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Notes to Accounts of Goldiam International Ltd.

Mar 31, 2015

1. (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Details to be given for each class of shares separately for Issued, Subscribed and fully paid up and Subscribed but not fully paid up, as applicable.

2. (iii) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date:

The company has bought back 2086804 equity shares with voting rights in the financial year 2009-2010.

3. Inventories except Consumables Stores and Spares are valued at cost or net realisable value whichever is less.

4. Consumables Stores and Spares are valued at cost.

5. Value of imported raw materials consumed and the value of all indigenous raw materials similarly consumed and the percentage of each to the total consumption.

6. As per Accounting Standard 15 "Employee benefits", the disclosures as defined in the Accounting Standard are given below:

(i) Defined Contribution Plan :

Contribution to Provident Fund is Rs. 2.53 lakhs (Previous year Rs. 1.90 lakhs), ESIC and Labour Welfare Fund includes Rs. 1.09 lakhs (Previous year Rs. 1.11 lakhs).

(ii) Defined Benefit Plan :

GRATUITY & LEAVE ENCASHMENT:

The Company makes partly annual contribution to the Employees' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five years of continuous service.

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 in the employment market.

7. CONTINGENT LIABILITIES NOT PROVIDED FOR :

a) The Company has outstanding performance guarantee of Rs.1591.50 lakhs as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year Rs.1591.50 lakhs).

b) The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs.136.97 lakhs (Previous year Rs.136.97 lakhs) on account of property tax.

c) The Company has executed Bank Guarantee of ' 3550.00 lakhs (Previous year Rs.3250.00 lakhs) favouring The Hongkong and Shanghai Banking Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.

8. Estimated amount of contracts remaining to be executed on Capital Account and not provided for is Rs.30.86 lakhs (Previous year Rs.Nil Lakhs)

9. Details of Related parties transactions are as under :

10. IN THE OPINION OF THE DIRECTORS:

a) The Current Assets and Loans & Advances are approximately of the value stated, if realised in the ordinary course of business.

b) The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

11 JOINT VENTURE :

In compliance with the Accounting Standard relating to "Financial Reporting of Interests in Joint Ventures" (AS-27), issued by the Institute of Chartered Accountants of India, the Company has interests in the following jointly controlled entity, which is incorporated outside India.

12. The above figures have been taken from audited accounts of Joint Venture as on 31st March, 2015 and converted at the exchange rate prevailing as on the date of Balance Sheet of Joint Venture.

Contingent liabilities in respect of Joint Venture is 'Nil

13. Information given in accordance with the requirements of AS 17 on "Segment Reporting".

The Company has identified Two Reportable Segments viz. Jewellery Manufacturing and Investment Activity. Segments have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment assets and Segment Liabilities represents assets and liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

The Company has identified Geographic Segments as its Secondary Segment Secondary segmental reporting is based on the geographical location of the customers. The geographical segments have been disclosed on revenues within India (Sales to customers in India) and revenues outside India (Sales to customers outside India).

14. Exceptional Items includes profit on sale of office premises Rs.75.70 lacs. (Previous Year Rs. nil.)

15. FINANCIAL INSTRUMENTS/FORWARD CONTRACTS :

The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies. The Company enters into forward contracts, where the counterparty is bank. The forward contracts are not used for trading or speculation purpose.

16. Salaries & wages include Directors' remuneration of Rs. 62.71 lakhs (Previous Year Rs. 56.42 lakhs)

17. Effective from April 1,2014,the Company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013. The balance useful life of the Fixed Assets has been taken as difference between the total use ful life prescribed under schedule II and assets already used. Rs. 6.42 lacs has been debited to Depreciation account over and above the current year depreciation for the assets which has completed their useful life. Due to above depreciation charge for the year ended March, 2015 is higher by Rs. 46.61 lacs.

18. During the year under review, against total demand of Rs. 75.71 lacs Company has made payment of Rs. 19.58 laces under protest and have provided in Rs. 56.13 laces for the property tax for the period 01.04.2010 to 31.03.2015.

19. Reporting under sub clause 32 of clause 49 of listing agreement issued by Securities and Exchange Board of India (SEBI), is not applicable to the company, as there is no loan given to subsidiary or Associates as defined under section 186 of the Companies Act, 2013 and no loans and advances are given which is outstanding for a period of more than seven years.

20. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

21. The previous year's figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.


Mar 31, 2014

1 CONTINGENT LIABILITIES NOT PROVIDED FOR :

a) The Company has outstanding performance guarantee of Rs.1591.50 lakhs as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year Rs.1591.50lakhs).

b) The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs.136.97 lakhs (Previous year Rs.136.97 lakhs) on account of property tax.

c) The Company has executed Bank Guarantee of Rs. 3250.00 lakhs (Previous year Rs.3250.00 lakhs) favouring The Hongkong and Shanghai Banking Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.

2 Estimated amount of contracts remaining to be executed on Capital Account and not provided for is Rs. nil lakhs (Previous year Rs.267.42 Lakhs)

3 Details of Related parties transactions are as under :

a) List of related parties and relationship where control exists or with whom transactions were entered into : Sr. No. Relationship Name of the Related Party

i) Subsidiaries Diagold Designs Limited

Goldiam Jewellery Limited

Goldiam USA, Inc.

Goldiam Jewels Limited (upto 28th September, 2012) ii) Associates Goldiam HK Limited

iii) Key Management Personnel Mr. Manhar R. Bhansali (Chairman & Managing Director)

Mr. Rashesh M. Bhansali (Vice Chairman & Managing Director)

4 IN THE OPINION OF THE DIRECTORS:

a) The Current Assets and Loans & Advances are approximately of the value stated, if realised in the ordinary course of business.

b) The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

5 Amounts due from subsidiaries & Associates included under Loans and Advances, Receivables & Payables are as follows :

6 Information given in accordance with the requirements of AS 17 on "Segment Reporting" .

The Company has identified Two Reportable Segments viz. Jewellery Manufacturing and Investment Activity. Segments have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

The Company has identified Geographic Segments as its Secondary Segment

Secondary segmental reporting is based on the geographical location of the customers. The geographical segments have been disclosed on revenues within India (Sales to customers in India) and revenues outside India (Sales to customers outside India).

7 The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February, 2011 and 21st February, 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the Circular. The Company has satisfied the conditions stipulated in the Circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

8 Exceptional Items of previous financial year includes, profit on sale of the office premises of Rs. 434.34 lakhs and Rs. 254.11 loss on sale of entire stake of 2985000 equity shares of M/s. Goldiam Jewels Limited one of its subsidiary on 28th September, 2012.

9 FINANCIAL INSTRUMENTS / FORWARD CONTRACTS :

The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies. The Company enters into forward contracts, where the counterparty is bank. The forward contracts are not used for trading or speculation purpose.

10 All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956 notified by MCA vide its notification no. 447(E) dated February 28, 2011. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current – non current classification of assets and liabilities.

11 The previous year''s figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.


Mar 31, 2013

1.01 As per Accounting Standard 15 "Employee benefits", the disclosures as defined in the Accounting Standard are given below:

i) Defined Contribution Plan :

Contribution to Provident Fund is Rs. 1.81 lakhs (Previous year Rs. 0.52 lakhs ), ESIC and Labour Welfare Fund includes Rs. 1.06 lakhs (Previous year Rs. 1.14 lakhs).

ii) Defined Benefit Plan :

GRATUITY & LEAVE ENCASHMENT:

The Company makes annual contribution to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five years of continuous service.

2 CONTINGENT LIABILITIES NOT PROVIDED FOR :

a) The Company has outstanding performance guarantee of Rs.1591.50 lakhs as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year Rs.100.19 lakhs).

b) The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs.136.97 lakhs (Previous year Rs.136.97 lakhs) on account of property tax.

c) The Company has executed Bank Guarantee of Rs. 3250.00 lakhs (Previous year Rs. 2500.00 lakhs) favouring The Hongkong and Shanghai Banking Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.

3 Estimated amount of contracts remaining to be executed on Capital Account and not provided for is Rs. 267.42 lakhs (Previous year Rs.Nil)

4 IN THE OPINION OF THE DIRECTORS:

a) The Current Assets and Loans & Advances are approximately of the value stated, if realised in the ordinary course of business.

b) The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

5.01 The above figures have been taken from audited accounts of Joint Venture as on 31st March, 2012 and converted at the exchange rate prevailing as on the date of Balance Sheet of Joint Venture.

Contingent liabilities in respect of Joint Venture is Rs. Nil

6 Information given in accordance with the requirements of AS 17 on "Segment Reporting".

The Company has identified Two Reportable Segments viz. Jewellery Manufacturing and Investment Activity. Segments have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

7 The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February, 2011 and 21st February, 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the Circular. The Company has satisfied the conditions stipulated in the Circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

8 During the year the company has sold its office premises at Dynasty Business Park, profit on sale of the said office premises of Rs. 434.34 lakhs has been reflected as an Exceptional Item in statement of Profit and Loss account.

9 During the current year under review the Company has disposed off its entire stake 2985000 equity shares of M/s. Goldiam Jewels Limited one of its subsidiary on 28th September, 2012 and incurred loss of Rs. 254.11 lakhs and the same has been reflected as an Exceptional Item in statement of Profit and Loss account.

10 FINANCIAL INSTRUMENTS / FORWARD CONTRACTS :

I) The Company has entered into following forward / derivative instruments :

The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. The Company enters into forward contracts and option contracts, where the counterparty is bank. The forward contract or options are not used for trading or speculation purpose.

11 Salaries & wages include Directors'' remuneration of Rs. 46.65 lakhs (Previous Year Rs. 39.70 lakhs)

12 All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956 notified by MCA vide its notification no. 447(E) dated February 28, 2011. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current – non current classification of assets and liabilities.

13 The previous year''s figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.


Mar 31, 2012

1.01 Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Details to be given for each class of shares separately for Issued, Subscribed and fully paid up and Subscribed but not fully paid up, as applicable.

2.1 Inventories except Consumables Stores and Spares are valued at cost or net realisable value whichever is less.

2.2 Consumables Stores and Spares are valued at cost.

3.01 As per Accounting Standard 15 "Employee benefits", the disclosures as defined in the Accounting Standard are given below:

i) Defined Contribution Plan :

Contribution to Provident Fund is Rs0.52 Lakhs (Previous year Rs2.04 Lakhs), ESIC and Labour Welfare Fund includes Rs1.14 Lakhs (Previous year Rs1.10 Lakhs).

ii) Defined Benefit Plan :

GRATUITY & LEAVE ENCASHMENT:

The Company makes annual contribution to the Employees' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five years of continuous service.

4 CONTINGENT LIABILITIES NOT PROVIDED FOR :

a) The Company has outstanding performance guarantee of Rs100.19 Lakhs as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year Rs100.19 Lakhs).

b) The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs136.97 Lakhs (Previous year Rs136.97 Lakhs) on account of property tax.

c) The Company has executed Bank Guarantee of Rs 2,500 Lakhs (Previous year Rs2,000 Lakhs) favouring The Hongkong and Shanghai Banking Corporation Limited and of Rs Nil (Previous year Rs1,000 Lakhs) favouring YES Bank Limited, Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.

5 Estimated amount of contracts remaining to be executed on Capital Account and not provided for is Rs Nil (Previous year Rs Nil)

6 IN THE OPINION OF THE DIRECTORS:

a) The Current Assets and Loans & Advances are approximately of the value stated, if realised in the ordinary course of business.

b) The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

7.01 The above figures have been taken from audited accounts of Joint Venture as on 31st March, 2012 and converted at the exchange rate prevailing as on the date of Balance Sheet of Joint Venture.

Contingent liabilities in respect of Joint Venture is Rs Nil

8 The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February, 2011 and 2151 February, 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the Circular. The Company has satisfied the conditions stipulated in the Circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

9 FINANCIAL INSTRUMENTS / FORWARD CONTRACTS :

The Company has entered into following forward / derivative instruments:

The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. The Company enters into forward contracts and option contracts, where the counterparty is bank. The forward contract or options are not used for trading or speculation purpose.

10 INFORMATION GIVEN IN ACCORDANCE WITH THE REQUIREMENTS OF AS 17 ON "SEGMENT REPORTING" :

The Company has identified Two Reportable Segments viz. Jewellery Manufacturing and Investment Activity. Segments have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment assets and Segment Liabilities represents assets and liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

Secondary segmental reporting is based on the geographical location of the customers. The geographical segments have been disclosed on revenues within India (Sales to customers in India) and revenues outside India (Sales to customers outside India).

11 All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956 notified by MCA vide its notification no. 447(E) dated February 28, 2011. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

12 The financial statements for the year 31st March, 2012 has been prepared as per the Revised Schedule VI to the Companies Act, 1956. Accordingly, the previous year's figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.


Mar 31, 2011

1 CONTINGENT LIABILITIES NOT PROVIDED FOR :

a) The Company has outstanding performance guarantee of Rs.10,019,250/- as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous year Rs.10,019,250/-)

b) The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs.13,696,775/- (Previous year Rs.13,696,775/-) on account of property tax.

c) The Company has executed Bank Guarantee of Rs.200,000,000/- (Previous year Rs.150,000,000/-) favouring The Hongkong and Shanghai Banking Corporation Limited and of Rs.100,000,000/- (Previous year Rs.Nil) favouring YES Bank Limited, Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.

d) Commitment under contribution agreement with Kotak Alternate Opportunities (India) Fund is Rs.Nil (Previous year Rs.6,250,000/-)

2 Estimated amount of contracts remaining to be executed on Capital Account and not provided for is Rs.Nil. (Previous year Rs.Nil.)

3 Details of Related parties transactions are as under :

a) List of related parties and relationship where control exists or with whom transactions were entered into:

Sr. No. Relationship Name of the Related Party

1 Subsidiaries Diagold Designs Limited

Goldiam Jewellery Limited

Goldiam Jewels Limited

Goldiam USA, Inc.

2 Associates Goldiam HK Limited

Temple Designs LLP

3 Key Management Personnel Mr. Manhar R. Bhansali (Chairman & Managing Director)

Mr. Rashesh M. Bhansali (Vice Chairman & Managing Director)

4 IN THE OPINION OF THE DIRECTORS:

a) The Current Assets and Loans & Advances are approximately of the value stated, if realised in the ordinary course of business.

b) The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

5 JOINT VENTURE :

In compliance with the Accounting Standard relating to "Financial Reporting of Interests in Joint Ventures" (AS-27), issued by the Institute of Chartered Accountants of India, the Company has interests in the following jointly controlled entity, which is incorporated outside India.

6 GENERAL DESCRIPTION OF DEFINED BENEFIT PLAN: GRATUITY :

The Company makes annual contribution to the Employees Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five years of continuous service.

(i) Defined Benefit Plan :

Gratuity includes gratuity cost of Rs.66,431/- (Previous year Rs.1,336,754/-). Leave Encashment Rs.202,019/- (Previous year Rs.165,345/-).

(ii) Defined Contribution Plan :

Contribution to Provident Fund is Rs.203,879/- (Previous year Rs.462,871/-), ESIC and Labour Welfare Fund includes Rs.109,820/- (Previous year Rs.206,348/-).

7 The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February, 2011 and 21st February, 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act,1956, subject to fulfilment of conditions stipulated in the Circular. The Company has satisfied the conditions stipulated in the Circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

8 FINANCIAL INSTRUMENTS/FORWARD CONTRACTS :

The Company has entered into following forward/derivative instruments :

The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. The Company enters into forward contracts and option contracts, where the counterparty is bank. The forward contracts or options are not used for trading or speculation purpose.

Outstanding Forward Contract for hedging currency risk against Export Receivables and Balance with Banks in EEFC accounts entered into by the Company as on 31st March, 2011 is US$ 3.6 million (Previous year US$ Nil) equivalent to Rs.16.72 crores (Previous year Rs.Nil) and for Import Payables and Bank Borrowings outstanding Forward Contract entered into by the Company as on 31st March, 2011 is US$ Nil (Previous year US$ Nil) equivalent to Rs.Nil (Previous year Rs.Nil).

In respect of derivatives contract relating only to the Companys own export and imports business and foreign currency debt obligations, in accordance with the principles of prudence and other applicable guidelines as per Accounting Standards read with Schedule VI of the Companies Act, 1956, the Company has charged Rs.Nil (Previous year Rs.5.20 crores) in the Profit and Loss Account in respect of outstanding contracts as at 31st March, 2011 and 31st March, 2010. No such contracts were outstanding as on 31st March, 2011.

9 Information given in accordance with the requirements of AS 17 on "Segment Reporting" :

The Company has identified Two Reportable Segments viz. Jewellery Manufacturing and Investment Activity. Segments have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment assets and Segment Liabilities represents assets and liabilities in respective segments. Ta x related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

10 Salaries & wages include Directors remuneration of Rs.3,906,878/- (Previous year Rs.Nil)

11 Sales include Exchange Loss of Rs.35,130,068/- (Previous year Exchange Gain of Rs.6,593,091/-).

12 The amount of profit in respect of forward exchange contracts to be recognised in the Profit and Loss Account for the next accounting period is Rs.741,920/- (Previous year Rs.Nil).

13 Purchase Trading Goods includes Exchange Gain/Loss of Rs.Nil (Previous year Rs.Nil).

14 Previous year figures have been rearranged or re-grouped, wherever necessary.


Mar 31, 2010

1 CONTINGENT LIABILITIES NOT PROVIDED FOR

a) The Company has outstanding performance guarantee of Rs.10,019,250/-as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous year Rs. 10,019,250/-)

b) The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs. 13,696,775/- (Previous year Rs. 13,696,775/-) on account of property tax.

c) The Company had executed Bank Guarantee of US Dollar Nil (Previous year US Dollar 4,000,000) favouring The Hongkong & Shanghai Banking Corporation Limited, Hong Kong for its Subsidiary/Joint Venture Goldiam HK Limited, Hong Kong.

d) Commitment under contribution agreement with Kotak Alternate Opportunities -(India) Fund is Rs.6,250,000/- (Previous Year Rs. 13,250,000/-)

2 Estimated amount of Contracts remaining to be executed on Capital Account and not provided for is Rs.nil. (Previous year Rs.nil.)

3 Details of Related parties transactions are as under.

a) List of related parties and relationship where control exists or with whom transactions were entered into: Sr. No. Relationship Name of the Related Party

1 Subsidiaries Diagold Designs Limited

Goldiam Jewellery Limited Goldiam Jewels Limited Goldiam HK Limited (upto 22.07.2009) Goldiam USA, Inc.

2 Associates Goldiam HK Limited (from 23.07.2009)

Temple Designs LLP

3 Key Management Personnel Mr. Manhar R. Bhansali (Chairman & Managing Director)

Mr. Rashesh M. Bhansali (Vice Chairman & Managing Director)

4 FINANCIAL INSTRUMENTS / FORWARD CONTRACTS :

The Company has entered into following forward / derivative instruments:

The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. The Company enters into forward exchange and option contracts, where the counterparty is bank. The forward contract or option are not used for trading or speculation purpose. Outstanding Forward Contract for hedging currency risk against Export Receivables and Balance with Banks in EEFC accounts entered into by the company as on 31st March, 2010 is US$ Nil (Previous year US$ 5.7 million) equivalent to Rs. Nil (Previous year Rs. 24.16 Crores) and for Import Payables and Bank Borrowings outstanding Forward Contract entered into by the company as on 31st March, 2010 is US$ Nil (Previous year US$ 1.00 million) equivalent to Rs. Nil (Previous year Rs. 5.19 Crores).

In respect of derivatives contract relating only to the Companys own export and imports business and foreign currency debt obligations, in accordance with the principles of prudence and other applicable guidelines as per

Accounting Standards read with Schedule VI of the Companies Act, 1956, the Company has charged Rs. 5.20 Crores (Previous year Rs. 12.03 Crores) in Profit and Loss Account in respect of outstanding contracts as at 31st March, 2010 (31st March, 2009). No such contracts were outstanding as on 31st March, 2010.

5 Information given in accordance with the requirements of AS 17 on "Segment Reporting" .

The Company has identified Two Reportable Segments viz. Jewellery Manufacturing and Investment Activity. Segments have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment Assets and Segment Liabilities represents assets and liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

6 Sales include Exchange Gain of Rs.65,93,091/- (Previous Year Exchange Loss of Rs.6,420/-)

7 Purchase Trading Goods include Exchange Gain/Loss of Rs.Nil (Previous Year Exchange Loss of Rs.1,76,16,465/-)

8 Pursuant to the approval of the Board of Directors under section 77A of the Companies Act, 1956 to buy-back equity shares of the Company at a price not exceeding Rs.50/- per equity share from the open market through Stock Exchanges for an aggregate amount not exceeding Rs.5.25 crores being 3.53% of the aggregate of the Companys total paid-up equity share capital and free reserves as on March 31, 2009, the Company has bought back 600,000 equity shares for a total consideration of approximately Rs.2.32 Crores (excluding Brokerage, STT and other charges) by utilising the General Reserve account and Securities Premium account.

9 A Voluntary Retirement Scheme was announced in the last quarter of the previous year. Total Payments made pursuant to the scheme aggregate to Rs. 57,464,739/-. In accordance with the transitional provision contained in Accounting Standard 15, the company has chosen to amortize such expenses in equal quarterly installments over a period ending on 31st March, 2010. A sum of Rs. 50,067,841/- (Previous year Rs. 73,96,898/-)has been charged to profit and loss account in the current year.

10 Previous Year figures have been rearranged or re-grouped, wherever necessary.

 
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