in inventories of finished goods and stock in trade; (iv) employee benefits expense; (v) finance costs; (vi) depreciation and amortisation expense; and (vii) other expenses.
Cost of materials consumed
Cost of materials consumed represents the cost of the dor bar that we import and other unrefined gold and silver for our refining operations.
Purchases of stock in trade
Purchases of stock in trade consists represents the cost of the refined gold and silver that we buy and sell to customers.
Changes in inventories of finished goods and stock in trade
Changes in inventories of finished goods and stock in trade denotes inventories of bullion and jewellery between beginning and end dates of a reporting period.
Employee benefits expenses
Employee benefits expenses consist of (i) salary expenses; (ii) staff welfare expenses; (iii) gratuity expense; (iv) director remuneration; (v) contribution to provident fund and other funds; and (vi) share based payment to employees.
Finance costs
Finance costs comprise (i) interest on (a) unsecured loan, (b) vehicle loan, (c) MSME, (d) others, and (e) lease liability; and (ii) unwinding of discount on security deposits - lessor.
Depreciation and amortization expense
Depreciation and amortization expense comprises depreciation and amortization of our assets.
Other expenses
Other expenses primarily include (i) commission and brokerage; (ii) loss on settlement/cancellation charges; (iii) transportation charges; (iv) advertisement expenses; (v) job work/ labour charges; (vi) legal and professional fees and (vii) miscellaneous expenses.
Tax expenses
Tax expenses comprise current and deferred tax.
Non-GAAP Measures
EBITDA, EBITDA Margin, Debt to Equity, Return on Equity and Return on Capital Employed ("Non-GAAP Measures") presented in this Red Herring Prospectus is a supplemental measure of our performance and liquidity that is not required by, or presented in accordance with Ind AS. Further, these Non-GAAP Measures are not a measurement of our financial performance or liquidity under Ind AS and should not be considered in isolation or construed as an alternative to cash flows, profit/ (loss) for the years/ period or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS. In addition, these Non-GAAP Measures are not standardized terms, hence a direct comparison of these Non-GAAP Measures between companies may not be possible. Other companies may calculate these Non-GAAP Measures differently from us, limiting its usefulness as a comparative measure. Although such Non-GAAP Measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that they are useful to an investor in evaluating us as they are widely used measures to evaluate a companys operating performance.
EBITDA and EBITDA Margin
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| (? million, unless otherwise stated) | |||
| Profit before tax for the year/ period, before share of profit of an associate (I) | 4,730.97 | 3,052.78 | 1,043.46 |
| Finance costs (II) | 18.53 | 119.37 | 185.52 |
| Depreciation and amortization expense (III) | 72.56 | 81.44 | 84.24 |
| Other Income (IV) | 962.56 | 212.71 | 274.03 |
EBITDA (V = I+II+III-IV) |
3,859.50 |
3,040.88 |
1,039.19 |
| Revenue from operations (VI) | 941,862.12 | 662,307.79 | 349,214.93 |
EBITDA Margin (%) (V/VI) |
0.41% |
0.46% |
0.30% |
Debt to Equity
| Particulars | As of/ For the year ended March 31, 2026 | As of/ For the year ended March 31, 2025 | As of/ For the year ended March 31, 2024 |
| (? million, unless otherwise stated) | |||
| Total borrowings* (I) | 126.72 | 215.42 | 548.64 |
| Equity share capital (II) | 417.53 | 45.00 | 45.00 |
| Other equity (III) | 8,651.36 | 3,984.58 | 1,803.86 |
| Non-controlling Interest (IV) | 258.65 | 117.08 | 23.21 |
Total equity (V = II+III+IV) |
9,327.54 |
4,146.65 |
1,872.07 |
Debt to equity ratio (I/V) |
0.01 |
0.05 |
0.29 |
Return on Equity
| Particulars | As of/ For the year ended March 31, 2026 | As of/ For the year ended March 31, 2025 | As of/ For the year ended March 31, 2024 |
| (? million, unless otherwise stated) | |||
| Equity share capital for the year/ period (I) | 417.53 | 45.00 | 45.00 |
| Other equity for the year/ period (II) | 8,651.36 | 3,984.58 | 1,803.86 |
Total equity for the year/ period (III = I+II) (excluding non-controlling interest) |
9,068.89 |
4,029.58 |
1,848.86 |
| Equity share capital for the previous year/ period (IV) | 45.00 | 45.00 | 45.00 |
| Other equity for the previous year/ period (V) | 3,984.58 | 1,803.86 | 1,057.56 |
Total equity for the previous year/ period (VI = IV+V) |
4,029.58 |
1,848.86 |
1,102.56 |
Average equity (VII = (III + VI)/2) |
6,549.24 |
2,939.22 |
1,475.71 |
| Total Comprehensive Income for the period attributable to owners of the parent (VIII) | 3,342.45 | 2,180.72 | 736.91 |
Return on Equity (%) (VIII/VII) |
51.04% |
74.19% |
49.94% |
Return on Capital Employed
| Particulars | As of/ For the year ended March 31, 2026 | As of/ For the year ended March 31, 2025 | As of/ For the year ended March 31, 2024 |
| (? million, unless otherwise stated) | |||
| Total assets (I) | 12,569.79 | 18,573.13 | 7,602.93 |
| Total Current Liabilities (II) | 3,166.77 | 14,351.10 | 5,664.68 |
2024
| Particulars | As of/ For the year ended March 31, 2026 | As of/ For the year ended March 31, 2025 | As of/ For the year ended March 31, 2024 |
| (? million, unless otherwise stated) | |||
| Capital employed (III=II-II) | 9,403.02 | 4,222.03 | 1,938.25 |
| Profit for the year/ period before tax, before share of profit of an associate (IV) | 4,730.97 | 3,052.78 | 1,043.46 |
| Finance costs (V) | 18.53 | 119.37 | 185.52 |
| Other Income (VI) | 962.56 | 212.71 | 274.03 |
| Earnings before interest and tax (VII= IV+V-VI) | 3,786.94 | 2,959.44 | 954.95 |
Return on Capital Employed (%) (VII/III) |
40.27% |
70.10% |
49.27% |
RESULTS OF OPERATIONS
The following table sets forth select financial data from our restated consolidated statement of profit and loss for Fiscals 2026, 2025 and 2024, the components of which are also expressed as a percentage of total income for such periods:
| Particulars | Fiscal 2026 (? million) | Percentage of Total Income (%) | Fiscal 2025 (? million) | Percentage of Total Income (%) | Fiscal 2024 (? million) | Percentage of Total Income (%) |
| Revenue from operations | 941,862.12 | 99.90% | 662,307.79 | 99.97% | 349,214.93 | 99.92% |
| Other income | 962.56 | 0.10% | 212.71 | 0.03% | 274.03 | 0.08% |
Total Income |
942,824.68 |
100.00% |
662,520.50 |
100.00% |
349,488.96 |
100.00% |
| Cost of materials consumed | 207,001.69 | 21.96% | 189,480.77 | 28.60% | 95,779.14 | 27.41% |
| Purchases of stock in trade | 731,545.87 | 77.59% | 468,497.85 | 70.71% | 251,322.99 | 71.91% |
| Changes in inventories of finished goods and stock in trade | (2,492.75) | (0.26%) | 10.49 | 0.00% | 70.41 | 0.02% |
| Employee benefits expenses | 292.45 | 0.03% | 239.72 | 0.04% | 206.91 | 0.06% |
| Finance costs | 18.53 | 0.00% | 119.37 | 0.02% | 185.52 | 0.05% |
| Depreciation and amortization expense | 72.56 | 0.01% | 81.44 | 0.01% | 84.24 | 0.02% |
| Other expenses | 1,655.36 | 0.18% | 1,038.08 | 0.16% | 796.29 | 0.23% |
Total Expenses |
938,093.71 |
99.50% |
659,467.72 |
99.54% |
348,445.50 |
99.70% |
| Profit for the year/ period before share of profit of an associate | 4,730.97 | 0.50% | 3,052.78 | 0.46% | 1,043.46 | 0.30% |
| Share in profit of associate company | - | - | - | - | - | - |
| Profit before tax | 4,730.97 | 0.50% | 3,052.78 | 0.46% | 1,043.46 | 0.30% |
| Current tax | 1,251.27 | 0.13% | 787.80 | 0.12% | 267.14 | 0.08% |
| Deferred tax | (3.31) | 0.00% | (6.90) | (0.00%) | 16.65 | 0.00% |
| Total tax expenses | 1,247.96 | 0.13% | 780.90 | 0.12% | 283.79 | 0.08% |
Profit for the year/ period |
3,483.00 |
0.37% |
2,271.88 |
0.34% |
759.66 |
0.22% |
FISCAL 2026 COMPARED TO FISCAL 2025
Total Income
Our total income increased by 42.31% from ?662,520.50 million in Fiscal 2025 to ?942,824.68 million in Fiscal 2026, primarily on account of an increase in our revenue from operations.
Revenue from operations
Our revenue from operations increased by 42.21% from ?662,307.79 million in Fiscal 2025 to ?941,862.12 million in Fiscal 2026, primarily on account of an increase in sales of product (bullion and jewellery) from ?662,089.80 million in Fiscal 2025 to ?941,495.08 million in Fiscal 2026. This increase was primarily due to: (i) an increase in the amount of gold and silver bullion sold, and (ii) an increase in the sale of jewellery. Further, the increase was also on account of an increase in the price of gold from Fiscal 2025 to Fiscal 2026.
Other income
Our other income increased from ?212.71 million in Fiscal 2025 to ?962.56 million in Fiscal 2026, primarily due to an increase in gain on derivative financial instrument from nil in Fiscal 2025 to ?772.37 million in Fiscal 2026 on account of profit on commodity futures.
Expenses
Cost of materials consumed
Our cost of materials consumed increased by 9.25% from ?189,480.77 million in Fiscal 2025 to ?207,001.69 million in Fiscal 2026, primarily on account of expenses incurred to purchase higher volumes of dor? bars and other unrefined gold and silver for our refining operations as well as an increase in the average price of such materials during Fiscal 2026 as compared to Fiscal 2025.
Purchases of stock in trade
Purchases of stock in trade increased by 56.15% from ?468,497.85 million in Fiscal 2025 to ?731,545.87 million in Fiscal 2026, primarily on account of expenses incurred to purchase higher volumes of refined gold and silver that we sold to customers as well as an increase in the average price of such materials during Fiscal 2026.
Changes in inventories of finished goods and stock in trade
Changes in inventories of finished goods and stock in trade was ?(2,492.75) million in Fiscal 2026 as compared to ?10.49 million in Fiscal 2025, primarily attributable to excess of closing inventory as compared to opening inventory due to the timing of manufacturing and sale of our products.
Employee benefits expense
Our employee benefits expense increased by 22.00% from ?239.72 million in Fiscal 2025 to ?292.45 million in Fiscal 2026, primarily due to: (i) an increase in salary to employees from ?206.36 million in Fiscal 2025 to ?243.84 million in Fiscal 2026, primarily on account of an increase in the number of employees; and (ii) increase in director remuneration from ?11.20 million in Fiscal 2025 to ?22.05 million in Fiscal 2026.
Finance costs
Our finance costs decreased by 84.48% from ?119.37 million in Fiscal 2025 to ?18.53 million in Fiscal 2026, primarily due to discontinuance of the practice of bill discounting on account of taking advances instead of giving credits and lower borrowings, leading to better management of funds during the year.
Depreciation and amortization expense
Our depreciation and amortization expense decreased by 10.90% from ?81.44 million in Fiscal 2025 to ?72.56 million in Fiscal 2026.
Other expenses
Our other expenses increased by 59.46% from ?1,038.08 million in Fiscal 2025 to ?1,655.36 million in Fiscal 2026, primarily due to an increase in: (i) commission and brokerage expenses from ?385.81 million in Fiscal 2025 to ?755.45 million in Fiscal 2026; (ii) loss on settlement/cancellation charges from ?92.90 million in Fiscal 2025 to ?201.02 million in Fiscal 2026; (iii) donation expenses from ?14.72 million in Fiscal 2025 to ?132.85 million in Fiscal 2026; and (iv) advertisement and business promotion expenses from ?32.63 million in Fiscal 2025 to ?56.70 million in Fiscal 2026.
Profit before tax for the year
As a result of the factors outlined above, our profit before tax increased by 54.97% from ?3,052.78 million in Fiscal 2025 to ?4,730.97 million in Fiscal 2026.
Total Tax Expenses
Our tax expenses in Fiscal 2025 comprised current tax of ?787.80 million and a deferred tax asset of ?6.90 million while our tax expenses in Fiscal 2026 comprised current tax of ?1,251.27 million and a deferred tax asset of ?3.3 million.
Profit for the Year
As a result of the foregoing, our profit for the year increased by 53.31% from ?2,271.88 million in Fiscal 2025 to ?3,483.00 million in Fiscal 2026.
FISCAL 2025 COMPARED TO FISCAL 2024
Total Income
Our total income increased by 89.57% from ?349,488.96 million in Fiscal 2024 to ?662,520.50 million in Fiscal 2025, primarily on account of an increase in our revenue from operations.
Revenue from operations
Our revenue from operations increased by 89.66% from ?349,214.93 million in Fiscal 2024 to ?662,307.79 million in Fiscal 2025, primarily on account of an increase in sales of product (bullion and jewellery) from ?348,948.29 million in Fiscal 2024 to ?662,089.80 million in Fiscal 2025. This increase was primarily due to (i) an increase in the amount of gold and silver bullion sold, and (ii) an increase in the sale of jewellery. This was partially offset by a decrease in sale of services from ?215.33 million in Fiscal 2024 to ?194.98 million in Fiscal 2025 on account of a decrease in commission rate charged by our Subsidiary, Augmont Goldtech Private Limited, from 2% in Fiscal 2024 to 1% in Fiscal 2025, due to the transfer of backend operations from our Subsidiary to Finkurve Financial Services Limited.
Other income
Our other income decreased by 22.38% from ?274.03 million in Fiscal 2024 to ?212.71 million in Fiscal 2025, primarily due to decreases in: (i) foreign exchange fluctuation (net) from ?94.89 million in Fiscal 2024 to ?32.31 million in Fiscal 2025 on account of our export sales being denominated in Indian rupees instead of U.S. dollars in Fiscal 2025 pursuant to changes in regulations prescribed by the RBI, through its circular RBI/2022-2023/90 A.P. (DIR Series) Circular No.10, dated July 11, 2022; (ii) dividend income from ?70.40 million in Fiscal 2024 to ?42.88 million in Fiscal 2025 on account of a decrease in dividend received on our investments; and (iii) profit on sale of investment from ?22.32 million in Fiscal 2024 to ?0.49 million in Fiscal 2025 on account of sale of listed equity shares. This was partially offset by an increase in our interest income from loans from ?32.38 million in Fiscal 2024 to ?89.45 million in Fiscal 2025 on account of additional loans given.
Expenses
Cost of materials consumed
Our cost of materials consumed increased by 97.83% from ?95,779.14 million in Fiscal 2024 to ?189,480.77 million in Fiscal 2025, primarily on account of expenses incurred to purchase higher volumes of dor? bars and other unrefined gold and silver for our refining operations as well as an increase in the average price of such materials during Fiscal 2025 as compared to Fiscal 2024.
Purchases of stock in trade
Purchases of stock in trade increased by 86.41% from ?251,322.99 million in Fiscal 2024 to ?468,497.85 million in Fiscal 2025, primarily on account of expenses incurred to purchase higher volumes of refined gold and silver that we sold to customers as well as an increase in the average price of such materials during Fiscal 2025.
Changes in inventories of finished goods and stock in trade
Changes in inventories of finished goods and stock in trade was ?70.41 million in Fiscal 2024 as compared to ?10.49 million in Fiscal 2025, primarily attributable to the timing of manufacturing and sale of our products.
Employee benefits expense
2024 to ?239.72 million in Fiscal 2025, primarily due to increases in salary expenses from ?178.31 million in Fiscal 2024 to ?206.36 million in Fiscal 2025 on account of an increase in our number of employees as a result of growth in our business and compensation increments given to our employees.
Finance costs
Our finance costs decreased by 35.66% from ?185.52 million in Fiscal 2024 to ?119.37 million in Fiscal 2025, primarily due to a decrease in interest expenses from ?185.45 million in Fiscal 2024 to ?119.34 million in Fiscal 2025. This was on account of export sales being denominated in Indian rupees instead of U.S. dollars in Fiscal 2025 pursuant to changes in regulations prescribed by the RBI, through its circular RBI/2022-2023/90 A.P. (DIR Series) Circular No.10, dated July 11, 2022, which led to a decrease in interest expenses on bill discounting and packing credits.
Depreciation and amortization expense
Our depreciation and amortization expense decreased by 3.32% from ?84.24 million in Fiscal 2024 to ?81.44 million in Fiscal 2025.
Other expenses
Our other expenses increased by 30.37% from ?796.29 million in Fiscal 2024 to ?1,038.08 million in Fiscal 2025, primarily due to increases in (i) commission and brokerage from ?156.79 million in Fiscal 2024 to ?385.81 million in Fiscal 2025; (ii) loss on settlement/cancellation charges from ?51.46 million in Fiscal 2024 to ?92.90 million in Fiscal 2025; (iii) transportation charges from ?68.85 million in Fiscal 2024 to ?96.07 million in Fiscal 2025; (iv) advertisement expenses from ?18.80 million in Fiscal 2024 to ?32.63 million in Fiscal 2025; and (v) job work/ labour charges from ?76.92 million in Fiscal 2024 to ?95.81 million in Fiscal 2025. The increase in other expenses was commensurate with the increase in our overall business in Fiscal 2025.
Profit before tax for the year
As a result of the factors outlined above, our profit before tax increased from ?1,043.46 million in Fiscal 2024 to ?3,052.78 million in Fiscal 2025.
Total Tax Expenses
Our tax expenses in Fiscal 2024 comprised current tax of ?267.14 million and a deferred tax charge of ?16.65 million while our tax expenses in Fiscal 2025 comprised current tax of ?787.80 million and a deferred tax asset of ?6.90 million.
Profit for the Year
As a result of the foregoing, our profit for the year increased from ?759.66 million in Fiscal 2024 to ?2,271.88 million in Fiscal 2025.
LIQUIDITY AND CAPITAL RESOURCES
We have historically financed the expansion of our business and operations primarily through funds generated from our operations and incurrence of debt. For further information, see "Indebtedness" on page 414.
CASH FLOWS
The following table sets forth certain information relating to our cash flows for the period indicated:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| (? in million) | |||
| Net cash generated from/(used in) operating activities | (421.57) | 1,054.48 | 967.39 |
| Net cash generated from/(used in) investing activities | (512.70) | (610.18) | 1,684.25 |
2024
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| (? in million) | |||
| Net cash generated from/(used in) financing activities | 67.07 | (470.08) | (1,598.56) |
| Net increase/(decrease) in cash and cash equivalents | (867.21) | (25.79) | 1,053.07 |
Operating Activities
Fiscal 2026
Net cash flow from operating activities was ?(421.57) million in Fiscal 2026. Profit for the year before share of profit of an associate was ?4,730.97 million in Fiscal 2026 and adjustments primarily consisted of interest expense of ?18.53 million and interest income of ?172.28 million. Operating profit before working capital changes was ?4,661.25 million in Fiscal 2026. The main working capital adjustments in Fiscal 2026 included increases in inventory of ?777.49 million, trade receivable of ?1,439.99 million, and other financial liabilities of ?50.56 million. Accordingly, cash generated from operations in Fiscal 2026 amounted to ?1,131.54 million. Taxes paid (net of refund) amounted to ?1,553.11 million.
Fiscal 2025
Net cash flow from operating activities was ?1,052.48 million in Fiscal 2025. Profit for the year before share of profit of an associate was ?3,052.78 million in Fiscal 2025 and adjustments primarily consisted of interest expense of ?119.37 million, interest income of ?115.27 million, depreciation and amortisation expenses of ?81.44 million, and dividend income received of ?42.88 million. Operating profit before working capital changes was ?3,112.11 million in Fiscal 2025. The main working capital adjustments in Fiscal 2025 included increases in other current and non-current assets of ?9,362.08 million, other current liability of ?9,307.58 million, and inventories of ?2,062.00 million; and decrease in trade receivables of ?656.42 million, trade payables of ?418.59 million and other financial assets of ?206.98 million. Accordingly, cash generated from operations in Fiscal 2025 amounted to ?1,449.59 million. Taxes paid (net of refund) amounted to ?395.11 million.
Fiscal 2024
Net cash flow from operating activities was ?967.39 million in Fiscal 2024. Profit for the year before share of profit of an associate was ?1,043.46 million in Fiscal 2024 and adjustments primarily consisted of interest expense of ?185.52 million, interest income of ?83.90 million, depreciation and amortisation expenses of ?84.24 million, and dividend income received of ?70.40 million. Operating profit before working capital changes was ?1,137.26 million in Fiscal 2024. The main working capital adjustments in Fiscal 2024 included increases in other current liability of ?1,448.09 million, other current and non-current assets of ?1,336.17 million, and other financial assets of ?106.75 million; and decreases in trade receivables of ?1,216.59 million and trade payables of ?1,101.97 million. Accordingly, cash generated from operations in Fiscal 2024 amounted to ?1,213.10 million. Taxes paid (net of refund) amounted to ?245.71 million.
Investing activities
Fiscal 2026
Net cash flow used in investing activities was ?512.70 million in Fiscal 2026. This primarily reflected payment for loan provided during the year of ?69,859.58 million and investment in bank deposits of ?491.86 million, investment in subsidiary company of ?5.09 million.
Fiscal 2025
Net cash flow used in investing activities was ?610.18 million in Fiscal 2025. This primarily reflected payment for purchase of property plant and equipment of ?153.70 million, proceeds from bank deposits of ?353.87 million, interest received of ?114.95 million, purchase of equity shares of ?111.01 million, purchase of preference shares of ?70.00 million, and redemption of preference shares of ?67.70 million.
Fiscal 2024
Net cash flow from investing activities was ?1,684.25 million in Fiscal 2024. This primarily reflected proceeds from bank deposits of ?837.97 million, interest received of ?85.72 million, redemption of preference shares of ?76.95 million, dividend income on shares of ?70.40 million, payment for purchase of property plant and equipment of ?65.90 million, and sale of equity shares of ?61.64 million.
Financing activities
Fiscal 2026
Net cash used in financing activities was ?67.07 million in Fiscal 2026, which primarily comprised of repayments of short-term borrowings of ?41.21 million and interest expenses of ?28.67 million.
Fiscal 2025
Net cash used in financing activities was ?470.08 million in Fiscal 2025, which primarily comprised of repayments in short term borrowings of ?395.80 million and interest expenses of ?121.73 million.
Fiscal 2024
Net cash used in financing activities was ?1,598.56 million in Fiscal 2024, which primarily comprised of repayments in short term borrowings of ?1,368.24 million and interest expenses of ?199.62 million.
INDEBTEDNESS
As of March 31, 2026, we had total outstanding borrowings amounting to ?126.72 million. For further details related to our indebtedness, see "Financial Indebtedness" on page 419.
The following table sets forth certain information relating to our outstanding indebtedness as of March 31, 2026, and our repayment obligations in the periods indicated:
| Particulars | As of March 31, 2026 | Payment due by period | ||
| Total | Not later than 1 year | 1-5 years | More than 5 years | |
Non-current borrowings |
||||
| Secured Loans | ||||
| Vehicle Loans from banks | 11.15 | - | 11.15 | Nil |
Current borrowings |
||||
| Secured vehicle loan | 15.81 | 15.81 | - | - |
Unsecured Loans |
||||
| Inter-corporate | 99.76 | 99.76 | Nil | Nil |
Total borrowings |
126.72 |
115.57 |
11.15 |
Nil |
CONTRACTUAL OBLIGATIONS
The table below summarises the maturity profile of our financial liabilities based on contractual payments as of March 31, 2026:
| Particulars | As at March 31, 2026 (? in million) | |||
| Not later than 1 Year | 1-5 Years | More than 5 years | Total | |
| Lease liabilities | 18.87 | 45.94* | 1.55 | 66.36 |
| Trade Payables | 690.95 | 0.36 | - | 691.31 |
| Other financial liabilities (excluding derivative financial liabilities) | 188.92 | Nil | - | Nil |
CONTINGENT LIABILITIES AND COMMITMENTS
As of March 31, 2026, our contingent liabilities were as follows:
2017-2018 Bank guarantee to Assistant State Tax officer and Commercial Tax Office, I Circle Thrissur, Kerala against the disputed amount of ?0.85 million Bank guarantee to Maharashtra Pollution Control Board for due compliance of Air Act, Water Act and Environment Protection Act Bank Guarantee to Hutti Gold Mines company limited as security deposit First loan default guarantee Disputed tax liability in respect of Customs Act, 1962 Tax levied for incorrect document for branch transfer in Kerala Dispute relating to purity for gold bore imported (Custom) Penalty imposed due to discrepancy on scanned copy of E-Invoice by TN GST Authority Balances attached by the bank for alleged cyber incident involving third party Penalty on ITC wrongly taken and reversed Denial of claim of ITC in GSTR 3B Excess claim of ITC in GSTR 3B Total
| Particulars | (? in million) |
| Disputed tax liability in respect of income tax A.Y. 2017-2018 | 6.58 |
| Bank guarantee to Assistant State Tax officer and Commercial Tax Office, I Circle Thrissur, Kerala against the disputed amount of ?0.85 million | Nil |
| Bank guarantee to Maharashtra Pollution Control Board for due compliance of Air Act, Water Act and Environment Protection Act | 0.20 |
| Bank Guarantee to Hutti Gold Mines company limited as security deposit | Nil |
| First loan default guarantee | Nil |
| Disputed tax liability in respect of Customs Act, 1962 | 13.83 |
| Tax levied for incorrect document for branch transfer in Kerala | Nil |
| Dispute relating to purity for gold bore imported (Custom) | 14.76 |
| Penalty imposed due to discrepancy on scanned copy of E-Invoice by TN GST Authority | 1.16 |
| Balances attached by the bank for alleged cyber incident involving third party | 15.25 |
| Penalty on ITC wrongly taken and reversed | 16.38 |
| Denial of claim of ITC in GSTR 3B | 73.22 |
| Excess claim of ITC in GSTR 3B | 9.18 |
Total |
150.55 |
For further information, see "Restated Consolidated Financial Statements - Note 36(C) - Contingent Liability" on page 362.
We do not have any capital commitments as of March 31, 2026, March 31, 2025 and March 31, 2024.
For further information, see "Restated Consolidated Financial Statements - Note 36(D) - Capital Commitments" on page 362.
OFF-BALANCE SHEET ARRANGEMENTS
As of March 31, 2026, we did not have any off-balance sheet arrangements.
CAPITAL EXPENDITURE
The following table sets forth capital expenditure undertaken by us on additions made to property, plant and equipment for the periods indicated:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| (? in million) | |||
| Capital expenditure undertaken for additions made to property, plant and equipment including intangible assets and capital work in progress | 65.19 | 97.62 | 67.82 |
RELATED PARTY TRANSACTIONS
We enter into various transactions with related parties in the ordinary course of business. For further information relating to our related party transactions, see "Restated Consolidated Financial Statements - Note 36(E)(b) - Related party disclosures" on page 364.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We have established a risk management framework to identify and evaluate business risks, namely, market risk, credit risk and liquidity risk. We aim to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of derivative financial instruments and investment of excess liquidity is governed by our policies approved by our Board of Directors, which provide written principles on the use of such instruments consistent with our risk management strategy.
Market risk
The market risks to which we are exposed are price risk and foreign currency risk. We are exposed to fluctuations in gold price (including fluctuations in foreign currency) arising on purchase/sale of gold. We are also exposed to foreign exchange risk arising through our sales and purchases denominated in various foreign currencies.
We extend credit to customers in the normal course of business. We consider factors such as credit track record in the market and past dealings for extension of credit to customers. To manage credit risk, we periodically assesses the financial reliability of the customer, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivables. Outstanding customer receivables are regularly monitored to make an assessment of recoverability. Receivables are provided as doubtful / written off, when there is no reasonable expectation of recovery. Where receivables have been provided / written off, we continue regular follow up, engage with the customers, legal options or other remedies available with the objective of recovering these outstandings. We are not exposed to concentration of credit risk to any one single customer since services are provided to a vast spectrum of customers. We also take security deposits, advances, post dated cheques from our customers, which mitigate the credit risk to an extent.
Credit risk
Credit risk is the risk of financial loss to us if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from our receivables from customers and investment securities. The carrying amounts of financial assets represent the maximum credit exposure.
Liquidity risk
Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with our financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure, as far as possible, that we will have sufficient liquidity to meet our liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation.
UNUSUAL OR INFREQUENT EVENTS OR TRANSACTIONS
There have been no events or transactions to our knowledge that have in the past or may in the future affect our business operations or financial performance which may be described as "unusual" or "infrequent".
KNOWN TRENDS OR UNCERTAINTIES
Other than as described in "Risk Factors" and this "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 25 and 387, respectively, to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on our revenue or income from continuing operations.
FUTURE RELATIONSHIPS BETWEEN EXPENDITURE AND INCOME
Other than as described in "Risk Factors" on page 25 and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on page 387, to our knowledge there are no known factors which we expect will have a material adverse impact on our operations or finances.
NEW PRODUCT OR BUSINESS SEGMENTS
Other than as described in "Our Business" on page 233 there are no new products or business segments in which we operate.
SEASONALITY OF BUSINESS
Our business is not seasonal in nature.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
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IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
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