©Sovereign

DiamondsLtd. Since1974

MANUFACTURERSOF 18K FINE JEWELLERY th

Date: 27°" June, 2020

To,

The Department of Corporate Services,

BSE Limited,

Phiroze Jeejeebhoy Towers,

Dalal Street, Mumbai — 400 001Scrip Code: 523826

Dear Sir / Madam,

SUB: OUTCOME OF BOARD MEETING

REF: REGULATION 33(3) OF THE SEBI (LODR) REGULATIONS,2015

The Board Meeting of the Company washeld on 27" June, 2020. The Board of Directors at their Board

Meeting have approved and taken on record the Audited Annual Financial Results for the quarter and

financial year ended 31° March, 2020.

Please find enclosed herewith the following:

1. Audited AnnualFinancial Results for the quarter and financial year ended 31° March, 2020.

2. Statement of Assets and Liabilities as on 31°" March, 2020.

3. Cash Flow Statementfor the financial year ended 31° March, 2020.

4. Audit Reportfor the financial year ended 31“ March, 2020.

The information and papers are being filed pursuant to Regulation 33(3) of the SEB] (LODR)

Regulations, 2015.

Please take the aforesaid on your records and acknowledgethereceipt.

Thanking You,

Yours Faithfully,

For SOVEREIGN DIAMONDSEIMITED

ConUv

AJAY GEHANI

MANAGING DIRECTOR

Encl: As Above

Regd. Office : Sovereign House, 11-A, Mahal Ind. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093,India.

CIN No. L36912MH1974PLC017505 CL] GST No. 27AAACS8558C1Z9Tel.: (91-22) 6692 3871 /72 LC Fax : (91-22) 6692 3880 1) Email : sovereignjewellery@ hotmail.com

©Sovereign

DiamondsLtd. Since1974

MANUFACTURERSOF 18K FINE JEWELLERY th

Date: 27°" June, 2020

To,

The Department of Corporate Services,

BSE Limited,

Phiroze Jeejeebhoy Towers,

Dalal Street, Mumbai — 400 001Scrip Code: 523826

Dear Sir / Madam,

SUB: OUTCOME OF BOARD MEETING

REF: REGULATION 33(3) OF THE SEBI (LODR) REGULATIONS,2015

The Board Meeting of the Company washeld on 27" June, 2020. The Board of Directors at their Board

Meeting have approved and taken on record the Audited Annual Financial Results for the quarter and

financial year ended 31° March, 2020.

Please find enclosed herewith the following:

1. Audited AnnualFinancial Results for the quarter and financial year ended 31° March, 2020.

2. Statement of Assets and Liabilities as on 31°" March, 2020.

3. Cash Flow Statementfor the financial year ended 31° March, 2020.

4. Audit Reportfor the financial year ended 31“ March, 2020.

The information and papers are being filed pursuant to Regulation 33(3) of the SEB] (LODR)

Regulations, 2015.

Please take the aforesaid on your records and acknowledgethereceipt.

Thanking You,

Yours Faithfully,

For SOVEREIGN DIAMONDSEIMITED

ConUv

AJAY GEHANI

MANAGING DIRECTOR

Encl: As Above

Regd. Office : Sovereign House, 11-A, Mahal Ind. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093,India.

CIN No. L36912MH1974PLC017505 CL] GST No. 27AAACS8558C1Z9Tel.: (91-22) 6692 3871 /72 LC Fax : (91-22) 6692 3880 1) Email : sovereignjewellery@ hotmail.com

SovereDiamondsLtd. gn

MANUFACTURERSOF18K FINE JEWELLERY

SOVEREIGN DIAMONDSLIMITED

Regd. Off. : Sovereign House, 11-A, MahalIndl. Estate, Mahakali Caves Road, Andheri (E), Mumbai - 400093

CIN : L36912MH1974PLC017505, Tel No.022 6692 3871 Fax No: 022 6692 3880

Statement of Audited Financial Results for the Quarter and Year Ended 31st March, 2020

In Lakhs

. Quarter Ended Year EndedParticulars

31-03-2020 31-12-2019 31-03-2019 31-03-2020 31-03-2019

(Audited) (Unaudited) (Audited) (Audited) (Audited)

1. Income from Operations

(a) Net Sales / Income from Operations 921.89 1,112.77 988.41 3,243.68 4,025.38

(b) Other Operating Income 23.45 12.89 0.14 47.96 0.11

Total Income (net) 945.34 1,125.66 988.55 3,291.64 4,025.492. Expenses(a) Cost of Materials Consumed 643.55 788.28 720.24 3,293.64 3,205.32

(b) Changesin inventories of finished goods and work-in-

progress 73.08 142.67 79.99 -656.85 62.38(c) Employee benefits expense 44.81 54.30 49.82 194.09 201.81

(d) Finance Costs 29,36 29.61 38.44 119.53 158.04

(e) Depreciation and amortisation expense 8.37 13.80 14.39 45.93 50.29

(f) Other expenses 55.74 64.54 92.12 287.90 307.25

Total Expenses 854.90 1,093.20 995.00 3,284.23 3,985.09

3. Profit / (Loss) from ordinary activities before 90.44 32.46 -6.45 7.41 40.40

exceptionalitems (1-2)

4. Exceptional Items 0.00 0.00 0.00 0.00 0.00

5. Profit / (Loss) from ordinary activities before tax

(3 + 4) 90.44 32.46 -6.45 7.41 40.40

6. Tax Expense

a) Current Tax 2.96 0.00 0.00 2.96 14.37

b) Deferred Tax -0.41 1,24 0.00 0.87 -1.76

7. Net Profit / (Loss) from ordinary activities after

tax (5-6) 87.89 31.22 -6.45 3.57 27.79

8. Extraordinary items 0.00 0.00 0.00 0.00 0.00

9. Net Profit / (Loss) for the period (7+8) 87.89 31.22 -6.45 3.57 27.79

10. Other Comprehensive Income (OCI)

a) Items that will not be Reclassified to Profit Or Loss 7.34 -0,28 2,31 0.49 -1.90

b) Income Tax Relating To Items That Will Not Be

Reclassified to Profit of Loss :

c) Items that will Be Reclassifies to Profit Or Loss 7 x :

d) Income Tax Relating to Items that will be Reclassified

to Profit or Loss = ° = z

11. Total Comprehensive Incomefor the period

(9+10) 95.22 30.94 -4.14 4.06 25.89

Regd. Office : Sovereign House, 11-A, MahalInd. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093, India.

CIN No. L36912MH1974PLC017505 C1 GST No. 27AAACS8558C129

Tel.: (91-22) 6692 3871/72 C1 Fax (91-22) 6692 3880 LC Email : sovereignjewellery @ hotmail.com

SovereDiamondsLtd. gn

MANUFACTURERSOF18K FINE JEWELLERY

SOVEREIGN DIAMONDSLIMITED

Regd. Off. : Sovereign House, 11-A, MahalIndl. Estate, Mahakali Caves Road, Andheri (E), Mumbai - 400093

CIN : L36912MH1974PLC017505, Tel No.022 6692 3871 Fax No: 022 6692 3880

Statement of Audited Financial Results for the Quarter and Year Ended 31st March, 2020

In Lakhs

. Quarter Ended Year EndedParticulars

31-03-2020 31-12-2019 31-03-2019 31-03-2020 31-03-2019

(Audited) (Unaudited) (Audited) (Audited) (Audited)

1. Income from Operations

(a) Net Sales / Income from Operations 921.89 1,112.77 988.41 3,243.68 4,025.38

(b) Other Operating Income 23.45 12.89 0.14 47.96 0.11

Total Income (net) 945.34 1,125.66 988.55 3,291.64 4,025.492. Expenses(a) Cost of Materials Consumed 643.55 788.28 720.24 3,293.64 3,205.32

(b) Changesin inventories of finished goods and work-in-

progress 73.08 142.67 79.99 -656.85 62.38(c) Employee benefits expense 44.81 54.30 49.82 194.09 201.81

(d) Finance Costs 29,36 29.61 38.44 119.53 158.04

(e) Depreciation and amortisation expense 8.37 13.80 14.39 45.93 50.29

(f) Other expenses 55.74 64.54 92.12 287.90 307.25

Total Expenses 854.90 1,093.20 995.00 3,284.23 3,985.09

3. Profit / (Loss) from ordinary activities before 90.44 32.46 -6.45 7.41 40.40

exceptionalitems (1-2)

4. Exceptional Items 0.00 0.00 0.00 0.00 0.00

5. Profit / (Loss) from ordinary activities before tax

(3 + 4) 90.44 32.46 -6.45 7.41 40.40

6. Tax Expense

a) Current Tax 2.96 0.00 0.00 2.96 14.37

b) Deferred Tax -0.41 1,24 0.00 0.87 -1.76

7. Net Profit / (Loss) from ordinary activities after

tax (5-6) 87.89 31.22 -6.45 3.57 27.79

8. Extraordinary items 0.00 0.00 0.00 0.00 0.00

9. Net Profit / (Loss) for the period (7+8) 87.89 31.22 -6.45 3.57 27.79

10. Other Comprehensive Income (OCI)

a) Items that will not be Reclassified to Profit Or Loss 7.34 -0,28 2,31 0.49 -1.90

b) Income Tax Relating To Items That Will Not Be

Reclassified to Profit of Loss :

c) Items that will Be Reclassifies to Profit Or Loss 7 x :

d) Income Tax Relating to Items that will be Reclassified

to Profit or Loss = ° = z

11. Total Comprehensive Incomefor the period

(9+10) 95.22 30.94 -4.14 4.06 25.89

Regd. Office : Sovereign House, 11-A, MahalInd. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093, India.

CIN No. L36912MH1974PLC017505 C1 GST No. 27AAACS8558C129

Tel.: (91-22) 6692 3871/72 C1 Fax (91-22) 6692 3880 LC Email : sovereignjewellery @ hotmail.com

SovereignDiamondsLtd.

MANUFACTURERSOF 18K FINE JEWELLERY

12. Paid-up Equity Share Capital, Equity Shares of

%10/- each 578.80 578.80 578.80 578.80 578.80

13.i.Earnings per Share (Before Extraordinary

items of = 10 each) (Not Annualised):

a) Basic 152 0.54 -0.11 0.06 0.48

b) Diluted 1.52 0.54 -0.11 0.06 0.48

13.ii. Earnings per Share (After Extraordinary

itemsof 7 10 each) (Not Annualised):

a) Basic 1.52 0.54 -0.11 0.06 0.48

b) Diluted 152 0.54 -0.11 0.06 0.48

See accompanying note to the financial results

NOTES1 The above results as reviewed by the Audit Committee have been approved at the meeting of the Board of Directors held on 27th

June, 2020.

2 In accordance with the requirements of Ind AS 18, Revenue for the quarter ended 31st March, 2020 is net of Goods and Serivce

Tax (GST).

3 As the Company's business activity falls within a single busniess segmantviz. ‘Jewellery’, the disclosure requirement ofthe Indian

Accounting Standard (AS) 108 "Operating Segment" notified under Section 133 of the Companies Act, 2013 read with Rule 7 of

the Companies (Accounts) Rule, 2014 are not applicable.

4 The COVID-19 pandemic is rapidly spreading throughout the world. The operations of the company were impacted, due to

shutdownof plants andoffices following lockdownasperdirectives from the Government ofIndia.

The Company has resumed operations in a phased manneras per directives from the Government of India. The Company has

evaluated impact of this pandemic on its business operations and financial position and based onits review of current indicators

of future economic conditions, there is no major significant impact on its financial statements as at 31st March, 2020.

However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and

duration and accordingly the impact maybe different from that estimated as at the date of approvalof these financial statements.

The Comapnaywill continue to monitor any material changes to future economic conditions.

In view of lock down,the profitability during 1st quarter (April to June)is likely to be impacted. As the business situation is very

dynamic. the companyis closely monitoringit.

5 The figures of previous periods are regrouped / rearranged wherever considered necessary to corresp with the current period

presentation.

6 The figures in = Lakhs are rounded off to two decimals. P

For Sovereign Diamopds Limited

Place: Mumbai exON\ “Yy ADate : 27th June, 2020 \S) Mr. Ajay R. Gehani

(2 “amanonl (Managing Director)

Yeny/

Regd. Office : Sovereign House, 11-A, MahalInd. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093,India.

CIN No. L36912MH1974PLC017505 C1) GST No. 27AAACS8558C1Z9

Tel.: (91-22) 6692 3871 / 72 Cl Fax

:

(91-22) 6692 3880 CL) Email : sovereignjewellery @ hotmail.com

SovereignDiamondsLtd.

MANUFACTURERSOF 18K FINE JEWELLERY

12. Paid-up Equity Share Capital, Equity Shares of

%10/- each 578.80 578.80 578.80 578.80 578.80

13.i.Earnings per Share (Before Extraordinary

items of = 10 each) (Not Annualised):

a) Basic 152 0.54 -0.11 0.06 0.48

b) Diluted 1.52 0.54 -0.11 0.06 0.48

13.ii. Earnings per Share (After Extraordinary

itemsof 7 10 each) (Not Annualised):

a) Basic 1.52 0.54 -0.11 0.06 0.48

b) Diluted 152 0.54 -0.11 0.06 0.48

See accompanying note to the financial results

NOTES1 The above results as reviewed by the Audit Committee have been approved at the meeting of the Board of Directors held on 27th

June, 2020.

2 In accordance with the requirements of Ind AS 18, Revenue for the quarter ended 31st March, 2020 is net of Goods and Serivce

Tax (GST).

3 As the Company's business activity falls within a single busniess segmantviz. ‘Jewellery’, the disclosure requirement ofthe Indian

Accounting Standard (AS) 108 "Operating Segment" notified under Section 133 of the Companies Act, 2013 read with Rule 7 of

the Companies (Accounts) Rule, 2014 are not applicable.

4 The COVID-19 pandemic is rapidly spreading throughout the world. The operations of the company were impacted, due to

shutdownof plants andoffices following lockdownasperdirectives from the Government ofIndia.

The Company has resumed operations in a phased manneras per directives from the Government of India. The Company has

evaluated impact of this pandemic on its business operations and financial position and based onits review of current indicators

of future economic conditions, there is no major significant impact on its financial statements as at 31st March, 2020.

However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and

duration and accordingly the impact maybe different from that estimated as at the date of approvalof these financial statements.

The Comapnaywill continue to monitor any material changes to future economic conditions.

In view of lock down,the profitability during 1st quarter (April to June)is likely to be impacted. As the business situation is very

dynamic. the companyis closely monitoringit.

5 The figures of previous periods are regrouped / rearranged wherever considered necessary to corresp with the current period

presentation.

6 The figures in = Lakhs are rounded off to two decimals. P

For Sovereign Diamopds Limited

Place: Mumbai exON\ “Yy ADate : 27th June, 2020 \S) Mr. Ajay R. Gehani

(2 “amanonl (Managing Director)

Yeny/

Regd. Office : Sovereign House, 11-A, MahalInd. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093,India.

CIN No. L36912MH1974PLC017505 C1) GST No. 27AAACS8558C1Z9

Tel.: (91-22) 6692 3871 / 72 Cl Fax

:

(91-22) 6692 3880 CL) Email : sovereignjewellery @ hotmail.com

SovereDiamondsLtd.

MANUFACTURERSOF 18K FINE JEWELLERY

SOVEREIGN DIAMONDSLIMITED

Audited Financial statements as at and for the year ended 31st March, 2020

<= In Lakhs

: As at As at

Particulars 31st March, 2020 31st March, 2019A Assets

1 Non-current assets

a) Property, plant and equipment 329.72 283.26

b) Financial assetsi) Loans 3.68 4.10

c) Deferred tax assets (net) 12.72 13.60

Total non-current assets 346.12 300.96

Current assets

a) Inventories 1,982.65 1,976.50

b) Financial assetsi) Trade Receivables 988.30 807.08

ii) Cash and cash equivalents 1.45 6.60

c) Other current assets 32.65 29.19

Total current assets 3,005.05 2,819.37

Total Assets 3,351.17 3,120.33

Equity and Liabilities

Equity

a) Equity Share capital 578.80 578.80

b) Other Equity 847.83 843.77

Total Equity 1,426.63 1,422.57

LiaiblitiesNon-currentliabilitiesa) Financial Liaibilties

i) Borrowings - :

ii) Other Financial Liabilities 39.66 15.00

Total non-currentliabilities 39.66 15.00

CurrentLiabilitiesa) Financial Liaibilties

i) Borrowings 1,198.39 1,189.68

ii) Trade payables 650.82 443.80

b) Other currentliabilities 16.39 19.77

c) Provisions 19.28 J 29:51

Total currentliabilities 1,884.88 41,682.76

Total Liaibilites 3,351.17 ~ 3,120.33 Place : Mumbai

Date : 27th June, 2020

For Sovereign Diamo

/

s Limited

Mr. Ajay R. Gehani(Managing Director)

Regd. Office : Sovereign House, 11-A, MahalInd. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093, India.

CIN No. L36912MH1974PLC017505 C) GST No. 27AAACS8558C129

Tel.: (91-22) 6692 3871 / 72 C1 Fax : (91-22) 6692 3880 O Email : sovereignjewellery @ hotmail.com

SovereDiamondsLtd.

MANUFACTURERSOF 18K FINE JEWELLERY

SOVEREIGN DIAMONDSLIMITED

Audited Financial statements as at and for the year ended 31st March, 2020

<= In Lakhs

: As at As at

Particulars 31st March, 2020 31st March, 2019A Assets

1 Non-current assets

a) Property, plant and equipment 329.72 283.26

b) Financial assetsi) Loans 3.68 4.10

c) Deferred tax assets (net) 12.72 13.60

Total non-current assets 346.12 300.96

Current assets

a) Inventories 1,982.65 1,976.50

b) Financial assetsi) Trade Receivables 988.30 807.08

ii) Cash and cash equivalents 1.45 6.60

c) Other current assets 32.65 29.19

Total current assets 3,005.05 2,819.37

Total Assets 3,351.17 3,120.33

Equity and Liabilities

Equity

a) Equity Share capital 578.80 578.80

b) Other Equity 847.83 843.77

Total Equity 1,426.63 1,422.57

LiaiblitiesNon-currentliabilitiesa) Financial Liaibilties

i) Borrowings - :

ii) Other Financial Liabilities 39.66 15.00

Total non-currentliabilities 39.66 15.00

CurrentLiabilitiesa) Financial Liaibilties

i) Borrowings 1,198.39 1,189.68

ii) Trade payables 650.82 443.80

b) Other currentliabilities 16.39 19.77

c) Provisions 19.28 J 29:51

Total currentliabilities 1,884.88 41,682.76

Total Liaibilites 3,351.17 ~ 3,120.33 Place : Mumbai

Date : 27th June, 2020

For Sovereign Diamo

/

s Limited

Mr. Ajay R. Gehani(Managing Director)

Regd. Office : Sovereign House, 11-A, MahalInd. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093, India.

CIN No. L36912MH1974PLC017505 C) GST No. 27AAACS8558C129

Tel.: (91-22) 6692 3871 / 72 C1 Fax : (91-22) 6692 3880 O Email : sovereignjewellery @ hotmail.com

SovereignDiamondsLtd. ©1974

MANUFACTURERSOF 18K FINE JEWELLERY

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2020

Particulars As at As at

31st March, 2020 31st March, 2018

A Cash flow from operating activities :

Profit before tax 7,40,554 40,40,233

Adjustmentfor:

Depreciation and amortizationfor the year 45,92,517 50,28,607

Actuarial gain/(loss) forming part of OCI 48,614 -1,89,759

Net unrealised foreign exchange (gain)/ loss - 5

Net (profit)/loss on disposal of property, plant and equipment -3,53,907 -

Finance cost 1,19,52,631 1,58,03,856

Interest income -5,780 -11,421

Operating Profit before working capital changes 1,69,74,629 2,46,71,516

Operating profit before working capital changes

Adjustmentsfor:

Decrease/Increase in inventories -6,15,599 1,08,00,276

Decrease/(increase) in non-currentfinancial assets 41,612 -

Decrease/(increase) in other non current assets

Decrease/(increase) in current financial assets : a

Decrease/(increase) in other current assets 1,69,782 5,55,939

Increase in trade receivables -1,81,21,032 -2,65,01,343

Increase in trade payables 2,07,01,268 3,57,49,260

Increase in currentfinancial liabilities

Increase in non-financialliabilities 24,66,000 15,00,000

Increase in provisions-non current - -

Increase in provisions-current 1,15,451 4,65,708

Increase in other currentlaibilites -3,37,630 9,59,073

Cash generated from operating activities 2,13,94,480 4,82,00,430

Direct Taxes (net) -19,48,839 -3,00,000

Income Tax Adjustments

Net cash generated from operating activities 1,94,45,641 4,79,00,430

B Cash flow from investing activities:

Purchase of property, plant and equipment -1,00,59,335 -90,13,610

Proceeds from disposal of property, plant and equipment 11,74,993 -

Interest received 5,780 11,421

Netcash usedin investing activities -88,78,562 -90,02,189

c Cash flow from financing activities:

(Repayment)/proceedsof non current borrowings, net - -4,79,895

(Repayment)/proceeds of current borrowings, net 8,70,701 -2,22,22,501

Interest Paid -1,19,52,631 -1,58,03,856

Net cash generated from financing activities -1,10,81,930 -3,85,06,252

Net increase in cash and cash equivalents (A+B+C) -5,14,851 3,91,988

Cash and cash equivalents at the beginning of the year 6,60, 300 2,68,311

Cash and cash equivalents at the end of the year 1,45,446 6,60,300

Note:

i) Figures in bracket representcash outflow.

li) The cash flow statement has been prepared under theindirect method asset outin Indian

Accounting Standard (Ind AS 7) statementof cash flows.

This is the Cash flowstatement referred to in our reportof-even dateALA >

fessYOal NSN For Sovereign DiamondsLimited

if uy, ; \ S \\

ioe( MUMBAI) o>} Zz

~Ww Jr Hy L

Place: Mumbai Ke ne YY / Mr. Ajay R. Gehani

Date : 27th June, 2020 SF” (Managing Director)

Regd. Office : Sovereign House, 11-A, MahalInd. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093,India.CIN No. L36912MH1974PLC017505 CL] GST No. 27AAACS8558C1Z9

Tel.: (91-22) 6692 3871 / 72 CL Fax : (91-22) 6692 3880 0) Email : sovereignjewellery@ hotmail.com

SovereignDiamondsLtd. ©1974

MANUFACTURERSOF 18K FINE JEWELLERY

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2020

Particulars As at As at

31st March, 2020 31st March, 2018

A Cash flow from operating activities :

Profit before tax 7,40,554 40,40,233

Adjustmentfor:

Depreciation and amortizationfor the year 45,92,517 50,28,607

Actuarial gain/(loss) forming part of OCI 48,614 -1,89,759

Net unrealised foreign exchange (gain)/ loss - 5

Net (profit)/loss on disposal of property, plant and equipment -3,53,907 -

Finance cost 1,19,52,631 1,58,03,856

Interest income -5,780 -11,421

Operating Profit before working capital changes 1,69,74,629 2,46,71,516

Operating profit before working capital changes

Adjustmentsfor:

Decrease/Increase in inventories -6,15,599 1,08,00,276

Decrease/(increase) in non-currentfinancial assets 41,612 -

Decrease/(increase) in other non current assets

Decrease/(increase) in current financial assets : a

Decrease/(increase) in other current assets 1,69,782 5,55,939

Increase in trade receivables -1,81,21,032 -2,65,01,343

Increase in trade payables 2,07,01,268 3,57,49,260

Increase in currentfinancial liabilities

Increase in non-financialliabilities 24,66,000 15,00,000

Increase in provisions-non current - -

Increase in provisions-current 1,15,451 4,65,708

Increase in other currentlaibilites -3,37,630 9,59,073

Cash generated from operating activities 2,13,94,480 4,82,00,430

Direct Taxes (net) -19,48,839 -3,00,000

Income Tax Adjustments

Net cash generated from operating activities 1,94,45,641 4,79,00,430

B Cash flow from investing activities:

Purchase of property, plant and equipment -1,00,59,335 -90,13,610

Proceeds from disposal of property, plant and equipment 11,74,993 -

Interest received 5,780 11,421

Netcash usedin investing activities -88,78,562 -90,02,189

c Cash flow from financing activities:

(Repayment)/proceedsof non current borrowings, net - -4,79,895

(Repayment)/proceeds of current borrowings, net 8,70,701 -2,22,22,501

Interest Paid -1,19,52,631 -1,58,03,856

Net cash generated from financing activities -1,10,81,930 -3,85,06,252

Net increase in cash and cash equivalents (A+B+C) -5,14,851 3,91,988

Cash and cash equivalents at the beginning of the year 6,60, 300 2,68,311

Cash and cash equivalents at the end of the year 1,45,446 6,60,300

Note:

i) Figures in bracket representcash outflow.

li) The cash flow statement has been prepared under theindirect method asset outin Indian

Accounting Standard (Ind AS 7) statementof cash flows.

This is the Cash flowstatement referred to in our reportof-even dateALA >

fessYOal NSN For Sovereign DiamondsLimited

if uy, ; \ S \\

ioe( MUMBAI) o>} Zz

~Ww Jr Hy L

Place: Mumbai Ke ne YY / Mr. Ajay R. Gehani

Date : 27th June, 2020 SF” (Managing Director)

Regd. Office : Sovereign House, 11-A, MahalInd. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093,India.CIN No. L36912MH1974PLC017505 CL] GST No. 27AAACS8558C1Z9

Tel.: (91-22) 6692 3871 / 72 CL Fax : (91-22) 6692 3880 0) Email : sovereignjewellery@ hotmail.com

Pulindra M. Patel PULINDRA PATEL & CO.B.Com. F.C.A, Inter C.S. CHARTERED ACCOUNTANTS

307, Gold Mohur Co.Op.Society,174, Princess Street, Mumbai- 2.Tel No.: 22056233Mobile : 9322268243e mail : pulindra_patel@hotmail.com

Independent Auditor's Report on Annual Financial Results of Sovereign DiamondsLimited Pursuant To Regulation 33 of the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations, 2015.

To,

The Board ofDirectors,

SOVEREIGN DIAMONDSLIMITED,Sovereign House, 11-A MahalIndustrial Estate,Mahakali Caves Road, Andheri (East)Mumbai — 400 093

Opinion

We have audited the accompanying statement of standalone financial results ofSOVEREIGN DIAMONDSLIMITED(the company) for the, Quarter and year endedMarch 31, 2020 (‘the Statement”), being submitted by the Company pursuant to therequirement of Regulation 33 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations, 2015, as amended (“Listing Regulations”).

In our opinion and to the best of our information and according to the explanations givento us, the Statement:

(i) is presented in accordance with requirements of Regulation 33 of the SEBI (ListingObligations and Disclosure: Requirements) Regulations, 2015, as amended in this regard;and

(ii) gives a true and fair view in conformity with the recognition and measurementprinciples laid downin the applicable Indian Accounting Standards and other accountingprinciples generally accepted in India ofthe net profit and other comprehensive incomeand other financial information ofthe Company for the quarter and the year ended March31, 2020.

Basis for Opinion

Weconductedour audit in accordance with the Standards on Auditing (“SAs”) specifiedunder section 143(10) of the Companies Act, 2013 (‘the Act”). Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit ofthe Standalone Financial Results section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued bythe Institute of CharteredAccountants of India (“ICAI”) together with the ethical requirements that are relevantto our audit of the financial results under the provisions of the Act and the Rules thereunder, and wehavefulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics issued by ICAI. We believe that the audit evidencewe have obtainedis sufficient and appropriate to provide a basis for our opinion.

Management’s Responsibilities for the Standalone Financial Results

This Statement, which is the responsibility of the Company's Management andapproved by the Board of Directors, has been prepared on the basis of standalonefinancial statements. The Company’s Board of Directors are responsible for thepreparation and presentation of the standalone financial results that give a true and fairview of the net profit and other comprehensive income and otherfinancial informationof the Company in accordance with the recognition and measurementprinciples laiddown in Indian Accounting Standards (“Ind AS”) prescribed undersection 133 oftheAct read with the relevant rules issued there under and other accounting principlesgenerally accepted in India and in compliance with Regulation 33 of the ListingRegulations. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding ofthe assets ofthe Companyand for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimatesthat are reasonable and prudent; and design, implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records, relevant to the preparation andpresentation of the standalonefinancial results that give a true and fair view and arefree from material misstatement, whether due to fraudor error.

In preparing the standalone financial results, the Board of Directors are responsible forassessing the Company’s ability to continue as a going concern, disclosing, asapplicable, matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Companyortocease operations, or hasnorealistic alternative but to do so.

The Board of Directors are also responsible for overseeing the financial reportingprocess of the Company.

Auditor’s Responsibilities for the Audit of the Standalone FinancialResults

Our objectives are to obtain reasonable assurance about whether the standalone financialresults as a whole are free from material misstatement, whether due to fraud or error, andto issue an auditor’s report that includes our opinion. Reasonable assuranceis a highlevel of assurance,but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they couldreasonably be expected to influence the economic decisions of users taken on the basisof these standalonefinancialresults,

As part of an audit in accordance with SAs, we exercise professional judgment andmaintain professional skepticism throughoutthe audit. We also:

Identify and assess the risks of material misstatement of the standalone financialresults, whether due to fraud orerror, design and perform audit procedures responsive tothose risks, and obtain audit evidencethatis sufficient and appropriate to providea basisfor our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override ofinternal control.

* Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3) (i) ofthe Act, we are also responsible for expressing our opinion through a separate report onthe complete set of standalone financial statements on whether the company hasadequate internal financial controls with reference to standalone financial statements inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Board ofDirectors.

Conclude on the appropriateness of the Board of Directors’ use ofthe going concernbasis of accounting and, based on the audit evidence obtained, whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to the relateddisclosures in the financial results or, if such disclosures are inadequate, to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Companyto ceaseto continue as a going concern.

- Evaluate the overall presentation, structure and content of the standalone financial

results, including the disclosures, and whether the financial results represent the

underlying transactions and events in a mannerthat achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial results that,

individually or in aggregate, makes it probable that the economic decisions of a

reasonably knowledgeable user of the standalone financial results may be influenced.

Weconsider quantitative materiality and qualitative factors in (i) planning the scope of

our audit work andin evaluating the results of our work: and(ii) to evaluate the effect of

any identified misstatementsin the standalone financial results.

We communicate with those charged with governance regarding, among other matters,

the planned scope and timing of the audit and significant audit findings, including any

significant deficiencies in internal control that we identify during our audit.

Wealso provide those charged with governance with a statement that we have complied

with relevant ethical requirements regarding independence, and to communicate with

them all relationships and other matters that may reasonably be thoughtto bear on our

independence, and where applicable, related safeguards.

Other Matters

The Statement includes the results for the quarter ended March 31, 2020 being the

balancing figures betweenthe audited figures in respect ofthe full financial year and the

published unaudited year to date figures up to the third quarter of the current financial

year.

Yours faithfully,For PULINDRA PATEL & Co.

Chartered Accountants

FRN No. 0115187W

eabaml(Pulindra Patel)ProprietorMembership No. 048991UDIN : 20048991 AAAAEC1397

Place : Mumbai

Date :27" June, 2020

©Sovereign

DiamondsLtd. Since1974

MANUFACTURERSOF18K FINE JEWELLERY

Date: 27" June, 2020

To,

The Department of Corporate Services,

BSELimited,

Phiroze Jeejeebhoy Towers,Dalal Street, Mumbai — 400 001

Scrip Code: 523826

Dear Sir / Madam,

SUB: DECLARATION IN RESPECT OF UNMODIFIED OPINION ON AUDITED FINANCIALSTATEMENT FOR THE FINANCIAL YEAR ENDED31°" MARCH,2020

In terms of SEBI Circular CIR/CFD/CMD/56/2016 dated 27"" May 2016, we herebydeclare and confirm

that the Statutory Auditors of the Company M/s. Pulindra Patel & Co., Chartered Accountants, haveissued an Unmodified Audit Report on Audited Annual Financial Results of the Company for the

financial year ended 31*' March, 2020.

Kindly disseminate the information on the official website of the Exchange for the information of all

Membersofthe ExchangeandInvestors.

Thanking You,

Yours Faithfully,

For SOVEREIGN DIAMONDS LIMITED

whAJAY GEHANI

MANAGING DIRECTOR

Regd. Office : Sovereign House, 11-A, MahalInd. Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093,India.CIN No. L36912MH1974PLC017505 (1) GST No. 27AAACS8558C1Z9

Tel.: (91-22) 6692 3871/72 C1 Fax (91-22) 6692 3880 1 Email : sovereignjewellery @ hotmail.com