1. General Information

The Company was incorporated under the Companies Act, 1956 on 13.05.1999 under the name of “Net Trade Innovations Private Limited” at Kolkata. The company was primarily dealing in shipping business. The Company was subsequently converted into a Public Limited Company on February 16, 2000. The name was later changed to “Hifunda.Com Limited” and further to “Hifunda Limited” with the change in its various business activities. The Company was then taken over by the present promoters in 2011 and name was changed to “Uday Jewellery Industries Limited”. Subsequently, the Registered Office of the Company has been shifted from the state of West Bengal to the state of Andhra Pradesh (Now Telangana). At present, the Registered Office of the Company is situated at Plot No. 5-9-60, Flat 301, Moghuls Court Building, Deccan Tower Complex, Basheerbagh, Hyderabad- 500001.

The manufacturing unit of the Company is located at Plot No. 5-9-60, Flat No. 301, Moghuls Court Building, Deccan Tower Complex, Basheerbagh, Hyderabad- 500001. The unit was set up in the month of August 2015 in an area of about 1500 sqft, with intent to expand its existing business profile. The unit specializes in creating handmade jewellery studded with cz and colour stones.

2. Basis of preparation of Financial Statements

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind-AS) as notified by Ministry of Corporate Affairs, Government of India vide Notification dated February 16, 2015. Accounting policies have been applied consistently to all periods presented in these financial statements. The Financial Statements are prepared under historical cost convention from the books of accounts maintained under accrual basis except for certain financial instruments which are measured at fair value and in accordance with the Indian Accounting Standards prescribed under the Companies Act, 2013

These financial statements are presented in Indian rupees, the national currency of India, which is the functional currency of the Company. All amounts included in the financial statements are reported in Indian rupees (in Rupees ) except number of equity shares and per share data, unless otherwise stated.

The accounting policies have been applied consistently to all periods presented in these financial statements.

3. Use of estimates and judgment

The preparation of financial statements requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

4. Additional information pursuant to Schedule III of the Companies Act, 2013

5. Financial Instruments- Fair Values and Risk Management

5.1 Financial Instruments by Categories

The following tables show the carrying amounts and fair values of financial assets and financial liabilities by categories. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

5.2 Fair Value Hierarchy

k Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active markets.

k Level 2 - Level 2 hierarchy includes financial instruments measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

k Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on observable market data (unobservable inputs).

The following tables present fair value hierarchy of assets and liabilities measured at fair value:

5.3 Financial risk management

The company’s activities expose it to the following financial risks:

-market risk (see (a));

-credit risk (see (b)); and -liquidity risk.(see (c)).

The company has not arranged funds that have any interest rate risk.

a) Market risk

(i) Foreign Exchange Risk

The company has no import and export transactions and hence there is no foreign exchange risk.

(ii) Price Risk

The company is not expose to price risk arises out of the investments in equity shares because the company does not hold any investment in equity shares.

b) Credit Risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Accordingly, credit risk from trade receivables has been separately evaluated from all other financial assets in the following paragraphs Trade Receivables :

The company has outstanding trade receivables amounting to INR 1883.04(in lakhs), INR 865.06(in lakhs) and INR 778.97(in lakhs) as of March 31, 2018, March 31, 2017 and 1st April, 2016, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers. Impairment on trade receivables is recognized based on expected credit loss in accordance with provisions of Ind AS 109. The company’s historical experience for customers, present economic condition and present performance of the customers, future outlook for the industry etc are taken into account for the purposes of expected credit loss.

Credit risk exposure:

An analysis of age of trade receivables at each reporting date is summarized as follows:

Trade receivables are generally considered credit impaired after 120 days past due, unless the amount is considered receivable, when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables.

Financial assets:

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks. There will be no credit risk related to employee loans as they are adjusted against their salaries. (c) Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company’s principal sources of liquidity are cash and cash equivalents, cash generated from operations and availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of underlying businesses, the company maintains flexibility in funding by maintaining availability under committed credit lines.

Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues arising during the normal course of business as of each reporting date. The company maintains sufficient balance in cash and cash equivalents to meet short term liquidity requirements.

The company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.

The table below provides details regarding the contractual maturities of non-derivative financial liabilities.

6. Disclosure in respect of Indian Accounting Standard 24 “Related Parties Disclosures” Related Party Disclosures

A. Key Managerial Personnel (KMP):

Sri Ritesh Kumar Sanghi - Managing Director

Sri Rakesh Agarwal - Chief Financial Officer

Ms. Pragya Sarda - Company Secretary upto 10.01.2018

B. Non - Executive Directors Sri Sanjay Kumar Sanghi Smt. Pritha Sanghi

Sri Ramprasad Vempati- Independent Sri Siddharth Goel- Independent Sri Vikram Goel- Independent

C. Enterprises in which Key Management Personnel has significant influence

1. Sanghi Jewellers Private Limited

2. Trisa Retail Ltd.

D. Relatives of Key Management Personnel Sri Sanjay Kumar Sanghi - Director Smt. Pritha Sanghi - Director

Smt. Sarala Sanghi

E. Related Party Transactions

7. Disclosure in respect of Indian Accounting Standard (Ind AS)-33 “Earnings Per Share (EPS)”

a) Basic EPS

The earnings and weighted average number of ordinary shares used in the calculation of basic EPS and Basic EPS is as follows:

b) Diluted EPS

The earnings and weighted average number of ordinary shares used in the calculation of Diluted EPS is as follows:

8. Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on 30-05-2018.

9. Transition from IGAAP to IND AS

These financial statements, for the year ended March 31st, 2018, are first financial statements prepared by the Company in accordance with Ind AS. For years upto and including the year ended March 31, 2016, the company prepared its financial statements in accordance with IGAAP, including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

Accordingly, the company has prepared IND AS compliant financial statements for year ending on March 31st, 2017. In preparing these financial statements, the company has prepared opening IND AS balance sheet as at 1st April, 2016 the company’s date of transition to Ind-AS in accordance with requirement of IND AS 101, “First time Adoption of Indian Accounting Standards”. The basic approach adopted is summarized hereunder:

i) All assets and liabilities have been classified into financial assets/liabilities and non-financial assets/ liabilities.

ii) All non-current financial assets/liabilities at below market rate of interest or zero interest and outstanding as on 1st April, 2016 have been measured at fair value.

iii) In accordance with IND AS 101, the resulting adjustments are considered as arising from events and transactions entered before date of transition and recognized directly in the retained earnings at the date of transition to IND AS.

iv) The estimates as at 1 April 2016 and at 31 March 2017 are consistent with those made for the same dates in accordance with IGAAP (after adjustments to reflect any differences in accounting policies).

v) IND AS 101 also allows to first time adopter certain exemptions from the retrospective application of certain requirements under IND AS. Accordingly, the company has availed the following exemptions/ mandatory exceptions as per IND AS 101:

a) Deemed Cost for Property, Plant & Equipment and Intangible Assets: The company has availed exemption under para D7AA of appendix D to IND AS 101 which permits a first time adopter to continue with the carrying values for its PPE as at date of transition to IND ASs measured as per previous GAAP

b) Classification & Fair value measurement of financial assets or financial liabilities at initial recognition: The financial assets and financial liabilities have been classified on the basis of facts existing as at the date of transition to IND AS. In addition, the exemption permits prospective application of requirements of IND AS 109 to transactions entered into on or after date of transition.

Impairment of financial assets: The Company has availed exemption under para B8D of appendix B which permits the first time adopter to apply the impairment requirement of Ind AS 109 prospectively