Mar 31, 2014
1. DERIVATIVE INSTRUMENTS
The company, in accordance with its risk management policies and
procedures, enters into derivative instruments (option contracts &
forward contracts) to manage its exposure to foreign exchange rates.
The counter party is generally a bank.
In addition to the above, the Company has outstanding derivative
instruments aggregating to Rs. 1,235.85 Million (Rs. 3,183.61 Million)
whose fair value showed a net loss of Rs. 66.38 Million (P.Y. loss of Rs.
7.21 Million) and which is accounted for in the Profit and Loss Account.
As of balance sheet date, the Company has foreign currency exposures
that are not hedged by a derivative instrument or otherwise amounting
to Rs. 12,868 million (P.Y. Rs. 8,748.49 million) representing receivables
and Rs. 25,468.64 million (previous year Rs. 20,932.79 million)
representing payables.
Commodity hedging
The Company enters into Gold Futures and Options contracts to hedge its
commodity related risk. The net outstanding position at the end of the
year is Nil (P.Y. NIL). The MTM gain / (loss) of Nil (P.Y. NIL) has
been accounted for in the Profit and Loss Account.
2 The Ministry of Corporate Affairs, Government of India vide its
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 attached to the Consolidated Financial
Statements.
3 Previous year''s figures have been reclassified / regrouped wherever
necessary.
4 Segment Information for the year ended 31st March, 2014
As per Accounting Standard 21 on Consolidated Financial Statements and
Accounting Standard 23 on Accounting for Investment in Associates in
Consolidated Financial Statements issued by Institute of Chartered
Accountants of India, the Company has presented Consolidated Financial
Statements, including subsidiaries and associates. Accordingly segment
information as required under Accounting Standard 17 on Segment
reporting is included under the Notes to Consolidated financial
statements.
Disclosure in respect of above.
1. Interest Received includes Received from Shrenuj DMCC Rs. 16.81 Mn.
(Rs. 1.59 Mn.), Shenuj Mauritius Pvt. Ltd. Rs. 15.74 Mn.(Rs. 4.72 Mn.).
2. Other Services Received includes Received from Shrenuj Botswana Pty
Ltd. Rs..20.06 Mn.(Rs. Nil), Simon Golub & Sons Rs. 1.33 Mn.
(Rs. 18.80 Mn.), Shrenuj USA,LLC Rs. 0.98 Mn.(Rs. 4.84 Mn.),Uxolo Diamond
Cutting Works Pvt. Ltd. Rs. 5.15 Mn. (Rs. Nil), Kiara Jewellery Pvt. Ltd.
Rs. 6.04 Mn.(Rs. Nil).
3. Other Services Rendered includes paid to Shrenuj Jewellery (Far
East Ltd.) Rs. Nil( Rs. 3.55 Mn.), Shrenuj GMBH Rs. 0.6 Mn. (Rs. Nil),
Shrenuj Botswana Pty. Ltd. Rs. 4.39 Mn. (Rs. 12.93 Mn.), Kiara Jewellery
Pvt. Ltd. Rs. 0.39 Mn. (Rs. 5.55 Mn), Prest Impex Pvt. Ltd. Rs. 1.20 Mn.
(Rs. Nil).
4. Purchases includes Purchase from Shrenuj N.V. Rs. 3251.76 Mn.(Rs.
4198.37), Shrenuj DMCC Rs. 3339.91 Mn. (Rs. 1880.63 Mn.), Shrenuj
Botswana Pty Ltd. Rs. 2211.25 Mn. (Rs. 1618.52), Kiara Jewellery Pvt Ltd.
Rs. 22.42 Mn. (Rs. 69.28 Mn.), K.K. Doshi & Co. Rs. 231.75 Mn.(Rs. Nil).
5. Interest paid includes paid to Shrenuj Investment & Finance Pvt.
Ltd. Rs. 77.69 Mn.(Rs. 79.11 Mn.), Prest Impex Pvt. Ltd. Rs. 18.89 Mn.
(Rs. 18.83 Mn.)
6. Sales includes Sale to Shrenuj USA LLC Rs. 1151.55 Mn. (Rs. 1103.94
Mn), Shrenuj DMCC Rs. 3764.46 Mn. (Rs. 2046.40 Mn.), Shrenuj N.V. Rs.
3441.53 Mn. (Rs. 2281 Mn.) , Shrenuj Far East Ltd (Inter gems H.K. Ltd)
Rs. 992.91 Mn. (Rs. 1047.75 Mn.), Kiara Jewellery Pvt Ltd Rs. 69.46 Mn.
(Rs. 102.28 Mn).
7. Purchase of Fixed Assets includes Purchase from Simon Golub & Sons
Rs. 0.65 Mn.(Rs. Nil).
8. Sale of Fixed Assets includes Sale to Shrenuj Botswana Pty Ltd Rs.
0.50 Mn. (Rs. 0.86 Mn.).
9. Guarantee includes Shrenuj N.V Rs. 5500.66 Mn(Rs. 4984.75 Mn),
Shrenuj DMCC Rs. 4272.30 Mn.(Rs. 3192.80 Mn.), Shrenuj Far East Ltd
(Intergems H K Ltd) Rs. 1653.79 Mn.(Rs. 1498.70 Mn.), Kiara Jewellery
Pvt Ltd Rs. 179.76 Mn. (Rs. 162.90 Mn.), Simon Golub & Sons Rs. 1659.78
Mn.(Rs. 1504.10 Mn.).
10. Outstanding Receivable includes Shrenuj USA LLC Rs. 865.93 Mn. (Rs.
729.68 Mn), Shrenuj NV Rs. 1781.51 Mn. (Rs. 1129.27 Mn.), Shrenuj DMCC
Rs. 2507.13 Mn.(Rs. 1292.65 Mn.),Copem & Shrenuj Rs.13.32 Mn.(Rs. Nil),
SWA Trading Co Ltd Rs. 3.35 Mn. (Rs. 3.82 Mn), Kiara Jewellery Pvt Ltd
Rs. 5.64 Mn (Rs. 4.21 Mn.).
11. Goods sent on Consignment includes Shrenuj N.V.Rs. 50.63 Mn.(Rs.
Nil),Shrenuj DMCC Rs. 110.92 Mn.(Rs. 34.62 Mn.), Shrenuj Far East Ltd.
(Intergems H K Ltd) Rs. 76.99 Mn. (Rs. Nil), Shrenuj Lifestyle Ltd
Rs. 188.41 Mn.(Rs. Nil).
12. Outstanding Payable includes Payable to Shrenuj N V Rs..1985.83
Mn.(Rs. 2691.80 Mn.), Shrenuj DMCC Rs. 2017.48 Mn. (Rs. 1592.26 Mn),
Shrenuj Botswana Pty Ltd Rs. 1544.91 Mn.(Rs. 843.86 Mn.), Kiara Trading
Ltd Rs. 8.51 Mn. (Rs. 9.47 Mn.), SWA Trading Ltd Rs. 3.35 Mn.
(Rs. 3.04 Mn.), SHL Gems Limited Rs. 1.33 Mn. (Rs. 1.43 Mn.).
Mar 31, 2013
1. DERIVATIVE INSTRUMENTS
The Company, in accordance with its risk management policies and
procedures, enters into derivative instruments (option contracts &
forward contracts) to manage its exposure to foreign exchange rates.
The counter party is generally a bank.
In addition to the above cash flow hedges, the Company has outstanding
derivative instruments aggregating to Rs. 3183.61 Million (Rs. 6304.88
Million) whose fair value showed a net loss of Rs. 7.21 Million (P.Y.
loss of Rs. 169.05 Million) and which is accounted for in the Profit
and Loss Account.
As of balance sheet date, the Company has foreign currency exposures
that are not hedged by a derivative instrument or otherwise amounting
to Rs. 8748.49 million (P.Y. Rs. 5,261.01 million) representing
receivables and Rs. 20932.79 million (previous year Rs. 13,161.35
million) representing payables.
Commodity Hedging
The Company enters into Gold Futures and Options contracts to hedge its
commodity related risk. The net outstanding position at the end of the
year is Nil (P.Y. NIL). The MTM gain / (loss) of Nil (P.Y. NIL) has
been accounted for in the Profit and Loss Account.
2 The Ministry of Corporate Affairs, Government of India vide its
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
attached to the Consolidated Financial Statements.
3 Previous year''s figures have been reclassified / regrouped
wherever necessary.
4 Segment Information for the year ended 31st March, 2013
As per Accounting Standard 21 on Consolidated Financial Statements and
Accounting Standard 23 on Accounting for Investment in Associates in
consolidated financial statements issued by Institute of Chartered
Accountants of India, the Company has presented consolidated financial
Statement, including subsidiaries and associates. Accordingly segment
information as required under Accounting Standard 17 on Segment
reporting is included under the Notes to Consolidated financial
statements.
5 RELATED PARTY TRANSACTIONS:
As per the Directors
1) Parties where control exists:
1 Shrenuj Lifestyle Limited Wholly owned subsidiary
2 Shrenuj Overseas Ltd Wholly owned subsidiary
3 Shrenuj DMCC Wholly owned subsidiary
4 Shrenuj Japan Corporation Wholly owned subsidiary
5 Shrenuj (Mauritius) Pvt. Ltd. Wholly owned subsidiary
6 Shrenuj Jewellery (Far East) Ltd. Wholly owned subsidiary
7 Shrenuj Botswana (Pty.) Ltd Wholly owned subsidiary
8 Shrenuj South Africa (Pty) Ltd. Wholly owned subsidiary
9 Shrenuj N.V. Wholly owned subsidiary
10 Shrenuj GmbH Wholly owned subsidiary
11 Shrenuj Australia Pty. Ltd. Wholly owned subsidiary
12 Lume Group AG Wholly owned subsidiary
13 Astral USA, INC. Wholly owned subsidiary
14 Shrenuj USA, LLC Wholly owned subsidiary
15 Astral Jewels LLC Wholly owned subsidiary
16 Astral Holding INC Wholly owned subsidiary
17 Alija International Pty Ltd Wholly owned subsidiary
18 Global Marine Diamonds Company Wholly owned subsidiary
19 Ithemba Diamonds (Pty) Ltd Wholly owned subsidiary
20 Uxolo Diamond Cutting Works (Pty) Limited Wholly owned subsidiary
21 Simon Golub & Sons INC Wholly owned subsidiary
22 Daily Jewellery Ltd.Hong Kong Subsidiary
23 Intergems H.K. Ltd. Subsidiary
24 Shrenuj Shanghai Diamonds Co. Pvt. Ltd. Subsidiary
25 Bernies International, LLC Subsidiary
2) Associates :
1 Kiara Jewellery Pvt. Ltd.
2 Arisia Jewellery Pvt. Ltd.
3 Jomard SAS
4 SWA Trading Ltd.
5 Copem & Shrenuj
6 Trapz, LLC
7 SHL Gems & Jewellery Ltd.
8 K. K. Doshi & Co.
9 Shrenuj Investments & Finance Pvt. Ltd.
10 Prest Impex Pvt Ltd.
3) Key Management Personnel and their relatives:
1 Shri Shreyas K. Doshi
2 Shri Nihar N. Parikh
3 Shri Vishal S. Doshi
4 Mrs. Anjali P. Mehta
Mar 31, 2012
Notes:
1 a) Of the above Equity shares:
i) 14,122,325 shares were issued pursuant to the scheme of amalgamation
without payment being received in cash.
ii) 6,692,070 shares were issued pursuant to the exercise of option by
the holders of Foreign Currency Convertible Bonds.
b) The Company has reserved 3,131,527 Equity shares of Rs. 2/- each to
be issued to eligible employees of the Company and its subsidiary
companies under Employee Stock Option Scheme. Upto 31st Mar'12, the
Company has granted 1,565,763 (P.Y. 1,565,763) options to the eligible
employees for subscribing to equivalent numbers of fully paid up equity
shares of the Company at a price of Rs. 21/- per share. The option
would vest over a period of three years from the date of grant based on
specified criteria. During the year, 424,600 (P.Y. 639,850) equity
shares have been allotted to eligible employees / Directors of the
Company and its subsidiaries on exercise of options. The cumulative
options exercised 1,064,450, upto 31st March 2012.
Note:
2a) The Company had revalued / fair valued its Land and Buildings
situated at Mumbai and consequently, there is an additional charge for
depreciation of Rs. 13.84 million for the year ended 31st March, 2012
(Rs. 13.84 million) and an amount of Rs. 7.28 million (Rs. 7.28
million) has been withdrawn from Revaluation Reserve and Amalgamation
Reserve respectively as per the scheme sanctioned by the Hon'ble High
Court of Judicature at Bombay vide order dated 1st October, 2010. This
has no impact on the profit for the year.
2b) The Company has continued to adopt the principles of AS - 30,
"Financial Instruments: Recognition & Measurement" in respect of
hedge accounting. Accordingly, in respect of derivative financial
instruments which are entered into to hedge foreign currency risks of
firm commitments or highly probable forecast transactions and which are
effective cash flow hedges, the net notional loss on these instruments
outstanding as at 31st March 2012, amounting to Rs. 6.92 million (PY
notional gain Rs. 7.10 million) is reflected in the Hedging Reserve
account.
3a) Term Loan from Banks includes:
(i) Rs. Nil (P.Y. Rs. 291.43 million) secured by way of second charge
on all the Assets, present and future, of the company, excluding assets
of Unit I and Unit II of Jewellery Division at Seepz . The loan is
collaterally secured by pledge of Company's investment in Astral
Holding Inc. and Simon Golub & Sons Inc. These are further guaranteed
by some of the Directors in their personal capacity. It carried
interest @12.5% p.a.
(ii) Rs. 47.42 million (P.Y. Rs. 66.79 million) secured by way of first
charge on all assets, both present and future, of Unit I of Jewellery
Division at Seepz .
It carries interest @ 6 month Libor 225 bps p.a. The loan is
repayable in 18 quarterly installments of USD 0.19 million each along
with interest, from December 2008 to March 2013.
(iii) Rs. 6.59 million (P.Y. Rs. 6.91 million) is secured by
hypothecation of specific vehicles.
3b) Working Capital Term Loan from Banks include:
(i) Rs. 71.60 million (P.Y. Rs. 357.20 million) secured by way of
second charge on all the Fixed Assets, present and future, of the
company, excluding assets situated at MIDC Andheri and Seepz unit of
the Company. The loan is collaterally secured by pledge of shares
standing in name of Promoter group in the Company. These are further
guaranteed by some of the Directors in their personal capacity.
It carries interest @12.75% p.a. The loan is repayable in 7 equal
quarterly installments of Rs. 71.40 million each along with interest,
commencing from 15 months after first drawdown.
(ii) Rs. Nil (P.Y. Rs. 147.47 million) secured by hypothecation of
stock in trade and book debts of Unit II of Jewellery Division at
Seepz . It carried interest @ 8% p.a.
3c) Term loan from a company was secured by hypothecation of a specific
vehicle.
3d) Unsecured loans from Directors and Companies are payable over a
period of 7 to 10 years. Loan from Directors carry interest of 8% and
Inter Corporate Deposits carry interest ranging from 8% to 16.25%.
1(a) The Disclosure of employee benefit as defined in the accounting
standard are given below:
Defined Contribution Plan:
The Company makes Provident Fund and Superannuation Fund contributions
as defined contributions retirement benefit plans for qualifying
employees. The Company's provident fund is under the management of
the statutory authorities. The Company has recognised Rs.16.64 million
(Rs. 10.41 million) for Provident Fund and Rs.1.09 million (Rs 1.20
million ) for Superannuation contributions in Profit and Loss account.
The Contributions payable to this plans by the Company are at rates
specified in the rules of the scheme.
Defined Benefit Plan:
The employees Gratuity Fund scheme managed by a trust is a funded
defined benefit plan. The present value of obligation is determined
based on the actuarial valuation using Projected Unit Credit Method,
which recognises each period of service as giving rise to additional
unit of employee benefit entitlement and measures each unit separately
to build up the final obligation.
The Company has made an arrangement with an Insurer for meeting its
Gratuity Liability payable at the time of retirement of its employees
and a sum of Rs. 0.05 million (Rs 5.26 million) has been paid as
advance against the premium and the same is adjusted against the
provision for gratuity.
Subsequent to the balance sheet date (before finalising the accounts),
the Company has utilised / cancelled forward contracts of USD Nil (USD
8.00 million) without incurring any loss. The notional Mark to Market
gain of Rs. Nil (P.Y. Rs. 6.85 million) on such contracts as on 31st
March is therefore not reflected in the Hedging Reserve. The balance
net Mark to Market gain / (loss) of Rs. (6.92) million (P.Y. Rs. 7.09
million) has been reflected in the Hedging Reserve.
In addition to the above cash flow hedges, the Company has outstanding
derivative instruments aggregating to Rs. 6304.88 million (Rs. 2457.68
million) whose fair value showed a net loss of Rs. 169.05 million (P.Y.
gain of Rs 26.98 million) and which is accounted for in the Profit and
Loss Account.
As of balance sheet date, the Company has net foreign currency
exposures that are not hedged by a derivative instrument or otherwise
amounting to Rs. 5,261.01 million (P.Y. Rs. 1,959.33 million)
representing receivables and Rs. 13,161.35 million (P.Y. Rs. 7,581.44
million) representing payables.
Commodity Hedging
The Company enters into Gold Futures and Options contracts to hedge its
commodity related risk. The net outstanding position at the end of the
year is Nil (P.Y. 40,800 grams). The MTM gain / (loss) of Nil (P.Y.
gain of Rs. 1.89 million) has been accounted for in the Profit and Loss
Account.
2 The Ministry of Corporate Affairs, Government of India vide its
General Circular No. 2 and 3 dated 8th Februrary 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
attached to the Consolidated Financial Statements.
3 Presentation and disclosure of financial statements:
During the year ended 31st March 2012, the revised Schedule VI notified
under the Companies Act, 1956 has become applicable to the Company, for
preparation and presentation of its financial statements. The Company
has also reclassified / regrouped previous year figures in accordance
with the requirements applicable in the current year.
4 Segment Information for the year ended 31st March 2012
As per Accounting Standard 21 on Consolidated Financial Statements and
Accounting Standard 23 on Accounting for Investment in Associates in
consolidated financial statements issued by Institute of Chartered
Accountants of India, the Company has presented consolidated financial
Statement, including subsidiaries and associates. Accordingly segment
information as required under Accounting Standard 17 on Segment
reporting is included under the Notes to Consolidated financial
statements.
Mar 31, 2011
1. In terms of the Scheme of Arrangement (Scheme) sanctioned by the
order dated 1st October 2010 of the Hon'ble High Court of Bombay,
Shrenuj Diajewels Limited and Shrenuj Gems & Jewellery Limited, wholly
owned subsidiaries, have been amalgamated with the Company w.e.f.
01-04-2010.
a) In accordance with the said Scheme:
(i) The asset and liabilities of the transferor companies are taken
over at fair value under Purchase method of accounting for Amalgamation
and the excess of fair value of assets over liabilities amounting to
Rs.5,466.63 Lacs has been credited to the Amalgamation Reserve.
(ii) As per the scheme, some of the fixed assets of the transferee
Company have also been revalued and an amount of Rs.13,511.14 Lacs is
credited to Revaluation Reserve.
(iii) Consequent to the above, there is an additional charge for
depreciation of Rs. 211.17 lacs for the year ended 31st March 2011. An
amount of Rs. 138.38 lacs on the revalued assets of the transferee
Company has been withdrawn from Revaluation Reserve and an amount of
Rs. 72.79 lacs on the excess of fair value over book value of the
assets of the transferor Companies has been withdrawn from Amalgamation
Reserve as provided in the Scheme. This has no impact on the profit for
the period.
b) Pursuant to the scheme, 60,22,525 equity shares of Rs. 2/- each were
allotted on 27th October 2010 to the lenders of Unsecured loans at a
price of Rs. 46.33 per share on conversion of the said loans into
equity and accordingly a sum of Rs.2,669.79 lacs has been credited to
Securities Premium Account.
c) The expenses including stamp duty on amalgamation amounting to Rs.
51.15 lacs have been charged to Amalgamation Reserve account.
d) With effect from effective date, the authorised capital of the
Company has increased to Rs. 4,500 Lacs.
e) The Figures of current year include figures of amalgamating
companies as explained above and are therefore to that extent not
comparable with those of the previous year.
2 A (i) As in the previous year, the Company has continued to adopt the
principles of AS Ã 30, "Financial Instruments: Recognition &
Measurement" in respect of hedge accounting. Accordingly, in respect of
derivative financial instruments which are entered into to hedge
foreign currency risks of firm commitments or highly probable forecast
transactions and which are effective cash flow hedges, the net notional
gain on these instruments outstanding as at 31st March, 2011, amounting
to Rs. 70.97 lacs (previous year notional gain Rs. 603.88 lacs) is
reflected in the Hedging Reserve account.
(ii) The Company, in accordance with its risk management policies and
procedures, enters into derivative instruments (option contracts &
forward contracts) to manage its exposure to foreign exchange rates.
The counter party is generally a bank.
Subsequent to the balance sheet date (before finalising the accounts),
the Company has utilised / cancelled forward contracts of USD 8.00
million (USD 12.40 million) without incurring any loss. The notional
Mark to Market gain of Rs. 68.51 lacs (P.Y. Rs. 184.17 lacs) on such
contracts as on 31st March is therefore not reflected in the Hedging
Reserve. The balance net Mark to Market gain / (loss) of Rs. 70.97 lacs
(P.Y. Rs. 603.88 lacs) has been reflected in the Hedging Reserve.
In addition to the above cash flow hedges, the Company has outstanding
derivative instruments aggregating to Rs. 24,576.79 lacs (Rs.
104,722.00 lacs) whose fair value showed a net gain of Rs. 269.78 lacs
(P.Y. loss Rs. 764.85 lacs), and which is accounted for in the Profit
and Loss Account.
As of balance sheet date, the Company has net foreign currency
exposures that are not hedged by a derivative instrument or otherwise
amounting to Rs. 19,593.30 lacs (P.Y. Rs. Nil) representing receivables
and Rs. 75,814.39 lacs (previous year Rs. 15,448.27 lacs) representing
payables.
B. Commodity Hedging:
The Company enters into Gold Futures and Options contracts to hedge its
commodity related risk. The net outstanding position at the end of the
year is 40,800 grams (P.Y. 1,000 grams.). The MTM gain of Rs. 18.89
lacs has been accounted for in the Profit and Loss Account.
3. Suppliers/Service providers covered under Micro, Small Medium
Enterprises Development Act 2006, have not furnished the information
regarding filing of necessary memorandum with the appropriate
authority. In view of this, information required to be disclosed u/s 22
of the said Act is not given.
2010-2011 2009-2010
(Rs. in Lacs) (Rs. in Lacs)
4. Contingent Liabilities not provided
for in respect of:
a) Guarantees given by the Company on
behalf of Subsidiaries and Associates In
respect of Advances granted by Banks 73,330.90 54,102.00
b) Disputed Income Tax Liabilities not
provided for 136.04 112.52
c) Disputed Sales Tax Liabilities not
provided for 3.76 3.76
d) Corporate Guarantee executed in favor of
Third Party 238.16 7.00
e) Bond executed for import of Capital goods 164.89 137.50
f) Letter of Credit against import of goods 15,424.74 12,080.05
5. Previous year's figures have been re-grouped and/or rearranged
wherever necessary.
6. The Ministry of Corporate Affairs, Government of India vide its
General Notification No. S.O.301(E) dated 8th Februrary 2011 issued
under Section 211 (3) of the Companies Act, 1956 has exempted certain
class of Companies from disclosing certain information in their Profit
and Loss Account. The Company being an "export oriented company" is
entitled to the exemption. Accordingly, disclosures mandated by
paragraphs 3(i)(a), 3 (ii) (a), 3(ii) (b) and 3(ii) (d) of Part II,
Schedule VI to the Companies Act, 1956 have not been provided.
7. The Ministry of Corporate Affairs, Government of India vide its
General Circular No. 2 and 3 dated 8th Februrary 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
attached to the Consolidated Financial Statements.
8. Segment Information for the year ended 31 March 2011:
As per Accounting Standard 21 on Consolidated Financial Statements and
Accounting Standard 23 on Accounting for Investment in Associates in
consolidated financial statements issued by Institute of Chartered
Accountants of India, the Company has presented consolidated financial
Statement, including subsidiaries and associates. Accordingly segment
information as required under Accounting Standard 17 on Segment
reporting is included under the Notes to Consolidated financial
statements.
9. The Disclosure of employee benefit as defined in the accounting
standard are given below:
Defined Contribution Plan:
The Company makes Provident Fund and Superannuation Fund contributions
as defined contributions retirement benefit plans for qualifying
employees. The Company's provident fund is under the management of the
statutory authorities. The Company has recognised Rs.104.06 lacs (Rs.
62.95 lacs) for Provident Fund and Rs.12.04 lacs (Rs 9.15 lacs) for
Superannuation contributions in Profit and Loss account. The
Contributions payable to this plans by the Company are at rates
specified in the rules of the scheme.
Defined Benefit Plan:
The employees Gratuity Fund scheme managed by a trust is a funded
defined benefit plan. The present value of obligation is determined
based on the actuarial valuation using Projected Unit Credit Method,
which recognises each period of service as giving rise to additional
unit of employee benefit entitlement and measures each unit separately
to build up the final obligation.
10. Related Party transactions:
As per the Directors
1) Parties where control exists:
Shrenuj Diajewels Limited* Wholly owned subsidiary
Shrenuj Gems & Jewellery Ltd.* Wholly owned subsidiary
Shrenuj Lifestyle Limited Wholly owned subsidiary
Shrenuj Overseas Ltd Wholly owned subsidiary
Shrenuj DMCC Wholly owned subsidiary
Shrenuj Japan Corporation Wholly owned subsidiary
Shrenuj (Mauritius) Pvt. Ltd. Wholly owned subsidiary
Shrenuj Jewellery (Far East) Ltd. Wholly owned subsidiary
Shrenuj Botswana (Pty.) Ltd Wholly owned subsidiary
Shrenuj South Africa (Pty) Ltd. Wholly owned subsidiary
Shrenuj N.V. Wholly owned subsidiary
Shrenuj GmbH Wholly owned subsidiary
Shrenuj Australia Pty. Ltd. Wholly owned subsidiary
Lume Group AG Wholly owned subsidiary
Astral USA, INC. Wholly owned subsidiary
Shrenuj USA, LLC Wholly owned subsidiary
Astral Jewels LLC Wholly owned subsidiary
Astral Holding INC Wholly owned subsidiary
Alija International Pty Ltd Wholly owned subsidiary
Global Marine Diamonds Company Wholly owned subsidiary
Ithemba Diamonds (Pty) Ltd Wholly owned subsidiary
Uxolo Diamond Cutting Works (Pty) Limited Wholly owned subsidiary
Simon Golub & Sons INC Subsidiary
Daily Jewellery Ltd.Hong Kong Subsidiary
Intergems H.K. Ltd. Subsidiary
Shrenuj Shanghai Diamonds Pvt. Ltd. Subsidiary
Bernies International, LLC Subsidiary
2) Associates :
Kiara Jewellery Pvt. Ltd.
Arisia Jewellery Pvt. Ltd.
Jomard SAS
SWA Trading Ltd.
Copem & Shrenuj
Trapz, LLC
SHL Gems & Jewellery Ltd.
K. K. Doshi & Co.
Shrenuj Investments & Finance Pvt. Ltd.
3) Key Management Personnel and their relatives:
Shri Shreyas K. Doshi Chairman and Managing Director
Shri Nihar N. Parikh Executive Director
Shri Vishal S. Doshi Group Executive Director
Mrs. Anjali P. Mehta Relative
Mar 31, 2010
1. (a) As in the previous year, the Company has continued to adopt the
principles of AS Ã 30, "Financial Instruments: Recognition &
Measurement" inrespect of hedge accounting. Accordingly, in respect
of derivative financial instruments which are entered into hedge
foreign currency risks of firm commitments or highly probable forecast
transactions and which are effective cash flow hedges, the net notional
gain on these instruments outstanding as at 31st March, 2010, amounting
to Rs. 603.88 lacs (previous year notional loss Rs. 3270.87 lacs) is
reflected in the Hedging Reserve account. (b) The company, in accor
- dance with its risk management policies and procedures, enters into
derivative instruments (option contracts & forward contracts) to
manage its exposure to foreign exchange rates. The counter party is
generally a bank. The Company has following outstanding derivative
instruments as on 31st March, 2010:
Subsequent to the balance sheet date (before finalising the accounts),
the Company has utilised/cancelled forward contracts of USD 12.400
million (USD 67.125 million) without incurring any loss. The notional
Mark to Market gain/(loss) of Rs. 184.17 lacs (p.y. loss of Rs. 1172.69
lacs) on such contracts as on 31st March is therefore not reflected in
the Hedging Reserve. The balance net Mark to Market gain/(loss) of Rs.
603.88 lacs (p.y. loss of Rs. 3270.87 lacs) has been reflected in the
Hedging Reserve.
In addition to the above cash flow hedges, the Company has outstanding
derivative instruments aggregating to Rs. 104722 lacs (Rs. 37779.06
lacs) whose fair value showed a net loss of Rs. 764.85 lacs (Rs.
1693.51 lacs), and which is accounted for in the Profit and Loss
Account. As of balance sheet date, the Company has net foreign
currency exposures that are not hedged by a derivative instrument or
otherwise amounting to Rs. Nil (Previous year Rs. 790.41 lacs)
representing receivables and Rs.15448.27 lacs (previous year Rs.
13841.37 lacs) representing payables.
3. Commodity Hedging:
The Company enters into Gold Futures and Options contracts to hedge its
commodity related risk. The net outstanding position at the end of the
year is 1,000 grams.
4. Suppliers/Service providers covered under Micro, Small Medium
Enterprises Development Act 2006, have not furnished the information
regarding filing of necessary memorandum with the appropriate
authority. In view of this, information required to be disclosed u/s 22
of the said Act is not given.
Note: The Remuneration Committee of the Board of Directors have
resolved not to pay commission for the year to all the whole-time
directors to preserve the resources of the Company, hence no provision
for commission has been made.
5 Licensed and Installed Capacity and Production:
A. Information in respect of goods manufactured:
Processed polished diamonds and studded jewellery
6. Value of imported and indigenous Consumption:
Diluted Rs. 2.21 1.91
7. Previous yearÃs figures have been re-grouped and/or rearranged
wherever necessary.
8. Segment Information for the year ended 31st March 2010
As per Accounting Standard 21 on Consolidated Financial Statements and
Accounting Standard 23 on Accounting for Investment in Associates in
consolidated financial statements issued by Institute of Chartered
Accountants of India, the Company has presented consolidated financial
Statement, including subsidiaries and associates. Accordingly segment
information as required under Accounting Standard 17 on Segment
reporting is included under the Notes to Consolidated financial
statements.
9. The Disclosure of employee benefit as defined in the accounting
standard are given below: Defined Contribution Plan:
The Company makes Provident Fund and Superannuation Fund contributions
as defined contributions retirement benefit plans for qualifying
employees. The CompanyÃs Provident Fund is under the management of the
statutory authorities. The Company has recognised Rs. 62.95 lacs (Rs.
106.40 lacs) for Provident Fund and Rs. 9.15 lacs (Rs 11.21 lacs) for
Superannuation contributions in Profit and Loss account. The
Contributions payable to this plans by the Company are at rates
specified in the rules of the scheme.
Defined Benefit Plan:
The employees Gratuity Fund scheme managed by a trust is a funded
defined benefit plan. The present value of obligation is determined
based on the actuarial valuation using Projected Unit Credit Method,
which recognises each period of service as giving rise to additional
unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.
The Company has made an arrangement with an Insurer for meeting its
Leave Encashment Liability payable at the time of retirement of its
employees and a sum of Rs. 55 lacs has been paid as advance against
the premium and the same is adjusted against the provision for leave
encashment.