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Notes to Accounts of Asian Star Company Ltd.

Mar 31, 2016

1.. Surplus / (Deficit] on account of exchange difference on outstanding forward exchange contracts to be recognized in profit and loss statement of subsequent accounting period aggregate to Rs. 5.66 crores (For F.Y. 2014-15 it was Rs 8.75 crores),

2. Derivatives Instruments:

a] Derivative contracts entered into by the Company and outstanding ason31stMarch,2016.

i] For hedging currency related risk:

Forward / option contracts (net] for Purchases entered into by the Company and outstanding as on 31st March, 2016 amount to Rs.79.47 crores (for F.Y. 2014-15 forward / option contracts (net] for Sales was Rs. 856.80 crores).

ii] For hedging commodity related risk:

Forward contracts for Sale of Gold and Purchase of Silver entered into by the Company and outstanding as on 31stMarch,

2016 covers 50 Kgs and 60 Kgs respectively. (For F.Y. 2014-15 it was for Sale of Gold 42 Kgs and for Sale of Silver 210 kgs.)

b] Foreign currency exposure (net Liability) that is not hedged by the derivative instruments as on 31stMarch, 2016, amount to Rs.310.55 crores. (For F.Y. 2014-15 it was Rs. 370.18 crores).

3. a] The Company has given guarantee of Rs. 242.00 crores (For F.Y. 2014-15 it was Rs. 205.74 crores) to banks for facilities availed by its subsidiary companies.

b] The Company has disputed service tax liability of Rs.4.46 crores (For F.Y. 2014-15 it was Rs. 4.46 crores),

c] The Company has disputed liability of Rs. 3.32 crores (For F.Y. 2014-15 it was Rs. 1.63 crores) in respect of Customs duty raised by Commissioner of Customs.

The Company is of the opinion that the demand raised by Service Tax Department & Commissioner of Customs is not tenable and has made appropriate submission to the departments. The Company has received stay order form Gujarat High Court against the demand of Custom Duty. The same shall be charged to profit & loss statement, if required, on disposal of the matter.

4. The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.


Mar 31, 2015

1. Surplus / (Deficit) on account of exchange difference on outstanding forward exchange contracts to be recognized in profit and loss statement of subsequent accounting period aggregate to Rs. 8.75 crores (For F.Y. 2013-14 it was Rs 10.22 crores).

2. Derivatives Instruments:

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2015.

i) For hedging currency related risk:

Forward / option contracts (net) for Sales entered into by the Company and outstanding as on 31st March, 2015 amount to Rs. 856.80 crores (For F.Y. 2013-14 forward / option contracts (net) for Sales was Rs. 1,610.21 crores).

ii) For hedging commodity related risk:

Forward contracts for sale of Gold and Silver entered into by the Company and outstanding as on 31st March, 2015 covers 42 kgs and 210 kgs respectively. (For F.Y. 2013 - 14 it was 5 kgs and 270 kgs respectively).

b) Foreign currency exposure (net liablilty) that is not hedged by the derivative instruments as on 31st March, 2015, amount to Rs. 370.18 crores. (For F.Y. 2013-14 it was Rs. 296.07 crores).

3. a) The Company has given guarantee of Rs. 205.74 crores (For F.Y. 2013-14 it was Rs. 150.43 crores) to Banks for facilities availed by its subsidiary companies.

b) The Company has disputed income tax liability of Rs. Nil (For F.Y. 2013-14 it was Rs. 0.54 crores).

c) The Company has disputed service tax liability of Rs. 4.46 crores (For F.Y. 2013-14 it was Rs. 4.46 crores).

d) The Company has disputed liability of Rs. 1.63 crores (For F.Y. 2013-14 it was Rs. Nil) in respect of Customs duty raised by Directorate of Revenue Intelligence.

The Company is of the opinion that the demand raised by Service Tax Department & Directorate of Revenue Intelligence is not tenable and has made appropriate submission to the departments. The same shall be charged to profit & loss statement, if required, on disposal of the matter.

4. Related Party Disclosure for the year ended 31st March, 2015

(i) List of Related Parties and relationships:

(A) Particulars of Enterprises controlled by the Company

Name of Related Party Relationship

Asian Star Company Ltd. - (U.S.A.) Subsidiary

Asian Star DMCC Subsidiary

Asian Star Jewels Pvt. Ltd. Subsidiary

Asian Star Trading (Hong Kong) Ltd. Subsidiary

(B) Particulars of Key Management Personnel

Name of Related Party Relationship

Dinesh T. Shah Chairman & CFO

Vipul P. Shah CEO & Managing Director

Dharmesh D. Shah Director

Arvind T. Shah Executive Director

Priyanshu A. Shah Executive Director

Rahil V. Shah Executive Director

(C) Particulars of Enterprises Under Common control of the Key Management Personnel

Jewel Art

Asian Star Diamonds International Pvt. Ltd.

Shah Manufacturers

Rahil Agencies

A'Star Exports

Shah Enterprises

(D) Particulars of Relatives of Key Management Personnel where there are transactions

Sujata V. Shah

Sweta D. Shah

Vimla P. Shah

5. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives has expired as at 1st April, 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Statement amounting to Rs. 207.13 Lacs.

6. The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.


Mar 31, 2014

1. Surplus / (Deficit) on account of exchange difference on outstanding forward exchange contracts to be recognized in profit and loss statement of subsequent accounting period aggregate to Rs. 10.22 crores (For F. Y. 2012-13 it was Rs 4.83 crores).

2. Derivatives Instrument:

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2014. i) For hedging currency related risk:

Forward / option contracts (net) for Sales entered into by the company and outstanding as on 31st March, 2014 amount to Rs. 1,610.21 crores (for F. Y. 2012-13 forward / option contracts (net) for purchase was Rs. 1,154.41 crores)

ii) For Hedging commodity related risk:

Forward contracts for Gold and Silver entered into by the company and outstanding as on 31st March, 2014 covers 5 Kgs and 270 Kgs respectively. (For F. Y. 2012-13 it was 82 Kgs and Nil kgs respectively.)

b) Foreign currency exposure that is not hedged by the derivative instruments as on 31st March, 2014, amount to Rs. 296.07 crores. (For F. Y. 2012-13 it was Rs. NIL).

3. The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the information available with the Company are as under:

4. The Company has given guarantee of Rs. 150.43 crores (previous year Rs. 138.38 crores) to Banks for facilities availed by its subsidiary companies. The company has disputed income tax liability of Rs. 0.54 crores (previous year 36.39 crores) and disputed service tax liability of Rs.4.46 crores (previous year 4.46 crores).

5. Related Party Disclosure for the year ended 31st March, 2014 (i) List of Related Parties and Relationships:

(A) Particulars of Enterprises controlled by the Company

Name of Related Party Relationship

Asian Star Co. Ltd. (U.S.A.) Subsidiary

Asian Star DMCC Subsidiary

Asian Star Jewels Pvt. Ltd. Subsidiary

Asian Star Trading (Hong Kong) Ltd Subsidiary

(B) Particulars of Key Management Personnel

Name of Related Party Relationship

Dinesh T. Shah Chairman & CFO

Vipul P. Shah CEO & Managing Director

Dharmesh D. Shah Director

Arvind T. Shah Executive Director

Priyanshu A. Shah Executive Director

Rahil V. Shah Executive Director

(C) Particulars of Enterprises Under Common control of the Key Management Personnel

Jewel Art

Asian Star Diamonds International Pvt. Ltd.

Shah Manufacturers

Rahil Agencies

A''Star Exports

Shah Enterprises

(D) Particulars of Relatives of Key Management Personnel where there are transactions

Sujata V. Shah

b) Defined Benefit Plan:

Defined benefits plan as per actuarial valuation as on 31st March, 2014 and recognized in the financial statement in respect of Employee Benefits Scheme:

The Company now recognizes two reportable business segments viz. diamonds and jewellery. The business which is not reportable during the year, has been grouped under ''Others'' Segment, this comprises wind energy generation.

Segment Reporting and Related Information requires that an enterprise report a meas for each reportable segment.

The fixed assets and inventories used in the company''s business are not identifiable to any particular reportable segment and can be used interchangeably among geographical segments. Consequently, management believes that it is not practical to provide segment disclosures relating to total assets since a realistic analysis among the various geographic segments is not possible. Therefore, information has been restricted to direct debtors of each geographical segment.


Mar 31, 2013

1. Surplus / (Deficit) on account of exchange difference on outstanding forward exchange contracts to be recognised in profit and loss account of subsequent accounting period aggregate to Rs. 4.83 crore (For F.Y. 2011-12 it was Rs 7.74 crore).

2. Derivatives Instrument:

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2013. i) For hedging currency related risk:

Forward / option contracts (net) for purchase entered into by the company and outstanding as on 31st March, 2013 amount to Rs. 1,154.41 crore (for F.Y.2011-12 forward / option contracts (net) for Sales was Rs. 2,321.73 crore).

ii) For Hedging commodity related risk:

Forward contracts for Gold entered into by the company and outstanding as on 31st March, 2013 covers 82 Kgs. (For F.Y.2011-2012 it was 82 Kgs.).

b) Foreign currency exposure that is not hedged by the derivative instruments as on 31st March, 2013, amount to Rs. Nil. (For F.Y.2011-12 it was Rs. NIL).

3. The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the information available with the Company are as under:

4. The Company has given guarantee of Rs. 138.78 crore (previous year Rs. 132.31 crore) to Banks for facilities availed by its subsidiary companies. The company has disputed income tax liability of Rs. 36.39 crore (previous year Nil) and disputed service tax liability of Rs. 4.46 crore (previous year Nil).

5. The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.


Mar 31, 2012

Balance with banks include unclaimed Dividend of Rs.0.25 lacs (Previous Year Rs.0.18 lacs).

Fixed Deposits with banks include deposits of Rs.1,057.78 lacs (Previous Year Rs.438.47 lacs) with maturity of more than 12 months.

Fixed Deposits with banks includes deposits of Rs.450.00 lacs (Previous Year Rs.450.00 lacs) kept under lien with the bank as security for Bank Facilities obtained by a subsidiary Company.

1. Surplus / (Deficit) on account of exchange difference on outstanding forward exchange contracts to be recognized in profit and loss account of subsequent accounting period aggregate to Rs.774.12 lacs (For F.Y. 2010-11 it was Rs.798.96 lacs).

2. Derivative Instruments:

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2012.

i) For hedging currency related risk:

Forward / option contracts (net) for sales entered into by the Company and outstanding as on 31s1 March, 2012 amount to Rs.2,32,173.78 Lacs (for F.Y.2010-11 forward / option contracts (net) for Sales was Rs.54,544.44 Lacs)

ii) For hedging commodity related risk:

Forward contracts for Gold entered into by the Company and outstanding as on 31st March, 2012 covers 82 Kgs. (For F.Y2010-11 it was 124 Kgs.).

b) Foreign currency exposure that is not hedged by the derivative instruments as on 31s1 March, 2012, amount to Rs. Nil. (For F.Y2010-11 it was Rs. Nil).

3. The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the information available with the Company are as under:

4. The Company has given guarantee of Rs. 13,231.30 lacs (Previous year Rs 6,348.75 lacs) to banks for facilities availed by its subsidiary companies.

Segment Reporting and Related Information requires that an enterprise report a measure of total assets for each reportable segment. The fixed assets and inventories used in the Company's business are not identifiable to any particular reportable segment and can be used interchangeably among geographical segments. Consequently, management believes that it is not practical to provide segment disclosures relating to total assets since a realistic analysis among the various geographic segments is not possible. Therefore, information has been restricted to direct debtors of each geographical segment.

5. The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.

Balance with banks include unclaimed dividend of Rs.0.25 lacs ( Previous Year Rs.0.18 lacs).

Fixed Deposits with banks include deposits of Rs.1,057.78 lacs (Previous Year Rs.438.47 lacs) with maturity of more than 12 months.

Fixed Deposits with banks includes deposits of Rs.450.00 lacs (Previous Year Rs.450.00 lacs) kept under lien with the bank as security for Bank Facilities obtained by a subsidiary company.

6. Surplus / (Deficit) on account of exchange difference on outstanding forward exchange contracts to be recognized in profit and loss account of subsequent accounting period aggregate to Rs.780.49 lacs. (For F.Y 2010-11 it was Rs.798.96 lacs).

7. Derivatives Instrument:

a) Derivative contracts entered into an outstanding as on 31st March, 2012.

i) For hedging currency related risk:

Forward / Option contracts (net) for sales entered into an outstanding as on 31st March, 2012 amount to Rs.2,343.16 crores (for F.Y2010-11 forward / option contracts (net) for sales was Rs. 545.44 crores)

ii) For Hedging commodity related risk:

Forward contracts for Gold entered into by the company and outstanding as on 31st March, 2012 covers 82 Kgs. (For F.Y2010-11 it was 124 Kgs.).

b) Foreign currency exposure (net) for purchases that are not hedged by the derivative instruments as on 31st March, 2012, amount to Rs.1.39 crores (for F.Y2010-11 it was Rs. NIL).

8. The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the information available with the Company are as under:

(a) As per Accounting Standard on Segment Reporting (AS-17), issued by the Institute of Chartered Accountant of India, the company has reported segments information on consolidated basis including business conducted by its subsidiaries.

(b) The Company now recognizes two reportable business segments viz. cut and polished diamonds and Jewellery. The business which is not reportable during the year, has been grouped under 'Others' Segment, this comprises wind energy generation.

9. The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.


Mar 31, 2011

1. Surplus / (Deficit) on account of exchange difference on outstanding forward exchange contracts to be recognised in profit and loss account of subsequent accounting period aggregate to Rs. 798.96 lacs (For F.Y. 2009-10 it was Rs 459.37 lacs).

2. Derivative Instruments:

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2011.

i) For hedging currency related risk:

Forward / option contracts (net) for sales entered into by the company and outstanding as On 31st March, 2011 amount to Rs. 545.44 Crores (for F.Y.2009-10 forward / option contracts (net) for purchase was Rs. 2,861.65 Crores)

ii) For Hedging commodity related risk:

Forward contracts for Gold entered into by the company and outstanding as on 31st March, 2011 covers 124 Kgs. (For F.Y.2009- 2010 it was 139 Kgs.).

b) Foreign currency exposure that is not hedged by the derivative instruments as on 31st March, 2011, amount to Rs. Nil. (for F.Y.2009-10 it was Rs. Nil).

3. The Company has given guarantee of Rs. 3,648.75 lacs (Previous year Rs Nil) to banks for facilities availed by its subsidiary companies.

4. Investments purchased and sold during the year: Nil

The Company now recognises two reportable business segments viz. cut and polished diamonds and jewellery. The business which is not reportable during the year, has been grouped under 'Others' segment, this comprises wind energy generation.

Segment Reporting and Related Information requires that an enterprise report a measure of total assets for each reportable segment. The fixed assets and inventories used in the Company's business are not identifiable to any particular reportable segment and can be used interchangeably among geographical segments. Consequently, management believes that it is not practical to provide segment disclosures relating to total assets since a realistic analysis among the various geographic segments is not possible. Therefore, information has been restricted to direct debtors of each geographical segment.

5 The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.


Mar 31, 2010

1. Surplus / (Deficit) on account of exchange difference on outstanding forward exchange contracts to be recognised in profit and loss account of subsequent accounting period aggregate to Rs. 459.37 lacs (For F.Y. 2008-09 it was Rs (687.21) lacs).

2. Derivative Instruments:

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2010.

I) For hedging currency related risk:

Forward / option contracts (net) for purchase entered into by the Company and outstanding as on 31st March, 2010 amount to Rs. 2861.65 crore (for F.Y.2008-09 forward / option contracts (net) for sales was Rs. 1,654.81 crore)

ii) For Hedging commodity related risk:

Forward contracts for Cold entered into by the Company and outstanding as on 31st March, 2010 covers 139 Kgs. (For F.Y.2008-2009 it was 120 Kgs.).

b) Foreign currency exposure that is not hedged by the derivative instruments as on 31st March, 2010, amount to Rs. NIL. (for F.Y.2008-09 it was Rs. NIL).

3. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as on 31st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent that such parties have been identified on the bases of information available with the Company.

4. Related Party Disclosure for the year ended March 31, 2010.

(A) Particulars of Enterprises controlled by the Company

Name of Related Party Relationship

Asian Star Co. Ltd. (U.S.A.) Subsidiary

Inter Gems DMCC. Subsidiary

Asian Star jewels Pvt. Ltd. Subsidiary

(6) Particulars of Key Management Personnel

Name of Related Party Relationship

Dinesh T. Shah Chairman

Vipul P. Shah CEO & Managing Director

Dharmesh D. Shah CFO &Jt. Managing Director

Arvind T. Shah Executive Director

Priyanshu A. Shah Executive Director

(C) Particulars of Enterprises Under Common control of The Key Management Personnel

Jewel Art

Shah Enterprises

Shah Manufacturers

Rahil Agencies

AStar Exports

Nivaan Jewels

Asian Star Diamonds International Pvt. Ltd.

(D) Particulars of Relatives of Key Management Personnel where There are transactions.

Nirmala D. Shah SujataV. Shah Vimla P. Shah

5. Investments purchased and sold during the year: Nil

The Company now recognizes two reportable business segments viz. cut and polished diamonds and jewellery. The business which is not reportable during the year, has been grouped under Others segment, this comprises wind energy generation.

Segment Reporting and Related Information requires that an enterprise report a measure of total assets for each reportable segment. The fixed assets and inventories used in the Companys business are not identifiable to any particular reportable segment and can be used interchangeably among geographical segments. Consequently, management believes that it is not practical to provide segment disclosures relating to total assets since a realistic analysis among the various geographic segments is not possible. Therefore, information has been restricted to direct debtors of each geographical segment.

6 The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.

7. Additional Information as required under Part IV of Schedule VI to the Companies Act, 1956.

Notes:

1. Converted at the rate of exchange US$ 1= Rs. 45.14 prevailing on 31/03/2010.

2. Asian Star Jewels Private Limited has not commenced its operations during the year.