1             Corporate Information

Bluestone Jewellery and Lifestyle Private Limited ('the Company') is a private limited Company having its registered office in Bengaluru, India. The Company is engaged in design, manufacture and  sale of fine jewellery. The Company carries on its business under the brand name of "BlueStone".

2             SIGNIFICANT ACCOUNTING POLICIES

2.01       Basis of brparation of financial statements

The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 ("the Act").  The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year.

2.02       Use of estimates

The brparation of financial statements is in conformity with generally accepted accounting principles that requires management of the Company to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of the reporting period. The management believes that the estimates used in the brparation of financial statements are prudent and reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, future results could defer due to uncertainty about these assumptions. The differences between the actual results and the estimates are recognized in the periods in which the results are known/materialize.

2.03       Revenue recognition

"Revenue from sale of  goods is recognized on transfer of  risk and rewards of  ownership of  goods to the buyer and when no significant uncertainty exists regarding the amount of  consideration that will be derived.  Sales are stated net of  discounts and applicable taxes.

Interest income is recognized on a time proportion basis, taking into account the amount outstanding and the rate applicable.

Dividend income is recognized when the right to receive dividend is established."

2.04       Property, plant and equipment, Intangible assets and Intangible asset under development

Property, plant and equipment ("PPE")

PPE are carried at cost less accumulated debrciation and impairment losses, if any. The cost of PPE comprises its purchase price 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 PPE up to the date the asset is ready for its intended use.

Intangible assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of Intangible assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities) and any directly attributable expenditure on making the asset ready for its intended use.

Intangible asset under development

Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The cost which can be capitalized include the cost of materials, direct labor, overhead cost that are directly attributable to brparing the asset for its intended use.

2.05       Debrciation and Amortisation

Debrciation on tangible PPE has been provided on the straight-line method as per the useful life brscribed in Schedule II to the Companies Act, 2013.

Display items are debrciated over 2 years and leasehold improvements over the primary lease period."

Intangible assets are amortized over their estimated useful life of  3 years on straight line method. The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation method is revised to reflect the changed pattern.

2.06       Impairment of assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment if any indication of  impairment exists.

If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognized for such excess amount. The impairment loss is recognized as an expense in the Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their brsent value based on an appropriate discount factor.

When there is indication that an impairment loss recognized for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, to the extent the amount was brviously charged to the Statement of Profit and Loss. In case of revalued assets such reversal is not recognized.

2.07       Investments

Long term investments are carried individually, cost less provision for diminution, other than temporary, in the value of such investments.

Current investments are carried individually at the lower of cost and fair value.

2.08       Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity fund, compensated absences.

Defined contribution plans

The Company's contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plans

For defined benefit plans in the form of gratuity (unfunded), the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortized on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognized in the Balance Sheet rebrsents the brsent value of the defined benefit obligation as adjusted for unrecognized past service cost.

2.08       Employee benefits (Cont'd)

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized during the year when the employees render the service. These benefits include compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur."

Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognized as a liability at the brsent value of the defined benefit obligation as at the balance sheet date.

2.09       Leases

Operating leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

2.10       Segment Reporting

The Company is engaged in design, manufacture and sale of jewellery, which constitutes a single segment. Accordingly, there are no separate reportable primary segments in accordance with Accounting Standard 17 on Segment Reporting. The segment reporting brsents information regarding the company’s geographical segments.

2.11       Foreign currency transactions

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates brvailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Foreign currency monetary items (other than derivative contracts) of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at Historical cost.

Exchange differences arising on settlement / restatement of foreign currency monetary assets and liabilities of the Company are recognized as income or expense in the Statement of Profit and Loss.

2.12       Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined as follows :

a) Gold is valued on First-in-First-out basis.

b) Other Raw materials and packing materials are valued on a Weighted Average Basis.

c) Work-in-progress and finished goods include appropriate portion of overheads.

Cost comprises all costs of purchase including duties and taxes (other than those subsequently recoverable by the Company), freight inwards and other expenditure directly attributable to acquisition.

2.13       Taxes on Income

Current tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for timing differences of items other than unabsorbed debrciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. However, if there are unabsorbed debrciation and carry forward of losses and items relating to capital losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence  that there will be sufficient future taxable income available to realize the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realizability.

2.14       Provisions and contingencies

A provision is recognized when the Company has a brsent 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. Provisions (excluding retirement benefits) are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the Financial Statements.

2.15       Employee share based payments

Employee stock options are accounted in accordance with the guidelines stipulated by Guidance Note on Accounting for Employee Share-based Payments. The difference between the fair value of the shares underlying the options granted on the date of grant of option and the exercise price is expensed under employee benefit expenses over the vesting period on a straight-line basis.

2.16       Earnings / (Loss) per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average numbers of equity shares outstanding during the period will be adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares).

2.17       Share issue expenses

Share issue expenses are adjusted against the Securities Premium Account as permissible under Section 52 of the Companies Act, 2013.

Bluestone Jewellery and Lifestyle Private Limited ('the Company') is a private limited Company having its registered office in Bengaluru, India. The Company is engaged in design, manufacture and  sale of fine jewellery. The Company carries on its business under the brand name of "BlueStone".

Employee Benefits

A. Defined Contribution Plan:

During the year, the Company has recognized in the Statement of Profit & Loss Rs.88,83,986  (31 March 2020 Rs.71,48,982) towards contribution to Employees Provident Fund.

During the year, the Company has recognized in the Statement of Profit and Loss Rs.5,20,593 (31 March 2020 Rs.4,43,277) towards contribution to Employees State Insurance.

B. Defined Benefit Plan:

Particulars	31 March 2021 (Rs.)	31 March 2020 (Rs.)
(i). Present value of defined benefit obligation
Balance at the beginning of the year	1,80,47,026	1,66,05,504
Current service cost	43,92,034	34,17,410
Interest cost	12,17,312	12,81,348
Benefits paid	(20,62,484)	(13,56,582)
Actuarial loss/(gain)	(5,67,971)	(19,00,654)
Balance at the end of the year	2,10,25,917	1,80,47,026
(ii). Assets and Liabilities recognized in the Balance sheet
Present value of defined benefit obligation	2,10,25,917	1,80,47,026
Less: Unrecognized Past Service Cost	-	(78,500)
Liability/(asset)	2,10,25,917	1,79,68,526
Liability as at the year end
Current	15,08,901	11,66,889
Non-current	1,96,85,876	1,68,01,637
(iii). Expenses recognized in Statement of Profit and Loss
Current service cost	43,92,034	34,17,410
Past service cost (Vested Employees)	78,500	79,150
Interest cost	12,17,312	12,81,348
Actuarial loss/(gain)	(5,67,971)	(19,00,654)
Expense to be recognized in the Statement of Profit and Loss	51,19,875	28,77,254
(iv). Principal assumptions
Discount rate per annum	6.75%	6.75%
Expected salary increase per annum	8.00%	8.00%
Retirement age	58	58
Mortality table	Indian Assured Lives Mortality (2012-14)	Indian Assured Lives Mortality (2012-14)
Attrition rate	8.00%	8.00%

(v). Amount recognized in current year and brvious five years
-	31 March 2021 (Rs.)	31 March 2020 (Rs.)	31 March 2019 (Rs.)	31 March 2018 (Rs.)	31 March 2017 (Rs.)
Expenses recognized in the statement of Profit and Loss	51,19,875	28,77,254	36,22,205	27,06,615	60,19,945
(vi). Experience adjustments
-	31 March 2021	31 March 2020	31 March 2019	31 March 2018	31 March 2017
Present value of DBO	2,10,25,917	1,80,47,026	1,66,05,504	1,45,42,179	1,16,99,947
Fair value of plan assets	-	-	-	-	-
Funded status [Surplus / (Deficit)]	-	-	-	-	-
Experience loss/(gain) on plan liabilities	(8,12,074)	(37,17,010)	(19,79,418)	(23,86,199)	(8,92,483)

The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment. The discount rate is based on the brvailing rates of Government of India Securities as at the Balance Sheet date for the estimated term of obligation.

C. Compensated Absences

The Company has recognized Rs. 13,37,302 (31 March 2020 Rs.29,68,321) as expense in the Statement of Profit and Loss towards compensated absences and the year end liability is as below:

Particulars	31 March 2021 (Rs.)	31 March 2020 (Rs.)
Current	7,17,325	6,45,468
Non Current	88,12,235	80,18,345
Total	95,29,560	86,63,813

The actuarial assumptions used for actuarial valuation of compensated absence are given in note B (iv) above.

The Company is engaged in design, manufacture and sale of jewellery, which constitutes a single segment. Accordingly, there are no separate reportable primary segments in accordance with Accounting Standard 17 on Segment Reporting. The table below brsents information regarding the company’s geographical segments:

Particulars	31 March 2021 (Rs.)	31 March 2020 (Rs.)
Segment Revenue
- India (Net of Excise duty)	2,71,72,76,399	2,56,37,36,225
- Outside India	-	-
Total Revenue	2,71,72,76,399	2,56,37,36,225
Segment Assets (Refer note below)
- India	1,57,54,27,987	1,06,09,43,340
- Outside India	-	-
Total Assets	1,57,54,27,987	1,06,09,43,340
Capital expenditure (including Intangible assets)
- India	6,30,11,653	4,26,44,504
Note:  Segment assets include all assets except income tax assets