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Notes to Accounts of Narbada Gems & Jewellery Ltd.

Mar 31, 2018

1. General Information

The Company was originally incorporated on 05th May, 1992 under the Companies Act, 1956 under the name ''Singh Foods Limited''. The name of the Company was changed to ''Narbada Gems and Jewellery Limited'' owing to the current business activity of the Company and a fresh certificate of incorporation was received on 11th March, 2008. Currently, the shares of the Company are listed at BSE Limited. The Company is dealing in manufacturing and trading of rose cut and flat diamond jewellery.

2. Basis of preparation of Financial Statements

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind-AS) as notified by Ministry of Corporate Affairs, Government of India vide Notification dated February 16, 2015. Accounting policies have been applied consistently to all periods presented in these financial statements. The Financial Statements are prepared under historical cost convention from the books of accounts maintained under accrual basis except for certain financial instruments which are measured at fair value and in accordance with the Indian Accounting Standards prescribed under the Companies Act, 2013

These financial statements are presented in Indian rupees, the national currency of India, which is the functional currency of the Company. All amounts included in the financial statements are reported in Indian rupees except number of equity shares and per share data, unless otherwise stated.

The accounting policies have been applied consistently to all periods presented in these financial statements.

3. Use of estimates and judgement

The preparation of financial statements requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

4. Financial Instruments- Fair Values and Risk Management

4.1 Financial Instruments by Categories

The following tables show the carrying amounts and fair values of financial assets and financial liabilities by categories. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. As follows as on March 31, 2018:

5.1 Fair Value Hierarchy

- Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active markets.

- Level 2 - Level 2 hierarchy includes financial instruments measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on observable market data (unobservable inputs).

5.2 Financial risk management

— The company''s activities expose it to the following financial risks:

— market risk (see (a));

— credit risk (see (b)); and

— liquidity risk.(see (c)).

The company has not arranged funds that have any interest rate risk.

a) Market risk

(i) Foreign Exchange Risk

The company has no import and export transactions and hence there is no foreign exchange risk.

(ii) Price Risk

The company''s is not expose to price risk arises out of the investment in equity shares because the company does not hold any investment in equity shares.

b) Credit Risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Accordingly, credit risk from trade receivables has been separately evaluated from all other financial assets in the following paragraphs. Trade Receivables:

The company has outstanding trade receivables amounting to INR 939.91(in lakhs), INR 334.26 (in lakhs) and INR 363.53(in lakhs) as of March 31, 2018 , March 31, 2017 and 1st April, 2016, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers.

Impairment on trade receivables is recognized based on expected credit loss in accordance with provisions of IND AS 109. The company''s historical experience for customers, present economic condition and present performance of the customers, future outlook for the industry etc are taken into account for the purposes of expected credit loss.

Credit risk exposure:

An analysis of age of trade receivables at each reporting date is summarized as follows:

Trade receivables are generally considered credit impaired after 120 days past due, unless the amount is considered receivable, when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables.

Financial assets:

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks.

c) Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company''s principal sources of liquidity are cash and cash equivalents, cash generated from operations and availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

Due to the dynamic nature of underlying businesses, the company maintains flexibility in funding by maintaining availability under committed credit lines.

Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues arising during the normal course of business as of each reporting date. The company maintains sufficient balance in cash and cash equivalents to meet short term liquidity requirements.

The company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.

6. Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on 30-05-2018.

7. Transition from IGAAP to IND AS

These financial statements, for the year ended March 31st, 2018, are first financial statements prepared by the Company in accordance with IND AS. For years upto and including the year ended March 31, 2016, the company prepared its financial statements in accordance with IGAAP, including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

Accordingly, the company has prepared IND AS compliant financial statements for year ending on March 31st, 2017. In preparing these financial statements, the company has prepared opening IND AS balance sheet as at 1st April, 2016 the company''s date of transition to IND AS in accordance with requirement of IND AS 101, "First time Adoption of Indian Accounting Standards". The basic approach adopted is summarized hereunder:

i) All assets and liabilities have been classified into financial assets/liabilities and non-financial assets/ liabilities.

ii) All non-current financial assets/liabilities at below market rate of interest or zero interest and outstanding as on 1st April, 2016 have been measured at fair value.

iii) In accordance with IND AS 101, the resulting adjustments are considered as arising from events and transactions entered before date of transition and recognized directly in the retained earnings at the date of transition to IND AS.

iv) The estimates as at 1 April 2016 and at 31 March 2017 are consistent with those made for the same dates in accordance with IGAAP (after adjustments to reflect any differences in accounting policies).

v) IND AS 101 also allows to first time adopter certain exemptions from the retrospective application of certain requirements under IND AS. Accordingly, the company has availed the following exemptions/ mandatory exceptions as per IND AS 101:

a) Deemed Cost for Property, Plant & Equipment and Intangible Assets: The Company has availed exemption under para D7AA of appendix D to IND AS 101 which permits a first time adopter to continue with the carrying values for its PPE as at date of transition to IND ASs measured as per previous GAAP.

b) Classification & Fair value measurement of financial assets or financial liabilities at initial recognition: The financial assets and financial liabilities have been classified on the basis of facts existing as at the date of transition to IND AS. In addition, the exemption permits prospective application of requirements of IND AS 109 to transactions entered into on or after date of transition.

Impairment of financial assets: The Company has availed exemption under para B8D of appendix B which permits the first time adopter to apply the impairment requirement of Ind AS 109 prospectively.


Mar 31, 2014

1. Terms /Rights attached to equity shares :The company has one class of equity shares having a par value of Rs. 10/-per share. Each shareholder is eligible for one vote per share. The dividend proposed, if any by the board of directors is subject to the approval shareholders in the ensuring Annual General Meeting In the event of Liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferencial amounts, in proportion to their shareholding.

2. The Company changed its name from StarchiK Specalities Ltd to Narbada Gems and Jewellery Ltd with effect from 11.03.08 as per the fresh certificate of Incorporation issued by the Registrar of Companies, Andhra Pradesh. Hyderabad.

3. Balances standing to the debit/credit of the parties are subject to reconciliation and confirmation by them.

4. The Company has not ascertained, from out of the amounts payable, ''dues'' to Small Scale undertakings.

5. The Company is in the business of trading Jewellery, It has no separate segments, Hence, Segment reporting as per AS-17 is not applicable.

6. Related part disclosure in accordance with the Accounting Standard 18:

A. Name of related parties and related part relationships:

Associate Concerns: Sanghi Jewellers Pvt Ltd, Uday Jewellery Industries Limited

7. Previous year''s figures are regrouped wherever necessary


Mar 31, 2013

1. The Company changed its name from Starchik Specalities Ltd to Narbada Gems and Jewellry Ltd with effect from 11.03.08 as per the fresh certificate of Incorporation issued by the Registrar of Companies, Andhra Pradesh, Hyderabad.

2. Balances standing to the debit/credit of the parties are subject to reconciliation and confirmation by them.

3. The Company has not ascertained, from out of the amounts payable, "dues" to Small Scale undertakings.

4. No provision is made towards Income Tax and Deferred Tax, as a matter of prudence, in view of Unabsorbed Depreciation and carried forward losses.

5. The Company is in the business of trading Jewellery. It has no separate segments. Hence, Segment reporting as per AS-17 is not applicable.

6. Previous year''s figures are regrouped wherever necessary.


Mar 31, 2012

Additional Notes:

1) No new shares were issued during the current year. Hence, there is no change in number of shares outstanding as at the beginning and asat the end of the reporting period.

2) The details of shares in the Company held by each shareholder holding more than 5% shares.

1. The Company changed its name from Starchik Specialities Ltd to Narbada Gems and Jewellery Ltd with effect from 11.03.08 as per the fresh certificate of Incorporation issued by the Registrar of Companies, Andhra Pradesh, Hyderabad.

2. Balances standing to the debit/credit of the parties are subject to reconciliation and confirmation by them.

3. The Company has not ascertained, from out of the amounts payable, "dues" to Small Scale undertakings.

4. No provision is made towards Income Tax and Deferred Tax, as a matter of prudence, in view of Unabsorbed Depreciation and carried forward losses.

5. The Company is in the business of trading Jewellery. It has no separate segments. Hence, Segment reporting as per AS-17 is not applicable.

6. Transactions during the year with related parties:

Associate Concerns

i) Sanghi Jewellers Pvt Ltd

ii) Uday Jewellery Industries Ltd.

7. Previous year''s figures are regrouped wherever necessary.


Mar 31, 2011

1. No provision is made towards Income Tax in view of Unabsorbed Depreciation and carried forward losses.

2. Transactions during the year with related parties:

Nature of Transaction Associate (Rs.)

(a) Purchases 33,886,569/-

(b) Design Receipts 105,700/-

(c) Sundry Creditors Nil

3. Previous year''s figures are regrouped wherever necessary.


Mar 31, 2010

1. The Company changed its name from Starchik Specalities Ltd to Narbada Gems and Jewellery Ltd with effect from 11.03.08 as per the fresh certificate of Incorporation issued by the Registrar of Companies, Andhra Pradesh, Hyderabad.

2. No provision is made towards Income Tax in view of Unabsorbed Depreciation and carried forward losses.

3. Previous years figures are regrouped wherever necessary.


Mar 31, 2009

1. The Company changed its name from Starchik Specalities Ltd to Narbada Gems and Jewellery Ltd with effect from 11.03.08 as per the fresh certificate of Incorporation issued by the Registrar of Companies, Andhra Pradesh, Hyderabad.

2. No provision is made towards Income Tax in view of Unabsorbed Depreciation and carried forward losses.

3. Previous years figures are regrouped wherever necessary.


Mar 31, 2008

1. The Company changed its name from Starchik Specalities Ltd to Narbada Gems and Jewellery Ltd with effect from 11.03.08 as per the fresh certificate of Incorporation issued by the Registrar of Companies, Andhra Pradesh, Hyderabad.

2. No provision is made towards Income Tax in view of Unabsorbed Depreciation and carried forward losses.


Mar 31, 2007

1. Balances standing to the credit/debit of parties are subject to confirmation by them and reconciliation by the Company.

2. The Company did not recognise deferred tax, as a prudent practice, in view of huge carried- forward losses.

3. The Company during the year 2000-01, stopped the processing plant operations due to adverse market conditions and lack of demand for its products. It, however, carried on trading activity in live broilers. During the year, the Company changed its Objects and started dealing in Gold Jewellery and Ornaments. Therefore, as the Company is exploring new ventures, the accounts are prepared on going-concern basis.

4. During the year, there are no transactions with related parties.

5. Quantitative Particulars: Purchases Sales Traded: KG Gold Bars 12985 gms. 12985 gms.

6. Previous years figures are regrouped wherever necessary.


Mar 31, 2006

1. Balances standing to the Credit/Debit of parties are subject to confirmation by them and reconciliation by the company.

2. The company did not recognise deferred tax, as a prudent practice, in view of huge carried-forward losses.

3. The company during the year 2000-01 stopped the processing plant operations due to adverse market conditions and lack of demand for its products. It, however, carried on trading activity in live broilers. This activity was discontinued during the year. However, as the company is exploring new ventures, the accounts are prepared on going-concern basis.

5. Related party Transactions:

6. Singh Poultry Private Limited, in which Sri Harbans Singh and Sri Amarjyot Singh are interested as members and directors, holds investment of Rs. 1,07,37,300/- in equity contribution (Rs.1,07,37,300/- as on 31.03.2005).

7. Directors: Sri Harbans Singh, Sri Sarabjyot Singh, Sri Amarjyot Singh, Sri R.P.Vaidya.

8. Sitting fees paid to other director, Shri R.P.Vaidya, and is disclosed in Note No.9.

10. Figures of the previous year are regrouped wherever necessary.


Mar 31, 2005

1. Balances standing to the Credit/Debit of parties are subject to confirmation by them and reconciliation by the company.

2. State Bank of India ( Schedule No.2 ) represents, amount to be paid as on 31 March 2005 against the " One Time Settlement" approved by the bank. As on date, the entire amount paid and loan liquidated.

3. No provision is made for Rs.3,22,362/-, demand raised by the Income Tax Department u/s 115JA in respect of Assessment Years 1998-99 & 1999-2000 as appeals against the above demand are pending in the Andhra Pradesh High Court.

4. The company did not recognise deferred tax, as a prudent practice, in view of huge carried- forward losses.

5. The company during the year 2000-01 Stopped the processing plant operations due to adverse market conditions and lack of demand for its products. It, however, carried on trading activity in live broilers. This activity was carried on this year also. The accounts are prepared on going concern basis.

6. Current Liabilities - Sundry Creditors for Raw Materials ( Schedule - 8 ) include dues to the following company in which two of the Directors are interested as Members and Directors.

Rupees

Maximum Amount due 31-3-2005 31-3-2004 2004-2005 2003-2004

Singh Poultry (P) Ltd 909548.79 949827.79 2099548.79 1676734.79

7. Related party Transactions:

1. Singh Poultry Private Limited, in which Sri Harbans Singh and Sri Amarjyot Singh are interested as members and directors, holds investment of Rs.1,07,37,300/-in equity contribution (Rs.1,07,37,300/- as on 31.03.2005). During the year the company purchased broilers from Singh Poultry Private Limited Ltd amounting to Rs.20,58,595/-.


Mar 31, 2003

1. Counter Guarantees issued to Banks against Bank Guarantees issued on our behalf - Rs.100000/- (Previous year - Rs.100000/-)

2. Balance standing to the Credit/Debit of parties are subject to confirmation by them and reconciliation by the Company.

3. No provision is made towards interest on Term Loans and Cash Credit due to State Bank of India as the company is negotiating for a one time settlement and is expecting concessions from the Bank. The Bank, simultaneously, also filed a suit for recovery and is pending.

4. The Company did not recognise deferred tax, as a prudent practice, in view of huge carried - forward losses.

5. The Company during the previous year, stopped the processing plant operations due to adverse market conditions and lack of demand for its products. It however, carried on trading activity in live Broilers. As this activity was carried on, during the year, at a good level and also looking at the future prospects of its activity, the accounts are prepared on going concern basis.

6. Current Liabilities - Sundry Creditors for Raw Materials(Schedule-8) include dues to the following company in which two of the Directors are interested as Members and Directors.

Rupees Maximum Amount Due 31-3-2003 31-3-2002 2002-2003 2001-2002

Singh Poultry(P) Ltd 9,87,301.79 12,11,781.99 16,54,577.99 35,53,448.14

7. Related party Transactions:

1. Singh Poultry Private Limited, in which Shri Harbans Singh and Shri Amarjoyt Singh are interested as members and directors, holds investment of Rs. 1,07,37,300/- in equity contribution (Rs. 1,07,37,300/- as on 31 -03.2001). During the year the Company purchased broilers from Singh Poultry Private Limited amounting to Rs. 95,57,525/-.

2. Directors for financial year 2002 -03 : Shri Narendra Luther, Shri Harbans Singh, Shri Sarabjyot Singh, Shri Amarjyot Singh, Shri R.P. Vaidya. Shri Narendra Luther has resigned as director w.e.f. 31 st March, 2003

3. Remuneration to Whole Time Director. Shrj Sarabiyot Singh is disclosed in Note No.9

4. Sitting fees paid to Shri Narendra Luther and Shri R.P.Vaidya, is disclosed in Note no. 9.

5.Information required under part II of Schedule VI to the Companies Act, 1956

6. Particulars of Directors Remuneration

Rupees 2001-2002

A. Salary to Whole Time Director 240000 120000*

B. Sitting fees to Directors 3000 5500

* Salary drawn during the previous year was for six months only

7. Expenditure in Foreign Currency Rupees

2002-2003 2001-2002

Travelling Expenditure Nil Nil

Legal Charges Nil 40073

8. Figures of the previous year are regrouped wherever necessary

Our Report of even date attached

for VENUGOPAL & CHENOY For and on behalf of the Board Chartered Accountants P.V. SRIHARI HARBANS SINGH SARABJYOT SINGH Partner Managing Director Director Place: Hyderabad Date: 30.06.2003


Mar 31, 2002

Fixed Assets:

Vehicle includes Cars purchased under Hire Purchase Scheme.

Other Notes:

1. Counter Guarantees issued to Banks against Bank Guarantees issued on our behalf - Rs. 1,00,000/- (Previous year Rs. 1,00,000/-).

2. Balances standing to the Credit/Debit of parties are subject to confirmation by them.

3. The company during the year, stopped the processing plant operations due to adverse market conditions and lack of demand and other products. It, however, carried on trading activity in live broilers. Due to the above the figures for the current year are not comparable with the previous figures.

4. Current Liabilities - Sundry Creditors Raw Materials (Schedule - 8) include dues to the following company in which two of the Directors are interested as Members and Directors.

Rupees Maximum Amount due 31-3-2002 31-3-2001 2001-2002 2000-2001

Singh Poultry (P) Ltd. 12,11,781.99 32,35,290.64 35,53,448.14 32,35,290.64

5. Related party Transactions:

1. Singh Poultry Private Limited, in which Sri Harbans Singh and Sri Amarjyot Singh are interested as members and directors, holds investment of Rs. 1,07,37,300/- in equity contribution (Rs. 1,07,37,300/- as on 31.03.2001). During the year the company purchased day old broiler chicks and broilers from Singh Poultry Private Limited amounting to Rs. 99,21,284/-.

2. Directors: Sri Narendra Luther, Sri Harbans Singh, Sri Sarabjyot Singh, Sri Amarjyot Singh, Sri R. P. Vaidya and Sri R. Srinivasan.

3. Remuneration to whole time director Sri Sarabjyot Singh is disclosed in Note No. 7.

4. Sitting fees paid to other directors Sri Narendra Luther, Sri R. P. Vaidya and Sri R. Srinivasan is disclosed in Note No. 7.

6. Particulars of Directors Remuneration

A. Whole time Director Rupees 2001-2002 2000-2001

Salary 1,20,000 2,40,000

B. Directors Sitting Fee 6,500 7,000

7. Expenditure in Foreign Currency

Travelling Expenditure NIL NIL

Legal Charges 40,073 1,66,135

8. Figures of the previous year are regrouped wherever necessary.


Mar 31, 2001

1. Counter Guarantees issued to Banks against Bank Guarantees issued on our behalf Rs 20000/-(Previous year Rs.100000/-)

2. Balances standing to the Credit/Debit of parties are subject to confirmation by them.

3. Sundry Debtors includes Rs. 3,23,890/- against which legal proceedings are initiated in courts, and Rs 18,14,614 outstanding for more than three years, for which no provision is made as the company is confident of recovering the amounts.

4. Sundry Debtors (Schedule-6) include dues from the following company in which two of the Directors are interested as Members and Directors.

5. Figures of the previous year are regrouped wherever necessary.


Mar 31, 1999

Notes on Secured Loans:

State Bank of India - Cash Credit - Secured by hypothecation of stocks and receivables, first charge on the fixed assets and collaterally secured by equitable mortgage of building belonging to the wife of the Managing Director. Also guaranteed by the Managing Director, his wife and two other directors.

State Bank of India - Term Loan - Secured by equitable mortgage of, shops, purchased and pledge of equipments and other fixed assets, acquired out of Bank Finance. Collaterally secured by First charge on the entire fixed assets including land and building and presently covering the working capital limits. Extension of equitable mortgage of office building belonging to the wife of the Managing Director.

General Notes:

2. Balances standing to the Credit/Debit of parties are subject to confirmation by them.


Mar 31, 1998

1. Balances standing to the Credit/Debit of parties are subject to confirmation by them.

2. Sundry Debtors (Schedule - 6) include dues from the following company in which the Directors are interested as Members and Directors.


Mar 31, 1997

(Secured by hypothecation of stocks and receivables, first charge on the fixed assets and the equitable mortgage of building belonging to the wife of the Managing Director. Also guaranteed by the Managing Director, his wife and two other Directors)

Balances standing to the Credit/Debit of parties are subject to confirmation by them.

Sundry Debtors (Schedule - 6) include dues from the following company in which the Directors are interested as Members and Directors.


Mar 31, 1996

(i) In respect of Escorts Financial Services Ltd. secured by hypothecation of vehicles. However this loan includes Rs. 47,625/- which represents advance paid for booking a vehicle which is not delivered till the Balance Sheet date.

(ii) In respect of Gujarat Lease Financing Ltd., secured by hypothecation of a generator.


Mar 31, 1995

1. Expenditure During the construction upto the date of Commercial Production i.e. 1.3.95 is capitalised. Profit and Loss A/c cover Income/Expenditure on Trading activities during the year and on regular production subsequent to the capitalisation.

2. Estimated amount of Contracts remaining to be executed on Capital account and not provided for Rs. 8.54 lakhs (Previous year Rs. 199.48 lakhs)

3. Balances standing to the Credit/Debit of parties are subject to confirmation by them.

4. a) During the year the company changed its method of accounting of depreciation from W.D.V. method to Straight line method. The excess amount provided upto 31.3.94 of Rs. 44,912 is adjusted out of the current year depreciation. The change in method of depreciation has resulted in decrease in depreciation for the year by Rs. 3,65,237/-

b) Depreciation on Poultry Equipment items whose value is less than Rs. 500/- is charged as per the regular rates as they represent more than 10% of Plant & Machinery value.

5. Sales include Export Sales Rs. 13,47,864 (Previous year Rs. Nil)

6. Sundry Debtors-Others (Schedule-6) include dues from the following company in which the Directors are interested as Members and Directors.

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