Mar 31, 2015
1. Fixed Assets:
Fixed Assets are carried at cost of acquisition or construction
including incidental expenses related to acquisition and installation
on concerned assets, less accumulated depreciation and amortization.
The actual cost capitalized includes material cost, freight,
installation cost, duties and taxes and other incidental expenses
incurred during the construction / installation stage.
2. Depreciation:
The company has provided depreciation on Straight Line Value Method
over the estimated useful lives of assets at the rates specified in
Part C of Schedule II of The Companies Act, 2013. Depreciation is
charged on pro-rata basis from the date of capitalization. Individual
asset costing Rs. 5000/- or less are fully depreciated in the year of
acquisition.
3. Investments:
Long Term and Non current investments are valued at Cost. Other
investments are valued at lower of cost or fair market value as on the
date of Balance Sheet. The group provides for diminution in value of
investments, other than temporary in nature. During the year company
has provided for diminution in value of investments of Rs. 1,93,954/-
(P.Y Rs.34,25,565/-) and the same is reduced from the value of
investments as carried on in Balance Sheet.
Current Investments includes Fixed capital with partnership firm M/s
Lypsa Gems of Rs. 45,000/- (P.Y. Rs. 45,000/-) and Current capital
with partnership firm M/s Lypsa Gems of Rs 2,84,963/- (P.Y.
96,71,979/-) and Investment in 100% subsidiary Lypsa Gems & Jewellery
DMCC of Rs. 7,48,720/- (USD $ 14000) (P.Y. Rs. 7,48,720/- (USD $
14000).
4. Secured Loans:
The company has availed the secured loans amounting to Rs. 3748.78 Lacs
(P.Y Rs. 1485.93 Lacs against pledge of fixed deposits receipts) which
includes Foreign Currency Loans and Rupee Loans against hypothecation
of stocks and receivables
5. Cash and Bank Balances: Fixed Deposits Receipts:
The company has total fixed deposits of Rs. 576.11 Lacs with Bank of
India (P Y Rs. 858.59 Lacs with Bank of India).
Current Assets, Loans & Advances and Current Liabilities:
The Deferred premium on export of Rs. 64.12 Lacs (P.Y. 128.13 Lacs) is
reflected in Balance Sheet under other current liabilities.
The company has classified Receivable on forward contract against
Exports of Rs 148.97 Lacs (P.Y. Rs. 572.02 Lacs) in Balance Sheet under
short term loans & advances.
6. Revenue Recognition:
(a) Sales, net of taxes are accounted for when property in the goods
are transferred to the customers.
(b) Dividend is recognized, when right to receive the dividend arises.
(c) Items of Income and Expenditure such as Exchange Rate difference,
Interest on FDR, Profit on Forward Contract, Forward premium, Interest
paid are recognized on accrual basis, unless otherwise stated.
(d) Interest income is recognized on time proportion method.
(e) Amounts received or billed in advance of goods sold are recorded as
advances from customers.
(f) Revenue from operations include share of profit from partnership
firm M/s Lypsa Gems of Rs. -5.49 Lacs (P Y -7.43 Lacs)
(g) During the year, company has started New manufacturing unit at
Chhapi - Gujarat on 12th November, 2014. The commercial production at
the new manufacturing unit was also started during the year.
7. Preliminary Expenses:
Preliminary Expenses are amortized over a period of five years.
9. Foreign Currency Transactions:
Transactions in foreign currency are recognized at the prevailing
exchange rates on the transaction dates. Realized gain or losses on
settlement of foreign currency transactions are recognized in the
Profit and Loss account. Foreign currency denominated monetary assets
and liabilities at the year end are translated at the year end exchange
rates and recognized in the Profit and Loss account. Non monetary
foreign currency items are carried at cost.
The company enters into forward exchange contract and other instruments
that are in substance a forward exchange contract to hedge its risks
associated with foreign currency fluctuations. The premium or discount
arising on the inception of a forward exchange contract (other than a
firm commitment or highly probable forecast) or similar instrument is
amortised as expense or income over the life of contract. Exchange
difference on such a contract are recognized in the Profit and Loss
account in the year in which the exchange rates change. Any Profit or
Loss arising on cancellation of such a contract is recognized as income
or expense for the year. The company uses forward contracts to hedge
its risks associated with foreign currency fluctuations relating to
certain firm commitments and forecasted transactions. 10. Taxation:
Current Tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax for timing differences
between the income as per financial statement and income as per the
Income Tax Act, 1961 is accounted for using the tax rates and laws that
have been enacted or substantially enacted as of the Balance sheet
date. Deferred tax assets arising from the timing differences are
recognized to the extent there is virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
8. Employee Benefits:
Employee benefits such as Provident fund, ESIC and other benefits are
provided by the company.
9. Lease Accounting:
Lease Rentals under operating leases are recognized in the Profit and
Loss account on Straight Line Method. The company has not taken any
equipment on lease.
10. Treatment of contingent Liability:
The company recognizes a provision where there is a present obligation
as result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources is remote. As the company does
not have any contingent liability, no disclosure as specified in
Accounting Standard 29 - "Provisions, Contingent Liabilities and
Contingent Assets" is made.
11. Disclosure of Related Parties:
"Related party Disclosures" as required by Accounting Standard 18 is
enumerated below:
Transactions with Group Companies: NIL
Transactions with Key Management Personnel and Related Entities:
During the year M/s Lypsa Gems & Jewellery DMCC a 100% foreign
subsidiary of M/s Lypsa Gems & Jewellery Ltd has earned a net profit of
Rs. 14,35,28,525/-(P Y Rs. 6,30,39,333/-).
The computation of Net Profit for the purpose of calculation of
directors remuneration under Section 349 of the Companies Act 1956 is
not enumerated, since no commission has been paid to the Directors.
12. Segment Reporting:
In accordance with the requirements of Accounting Standard 17 "Segment
Reporting" the Company's Business Segment is "Trading and working in
Diamonds". As the company operates in only one segment, Segment
Reporting as per Accounting Standard 17 is not applicable.
13. Inventories:
Raw materials are valued at cost or net realizable value whichever is
lower. Cost is computed using weighted average method. Work in progress
is computed by adding cost of purchase, appropriate share of conversion
and other overheads incurred in bringing the inventories to its present
location and condition. Finished Goods are valued at weighted average
cost. During the year, there is no change in the method of valuation of
closing stock. Finished goods includes cost of purchase, cost of
conversion and other overheads incurred in bringing the inventories to
its present location and condition.
14. Stock and Turnover:
Information pursuant to paragraphs 4C & 4D (C) of Part II of Schedule
VI to the Companies Act, 1956 as applicable to the Company doing
manufacturing activity is as: Quantitative details of materials:
15. Share Capital:
During the year company has not allotted shares to the public. The
company has issued 70,20,000 Bonus shares in the ratio of 1 equity
share for every 2 equity shares held by capitalization of Rs.
5,98,00,000/- standing to the credit of the Securities premium Account
and a sum of Rs. 1,04,00,000/- standing to the credit of Profit & Loss
Account (forming part of Reserves & Surplus Account).
16. Earnings per Share:
Basic earnings per share is computed by dividing the profit/(loss)
after tax (including post tax effect of extra ordinary items, if any)
by the weighted average number of equity shares outstanding the year.
Diluted earnings per share is computed by dividing the profit/(loss)
after tax (including post tax effect of extra ordinary items, if any)
by the weighted average number of equity shares considered for deriving
basic earnings per share and also the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Dilutive potential equity shares are deemed
converted as at the beginning of the period, unless they have been
issued at a later date. The dilutive potential equity shares are
adjusted for the proceeds receivable had the shares been actually
issued at fair value (i.e., average market value of the outstanding
shares). Since the bonus shares as stated in note no. 21 hereinabove,
is an issue without consideration, the issue is treated as if it has
occurred prior to the beginning of the year being the earliest period
reported, the earnings per share and the adjusted earnings per share
for the year ended March 31st, 2014 is as computed as per Accounting
Standard 20 is as:
17. Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing
activities of the company are segregated based on the available
information.
18. Partnership Firm operations:
The accounts of the company reflects its Investments and Income &
Expenditure from Partnership firm which are accounted on the basis of
the accounts of the firm M/s Lypsa Gems on line-by-line basis with
similar items in the company's accounts to the extent of the
participating interest of the company as per partnership deed. The
partnership firm was dissolved on March 31st, 2015. During the year
various fixed assets were transferred by the firm to the company
towards the outstanding balance dues from them. The company has also
invested USD $ 14000 in its 100% foreign subsidiary company Lypsa Gems
& Jewellery DMCC (P.Y. US$ 14000).
19. In the opinion of the Board, the Current Assets, Loans and
Advances are approximately of the value stated, if realized in the
ordinary course of business. The provision for all known liabilities is
adequate and is not in excess of the amounts reasonably necessary.
20. The Balances of Debtors, Creditors, Loans and advances are subject
to reconciliation and confirmation.
21. Balance of Unsecured Loans includes interest charged on such
loans, wherever applicable.
22. The information required under Section 217 (2A) (b) (ii) of the
Companies Act, 1956 read with Companies Employees Amendment Rules, 2011
is not given as there was no employee in receipt of salary exceeding Rs
5,00,000 per month or Rs 60,00,000 or more per annum.
23. As defined in "The Micro, Small and Medium Enterprises Development
Act, 2006", there are no amounts payable to any Micro and Small Scale
Enterprises / Undertaking.
24. Previous year figures have been regrouped and rearranged wherever
necessary to make them comparable with those of current year.
25. There are certain uncollected dues/receivables in foreign currency
which are outstanding for a period of more than six months as on
Balance sheet date. The amount of foreign currency receivables
outstanding for more than six months is Rs. 1,43,72,660/- (P Y Rs.
14,41,745/-). However Rs. 33,00,353/- is received after the balance
sheet date.
26. The company has made an investment of USD $ 14000 in its 100%
Foreign subsidiary company M/s Lypsa Gems & Jewellery DMCC (P.Y. US$
14000) and subsidiary has earned profit of Rs. 14,35,28,525/-for the
year 2014-15.
The Net profit earned for the year 2014-15 from partnership firm M/s
Lypsa Gems of Rs. -5,49,299/- (P.Y. Rs.-7,43,418/-) is debited to
share of profit in companies current capital account.
27. The company has outstanding unclaimed dividend of Rs. 7,49,900/-
for the year 2009- 10, Rs. 8,27,000/- for the year 2010-11, Rs.
5,61,855/- for the year 2011-12, Rs 4,33,587/-for F.Y. 2012-13 and
Rs.15,50,060.50 for 2013-14.
Mar 31, 2014
1. Partnership Firm operations:
The accounts of the company reflects its Investments and Income &
Expenditure from Partnership firm which are accounted on the basis of
the audited accounts of the firm M/s Lypsa Gems on line-by-line basis
with similar items in the company''s accounts to the extent of the
participating interest of the company as per partnership deed. The
company has also invested USD $ 14000 in its 100% foreign subsidiary
company Lypsa Gems & Jewellery DMCC (P.Y. US$ 14000).
2. Short term Borrowings:
Loans and advances from related parties:
Particulars Current Year Previous Year
Unsecured Loans from Directors 596.33 420.80
3. In the opinion of the Board, the Current Assets, Loans and
Advances are approximately of the value stated, if realized in the
ordinary course of business. The provision for all known liabilities is
adequate and is not in excess of the amounts reasonably necessary.
4. The Balances of Debtors, Creditors, Loans and advances are subject
to reconciliation and confirmation.
5. Balance of Unsecured Loans includes interest charged on such
loans, wherever applicable.
6. The information required under Section 217 (2A) (b) (ii) of the
Companies Act, 1956 read with Companies Employees Amendment Rules, 2011
is not given as there was no employee in receipt of salary exceeding Rs
5,00,000/- per month or Rs 60,00,000/- per annum.
7. As defined in "The Micro, Small and Medium Enterprises Development
Act, 2006", there are no amounts payable to any Micro and Small Scale
Enterprises / Undertaking.
8. Previous year figures have been regrouped and rearranged wherever
necessary to make them comparable with those of current year.
9. There are certain uncollected dues/receivables in foreign currency
which are outstanding for a period of more than six months as on
Balance sheet date for which the required permission for extension of
time has not been obtained from appropriate authorities. The amount of
foreign currency receivables outstanding for more than six months is
Rs. 14,41,745/- (P Y Rs. 14,41,745/-).
10. The company has made an investment of USD $ 14000 in its 100%
Foreign subsidiary company M/s Lypsa Gems & Jewellery DMCC (P.Y. US$
14000). The Net profit earned for the year 2013-14 from partnership
firm M/s Lypsa Gems of Rs. -7,43,418/- (P.Y. 5,32,916/-) is credited
to share of profit in companies current capital account.
11. The company has outstanding unclaimed dividend of Rs. 7,49,900/-
for the year 2009- 10, Rs. 8,27,000/- for the year 2010-11, Rs.
5,61,855/- for the year 2011-12 and Rs 5,83,137/- for F.Y. 2012-13.
Additional Information pursuant to Part IV of Schedule VI to the
Companies Act, 1956 is given in Annexure ''A''
Signature to Schedule 1 to 24 As per our report of even date For M/s.
Doshi Maru & Associates Chartered Accountants FRN: 112187W
Mar 31, 2013
1. Fixed Assets:
Fixed Assets are carried at cost of acquisition or construction
including incidental expenses related to acquisition and installation
on concerned assets, less accumulated depreciation and amortization.
The actual cost capitalized includes material cost, freight,
installation cost, duties and taxes and other incidental expenses
incurred during the construction / installation stage.
2. Depreciation:
The company has provided depreciation on Straight Line Value Method
over the estimated useful lives of assets at the rates specified in
Schedule XIV of the Companies Act, 1956. Depreciation is charged on
pro-rata basis from the date of capitalization. Individual asset
costing Rs. 5000/- or less are fully depreciated in the year of
acquisition.
3. Investments:
Long Term and Non current investments are valued at Cost. Other
investments are valued at lower of cost or fair market value as on the
date of Balance Sheet. The group provides for diminution in value of
investments, other than temporary in nature. During the year company
has provided for dimunition in value of investments of Rs. 24,72,461/-
(P.Y Rs.24,72,927/-) and the same is reduced from the value of
investments as carried on in Balance Sheet.
Current Investments includes Fixed capital with partnership firm M/s
Lypsa Gems of Rs. 45,000/- and Investment in 100% subsidiary Lypsa Gems
& Jewellery DMCC of Rs. 7,48,720/- (USD $ 14000).
4. Secured Loans:
The company has availed the secured loans amounting to Rs. 1644.48 Lacs
(P.Y Rs. 1722.84 Lacs against pledge of fixed deposits receipts) which
includes Foreign Currency Loans and Rupee Loans against hypothecation
of stocks and receivables
5. Cash and Bank Balances: Fixed Deposits Receipts:
The company has total fixed deposits of Rs. 793.79 Lacs with Bank of
India (P Y Rs. 2060.17 Lacs with various Banks).
Current Assets, Loans & Advances and Current Liabilities:
The Deferred premium on export of Rs. 19.63 Lacs (P.Y. 106.32 Lacs) is
reflected in Balance Sheet under other current liabilities.
The company has reflected Receivable on forward contract against
Exports of Rs. 51.78 Lacs (P.Y. Rs. 116.59 Lacs) in Balance Sheet under
short term loans & advances.
6. Revenue Recognition:
(a) Sales, net of taxes are accounted for when property in the goods
are transferred to the customers.
(b) Dividend is recognized, when right to receive the dividend arises.
(c) Items of Income and Expenditure such as Exchange Rate difference,
Interest on FDR, Profit on Forward Contract, Forward premium, Interest
paid are recognized on accrual basis, unless otherwise stated.
(d) Interest income is recognized on time proportion method.
(e) Amounts received or billed in advance of goods sold are recorded as
advances from customers.
(f) Revenue from operations include share of profit from partnership
firm M/s Lypsa Gems of Rs. 5.33 Lacs (P Y 36.83 Lacs)
7. Preliminary Expenses:
Preliminary Expenses are amortized over a period of five years.
8. Foreign Currency Transactions:
Transactions in foreign currency are recognized at the prevailing
exchange rates on the transaction dates. Realized gain or losses on
settlement of foreign currency transactions are recognized in the
Profit and Loss account. Foreign current denominated monetary assets
and liabilities at the year end are translated at the year end exchange
rates and recognized in the Profit and Loss account. Non monetary
foreign currency items are carried at cost.
The company enters into forward exchange contract and other instruments
that are in substance a forward exchange contract to hedge its risks
associated with foreign currency fluctuations. The premium or discount
arising on the inception of a forward exchange contract (other than a
firm commitment or highly probable forecast) or similar instrument is
amortized as expense or income over the life of contract. Exchange
difference on such a contracts are recognized in the Profit and Loss
account in the year in which the exchange rates change. Any Profit or
Loss arising on cancellation of such a contract is recognized as income
or expense for the year. The company uses forward contracts to hedge
its risks associated with foreign currency fluctuations relating to
certain firm commitments and forecasted transactions.
9. Taxation:
Current Tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax for timing differences
between the income as per financial statement and income as per the
Income Tax Act, 1961 is accounted for using the tax rates and laws that
have been enacted or substantially enacted as of the Balance sheet
date. Deferred tax assets arising from the timing differences are
recognized to the extent there is virtual certainity that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
10. Employee Benefits:
Employee benefits such as Provident fund, ESIC and other benefits are
provided by the company.
11. Lease Accounting:
Lease Rentals under operating leases are recognized in the Profit and
Loss account on Straight Line Method. The company has not taken any
equipment on lease.
12. Treatment of contingent Liability:
The company recognizes a provision where there is a present obligation
as result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources is remote. As the company does
not have any contingent liability, no disclosure as specified in
Accounting Standard 29 Â "Provisions, Contingent Liabilities and
Contingent Assets" is made.
13. Disclosure of Related Parties:
"Related party Disclosures" as required by Accounting Standard 18 is
enumerated below:
Transactions with Group Companies: NIL
Transactions with Key Management Personnel and Related Entities:
14. Segment Reporting:
In accordance with the requirements of Accounting Standard 17 "Segment
Reporting" the Company''s Business Segment is "Trading and working in
Diamonds". As the company operates in only one segment, Segment
Reporting as per Accounting Standard 17 is not applicable.
15. Inventories:
Raw materials are valued at cost or net realizable value whichever is
lower. Cost is computed using weighted average method. Work in progress
is computed by adding cost of purchase, appropriate share of conversion
and other overheads incurred in bringing the inventories to its present
location and condition. Finished Goods are valued at weighted average
cost (Previous year Finished goods were valued at FIFO basis). During
the year, due to change in method of valuation of closing stock, the
profits are under stated by Rs.16,97,592/- Finished goods includes cost
of purchase, cost of conversion and other overheads incurred in
bringing the inventories to its present location and condition.
16. Stock and Turnover:
Information pursuant to paragraphs 4C & 4D (C) of Part II of Schedule
VI to the Companies Act, 1956 as applicable to the Company doing
manufacturing activity is as : Quantitative details of materials:
17. Share Capital:
During the year company has not allotted shares to the public.
18. Earnings per Share:
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including post tax effect of extra ordinary items, if any)
by the weighted average number of equity shares outstanding the year.
Diluted earnings per share is computed by dividing the profit / (loss)
after tax (including post tax effect of extra ordinary items, if any)
by the weighted average number of equity shares considered for deriving
basic earnings per share and also the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Dilutive potential equity shares are deemed
converted as at the beginning of the period, unless they have been
issued at a later date. The dilutive potential equity shares are
adjusted for the proceeds receivable had the shares been actually
issued at fair value (i.e., average market value of the outstanding
shares). The earnings per share as computed as per Accounting Standard
20 is as :
19. Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing
activities of the company are segregated based on the available
information.
20. Partnership Firm operations:
The accounts of the company reflects its Investments and Income &
Expenditure in Partnership firm which are accounted on the basis of the
audited accounts of the firm M/s Lypsa Gems on line-by-line basis with
similar items in the company''s accounts to the extent of the
participating interest of the company as per partnership deed. During
the year, company has also invested USD $ 14000 in its 100% subsidiary
company Lypsa Gems & Jewellery DMCC.
21. Details of shares held by each shareholder holding more than 5%
shares:
22. In the opinion of the Board, the Current Assets, Loans and Advances
are approximately of the value stated, if realized in the ordinary
course of business. The provision for all known liabilities is adequate
and is not in excess of the amounts reasonably necessary.
23. The Balances of Debtors, Creditors, Loans and advances are subject
to reconciliation and confirmation.
24. Balance of Unsecured Loans includes interest charged on such loans,
wherever applicable.
25. The information required under Section 217 (2A) (b) (ii) of the
Companies Act, 1956 read with Companies Employees Amendment Rules, 2011
is not given as there was no employee in receipt of salary exceeding
the limit specified in the section.
26. As defined in "The Micro, Small and Medium Enterprises Development
Act, 2006", there are no amounts payable to any Micro and Small Scale
Enterprises / Undertaking.
27. Previous year figures have been regrouped and rearranged wherever
necessary to make them comparable with those of current year.
28. There are certain uncollected dues/receivables in foreign currency
which are outstanding for a period of more than six months as on
Balance sheet date for which the required permission for extension of
time has not been obtained from appropriate authorities. The amount of
foreign currency receivables outstanding for more than six months is
Rs. 14,41,745/- (P Y Rs. 16,41,745/-).
29. During the year, company has made an investment of USD $ 14000 in
its 100% subsidiary company M/s Lypsa Gems & Jewellery DMCC. The Net
profit earned from partnership firm M/s Lypsa Gems of Rs. 5,32,916/- is
credited to share of profit in companies current capital account.
30. The company has outstanding unclaimed dividend of Rs. 7,49,900/-
for the year 2009-10, Rs. 8,27,000/- for the year 2010-11 and Rs.
5,61,855/- for the year 2011-12.
Mar 31, 2012
1. Fixed Assets :
Fixed Assets are carried at cost of acquisition or construction
including incidental expenses related to acquisition and installation
on concerned assets, less accumulated depreciation and amortization.
The actual cost capitalized includes material cost, freight,
installation cost, duties and taxes and other incidental expenses
incurred during the construction / installation stage.
2. Depreciation :
The company has provided depreciation on Straight Line Value Method
over the estimated useful lives of assets at the rates specified in
Schedule XIV of the Companies Act, 1956. Depreciation is charged on
pro-rata basis from the date of capitalization. Individual asset
costing Rs. 5000/- or less are fully depreciated in the year of
acquisition.
3. Investments :
Long Term and Non current investments are valued at Cost. Other
investments are valued at lower of cost or fair market value as on the
date of Balance Sheet. The group provides for diminution in value of
investments, other than temporary in nature. During the year company
has provided for dimunition in value of investments of Rs. 24,72,927/-
(P Y Rs.12,64,930.90) and the same is reduced from the value of
investments as carried on in Balance Sheet.
4. Secured Loans :
The company has utilized loans against pledge of fixed deposits
receipts with Indusind Bank Ltd., Oriental Bank of Commerce, IDBI Bank
Ltd and Axis Bank Ltd. The secured loans amounting to Rs. 1722.84 Lacs
(P Y Rs. 22233.04 Lacs) has been Netted off against Fixed Deposits with
various banks of Rs. 2060.17 Lacs (P Y Rs. 23413.06 Lacs) and Net
amount of Rs. 337.33 Lacs (P Y Rs. 1180.02 Lacs) is reflected in
Balance sheet under Head of Cash and Cash Equivalents under Current
Assets group. Accured Interest of Rs.1,62,63,662/- (P Y Rs.
9,33,80,744/-) is also included in fixed deposits with bank under the
Head Cash & Cash Equivalents.
5. Cash and Bank Balances :
Fixed Deposits Receipts :
The company has total fixed deposits of Rs. 2060.17 Lacs (P Y Rs.
23413.06 Lacs) with Indusind Bank Ltd., Oriental Bank of Commerce, IDBI
Bank Ltd, Axis Bank Ltd. The company has utilized overdraft facility
and /or buyer's credit facility of Rs. 1722.84 Lacs (P Y Rs. 22233.04
Lacs) against 100% cash margin in form of FDR's. The company has in
contravention of Disclosures norms as provided by Companies (Accounting
Standard) Rules, 2006, has adjusted overdraft and buyer's credit
facility against fixed deposits and disclosed net amount in the Balance
sheet. The disclosure is in the following manner :
Current Assets, Loans & Advances and Current Liabilites :
The Deferred premium on export of Rs. 106.32 Lacs is reflected in
Balance
Sheet under other current liabilities.
The company has reflected Receivable on forward contract against
Exports of Rs. 116.59 in Balance Sheet under short term loans &
advances.
6. Revenue Recognition :
(a) Sales, net of taxes are accounted for when property in the goods
are transferred to the customers.
(b) Dividend is recognized, when right to receive the dividend arises.
(c) Items of Income and Expenditure such as Exchange Rate difference,
Interest on FDR, Profit on Forward Contract, Forward premium, Interest
paid are recognized on accrual basis, unless otherwise stated.
(d) Interest income is recognized on time proportion method.
(e) Amounts received or billed in advance of goods sold are recorded as
advances from customers.
(f) Revenue from operations include share of profit from partnership
firm M/s Lypsa Gems of Rs. 36.83 Lacs
7. Preliminary Expenses :
Preliminary Expenses are amortized over a period of five years.
8. Foreign Curreny Transactions :
Transactions in foreign currency are recognized at the prevailing
exchange rates on the transaction dates. Realized gain or losses on
settlement of foreign currency transactions are recognized in the
Profit and Loss account. Foreign current denominated monetary assets
and liabilities at the year end are translated at the year end exchange
rates and recognized in the Profit and Loss account. Non monetary
foreign currency items are carried at cost.
The company enters into forward exchange contract and other instruments
that are in substance a forward exchange contract to hedge its risks
associated with foreign currency fluctuations. The premium or discount
arising on the inception of a forward exchange contract (other than a
firm commitment or highly probable forecast) or similar instrument is
amortised as expense or income over the life of contract. Exchange
difference on such a contract are recognized in the Profit and Loss
account in the year in which the exchange rates change. Any Profit or
Loss arising on cancellation of such a contract is recognized as income
or expense for the year. The company uses forward contracts to hedge
its risks associated with foreign currency fluctuations relating to
certain firm commitments and forecasted transactions.
9. Taxation :
Current Tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax for timing differences
between the income as per financial statement and income as per the
Income Tax Act, 1961 is accounted for using the tax rates and laws that
have been enacted or substantially enacted as of the Balance sheet
date. Deferred tax assets arising from the timing differences are
recognized to the extent there is virtual certainity that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
10. Employee Benefits :
Presently, employee benefits such as Provident fund, Gratuity or other
benefits are not applicable to the company.
11. Lease Accounting :
Lease Rentals under operating leases are recognized in the Profit and
Loss account on Straight Line Method. The company has not taken any
equipments on lease.
12. Treatment of contingent Liability :
The company recognizes a provision where there is a present obligation
as result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources is remote. As the company does
not have any contingent liability, no disclosure as specified in
Accounting Standard 29 Ã "Provisions, Contingent Liabilities and
Contingent Assets" is made.
13. Disclosure of Related Parties :
"Related party Disclosures" as required by Accounting Standard 18 is
enumerated below:
Transactions with Group Companies : NIL
14. Segment Reporting :
In accordance with the requirements of Accounting Standard 17 "Segment
Reporting" the Company's Business Segment is "Trading and working in
Diamonds". As the company operates in only one segment, Segment
Reporting as per Accounting Standard 17 is not applicable.
15. Inventories :
Raw materials are valued at cost or net realizable value whichever is
lower. Cost is computed using First in First out method. Work in
progress is computed by adding cost of purchase, appropriate share of
conversion and other overheads incurred in bringing the inventories to
its present location and condition. Finished goods includes cost of
purchase, cost of conversion and other overheads incurred in bringing
the inventories to its present location and condition.
16. Stock and Turnover :
Information pursuant to paragraphs 4C & 4D (C) of Part II of Schedule
VI to the Companies Act, 1956 as applicable to the Company doing
manufacturing activity is as :
17. Share Capital :
During the year company has allotted 70,20,000 equity shares of Rs.10
fully paid up as Bonus shares in ratio of 1:1 by capitalizing
Securities Premium account for Rs. 7,02,00,000/-.
18. Earnings Per Share :
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including post tax effect of extra ordinary items, if any)
by the weighted average number of equity shares outstanding the year.
Diluted earnings per share is computed by dividing the the profit /
(loss) after tax (including post tax effect of extra ordinary items, if
any) by the weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted average number
of equity shares which could have been issued on the conversion of all
dilutive potential equity shares. Dilutive potential equity shares are
deemed converted as at the beginning of the period, unless they have
been issued at a later date. The dilutive potential equity shares are
adjusted for the proceeds receivable had the shares been actually
issued at fair value (i.e., average market value of the outstanding
shares). The earnings per share as computed as per Accounting Standard
20 is as :
19. Partnership Firm operations :
The accounts of the company reflects its Investments and Income &
Expenditure in partnership firm which are accounted on the basis of the
audited accounts of the firm M/s Lypsa Gems on line-by-line basis with
similar items in the company's accounts to the extent of the
participating interest of the company as per partnership deed.
20. In the opinion of the Board, the Current Assets, Loans and
Advances are approximately of the value stated, if realized in the
ordinary course of business. The provision for all known liabilities
is adequate and is not in excess of the amounts reasonably necessary.
21. The Balances of Debtors, Creditors, Loans and advances are subject
to reconciliation and confirmation.
22. Balance of Unsecured Loans includes interest charged on such loans,
wherever applicable.
23. The information required under Section 217 (2A) (b) (ii) of the
Companies Act, 1956 read with Companies Employees Amendment Rules, 2011
is not given as there was no employee in receipt of salary exceeding
the limit specified in the section.
24. As defined in "The Micro, Small and Medium Enterprises Development
Act, 2006", there are no amounts payable to any Micro and Small Scale
Enterprises / Undertaking.
25. Previous year figures have been regrouped and rearranged wherever
necessary to make them comparable with those of current year.
26. There are certain uncollected dues/receivables in foreign currency
which are outstanding for a period of more than six months as on
Balance sheet date for which the required permission for extension of
time has not been obtained from appropriate authorities. The amount of
foreign currency receivables outstanding for more than six months is
Rs. 1,31,58,023/- (P Y Rs. 1,33,09,095/-) . However the receivables of
Rs. 1,15,04,162/- were received during the month of April 2012.
27. During the year, company has made an investment in partnership firm
M/s Lypsa Gems of Rs.45000/- as fixed capital and Rs. 1,49,39,352/- as
current capital. The Net profit earned from partnership firm M/s Lypsa
Gems of Rs. 36,82,528/- is credited to share of profit in companies
current capital account.
28. The company has paid an advance for investment in SEZ and the same
is transferred to current account of partnership firm M/s Lypsa Gems as
investment in partnership firm.
29. The company has outstanding unclaimed dividend of Rs. 7,50,000/-
for the year 2009-10 and Rs. 8,27,200/- for the year 2010-11.
Additional Information pursuant to Part IV of Schedule VI to the
Companies Act, 1956 is given in Annexure 'A'
Mar 31, 2011
1. Fixed Assets :
Fixed Assets are carried at cost of acquisition or construction
including incidental expenses related to acquisition and installation
on concerned assets, less accumulated depreciation and amortization.
The actual cost capitalized includes material cost, freight,
installation cost, duties and taxes and other incidental expenses
incurred during the construction / installation stage.
2. Depreciation :
The company has provided depreciation on Straight Line Value Method
over the estimated useful lives of assets at the rates specified in
Schedule XIV of the Companies Act, 1956. Depreciation is charged on
pro-rata basis from the date of capitalization. Individual asset
costing Rs. 5000/- or less are fully depreciated in the year of
acquisition.
3. Investments :
Long Term investments are valued at Cost. Current investments are
valued at lower of cost or fair market value as on the date of Balance
Sheet. The group provides for diminution in value of investments, other
than temporary in nature. During the year company has provided for
dimunition in value of investments of Rs.12,64,930.90 and the same is
reduced from the value of investments as carried on in Balance Sheet.
4. Secured Loans :
The company has utilized loans against pledge of fixed deposits
receipts with Indusind Bank Ltd., Oriental Bank of Commerce, IDBI Bank
Ltd and Axis Bank Ltd. The secured loans amounting to Rs. 22233.04
Lacs (18144.33 Lacs) has been Netted off against Fixed Deposits with
various banks of Rs. 23413.06 Lacs (18600.50 Lacs) and Net amount of
Rs. 1180.02 Lacs (456.17 Lacs) is reflected in Balance sheet under Head
of Cash and Bank Balance under Current Assets group.
5. Cash and Bank Balances :
Fixed Deposits Receipts :
The company has total fixed deposits of Rs. 23413.06 Lacs (18600.50
Lacs) with Indusind Bank Ltd., Oriental Bank of Commerce, IDBI Bank
Ltd, Axis Bank Ltd. The company has utilized overdraft facility and
buyer's credit facility of Rs. 22233.04 Lacs (18144.33 Lacs) by way of
pledge of said FDR's. The company has adjusted overdraft and buyer's
credit facility against fixed deposits and disclosed net amount in the
Balance sheet. The disclosure is in the following manner :
Current Assets, Loans & Advances and Current Liabilites :
The company has Netted off Deferred premium payable of Rs. 65.16
(217.38 Lacs) against Deferred premium receivable of Rs.502.11(424.23
Lacs) and Net amount of Rs. 436.94) is reflected in Balance sheet under
the head Current Assets, Loans & Advances.
The company has Netted off 63.69 (15.79),Foreign Currency Receivable of
Rs.23655.55 Lacs (11685.66 Lacs) against Receivable/Payable for forward
contract of Rs. 25068.13 Lacs (12448.99 Lacs) and Net amount of Rs.
1348.90 Lacs (747.55 Lacs) is reflected in Balance sheet under the head
Other Liabilities.
6. Revenue Recognition :
(a) Sales, net of taxes are accounted for when property in the goods
are transferred to the customers.
(b) Dividend is recognized, when right to receive the dividend arises.
(c) Items of Income and Expenditure such as Exchange Rate difference,
Interest on FDR, Profit on Forward Contract, Forward premium, Interest
paid are recognized on accrual basis, unless otherwise stated.
(d) Interest income is recognized on time proportion method.
(e) Amounts received or billed in advance of goods sold are recorded as
advances from customers.
7. Preliminary Expenses :
Preliminary Expenses are amortized over a period of five years.
8. Foreign Curreny Transactions :
Transactions in foreign currency are recognized at the prevailing
exchange rates on the transaction dates. Realized gain or losses on
settlement of foreign currency transactions are recognized in the
Profit and Loss account. Foreign current denominated monetary assets
and liabilities at the year end are translated at the year end exchange
rates and recognized in the Profit and Loss account. Non monetary
foreign currency items are carried at cost.
The company enters into forward exchange contract and other instruments
that are in substance a forward exchange contract to hedge its risks
associated with foreign currency fluctuations. The premium or discount
arising on the inception of a forward exchange contract (other than a
firm commitment or highly probable forecast) or similar instrument is
amortised as expense or income over the life of contract. Exchange
difference on such a contract are recognized in the Profit and Loss
account in the year in which the exchange rates change. Any Profit or
Loss arising on cancellation of such a contract is recognized as income
or expense for the year. The company uses forward contracts to hedge
its risks associated with foreign currency fluctuations relating to
certain firm commitments and forecasted transactions.
9. Taxation :
Current Tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax for timing differences
between the income as per financial statement and income as per the
Income Tax Act, 1961 is accounted for using the tax rates and laws that
have been enacted or substantially enacted as of the Balance sheet
date. Deferred tax assets arising from the timing differences are
recognized to the extent there is virtual certainity that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
10. Employee Benefits :
Presently, employee benefits such as Provident fund, Gratuity or other
benefits are provided by the company.
11. Lease Accounting :
Lease Rentals under operating leases are recognized in the Profit and
Loss account on Straight Line Method. The company ahs not taken any
equipments on lease.
12. Treatment of contingent Liability :
The company recognizes a provision where there is a present obligation
as result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources is remote. As the company does
not have any contingent liability, no disclosure as specified in
Accounting Standard 29 - "Provisions, Contingent Liabilities and
Contingent Assets" is made.
13. Disclosure of Related Parties :
"Related party Disclosures" as required by Accounting Standard 18
is enumerated below:
Transactions with Group Companies : NIL Transactions with Key
Management Personnel :
The computation of Net Profit for the purpose of calculation of
director's remuneration under Section 349 of the Companies Act 1956 is
not enumerated, since no commission has been paid to the Directors.
14. Segment Reporting :
In accordance with the requirements of Accounting Standard 17
"Segment Reporting" the Company's Business Segment is "Trading
and working on Diamonds". As the company operates in only one
segment, Segment Reporting as per Accounting Standard 17 is not
applicable.
15. Inventories :
Raw materials are valued at cost or net realizable value whichever is
lower. Cost is computed using First in First out method. Work in
progress is computed by adding cost of purchase, appropriate share of
conversion and other overheads incurred in bringing the inventories to
its present location and condition. Finished goods includes cost of
purchase, cost of conversion and other overheads incurred in bringing
the inventories to its present location and condition.
16. Share Capital :
During the year company has allotted 20,00,000 equity shares of Rs. 10
fully paid up at a premium of Rs. 65 per share aggregating to Rs.
15,00,00,000.
17. Earnings Per Share :
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including post tax effect of extra ordinary items, if any)
by the weighted average number of equity shares outstanding the year.
Diluted earnings per share is computed by dividing the the profit /
(loss) after tax (including post tax effect of extra ordinary items, if
any) by the weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted average number
of equity shares which could have been issued on the conversion of all
dilutive potential equity shares. Dilutive potential equity shares are
deemed converted as at the beginning of the period, unless they have
been issued at a later date. The dilutive potential equity shares are
adjusted for the proceeds receivable had the shares been actually
issued at fair value (i.e., average market value of the outstanding
shares). The earnings per share as computed as per Accounting Standard
20 is as :
18. Cash Flow Statement :
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing
activities of the company are segregated based on the available
information.
19.In the opinion of the Board, the Current Assets, Loans and Advances
are approximately of the value stated, if realized in the ordinary
course of business. The provision for all known liabilities is adequate
and is not in excess of the amounts reasonably necessary.
20. The Balances of Debtors, Creditors, Loans and advances are subject
to reconciliation and confirmation.
21. Balance of Unsecured Loans includes interest charged on such
loans, wherever applicable.
22. The information required under Section 217 (2A) (b) (ii) of the
Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975 is not given as there was no employee in receipt of salary
exceeding the limit specified in the section.
23. As defined in "The Micro, Small and Medium Enterprises
Development Act, 2006", there are no amounts payable to any Micro and
Small Scale Enterprises / Undertaking.
24. Previous year figures have been regrouped and rearranged wherever
necessary to make them comparable with those of current year.
25.There are certain uncollected dues/receivables in foreign currency
which are Outstanding for a period of more than six months as on
Balance sheet date for which the required permission for extension of
time has not been obtained from appropriate authorities. The amount of
foreign currency receivables outstanding for more than six months is
Rs. 1,16,67,350/-. However the receivables were received during the
Month of April 2011 and May 2011.
26. During the year, an adjudication order under Rule 5 was passed by
The Adjudication officer of SEBI and a penalty of Rs. 85,000/- was
levied by SEBI and the same is paid by the company.
27. During the year, Company has applied for delisting its shares from
Jaipur, Pune and Saurashtra Kutch Stock Exchanges.
28. The company has paid an advance for investment in SEZ and the same
is grouped under Loans and Advances.
29. The company has outstanding unclaimed dividend of Rs. 7,50,000/-
for the year 2009-10.
Mar 31, 2010
1) OTHER NOTES :
Direct/Indirect Taxes
Represents estimates made for probable liabilities arising out of
pending disputes/litigations with Various tax authorities.The timing of
the outflow with regard to the said matter depends on the Exhaustion of
remedies available to the Company under the law and hence the Company
is not Ascertain the timing of the outflow.
Previous year figures have been regrouped wherever considered necessary
to make them comparable with those of the current year.
Mar 31, 2009
(1) The Accounts arc prepared on an accrual basis except otherwise
stated and under the historical cost conventions, and are in line with
the relevant laws as well as the guidelines prescribed by the
Department of Company affairs and the Institute of Chartered
Accountants of India.
(2) Expenditure in foreign currency : Nil
(3) Income in Foreign Currency : Nil
(4) Balance of Sundry Debtors, Creditors, Loans & Advances given and
accepted as agreed by the management, are subject to confirmation.
(5) Previous year's figures are regrouped and rearranged wherever
necessary.
(6) Figures in brackets relate to prepares year unless otherwise
stated.
(7) In the opinion of the Board of Directors. Current Assets, Loans &
Advances are Realizable in the ordinary course of business at the value
which they are stated.
(8) Accounting Standard 17 - Segment Reporting
1 here are no identifiable reportable segments in the course of
business carried on by the company. The risks and returns are not
affected both by the difference in the products and by difference in
geographical area.
(9) Accounting Standard 18 - Related party Disclosures
No transaction with related parties
Additional information pursuant to the provisions of paragraphs 3. 4C
and 4D of Part II of Schedule VI to the Companies Act. 1956.
a) Production Capacity: The company is not required to obtain License
and hence comparison of License capacity and Installed capacity is not
given.
b) Employees in receipt of remuneration of not less than Rs.24,00,00/-
per annum or Rs. 2,00.00/- per month if employed for part of the year:
Nil (Previous Year Nil)
c) Since the company is in process of compiling details of amounts due
to SSI units creditors are relevant intonation envisaged by recent
government notification is not available.
Company has given interest free loans/ advances to some parties,
recovery of which is doubtful. Company has not provided for loss which
may arise on account of non recovery of said loan/ advances. Hence
profit for the year and reserves & surplus at the year end is
overstated by such amount.