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Notes to Accounts of Thangamayil Jewellery Ltd.

Mar 31, 2015

1 The above Cash Flow Statement has been complied from and is based on the Balance Sheet as at March 31,2015 and the relative Profit and Loss Account for the year ended on that date.

2 Out of the above Cash equivalents at the end of the year Rs. 119.84 lakhs is not available for use for purposes other than repayment of fixed deposits, as the said amount has been invested pursuant to Companies (Acceptance of Deposits) Rules 1974

3 The above Cash Flow Statement has been prepared in consonance with the requirements of Accounting Standard (AS) -3 on Cash Flow Statements and the reconciliations required forthe purpose are as made by the company.

4 Previous year's figures have been regrouped / reclassified wherever necessary in order to confirm with current year's classification.

2. Contingent Liabilities

a) Capital commitments

Description 2014-15 2013-14

Estimated va ue of Contract 25.00 75.00 remaining to be executed on capital account net of advances not provided for

b) Show cause notice for a demand of less payment of customs duty on imported goods pertaining to last year for Rs. 154 lakhs received by the company. The company has filed an appeal against the aforesaid show cause notice with appropriate authority. The company is advised that it has got more than reasonable chance for success and hence no provision is made in the books.Therefore, the liability if any is contingent in nature.

c) In respect of-outstanding Letter Credit given to bankersRs. 1407.45 lakhs (previous yearRs. Nil)

d) The Commercial Tax office, Nethaji Road Circle, Madurai has issued a notice of demand/ recovery notice under the TNVAT, 2006 for the year 2006-07 to 2009-10 for the payment of Rs.50.70 lakhs towards liability of disallowance of input tax and classification of goods. The company has filed an appeal against the aforesaid notice.The matter is currently pending with the High court of Madras and with various appellate authorities.

3. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Directors / Key management Personnel

a) Key Management Personnel - Balarama Govinda Das - Managing Director

(KMP) - Ba. Ramesh - Joint Managing Director

- N. B. Kumar - Joint Managing Director

b) Relatives of KMP - Yamuna Vasini Deva Dasi (Wife of Managing Director)

- B. Prasannan (Manager), B. Rajeshkanna (Manager), N. B. Arun (Sons of Managing Director)

- B. R. Sumati (Wife of Ba. Ramesh, JMD)

- Ba.R.Darmini (Daughter of Ba.Ramesh, JMD)

- S.K.Yadeenthranathan (Son-in-Law of Ba. Ramesh - JMD)

- R. Gokul (Son of Ba. Ramesh, JMD)

- K. Thamaraiselvi (Wife of N. B. Kumar, JMD)

- K. Kishore Lai (Son of N. B. Kumar, JMD)

c) Enterprises over which Key - Thangamayil Gold and Diamond Private Limited Managerial Personnel (KMP) and their relatives have - Balusamy Silvears Jewellery Private substantial Limited interest ,

a. Advance Recoverable in cash or kind includes Rs.10.99 lakhs (Previous year Rs. 32.04 lakhs) being the net assets recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15- "Employee Benefits".

b. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

c. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

d. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

4.Segment Report

The company is engaged in the business of Gold Jewellery, Diamond and Silver Articles, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17- "Segment Reporting" issued by The Institute of Chartered Accountants of India.

5. The company accepted from third Parties gold (22Kt. in Purity) in metal form for Job work conversion into gold ornaments to be delivered as per terms agreed upon.The closing weight of such Job Work gold physically held by the Company as at 31/03/2015 is 34.11 Kgs. This being gold taken on Job Work basis, the same is not forming part of inventory of the Company.

6.The Company has entered in to leasing arrangements for its branch show room, manufacturing works and corporate office facilities.These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs. 365.39 Lakhs (Previous year Rs. 298.50 Lakhs).

The future minimum lease payments for non - cancelable operating leases are given below;

Finance leases

The Company has taken vehicles on finance lease basis and in respect of these assets the total of minimum lease payments and its present value as at the balance sheet date is as under:

7. Accounting Standard (AS) - 25"lnterim financial reporting"

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

8. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

9. Deferred Tax Assets

The Company is of the view that the business environment will become conducive to earn adequate profits in future years and will be able to recover fully the unabsorbed business and depreciation losses as per Income Tax Act and consequently the virtual certainty of recovering these loses being established. DeferredTax Asset in accordance with Accounting Standard- 22 is recognized in the books in respect of these loses.

10. Pursuant to implementation of change in depreciation methodology as per the Companies Act 2013, adopted in this year by your company has impacted results as follows.

a) The Value of Assets whose useful life is exhausted as on 01 -04-2014, calculated under the Companies Act, 2013, amounting to Rs.100.25 lakhs (excluding Deferred Tax amount of Rs. 48.15lakhs) have been adjusted to opening balance of retained earnings.

b) The depreciation for the year ended 31st March 2015 is higher by 212.12 lakhs when compared to the calculation of depreciation under erstwhile Companies Act, 1956.

11. The Company has no dues to micro and small enterprises during the year ended March 2015 and March 2014.

12. All figures have been rounded off to the nearest thousands.

13. Previous year figures have been regrouped / reclassified to make them comparable with that currentyear.


Mar 31, 2014

1. Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having par value of' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting.

2. In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholdings.

3. Mode of Valuation

Inventories including company's stock held with goldsmiths are valued at lower of cost or net realizable value. The cost of raw material inventories is computed on a FIFO basis. The cost of finished goods and work in progress includes cost of conversion and other cost incurred in bringing the Inventories to their present location and condition.

4. Cost is generally determined on FIFO basis and wherever required, appropriate direct on cost are taken into account. Net Realizable Value is the estimated selling price in the ordinary course of business less the estimated cost necessary to make the sale.

5. Hedging mechanism of entering into forward contract against appropriate underlying assets is primarily used by the company to hedge the price fluctuation exposure of those underlying assets. The fair value adjustment arising out of such transactions is forming part of cost of assets procured.

Packing materials and Gift items are valued at cost on FIFO basis.

6. Contingent Liabilities

a) Capital commitments

Rs in lakhs

Description 2013-14 2012-13

Estimated value of Contract remaining to be executed on capital 75.00 100.00 account net of advances not provided for.

7. Show cause notice for a demand of less payment of customs duty on imported goods pertaining to last year for ' 154 lakhs received by the company. The company has filed an appeal against the aforesaid show cause notice with appropriate authority. The company is advised that it has got more than reasonable chance for success and hence no provision is made in the books. Therefore, the liability if any is contingent in nature.

8. In respect of - outstanding Letter Credit given to bankers ' Nil ( previous year '10,977 lakhs )

9. The Commercial Tax office, Nethaji Road Circle, Madurai has issued a notice of demand/ recovery notice under the TNVAT, 2006 for the year 2006-07 to 2009-10 for the payment of ' 50.70 lakhs towards liability of disallowance of input tax and classification of goods. The company has filed an appeal against the aforesaid notice. The matter is currently pending with the High court of madras under Writ and with various appellate authorities.

10. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

11. Directors and Key Management Personnel

* Balarama Govinda Das - Managing Director

Key Management Personnel (KMP)

* Ba. Ramesh - Joint Managing Director * N. B. Kumar - Joint Managing Director

12. Relatives of KMP

* Annamayil (Mother of Managing and Joint Managing Directors) * Yamuna Vasini Deva Dasi (wife of Managing Director) * B. Prasannan, B. Rajesh Kanna (Managers), N. B. Arun (Sons of Managing Director)

* B. R. Sumati (wife of Ba. Ramesh, JMD) * Ba.R.Darmini (Daughter of Ba.Ramesh, JMD) * S.K.Yadeenthranathan (Son-in-Law of Ba. Ramesh - JMD) * R. Gokul (Son of Ba. Ramesh, JMD) * K. Thamarai Selvi (Wife of N. B. Kumar, JMD) * K. Kishore Lal (Son of N. B. Kumar, JMD)

13. Enterprises over which Key Managerial Personnel (KMP) and their reiatives have substantial interest

* Thangamayil Gold and Diamond Private Limited * Balusamy Silvears Jewellery Private Limited

14. Defined Benefit Plan

The company provides for gratuity, a defined benefit plan (the Gratuity Plan), to its employees. The Gratuity Plan provides for a lump sum payment to vested employees at retirement or termination of employment, whichever is earlier, based on the respective employee's last drawn salary and years of employment with the Company. The employee's gratuity funds are managed by Insurance Company.

15. Advance Recoverable in cash or kind includes ' 32.04 lakhs (Previous year ' 6.70 lakhs) being the net assets recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15- "Employee Benefits".

16. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

17. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

18. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

19. Segment Report

The company is engaged in the business of Gold Jewellery, Diamond and Silver Articles, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17- "Segment Reporting" issued by The Institute of Chartered Accountants of India.

20. The Company has entered in to leasing arrangements for its branch showroom, manufacturing works and corporate office facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is ' 334.50 Lakhs (Previous year ' 205.44 Lakhs). The future minimum lease payments for non - cancelable operating leases are given below;

21. Accounting Standard (AS) - 25 "Interim financial reporting'

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

22. Other Income includes restatement of liabilities for advance received from customer for future purchase inclusive of certain sundry long pending credits taken to income amounting to '357 lakhs.

23. Assets used as interiors in Vellakovil branch have been treated as impaired due to merger of the outfit for operational convenience with the Dharapuram branch .The amount of ' 19.63 lakhs is written off as expenses in the books. Apart from this, in the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

24. MANAGERIAL REMUNERATION

Due to inadequacy of profits, Managing Director and two Joint Managing Directors being whole tir Directors of the Company could not draw remuneration as approved by the shareholders. As per Schedi XIII of the Companies Act 1956, they are entitled to draw only up to ? 48 lakhs each. The remuneration tl was paid in excess of the eligibility criterion under the Act, even though it permits the full payment subjt to Central Government permission, the three whole time Directors of the company surrendered such exce payment of? 126 lakhs voluntarily to the Company.

25. The Company has no dues to micro and small enterprises during the year ended March 2014 and March 2013.

26. All Figures have been rounded off the nearest thousand. previous year figures have been regrouped / reclassified to make them comparable with that of current year


Mar 31, 2013

The accounts have been prepared on accrual basis, in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, which have been prescribed by the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act 1956, to the extent applicable.

Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized. The Accounts are prepared under the Historical Cost Convention and materially comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. The significant accounting policies followed by the Company are stated below:

1. Contingent Liabilities

a) Capital commitments (Rs. in lakhs)

Description 2012-13 2011-12

Estimated value of Contracts remaining to be executed on 100.00 80.00

capital account net of advances not provide for

b) Show cause notice for a demand of less payment of customs duty on imported goods pertaining to last year for Rs.154 lakhs received by the company for which a Writ is preferred with Honorable High Court pf Madras by the company. The company is advised that it has got more than reasonable chance for success and hence no provision is made in the books. Therefore, the liability if any is contingent in nature.

c) In respect of - outstanding Letter Credit given to bankers Rs. 10,977 lakhs (previous year ^ 1,151 lakhs)

d) The Commercial Tax office, Nethaji Road Circle, Madurai has issued a notice of demand/ recovery notice under the TNVAT, 2006 for the year 2006-07 to 2009-10 for the payment of Rs. 50.70 lakhs towards liability of disallowance of input tax and classification of goods. The company has filed an appeal against the aforesaid notice. The matter is currently pending with the High court of madras under Writ and with various appellate authorities.

2. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Note: The below information has been determined to the extent such parties have been identified on the basis of information provided by the company, which has been relied upon by the auditors.

Figure in the brackets pertains to previous year.

3. Segment Report

The company is engaged in the business of Gold Jewellery, Diamond and Silver Articles, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17- "Segment Reporting" issued by The Institute of Chartered Accountants of India.

4. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

5. The Company has entered in to leasing arrangements for its branch show room facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs. 205.44 Lacs (Previous year Rs. 91.57 Lakhs).

6. Accounting Standard (AS) -25 "Interimfinancial reporting"

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

7. The Company has no dues to micro and small enterprises during the year ended March 2013 and March 2012.

8. All figures have been rounded off to the nearest thousands.

9. Previous year figures have been regrouped / reclassified to make them comparable with that of current year.


Mar 31, 2012

1.1) Lease hold Building is amortized over the useful life of the asset, the amortized amount being Rs.2.89lakhs.

1.2) Capital work in Progress includes Rs.38.45 Lakhs (Previous year Rs. 74.95 Lakhs) on account of Capital work in progress and Rs.179.45Lakhs (Previous year 7165.66Lakhs) for Interiors and other assets for upcoming branches.

a. Contribution to Provident Fund and Other Fund includes Provision for gratuity Rs.8,96,094

b. Advance Recoverable cash or Kind includes Rs.2,89,748 being the net assets recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15-" Employee Benefits".

c. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

d. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

e. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

2. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Note: The above information has been determined to the extent such parties have been identified on the basis of information provided by the company, which has been relied upon by the auditors.

3. IPO FUND UTILISATION

In conformity with the term of prospects, board is empowered to reschedule the place of branch and increase or decrease the CAPEX to be spent for a particular purpose vis -a- vis plans at the discretion of the management. Accordingly certain changes required in the plan got approved by the board time to time and the balance unspent amount in IPO proceeds would be spent for the same purpose with approved modification of place of branch/ manner of expenditure.

Out of the IPO proceeds from public Rs2875.25 lakhs, the Company has utilized fully up to 31/3/2012.The detailed statement of utilization of fund vis-a-vis IPO objects as given in the prospectus is given hereunder:

4. Segment Report

The company is engaged in trading of Gold Jewellery, Diamond and Silver Articles business, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17- "Segment Reporting" issued by The Institute of Chartered Accountants of India.

5. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

6. Balances in sundry debtors, including advances given and taken, and creditors (including creditors for expenses) in some cases require reconciliation / confirmation.

7. The Company has entered in to leasing arrangements for its branch show room facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs.91.57 Lacs (Previous year Rs. 44.46 Lakhs).

8. Accounting Standard (AS) - 25 "Interim financial reporting"

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

9. The Company has amortized Rs.1.50 lakhs (Previous Year Rs.1.98 lakhs) being one-fifth of Rs.7.51 lakhs being the total expenses incurred in earlier years for increase in Authorized Share Capital.

10. The Company has no dues to micro and small enterprises during the year ended March 2012 and March 2011.

11. The Company has during the year, changed the treatment of VAT in its Accounts from "Inclusive method" to "Exclusive method". Accordingly the Sales and Purchases are restated in the accounts for the current year, after excluding VAT paid/payable as the case may be. The above change doesn't have any impact on the profit of the Company.

12. Consequent to revised Schedule VI as notified under Companies Act, 1956 for the year ended 31st March 2012 becoming applicable to the Company; the Company has prepared and presented these financial statements in accordance with the requirement of the revised Schedule VI. The Company has also reclassified/ represented previous year figures to bring the same in accordance with the revised Schedule VI presentation requirement.

13. Figure in the brackets pertains to previous year.

14. All figures have been rounded off to the nearest rupee.


Mar 31, 2011

1. Contingent Liabilities (Rs. in Lakhs)

Description 2010-11 2009

Estimated value of Contract 75.00 50.00 remaining to be executed on capital account net of advances not provided for.

2. IPO FUND UTILISATION

In conformity with the term of prospects, board is empowered to reschedule the place of branch and increase or decrease the CAPEX to be spent for a particular purpose vis -a- vis current plans at the discretion of the management. Accordingly certain changes required in the plan got approved by the board and the balance unspent amount in IPO proceeds would be spent for the same purpose with approved modification of place of branch/ manner of expenditure.

The position of funds raised in IPO including Share Premium and utilization thereof as per the objectives of the issue up to 31st March 2011 is as under:

*Escalation in Printing and Advertisement cost

The unutilized amount is parked with Banks in conformity with the modification approved / consented by the empowered board and in accordance with terms of prospectus.

4. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Directors / Key management Personnel

a) Key Management - Balarama Govinda Das - Managing Director

Personnel
- N. B. Kumar - Joint Managing Director

b) Relatives of KMP - Annamayil (Mother of Managing and Joint Managing Directors)

Yamuna Vasini Deva Dasi (wife of Managing Director)

B. Prasannan, B. Rajesh Kanna (Managers), N. B. Arun (Sons of Managing Director)

- B. R. Sumati (wife of Ba. Ramesh, JMD)

Ba.R.Darmini (Daughter of Ba.Ramesh, JMD)

S.K.Yadeenthranathan (Son-in-Law of Ba. Ramesh - JMD)

- R. Gokul (Son of Ba. Ramesh, JMD)

- K. Thamarai Selvi (Wife of N. B. Kumar, JMD)

- K. Kishore Lal (Son of N. B. Kumar, JMD)

c) Enterprises over which - Thangamayil Gold and Diamond Private Limited

Key Managerial - Balusamy Silvers Jewellery Private Limited

Personnel (KMP) and their relatives have substantial interest

5. Employee Benefits

b) Defined Benefit Plan

The company provides for gratuity, a defined benefit plan (the Gratuity Plan), to its employees. The Gratuity Plan provides for a lump sum payment to vested employees at retirement or termination of employment, whichever is earlier, based on the respective employees last drawn salary and years of employment with the Company. The employees gratuity funds are managed by Insurance Company.

a. Contribution to Provident Fund and Other Fund includes Provision for gratuity ? 16.02 lakhs

b. Sundry Creditors Expense includes Rs. 1.83 Lakhs being the net liability recognized as per actuarial valuation of gratuity fund as per Accounting standard (AS) 15-"Employee Benefits".

c. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

d. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

e. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

10. Segment Report

The company is engaged in trading of Gold Jewellery, Diamond and Silver Articles business, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard (AS) 17-" Segment Reporting" issued by The Institute of Chartered Accountants of India.

11. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard (AS) 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India.

12. The paid-up share capital includes 8,81,000 fully paid up equity shares issued at a premium of Rs.50 each issued by conversion of redeemable and fully convertible debenture in 2007.

13. During the year the company has capitalized borrowing costs amounting to " Nil (Previous year - 9.75 lakhs) in accordance with AS 16 "Borrowing Costs "issued by The Institute of Chartered Accountants of India.

14. The Company has entered in to leasing arrangements for its branch show room facilities. These lease are for periods ranging from 1 to 5 years with an option to the company for renewing at the end of the initial term. Rental Expenses for operating lease included in the Profit and Loss Account for the year is Rs. 44.46 Lacs (Previous year Rs. 12.01 Lacs).

The future minimum lease payments for non - cancelable operating leases are given below;

15. Balances in sundry debtors, including advances given and taken, and creditors (including creditors for expenses) in some cases require reconciliation / confirmation.

16. Accounting Standard (AS) - 25 "Interim financial reporting

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

19. The Company has amortized Rs. 1.98 lakhs (Previous Year Rs. 1.98 lakhs) being one-fifth of Rs. 9.92 lakhs being the total expenses incurred in earlier years for increase in Authorized Share Capital.

20. Lease hold Building is amortized over the useful life of the asset, the amortized amount being Rs.2.89 lakhs.

21. Capital advances and WIP includes Rs. 74.95 Lakhs (Previous year Rs. 78.21 Lakhs) on account of building under construction and land advance and Rs. 165.66 Lakhs (Previous year Rs. 51.27 Lakhs) for Interiors and other assets for upcoming branches.

22. Bank Balance includes Rs. 245.51 lakhs unutilized amount of IPO proceeds parked in accordance with the terms of prospectus.

23. Whole time directors of the company have provided a personal guarantee in respect of loans availed from banks included in "Schedule 3 "of the financial statements. 6.12% of promoters share holding in the company has been pledged to secure of Rs. 15.00 Crores Cash Credit loan extended by IDBI bank as collateral security.

24. The Company has no dues to micro and small enterprises during the year ended March 2011 and March 2010.

25. Previous years figures have been regrouped, wherever necessary, to confirm to this years classification / presentation.

26. Figure in the brackets pertains to previous year.

27. All figures have been rounded off to the nearest rupee.


Mar 31, 2010

1. The company has utilized the Share Premium to write off the expenses incurred in connection with Public issue to the extent of Rs.281.43 lakhs in accordance with Section 78 of Companies Act, 1956.

2. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures " the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Directors / Key management Personnel

a) Key Management Personnel (KMP)

Balarama Govinda Das - Managing Director Ba. Ramesh - Joint Managing Director N. B. Kumar - Joint Managing Director L. Sivakumar - Director*

b) Relatives of KMP

Annamayil (Mother of Managing and Joint Managing Directors)

Yamuna Vasini Deva Dasi (wife of Managing Director)

B. Prasannan, B. Rajesh Kanna (Managers), N. B. Arun (Sons of Managing Director)

- B. R. Sumati (wife of Ba. Ramesh, JMD)

- R. Gokul (Son of Ba. Ramesh, JMD)

- K. Thamarai Selvi (Wife of N. B. Kumar, JMD)

- K. Ravi Shangar (Son of N. B. Kumar, JMD)

- K. Kishore Lai (Son of N. B. Kumar, JMD)

c) Enterprises over which Key Managerial Personnel (KMP) and their relatives have substantial interest

Thangamayil Gold and Diamond Private Limited Balusamy Silvears Jewellery Private Limited

*Mr. L.Sivakumar as resigned as a director w.e.fjuly 09, 2009

3. Employee Benefits

b) Defined Benefit Plan

The company provides for gratuity, a defined benefit plan (the Gratuity Plan), to its employees. The Gratuity Plan provides for a lump sum payment to vested employees at retirement or termination of employment, whichever is earlier, based on the respective employees last drawn salary and years of employment with the Company. The employees gratuity funds are managed by Insurance Company.

a. Contribution to Provident Fund and Other Fund includes Provision for gratuity Rs.4.49 lakhs

b. Advance Recoverable in Cash or kind includes Rs.1.81 Lakhs being the asset recognized as per actuarial valuation of gratuity fund as per AS-15.

c. Adjustment for gratuity for previous years (up to 31st March 2009) is made in Profit and Loss appropriation account.

d. The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation.

e. The assumption of future salary increase, are considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

f. Investment Details

The company made annual contributions to the Employee Group Gratuity Trust based on the actuarial valuation. The said Trust is in the process of making investment of Gratuity Fund through Life Insurance Corporation of India according to guidelines of IRDA.

11. Segment Report

The company is engaged in trading of Gold Jewellery, Diamond and Silver Articles business, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard - 17 issued by The Institute of Chartered Accountants of India.

4. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India.

5. During the year the company has capitalized borrowing costs amounting to Rs.9.75 lakhs (Previous year - Nil) in accordance with AS 16 "Borrowing Costs "issued by The Institute of Chartered Accountants of India.

6. The paid-up share capital includes 8, 81,000 fully paid up equity shares issued at a premium of Rs.50 each issued by conversion of redeemable and fully convertible debenture in 2007.

7. The Company has changed the method of accounting of advertisement and employee costs. But for the change in accounting treatments, the net profit post taxes would have been Rs.1804.71 lakhs as against Rs.1606.70 lakhs as reported in Profit and Loss Account.

Similarly but for changing the accounting treatments, Deferred Revenue Expenditure balance remaining to be amortized would have been Rs.835.56 lakhs as against Rs.557.11 lakhs and Provision for Expenses would have been lower by Rs.20.50 lakhs.

8. Balances in sundry debtors, including advances given and taken, and creditors (including creditors for expenses) in some cases require reconciliation / confirmation.

9. AS - 25 Interim financial reporting

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

10. There are no dues to Micro, Small and Medium Enterprises which are outstanding for more than 30 days as at the Balance Sheet Date. The above information regarding Small Scale undertaking has been determined to the extent such parties have been identified on the basis of information available with the Company, and have been relied upon by the Auditors.

11. The IPO expense includes a sum of Rs.272,324 paid for Interim audit and other certification services done by the statutory auditors of the company for the purpose of IPO requirements.

12. The Company has amortized Rs. 1.98 lakhs (Previous Year Rs 1.98 lakhs) being one- fifth of Rs.9.92 lakhs being the total expenses incurred in earlier years for increase in Authorized Share Capital.

13. Lease hold Building is amortized over the useful life of the asset, the amortized amount being Rs.2.89 lakhs.

14. Capital advances and WIP includes Rs.78.21 Lakhs (Previous year Rs 79.44 Lakhs) on account of building under construction and land advance and Rs. 51.27 Lakhs (Previous year Rs 50.29 Lakhs) for Interiors and other assets for upcoming branches.

15. The Company has no dues to micro and small enterprises during the year ended March 2010, and March 2009.

16. Previous years figures have been regrouped, wherever necessary, to confirm to this years classification / presentation.

17. Figure in the brackets pertains to previous year.

18. All figures have been rounded off to the nearest rupee.


Mar 31, 2009

1. Related Party Disclosures

In accordance with the requirements of Accounting Standards (AS) - 18 "Related Party disclosures" the names of related party where control exists/able to exercise significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are given below:

Directors/ Key management Personnel

a) Key Management Personnel (KMP)

- Balarama Govinda Das - Managing Director

- Ba. Ramesh - Joint Managing Director

- N. B. Kumar - Joint Managing Director

- L. Sivakumar - Director

b) Relatives of KMP

- Annamayil (Mother of Managing and Joint Managing

Directors)

Yamuna Vasini Deva Dasi (wife of Managing Director) B. Prasannan, B. Rajesh Kanna (Managers), N. B. Arun (Sons of Managing Director)

- B. R. Sumati (wife of Ba. Ramesh, JMD)

Ba. R. Darmini (Daughter of Ba. Ramesh, JMD)

- R. Gokul (Son of Ba. Ramesh, JMD)

- K. Thamarai Selvi (Wife of N. B. Kumar, JMD)

- K. Ravi Shangar (Son of N. B. Kumar, JMD)

- K. Kishore Lai (Son of N. B. Kumar, JMD)

c) Enterprises over which Key Managerial Personnel (KMP) and their relatives have substantial interest

- Thangamayil Gold and Diamond Private Limited

- Balusamy Silvears Jewellery Private Limited

2. Business Takeover

The Company has acquired the business undertaking of M/s. Balusamy Silvears Jewellery Private Limited with effect from July31, 2008 for a total consideration of Rs. 300.50 Lakhs. Since the performance of the company for the current period is inclusive of business so taken over, previous years figures are not strictly comparable.

3. Segment Report

The company is engaged in trading of Gold Jewellery, Diamond and Silver Articles business, which constitutes a single business segment. In view of the above, there are no segment wise reports to be disclosed in terms of Accounting Standard - 17 issued by The Institute of Chartered Accountants of India.

4. In the opinion of the management, there is no impairment in the carrying cost of fixed assets of the Company in terms of the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India.

5. The paid-up share capital includes 8, 81,000 fully paid up equity shares issued at a premium of Rs.50 each issued by conversion of redeemable and fully convertible debenture in 2007.

6. Balances in sundry debtors, including advances given and taken, and creditors (including creditors for expenses) in some cases require reconciliation / confirmation.

7. There are no dues to Micro, Small and Medium Enterprises which are outstanding for more than 30 days as at the Balance sheet Date. The above information regarding Small Scale undertaking has been determined to the extent such parties have been identified on the basis of information available with the Company, and have been relied upon by the Auditors.

8. Arising out of the change in the basis of accounting the Intangible asset and the revaluation reserve stand reduced to the extent of Rs. 5,97,91,057. But for the above, the change in accounting does not have any other impact on the accounts and the profits of the company as disclosed therein.

9. Previous years figures have been regrouped, wherever necessary, to confirm to this years classification / presentation.

10. All figures have been rounded off to the nearest rupee.

 
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