Mar 31, 2023
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of managementâs best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value is a
pre tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The increase in the provision due to the passage of time is recognised as interest expense.
Contingent liability is disclosed for:
⢠Possible obligations which will be confirmed only by future events not wholly within the control of the Company
or
⢠Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are not recognized. However, when inflow of economic benefit is probable, related asset is
disclosed.
r) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders
(after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the period is adjusted for events including a
bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects
of all dilutive potential equity shares.
The preparation of the Companyâs financial statements requires management to make judgments, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the related
disclosures.
Significant management judgments and estimates
The following are significant management judgments and estimates in applying the accounting policies of the
Company that have the most significant effect on the financial statements.
Recognition of deferred tax assets - The extent to which deferred tax assets can be recognised is based on an
assessment of the probability of the future taxable income against which the deferred tax assets can be utilised.
Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of
assets requires assessment of several external and internal factors which could result in deterioration of recoverable
amount of the assets.
Recoverability of advances/receivables - At each balance sheet date, based on historical default rates observed
over expected life, the management assesses the expected credit loss on outstanding receivables and advances.
Defined benefit obligation (DBO) - Managementâs estimate of the DBO is based on a number of critical underlying
assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of
future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual
defined benefit expenses.
Fair value measurements - Management applies valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available). This involves developing estimates and assumptions
consistent with how market participants would price the instrument. Management uses the best information available.
Estimated fair values may vary from the actual prices that would be achieved in an armâs length transaction at the
reporting date
Useful lives of depreciable/amortizable assets - Management reviews its estimate of the useful lives of depreciable/
amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these
estimates relate to technical and economic obsolescence.
t) Revenue recognition
The Company derives revenues primarily from sale of manufactured goods, traded goods and related services.
The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the entity expects to be
entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue
recognition:
Revenue is recognized on satisfaction of performance obligation upon transfer of control of products to customers
in an amount that reflects the consideration the Company expects to receive in exchange for those products.
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligation in contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation
The Company evaluates the arrangement with customers, considering underlying substance and terms and
conditions of the arrangements. Revenue is accounted either on gross or net basis based on the expected discounts
to be offered to customers.
Interest income is recognised on an accrual basis using the effective interest method.
Dividends are recognised at the time the right to receive the payment is established.
Company as a lessee :
The Company applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low value assets. The Company recognises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets.
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term
at the lease commencement date. The cost of the rightof- use asset measured at inception shall comprise of the
amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the
commencement date plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in
dismantling and removing the underlying asset or restoring the underlying asset which it is located. The right-of-
use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses,
if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the
straight-line method from the commencement date over the shorter of lease term or useful life of rightof- use asset.
The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant
and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying
amounts may not be recoverable. Impairment loss, if any, is recognised in the Statement of Profit and Loss.
Leases where the lessor effectively retains substantially all the rights and benefits of ownership of the leased assets
are classified as operating leases. At the date of commencement of lease the Company recognizes a right-of-use
asset (ROU) and a corresponding lease liability for all lease arrangements in which it is a lease except for leases
with a term of twelve months or less and low value leases. For these short term and low value leases the Company
recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
The right to use assets are initially recognized at cost which comprises initial amount of the lease liability adjusted for
any lease payment made at or prior to the date of the commencement date of the lease plus any initial direct costs
less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment
losses.
Right-to- use assets are depreciated from the commencement date on straight line basis over lesser of the lease
period or the useful life of the asset.
Lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease or, if not readily determinable using the
incremental borrowing rate for the Company.
The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the leases
if that rate can be readily determined.
Company as a lessor:
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of
an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the
lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent
rents are recognised as revenue in the period in which they are earned.
v) Operating Segment
The managing committee is considered to be the âChief Operating Decision Makerâ (CODM) as defined in IND AS
108. The Operating Segment is the level at which discrete financial information is available. The CODM allocates
resources and assess performance at this level. The Company has identified the below operating segments:
a) Jewellery Manufacturing Activity.
b) Investment Activity.
Mar 31, 2018
1. Company Information
Goldiam International Limited (the Company) is a public limited company domiciled in India with its registered office locted at Gems & Jewellery Complex, M.I.D.C., SEEPZ, Andheri (East) Mumbai - 400 096. The Compnay is listed on the Bombay Stock Exchange (BSE) and The National Stock Exchange (NSE). The Company is engaged in manufacturing and export of Diamond studded Gold & Silver Jewellery.
A. Basis of Preparation
I) Compliance with Ind AS
These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the âInd ASâ) as notified by Ministryof Corporate Affairs pursuant to section 133 of the Companies Act,2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
These financial statements for the year ended 31st March,2018 are the first the Company has prepared under Ind AS. For all periods upto and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (here in after referred to as âPrevious GAAPâ) used for its statutory reporting requirement in India immediately before adopting Ind AS. The financial statements for the year ended 31st March,2017 and the opening Balance Sheet as at 1st April, 2016 have been restated in accordance with Ind AS for comparative information. Reconciliations and explanations of the effect of the transition from Previous GAAP to Ind AS on the Companyâs Balance Sheet, Statement of Profit and Loss and Statement of Cash Flows are provided in financial statement.
The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at 1st April, 2016 being the âdate of transition to Ind ASâ. All assets and liabilities have been classified as current or non current as per the Companyâs normal operating cycle and other criteria asset out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.
Financial statements are presented in Rs. which is the functional currency of the Company and all values are rounded to the nearest Lakhs, except when otherwise indicated, further the transactions and balances with values below the rounding off norm adopted by the Company have been reflected as â0â in the relevant notes in these financial statements.
The financial statements of the Company for the year ended 31st March, 2018 were approved for issue in accordance with the resolution of the Board of Directors on 18th May, 2018.
II) Current versus non current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is classified as current when it is :
- Expected to be realised or intended to sold or consumed in normal operating cycle.
- Held primarily for the purpose of trading
- Expected to be realised within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
- It is expected to be settled in normal operating cycle
- It is held primarily for the purpose of trading
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
- All Other liabilities are classified as non-current
B KEY ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect there reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively.
Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:
(a) Measurement of defined benefit obligations - Note 25
(b) Measurement and likelihood of occurrence of provisions and contingencies - Note 39
(c) Recognition of deferred tax assets - Note 6
a) Standards issued but not yet effective :
i) Ind AS 21 - The Effects of Changes in Foreign Exchange Rates
ii) Ind AS 40 - Investment Property
iii) Ind AS 12 - Income Taxes
iv) Ind AS 28 - Investments in Associates and Joint Ventures and
v) Ind AS 112 - Disclosure of Interests in Other Entities
b) Recent Accounting Developments :
IND AS 115: Revenue from Contracts with Customers
In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying Ind AS 115, âRevenue from Contracts with Customersâ. The Standard is applicable to the Company with effect from 1st April, 2018.
Revenue from Contracts with Customers Ind AS 115 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard Ind AS 18 Revenue, Ind AS 11 Construction Contracts when it becomes effective. The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue recognition:
Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligation in contract Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation
Under Ind AS 115, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when âcontrolâ of the goods or services underlying the particular performance obligation is transferred to the customer. The Company has completed its evaluation of the possible impact of Ind AS 115 and will adopt the standard from 1st April, 2018.
(b) Terms/ rights attached to equity shares
The company has only one class of equity shares having par value of Rs. 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 the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
d) Proposed Dividend on Equity Shares
The board proposed dividend on equity shares after the balance sheet date.
The Board of Directors at its meeting held on 18th May, 2018 have recommended a payment of final dividend of Rs. 1.50 (i.e. 15%) per equity share of Rs. 10/- each for the Financial Year ended March 31, 2018 on 24945996 equity shares subject to approval of shareholders in the ensuing Annual General Metting.
a) Capital Redemption Reserve
The Company has recognised Capital Redemption Reserve on buyback of equity shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the equity shares bought back.
b) Capital Reserves
Capital redemption reserve was created on forefeiture of share warrant application money. The balance will be utilised in accordance with the provision of the Companies Act, 2013.
c) General Reserve
The Company created general reserve in earlier years pursuant to the provisions of the Companies Act wherein certain percentage of profits were required to be transferred to general reserve before declaring dividends. As per the Companies Act 2013, the requirement to transfer profits to general reserve is not mandatory. General reserve is a free reserve available to the Company.
(a) As per Ind As 19 âEmployee benefitsâ, the disclosures as defined in the Accounting Standard are given below: Defined Contribution Plan :
Contribution to Provident Fund is Rs. 2.74 lakhs (Previous year Rs. 2.88 lakhs), ESIC and Labour Welfare Fund includes Rs. 1.85 lakhs (Previous year Rs. 1.17 lakhs).
Defined Benefit Plan :
Gratuity and Leave Encashment:
The Company makes partly annual contribution to the Employeesâ Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five years of continuous service.
NOTE 2 - FINANCIAL INSTRUMENTS / FORWARD CONTRACTS:
a) Forward Contracts :
The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flow denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies. The Company enters into forward contracts, where the counterparty is a Bank. The forward contracts are not used for trading or speculation purposes.
NOTE 3 - SEGMENT INFORMATION:
The managing committee is considered to be the âChief Operating Decision Makerâ (CODM) as defined in IND AS 108.
The Operating Segment is the level at which discrete financial information is available. The CODM allocates resources and assess performance at this level. The group has identified the below operating segments:
a) Jewellery Manufacturing Activity.
b) Investment Activity.
1) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as âUnallocableâ.
2) Segment assets and Segment Liabilities represents assets and liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as âUnallocableâ.
NOTE 4 - FINANCIAL INSTRUMENTS:
i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observe ability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Financial assets and liabilities measured at fair value - recurring fair value measurements
(ii) Valuation process and technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) The use of quoted market prices for investments in mutual funds.
The carrying value of trade receivables, securities deposits, insurance claim receivable, loans given, cash and cash equivalents and other financial assets recorded at amortised cost, is considered to be a reasonable approximation of fair value.
The carrying value of borrowings, trade payables and other financial liabilities recorded at amortised cost is considered to be a reasonable approximation of fair value.
ii) Risk Management :
The Companyâs activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements:
A) Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents, deposits with banks and financial institutions, security deposits, loans given and principally from credit exposures to customers relating to outstanding receivables. The Companyâs maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date.
The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The Companyâs policy is to deal only with creditworthy counterparties.
In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any company of counterparties having similar characteristics. The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired to be good.
The credit risk for cash and cash equivalents, mutual funds, bank deposits, loans and derivative financial instruments is considered negligible, since the counterparties are reputable organisations with high quality external credit ratings.
Company provides for expected credit losses on financial assets by assessing individual financial instruments for expectation of any credit losses. Since the assets have very low credit risk, and are for varied natures and purpose, there is no trend that the company can draws to apply consistently to entire population. For such financial assets, the Companyâs policy is to provides for 12 month expected credit losses upon initial recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature, though incurred loss provisions are disclosed under each sub-category of such financial assets.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
Management monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Companyâs liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Financing arrangements
The Company had access to the following undrawn borrowing facilities at the end of the reporting period:
Contractual maturities of financial liabilities
The tables below analyse the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant.
C) Market risk - foreign exchange
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to US Dollar. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Companyâs functional currency. The Company, as per its overall strategy, uses forward contracts to mitigate its risks associated with fluctuations in foreign currency, and such contracts are not designated as hedges under Ind AS 109. The Company does not use forward contracts and swaps for speculative purposes.
Sensitivity
The sensitivity to profit or loss from changes in the exchange rates arises mainly from financial instruments denominated in USD. In case of a reasonably possible change in ''/USD exchange rates of /- 2% (previous year /- 3%) at the reporting date, keeping all other variables constant, there would have been an impact on profits of Rs. 250.23 Lakhs (previous year Rs. 324.20 Lakhs).
D) INTEREST RATE RISK
i) Liabilities
The Companyâs policy is to minimise interest rate cash flow risk exposures on long-term financing. At 31 March 2018, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates.
Interest rate risk exposure
Below is the overall exposure of the Company to interest rate risk:
Sensitivity
The sensitivity to profit or loss in case of a reasonably possible change in interest rates of /- 50 basis points keeping all other variables constant, would have resulted in an impact on profits by INR 8.34 lakhs
ii) Assets
The Companyâs financial assets are carried at amortised cost and are at fixed rate only. They are, therefore, not subject to interest rate risk since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
E) Price risk
Exposure from investments in mutual funds:
The Companyâs exposure to price risk arises from investments in mutual funds held by the Company and classified in the balance sheet as fair value through profit or loss. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.
Sensitivity
The sensitivity to profit or loss in case of an increase in price of the instrument by 5% keeping all other variables constant would have resulted in an impact on profits by Rs. 586.57 lakhs (previous year Rs. 7565.87 lakhs).
Exposure from trade payables:
The Companyâs exposure to price risk also arises from trade payables of the Company that are at unfixed prices, and, therefore, payment is sensitive to changes in gold prices.
NOTE 5 - CAPITAL MANAGEMENT
The Companyâ s capital management objectives are: to ensure the Companyâs ability to continue as a going concern to provide an adequate return to shareholders
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
The Management assesses the Companyâs capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Companyâs various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in the economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
(ii) Dividends not recognised at the end of the reporting period
In addition to the above dividends, the Board of Directors have recommended a dividend of Rs. 1.5 per share (previous year Rs. Nil) per fully paid equity share. This proposed dividend is subject to approval of shareholders at the ensuing Annual General Meeting.
NOTE 6 - FIRST TIME ADOPTION OF IND AS
These standalone financial statements, for the year ended 31 March 2018, are the first financial statements prepared by the Company in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its standalone financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Rs.Indian GAAPâ or âPrevious GAAPâ).
Accordingly, the Company has prepared standalone financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these standalone financial statements, the Companyâs opening Ind AS balance sheet was prepared as at 1 April 2016, the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Previous GAAP standalone financial statements, including the balance sheet as at 1 April 2016 and the standalone financial statements as at and for the year ended 31 March 2018.
The Company has applied Ind AS 101 in preparing these first standalone financial statements. The effect of transition to Ind AS on equity, total comprehensive income and reported cash flows are presented in this section and are further explained in the notes accompanying the tables.
Exemptions and exceptions availed :
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Previous GAAP to Ind AS.
A.2 Ind AS mandatory exceptions: A2.1 Estimates
An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with Previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at 1 April 2015 are consistent with the estimates as at the same date made in conformity with Previous GAAP.
A2.2 Classification and measurement of financial assets
The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109 are met based on facts and circumstances existing at the date of transition.
Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money, i.e., the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.
Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:
a) The effects of the retrospective application are not determinable;
b) The retrospective application requires assumptions about what managementâs intent would have been in that period;
c) The retrospective application requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.
A2.3 De-recognition of financial assets and liabilities
Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entityâs choice, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.
B. Reconciliation between Previous GAAP & IND AS
Ind AS 101 requires a first-time adoption of Indian Accounting Standards, requires an entity to reconcile equity, total comprenhensive income and cash flow for prior period. The following table reconciliations from previous GAAP & IND AS
B.4 There is no impact of Ind AS adoption on the statements of cash flows for the year ended 31 March 2017.
Under Previous GAAP, proposed dividend is recognised as liability in the period to which they relate irrespective of the approval of shareholders.
Under Ind AS, proposed dividend is recognised as liability in the period in which it is declared (approval of shareholders in general meeting) or paid.
Note - 1 Measurement of financial assets at fair value
Under Previous GAAP, current investments were stated at lower of cost and fair value.
Under Ind AS, these financial assets have been classified as Fair Value Through Profit and Loss (âFVTPLâ) on the date of transition to Ind AS and fair value changes after the date of transition have been recognised in the statement of profit and loss.
Note - 2 Measurement of financial assets and liabilties at amortised cost
Under Previous GAAP, the financial assets and financial liabilities were typically carried at the contractual amount receivable or payable.
Under Ind AS, certain financial assets and financial liabilities are initially recognised at fair value and subsequently measured at amortised cost which involves the application of effective interest method. The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of the financial asset or financial liability.
For certain financial assets and financial liabilities, the fair value thereof at the date of transition to Ind AS has been considered as the new amortised cost of that financial asset and financial liability at the date of transition to Ind AS. The application of effective interest method results in adjustment to carrying amount of Loans, Other Financial Assets, Borrowing and Other Financial Liabilities.
Note - 3 Fair valuation of derivatives
Under Previous GAAP, foreign exchange derivatives used for hedging purposes were restated at each balance sheet date and the premium was amortised over the term of the forward contract.
Under Ind AS, all derivatives are measured at FVTPL and mark-to-market gains or losses are recorded in the period when incurred.
Note - 4 Remeasurements of post-employment benefit obligations
Under the Previous GAAP, these remeasurements were forming part of the profit or loss for the year.
Under Ind AS, remeasurements i.e. actuarial gains and losses, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of the statement of profit and loss.
Note - 5 Deferred tax
Under Previous GAAP, deferred tax was accounted as per the income statement approach which required creation of deferred tax asset/ liability on timing differences between taxable income and accounting income. Under Ind AS, deferred tax is accounted as per the Balance Sheet approach which requires creation of deferred tax asset/ liability on temporary differences between the carrying amount of an asset/ liability in the Balance Sheet and its corresponding tax base. The adjustments in equity and net profit, as discussed above, resulted in additional temporary differences on which deferred taxes are calculated.
Note - 6 Business promotion and discount expenditure
On certain sale transactions, if a particular threshold is met, the Company gives a free gift. Under Previous GAAP, revenue is recorded at the total amount received and the cost of the free gift is recognised as an expense.
Under Ind AS, the value of the free gift is adjusted from revenue.
Note 7: Other comprehensive income
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in the statement of profit and loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under Previous GAAP.
Note 8: Micro, Small and Medium Enterprises
Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 for the year ended 31 March 2017. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.
7. CONTINGENT LIABILITIES NOT PROVIDED FOR:
a The Company has outstanding performance guarantee of Rs. 1591.50 lakhs as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year Rs. 1591.50 lakhs).
b The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs. 136.97 lakhs (Previous year Rs. 136.97 lakhs) on account of property tax. The Property tax not provided for is Rs. 338.67 lakhs (Previous year Rs. 319.82 lakhs) as per the capital value determined by the office of Assistant Assessor and Collector of Brihan Mumbai Mahanagarpalika.
c The Company has executed Bank Guarantee of Rs. 3550.00 lakhs (Previous year Rs. 3550.00 lakhs) favouring The Hongkong and Shanghai Banking Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.
d The company has outstanding demand of Rs. 15.22 lakhs for A.Y. 2016-17against the same the company has paid Rs. 3.10 lakhs under protest as the matter is pending with Commissioner of Income Tax Appeals.
8. Company has made payment of Rs. 7.83 lakhs (Previous year Rs. 7.83 lakhs) under protest as against current financial year dues of Property Tax of Rs. 26.68 lakhs (Previous year Rs. 26.68 lakhs) as determined by Assistant Assessor & collector of Brihan Mumbai Mahanagarpalika and have provided in Rs. 18.85 lakhs (previous year Rs. 18.85 lakhs) for the property tax for the period from 01.04.2017 to 31.03.2018.
9. All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.
10. The Company has incurred Rs. 41.60 lakhs (previous year Rs. 26.10 Lakhs) towards Corporate Social Responsibility activities. It is included in in the Statement of Profit and Loss. Further, no amount has been spent on construction / acquisition of an asset of the Company and the entire amount has been spent in cash. The amount required to be spent under Section 135 of the Companies Act, 2013 for the year 2018 is Rs. 41.64 lakhs i.e. 2% of average net profits for last three financial years, calculated as per Section 198 of the Companies Act,2013.
11. One of the Associates company Goldiam HK Limited has reduced its paid up capital in the financial year 2016-17 by 75% of total paid up capital in value. Due to this the total HKD 5,982,725/- invested by the company has been reduced by HKD 4,487,044/-. The gain on the said reduction amounting to Rs. 125.98 lakhs has been credited to profit and loss account and reflated in other Income in the financial year 2016-17. The amount receivable from the said associate is reflected as receivable from Associates in Note No-32
12. There was a search operation under section 132 of The Income Tax Act, 1961 on 17th March, 2016 and the Income Tax Department has reopened the six assessment years starting from A.Y. 2010-11 to A.Y. 2015-16, the said assessments are completed during the financial year under review. The department has raised demand of Rs. Nil against the reopened assessments.
13. Post reporting date events:
There are no adjusting or significant non-adjusting events have been occurred between 31 March 2018 and the date of authorization of the companyâs standalone financial statement. However, the board of Directors have recommended a final dividend of 15% i.e. Rs. 3,74,18,994/- (Pervious year Nil ) on equity shares of Rs. 10 each for the yaer ended 31 March 2018, subject to approval at the ensuing annual general meeting.
14. The previous yearâs figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.
Mar 31, 2016
1. As per Accounting Standard 15 "Employee benefits", the disclosures as defined in the Accounting Standard are given below:
(i) Defined Contribution Plan :
Contribution to Provident Fund is Rs. 2.88 lakhs (Previous year Rs.2.53 lakhs ), ESIC and Labour Welfare Fund includes Rs.1.17 lakhs (Previous year Rs.1.09 lakhs).
2. Defined Benefit Plan :
GRATUITY & LEAVE ENCASHMENT:
The Company makes partly annual contribution to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five years of continuous service.
3. CONTINGENT LIABILITIES NOT PROVIDED FOR :
a) The Company has outstanding performance guarantee of Rs.1591.50 lakhs as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year Rs.1591.50 lakhs).
b) The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs.136.97 lakhs (Previous year Rs.136.97 lakhs) on account of property tax.
c) The Company has executed Bank Guarantee of Rs.3550.00 lakhs (Previous year Rs.3550.00 lakhs) favouring the Hongkong and Shanghai Banking Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.
4. Estimated amount of contracts remaining to be executed on Capital Account and not provided for is '' NIL lakhs (Previous year Rs.30.86 Lakhs).
5. JOINT VENTURE :
In compliance with the Accounting Standard relating to âFinancial Reporting of Interests in Joint Venturesâ (AS-27), issued by the Institute of Chartered Accountants of India, the Company has interests in the following jointly controlled entity, which is incorporated outside India.
6. The above figures have been taken from audited accounts of Joint Venture as on 31st March, 2016 and converted at the exchange rate prevailing as on the date of Balance Sheet of Joint Venture.
Contingent liabilities in respect of Joint Venture is Rs. Nil
7. Information given in accordance with the requirements of AS 17 on âSegment Reportingâ .
The Company has identified Two Reportable Segments viz. Jewellery Manufacturing and Investment Activity.
Segments have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems.
a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as âUnallocableâ.
b) Segment assets and Segment Liabilities represents assets and liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as âUnallocableâ.
8. FINANCIAL INSTRUMENTS / FORWARD CONTRACTS :
The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies. The Company enters into forward contracts, where the counterparty is bank. The forward contracts are not used for trading or speculation purpose.
9. REPORTING AS PER THE REQUIREMENT UNDER SECTION 186 (4) OF THE COMPANIES ACT, 2013 FINANCIAL YEAR 01.04.2015 TO 31.03.2016
Loans and investments covered under Sec.186 of the Companies Act, 2013 form part of the Notes to the financial statements
10. During the year under review, against total demand of Rs.26.68 lakhs (Previous year Rs.75.71 lakhs) Company has made payment of Rs.7.83 lakhs (Previous year Rs.19.58 lakhs) under protest and have provided in Rs.18.85 lakhs (previous year Rs.56.12 lakhs) for the property tax for the period from 01.04.2010 to 31.03.2016.
11. All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.
12. The previous yearâs figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.
Mar 31, 2015
1. (i) Reconciliation of the number of shares and amount outstanding
at the beginning and at the end of the reporting period:
Details to be given for each class of shares separately for Issued,
Subscribed and fully paid up and Subscribed but not fully paid up, as
applicable.
2. (iii) Aggregate number and class of shares allotted as fully paid
up pursuant to contract(s) without payment being received in cash,
bonus shares and shares bought back for the period of 5 years
immediately preceding the Balance Sheet date:
The company has bought back 2086804 equity shares with voting rights in
the financial year 2009-2010.
3. Inventories except Consumables Stores and Spares are valued at
cost or net realisable value whichever is less.
4. Consumables Stores and Spares are valued at cost.
5. Value of imported raw materials consumed and the value of all
indigenous raw materials similarly consumed and the percentage of each
to the total consumption.
6. As per Accounting Standard 15 "Employee benefits", the
disclosures as defined in the Accounting Standard are given below:
(i) Defined Contribution Plan :
Contribution to Provident Fund is Rs. 2.53 lakhs (Previous year Rs.
1.90 lakhs), ESIC and Labour Welfare Fund includes Rs. 1.09 lakhs
(Previous year Rs. 1.11 lakhs).
(ii) Defined Benefit Plan :
GRATUITY & LEAVE ENCASHMENT:
The Company makes partly annual contribution to the Employees' Group
Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of
India, a funded benefit plan for qualifying employees. The scheme
provides for lump sum payment to vested employees at retirement, death
while in employment or on termination of employment of an amount
equivalent to 15 days service for each completed year of service or
part thereof depending on the date of joining. The benefit vests after
five years of continuous service.
The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion, and other
relevant factors, such as supply and demand in the employment market.
7. CONTINGENT LIABILITIES NOT PROVIDED FOR :
a) The Company has outstanding performance guarantee of Rs.1591.50
lakhs as on the Balance Sheet date, executed in favour of Deputy
Commissioner of Customs (Previous Year Rs.1591.50 lakhs).
b) The Municipal Corporation of Greater Mumbai has preferred an appeal
in the High Court of Judicature at Bombay against the order of Small
Causes Court rejecting the claim of Municipal Corporation of Greater
Mumbai for an amount of Rs.136.97 lakhs (Previous year Rs.136.97 lakhs)
on account of property tax.
c) The Company has executed Bank Guarantee of ' 3550.00 lakhs (Previous
year Rs.3250.00 lakhs) favouring The Hongkong and Shanghai Banking
Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam
Jewellery Limited, Mumbai.
8. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for is Rs.30.86 lakhs (Previous year Rs.Nil
Lakhs)
9. Details of Related parties transactions are as under :
10. IN THE OPINION OF THE DIRECTORS:
a) The Current Assets and Loans & Advances are approximately of the
value stated, if realised in the ordinary course of business.
b) The provision for depreciation and for all known liabilities is
adequate and not in excess of the amount reasonably necessary.
11 JOINT VENTURE :
In compliance with the Accounting Standard relating to "Financial
Reporting of Interests in Joint Ventures" (AS-27), issued by the
Institute of Chartered Accountants of India, the Company has interests
in the following jointly controlled entity, which is incorporated
outside India.
12. The above figures have been taken from audited accounts of Joint
Venture as on 31st March, 2015 and converted at the exchange rate
prevailing as on the date of Balance Sheet of Joint Venture.
Contingent liabilities in respect of Joint Venture is 'Nil
13. Information given in accordance with the requirements of AS 17 on
"Segment Reporting".
The Company has identified Two Reportable Segments viz. Jewellery
Manufacturing and Investment Activity. Segments have been identified
and reported taking into account nature of products and services, the
different risks and returns and the internal business reporting
systems.
a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Unallocable".
b) Segment assets and Segment Liabilities represents assets and
liabilities in respective segments. Tax related assets and other assets
and liabilities that cannot be allocated to a segment on reasonable
basis have been disclosed as "Unallocable".
The Company has identified Geographic Segments as its Secondary Segment
Secondary segmental reporting is based on the geographical location of
the customers. The geographical segments have been disclosed on
revenues within India (Sales to customers in India) and revenues
outside India (Sales to customers outside India).
14. Exceptional Items includes profit on sale of office premises
Rs.75.70 lacs. (Previous Year Rs. nil.)
15. FINANCIAL INSTRUMENTS/FORWARD CONTRACTS :
The Company is exposed to foreign currency fluctuations on foreign
currency assets and forecasted cash flows denominated in foreign
currency. The Company limits the effects of foreign exchange rate
fluctuations by following established risk management policies. The
Company enters into forward contracts, where the counterparty is bank.
The forward contracts are not used for trading or speculation purpose.
16. Salaries & wages include Directors' remuneration of Rs. 62.71 lakhs
(Previous Year Rs. 56.42 lakhs)
17. Effective from April 1,2014,the Company has charged depreciation
based on the revised remaining useful life of the assets as per the
requirement of Schedule II of the Companies Act, 2013. The balance
useful life of the Fixed Assets has been taken as difference between
the total use ful life prescribed under schedule II and assets already
used. Rs. 6.42 lacs has been debited to Depreciation account over and
above the current year depreciation for the assets which has completed
their useful life. Due to above depreciation charge for the year ended
March, 2015 is higher by Rs. 46.61 lacs.
18. During the year under review, against total demand of Rs. 75.71 lacs
Company has made payment of Rs. 19.58 laces under protest and have
provided in Rs. 56.13 laces for the property tax for the period
01.04.2010 to 31.03.2015.
19. Reporting under sub clause 32 of clause 49 of listing agreement
issued by Securities and Exchange Board of India (SEBI), is not
applicable to the company, as there is no loan given to subsidiary or
Associates as defined under section 186 of the Companies Act, 2013 and
no loans and advances are given which is outstanding for a period of
more than seven years.
20. All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current - non current classification of
assets and liabilities.
21. The previous year's figures have been regrouped and rearranged
wherever necessary to make in compliance with the current financial
year.
Mar 31, 2014
1 CONTINGENT LIABILITIES NOT PROVIDED FOR :
a) The Company has outstanding performance guarantee of Rs.1591.50 lakhs
as on the Balance Sheet date, executed in favour of Deputy Commissioner
of Customs (Previous Year Rs.1591.50lakhs).
b) The Municipal Corporation of Greater Mumbai has preferred an appeal
in the High Court of Judicature at Bombay against the order of Small
Causes Court rejecting the claim of Municipal Corporation of Greater
Mumbai for an amount of Rs.136.97 lakhs (Previous year Rs.136.97 lakhs) on
account of property tax.
c) The Company has executed Bank Guarantee of Rs. 3250.00 lakhs (Previous
year Rs.3250.00 lakhs) favouring The Hongkong and Shanghai Banking
Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam
Jewellery Limited, Mumbai.
2 Estimated amount of contracts remaining to be executed on Capital
Account and not provided for is Rs. nil lakhs (Previous year Rs.267.42
Lakhs)
3 Details of Related parties transactions are as under :
a) List of related parties and relationship where control exists or
with whom transactions were entered into : Sr. No. Relationship Name
of the Related Party
i) Subsidiaries Diagold Designs Limited
Goldiam Jewellery Limited
Goldiam USA, Inc.
Goldiam Jewels Limited (upto 28th September, 2012) ii) Associates
Goldiam HK Limited
iii) Key Management Personnel Mr. Manhar R. Bhansali (Chairman &
Managing Director)
Mr. Rashesh M. Bhansali (Vice Chairman & Managing Director)
4 IN THE OPINION OF THE DIRECTORS:
a) The Current Assets and Loans & Advances are approximately of the
value stated, if realised in the ordinary course of business.
b) The provision for depreciation and for all known liabilities is
adequate and not in excess of the amount reasonably necessary.
5 Amounts due from subsidiaries & Associates included under Loans and
Advances, Receivables & Payables are as follows :
6 Information given in accordance with the requirements of AS 17 on
"Segment Reporting" .
The Company has identified Two Reportable Segments viz. Jewellery
Manufacturing and Investment Activity. Segments have been identified
and reported taking into account nature of products and services, the
different risks and returns and the internal business reporting
systems.
a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Unallocable".
The Company has identified Geographic Segments as its Secondary Segment
Secondary segmental reporting is based on the geographical location of
the customers. The geographical segments have been disclosed on
revenues within India (Sales to customers in India) and revenues
outside India (Sales to customers outside India).
7 The Ministry of Corporate Affairs, Government of India, vide General
Circular No.2 and 3 dated 8th February, 2011 and 21st February, 2011
respectively has granted a general exemption from compliance with
Section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the Circular. The Company has satisfied the
conditions stipulated in the Circular and hence is entitled to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consolidated Financial Statements.
8 Exceptional Items of previous financial year includes, profit on
sale of the office premises of Rs. 434.34 lakhs and Rs. 254.11 loss on sale
of entire stake of 2985000 equity shares of M/s. Goldiam Jewels Limited
one of its subsidiary on 28th September, 2012.
9 FINANCIAL INSTRUMENTS / FORWARD CONTRACTS :
The Company is exposed to foreign currency fluctuations on foreign
currency assets and forecasted cash flows denominated in foreign
currency. The Company limits the effects of foreign exchange rate
fluctuations by following established risk management policies. The
Company enters into forward contracts, where the counterparty is bank.
The forward contracts are not used for trading or speculation purpose.
10 All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956
notified by MCA vide its notification no. 447(E) dated February 28,
2011. Based on the nature of products and the time between the
acquisition of assets for processing and their realisation in cash and
cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current  non current classification of
assets and liabilities.
11 The previous year''s figures have been regrouped and rearranged
wherever necessary to make in compliance with the current financial
year.
Mar 31, 2013
1.01 As per Accounting Standard 15 "Employee benefits", the
disclosures as defined in the Accounting Standard are given below:
i) Defined Contribution Plan :
Contribution to Provident Fund is Rs. 1.81 lakhs (Previous year Rs. 0.52
lakhs ), ESIC and Labour Welfare Fund includes Rs. 1.06 lakhs (Previous
year Rs. 1.14 lakhs).
ii) Defined Benefit Plan :
GRATUITY & LEAVE ENCASHMENT:
The Company makes annual contribution to the Employees'' Group
Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of
India, a funded benefit plan for qualifying employees. The scheme
provides for lump sum payment to vested employees at retirement, death
while in employment or on termination of employment of an amount
equivalent to 15 days service for each completed year of service or
part thereof depending on the date of joining. The benefit vests after
five years of continuous service.
2 CONTINGENT LIABILITIES NOT PROVIDED FOR :
a) The Company has outstanding performance guarantee of Rs.1591.50 lakhs
as on the Balance Sheet date, executed in favour of Deputy Commissioner
of Customs (Previous Year Rs.100.19 lakhs).
b) The Municipal Corporation of Greater Mumbai has preferred an appeal
in the High Court of Judicature at Bombay against the order of Small
Causes Court rejecting the claim of Municipal Corporation of Greater
Mumbai for an amount of Rs.136.97 lakhs (Previous year Rs.136.97 lakhs) on
account of property tax.
c) The Company has executed Bank Guarantee of Rs. 3250.00 lakhs (Previous
year Rs. 2500.00 lakhs) favouring The Hongkong and Shanghai Banking
Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam
Jewellery Limited, Mumbai.
3 Estimated amount of contracts remaining to be executed on Capital
Account and not provided for is Rs. 267.42 lakhs (Previous year Rs.Nil)
4 IN THE OPINION OF THE DIRECTORS:
a) The Current Assets and Loans & Advances are approximately of the
value stated, if realised in the ordinary course of business.
b) The provision for depreciation and for all known liabilities is
adequate and not in excess of the amount reasonably necessary.
5.01 The above figures have been taken from audited accounts of Joint
Venture as on 31st March, 2012 and converted at the exchange rate
prevailing as on the date of Balance Sheet of Joint Venture.
Contingent liabilities in respect of Joint Venture is Rs. Nil
6 Information given in accordance with the requirements of AS 17 on
"Segment Reporting".
The Company has identified Two Reportable Segments viz. Jewellery
Manufacturing and Investment Activity. Segments have been identified
and reported taking into account nature of products and services, the
different risks and returns and the internal business reporting
systems.
a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Unallocable".
7 The Ministry of Corporate Affairs, Government of India, vide General
Circular No.2 and 3 dated 8th February, 2011 and 21st February, 2011
respectively has granted a general exemption from compliance with
Section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the Circular. The Company has satisfied the
conditions stipulated in the Circular and hence is entitled to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consolidated Financial Statements.
8 During the year the company has sold its office premises at Dynasty
Business Park, profit on sale of the said office premises of Rs. 434.34
lakhs has been reflected as an Exceptional Item in statement of Profit
and Loss account.
9 During the current year under review the Company has disposed off
its entire stake 2985000 equity shares of M/s. Goldiam Jewels Limited
one of its subsidiary on 28th September, 2012 and incurred loss of Rs.
254.11 lakhs and the same has been reflected as an Exceptional Item in
statement of Profit and Loss account.
10 FINANCIAL INSTRUMENTS / FORWARD CONTRACTS :
I) The Company has entered into following forward / derivative
instruments :
The Company is exposed to foreign currency fluctuations on foreign
currency assets and forecasted cash flows denominated in foreign
currency. The Company limits the effects of foreign exchange rate
fluctuations by following established risk management policies
including the use of derivatives. The Company enters into forward
contracts and option contracts, where the counterparty is bank. The
forward contract or options are not used for trading or speculation
purpose.
11 Salaries & wages include Directors'' remuneration of Rs. 46.65 lakhs
(Previous Year Rs. 39.70 lakhs)
12 All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956
notified by MCA vide its notification no. 447(E) dated February 28,
2011. Based on the nature of products and the time between the
acquisition of assets for processing and their realisation in cash and
cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current  non current classification of
assets and liabilities.
13 The previous year''s figures have been regrouped and rearranged
wherever necessary to make in compliance with the current financial
year.
Mar 31, 2012
1.01 Reconciliation of the number of shares and amount outstanding at
the beginning and at the end of the reporting period:
Details to be given for each class of shares separately for Issued,
Subscribed and fully paid up and Subscribed but not fully paid up, as
applicable.
2.1 Inventories except Consumables Stores and Spares are valued at
cost or net realisable value whichever is less.
2.2 Consumables Stores and Spares are valued at cost.
3.01 As per Accounting Standard 15 "Employee benefits", the
disclosures as defined in the Accounting Standard are given below:
i) Defined Contribution Plan :
Contribution to Provident Fund is Rs0.52 Lakhs (Previous year Rs2.04
Lakhs), ESIC and Labour Welfare Fund includes Rs1.14 Lakhs (Previous
year Rs1.10 Lakhs).
ii) Defined Benefit Plan :
GRATUITY & LEAVE ENCASHMENT:
The Company makes annual contribution to the Employees' Group
Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of
India, a funded benefit plan for qualifying employees. The scheme
provides for lump sum payment to vested employees at retirement, death
while in employment or on termination of employment of an amount
equivalent to 15 days service for each completed year of service or
part thereof depending on the date of joining. The benefit vests after
five years of continuous service.
4 CONTINGENT LIABILITIES NOT PROVIDED FOR :
a) The Company has outstanding performance guarantee of Rs100.19 Lakhs
as on the Balance Sheet date, executed in favour of Deputy Commissioner
of Customs (Previous Year Rs100.19 Lakhs).
b) The Municipal Corporation of Greater Mumbai has preferred an appeal
in the High Court of Judicature at Bombay against the order of Small
Causes Court rejecting the claim of Municipal Corporation of Greater
Mumbai for an amount of Rs136.97 Lakhs (Previous year Rs136.97 Lakhs) on
account of property tax.
c) The Company has executed Bank Guarantee of Rs 2,500 Lakhs (Previous
year Rs2,000 Lakhs) favouring The Hongkong and Shanghai Banking
Corporation Limited and of Rs Nil (Previous year Rs1,000 Lakhs) favouring
YES Bank Limited, Mumbai for its wholly owned subsidiary, Goldiam
Jewellery Limited, Mumbai.
5 Estimated amount of contracts remaining to be executed on Capital
Account and not provided for is Rs Nil (Previous year Rs Nil)
6 IN THE OPINION OF THE DIRECTORS:
a) The Current Assets and Loans & Advances are approximately of the
value stated, if realised in the ordinary course of business.
b) The provision for depreciation and for all known liabilities is
adequate and not in excess of the amount reasonably necessary.
7.01 The above figures have been taken from audited accounts of Joint
Venture as on 31st March, 2012 and converted at the exchange rate
prevailing as on the date of Balance Sheet of Joint Venture.
Contingent liabilities in respect of Joint Venture is Rs Nil
8 The Ministry of Corporate Affairs, Government of India, vide General
Circular No.2 and 3 dated 8th February, 2011 and 2151 February, 2011
respectively has granted a general exemption from compliance with
Section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the Circular. The Company has satisfied the
conditions stipulated in the Circular and hence is entitled to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consolidated Financial Statements.
9 FINANCIAL INSTRUMENTS / FORWARD CONTRACTS :
The Company has entered into following forward / derivative
instruments:
The Company is exposed to foreign currency fluctuations on foreign
currency assets and forecasted cash flows denominated in foreign
currency. The Company limits the effects of foreign exchange rate
fluctuations by following established risk management policies
including the use of derivatives. The Company enters into forward
contracts and option contracts, where the counterparty is bank. The
forward contract or options are not used for trading or speculation
purpose.
10 INFORMATION GIVEN IN ACCORDANCE WITH THE REQUIREMENTS OF AS 17 ON
"SEGMENT REPORTING" :
The Company has identified Two Reportable Segments viz. Jewellery
Manufacturing and Investment Activity. Segments have been identified
and reported taking into account nature of products and services, the
different risks and returns and the internal business reporting
systems.
a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Unallocable".
b) Segment assets and Segment Liabilities represents assets and
liabilities in respective segments. Tax related assets and other assets
and liabilities that cannot be allocated to a segment on reasonable
basis have been disclosed as "Unallocable".
Secondary segmental reporting is based on the geographical location of
the customers. The geographical segments have been disclosed on
revenues within India (Sales to customers in India) and revenues
outside India (Sales to customers outside India).
11 All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956
notified by MCA vide its notification no. 447(E) dated February 28,
2011. Based on the nature of products and the time between the
acquisition of assets for processing and their realisation in cash and
cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current - non current classification of
assets and liabilities.
12 The financial statements for the year 31st March, 2012 has been
prepared as per the Revised Schedule VI to the Companies Act, 1956.
Accordingly, the previous year's figures have been regrouped and
rearranged wherever necessary to make in compliance with the current
financial year.
Mar 31, 2011
1 CONTINGENT LIABILITIES NOT PROVIDED FOR :
a) The Company has outstanding performance guarantee of Rs.10,019,250/-
as on the Balance Sheet date, executed in favour of Deputy Commissioner
of Customs (Previous year Rs.10,019,250/-)
b) The Municipal Corporation of Greater Mumbai has preferred an appeal
in the High Court of Judicature at Bombay against the order of Small
Causes Court rejecting the claim of Municipal Corporation of Greater
Mumbai for an amount of Rs.13,696,775/- (Previous year Rs.13,696,775/-) on
account of property tax.
c) The Company has executed Bank Guarantee of Rs.200,000,000/- (Previous
year Rs.150,000,000/-) favouring The Hongkong and Shanghai Banking
Corporation Limited and of Rs.100,000,000/- (Previous year Rs.Nil)
favouring YES Bank Limited, Mumbai for its wholly owned subsidiary,
Goldiam Jewellery Limited, Mumbai.
d) Commitment under contribution agreement with Kotak Alternate
Opportunities (India) Fund is Rs.Nil (Previous year Rs.6,250,000/-)
2 Estimated amount of contracts remaining to be executed on Capital
Account and not provided for is Rs.Nil. (Previous year Rs.Nil.)
3 Details of Related parties transactions are as under :
a) List of related parties and relationship where control exists or
with whom transactions were entered into:
Sr.
No. Relationship Name of the Related Party
1 Subsidiaries Diagold Designs Limited
Goldiam Jewellery Limited
Goldiam Jewels Limited
Goldiam USA, Inc.
2 Associates Goldiam HK Limited
Temple Designs LLP
3 Key Management Personnel Mr. Manhar R. Bhansali (Chairman &
Managing Director)
Mr. Rashesh M. Bhansali (Vice Chairman
& Managing Director)
4 IN THE OPINION OF THE DIRECTORS:
a) The Current Assets and Loans & Advances are approximately of the
value stated, if realised in the ordinary course of business.
b) The provision for depreciation and for all known liabilities is
adequate and not in excess of the amount reasonably necessary.
5 JOINT VENTURE :
In compliance with the Accounting Standard relating to "Financial
Reporting of Interests in Joint Ventures" (AS-27), issued by the
Institute of Chartered Accountants of India, the Company has interests
in the following jointly controlled entity, which is incorporated
outside India.
6 GENERAL DESCRIPTION OF DEFINED BENEFIT PLAN: GRATUITY :
The Company makes annual contribution to the Employees Group
Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of
India, a funded benefit plan for qualifying employees. The scheme
provides for lump sum payment to vested employees at retirement, death
while in employment or on termination of employment of an amount
equivalent to 15 days service for each completed year of service or
part thereof depending on the date of joining. The benefit vests after
five years of continuous service.
(i) Defined Benefit Plan :
Gratuity includes gratuity cost of Rs.66,431/- (Previous year
Rs.1,336,754/-). Leave Encashment Rs.202,019/- (Previous year Rs.165,345/-).
(ii) Defined Contribution Plan :
Contribution to Provident Fund is Rs.203,879/- (Previous year
Rs.462,871/-), ESIC and Labour Welfare Fund includes Rs.109,820/- (Previous
year Rs.206,348/-).
7 The Ministry of Corporate Affairs, Government of India, vide General
Circular No.2 and 3 dated 8th February, 2011 and 21st February, 2011
respectively has granted a general exemption from compliance with
Section 212 of the Companies Act,1956, subject to fulfilment of
conditions stipulated in the Circular. The Company has satisfied the
conditions stipulated in the Circular and hence is entitled to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consolidated Financial Statements.
8 FINANCIAL INSTRUMENTS/FORWARD CONTRACTS :
The Company has entered into following forward/derivative instruments :
The Company is exposed to foreign currency fluctuations on foreign
currency assets and forecasted cash flows denominated in foreign
currency. The Company limits the effects of foreign exchange rate
fluctuations by following established risk management policies
including the use of derivatives. The Company enters into forward
contracts and option contracts, where the counterparty is bank. The
forward contracts or options are not used for trading or speculation
purpose.
Outstanding Forward Contract for hedging currency risk against Export
Receivables and Balance with Banks in EEFC accounts entered into by the
Company as on 31st March, 2011 is US$ 3.6 million (Previous year US$
Nil) equivalent to Rs.16.72 crores (Previous year Rs.Nil) and for Import
Payables and Bank Borrowings outstanding Forward Contract entered into
by the Company as on 31st March, 2011 is US$ Nil (Previous year US$
Nil) equivalent to Rs.Nil (Previous year Rs.Nil).
In respect of derivatives contract relating only to the Companys own
export and imports business and foreign currency debt obligations, in
accordance with the principles of prudence and other applicable
guidelines as per Accounting Standards read with Schedule VI of the
Companies Act, 1956, the Company has charged Rs.Nil (Previous year Rs.5.20
crores) in the Profit and Loss Account in respect of outstanding
contracts as at 31st March, 2011 and 31st March, 2010. No such
contracts were outstanding as on 31st March, 2011.
9 Information given in accordance with the requirements of AS 17 on
"Segment Reporting" :
The Company has identified Two Reportable Segments viz. Jewellery
Manufacturing and Investment Activity. Segments have been identified
and reported taking into account nature of products and services, the
different risks and returns and the internal business reporting
systems.
a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Unallocable".
b) Segment assets and Segment Liabilities represents assets and
liabilities in respective segments. Ta x related assets and other
assets and liabilities that cannot be allocated to a segment on
reasonable basis have been disclosed as "Unallocable".
10 Salaries & wages include Directors remuneration of Rs.3,906,878/-
(Previous year Rs.Nil)
11 Sales include Exchange Loss of Rs.35,130,068/- (Previous year Exchange
Gain of Rs.6,593,091/-).
12 The amount of profit in respect of forward exchange contracts to be
recognised in the Profit and Loss Account for the next accounting
period is Rs.741,920/- (Previous year Rs.Nil).
13 Purchase Trading Goods includes Exchange Gain/Loss of Rs.Nil (Previous
year Rs.Nil).
14 Previous year figures have been rearranged or re-grouped, wherever
necessary.
Mar 31, 2010
1 CONTINGENT LIABILITIES NOT PROVIDED FOR
a) The Company has outstanding performance guarantee of
Rs.10,019,250/-as on the Balance Sheet date, executed in favour of
Deputy Commissioner of Customs (Previous year Rs. 10,019,250/-)
b) The Municipal Corporation of Greater Mumbai has preferred an appeal
in the High Court of Judicature at Bombay against the order of Small
Causes Court rejecting the claim of Municipal Corporation of Greater
Mumbai for an amount of Rs. 13,696,775/- (Previous year Rs.
13,696,775/-) on account of property tax.
c) The Company had executed Bank Guarantee of US Dollar Nil (Previous
year US Dollar 4,000,000) favouring The Hongkong & Shanghai Banking
Corporation Limited, Hong Kong for its Subsidiary/Joint Venture Goldiam
HK Limited, Hong Kong.
d) Commitment under contribution agreement with Kotak Alternate
Opportunities -(India) Fund is Rs.6,250,000/- (Previous Year Rs.
13,250,000/-)
2 Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs.nil. (Previous year Rs.nil.)
3 Details of Related parties transactions are as under.
a) List of related parties and relationship where control exists or
with whom transactions were entered into:
Sr. No. Relationship Name of the Related Party
1 Subsidiaries Diagold Designs Limited
Goldiam Jewellery Limited
Goldiam Jewels Limited
Goldiam HK Limited
(upto 22.07.2009)
Goldiam USA, Inc.
2 Associates Goldiam HK Limited
(from 23.07.2009)
Temple Designs LLP
3 Key Management Personnel Mr. Manhar R. Bhansali
(Chairman & Managing
Director)
Mr. Rashesh M. Bhansali
(Vice Chairman & Managing
Director)
4 FINANCIAL INSTRUMENTS / FORWARD CONTRACTS :
The Company has entered into following forward / derivative
instruments:
The Company is exposed to foreign currency fluctuations on foreign
currency assets and forecasted cash flows denominated in foreign
currency. The Company limits the effects of foreign exchange rate
fluctuations by following established risk management policies
including the use of derivatives. The Company enters into forward
exchange and option contracts, where the counterparty is bank. The
forward contract or option are not used for trading or speculation
purpose. Outstanding Forward Contract for hedging currency risk
against Export Receivables and Balance with Banks in EEFC accounts
entered into by the company as on 31st March, 2010 is US$ Nil (Previous
year US$ 5.7 million) equivalent to Rs. Nil (Previous year Rs. 24.16
Crores) and for Import Payables and Bank Borrowings outstanding Forward
Contract entered into by the company as on 31st March, 2010 is US$ Nil
(Previous year US$ 1.00 million) equivalent to Rs. Nil (Previous year
Rs. 5.19 Crores).
In respect of derivatives contract relating only to the Companys own
export and imports business and foreign currency debt obligations, in
accordance with the principles of prudence and other applicable
guidelines as per
Accounting Standards read with Schedule VI of the Companies Act, 1956,
the Company has charged Rs. 5.20 Crores (Previous year Rs. 12.03
Crores) in Profit and Loss Account in respect of outstanding contracts
as at 31st March, 2010 (31st March, 2009). No such contracts were
outstanding as on 31st March, 2010.
5 Information given in accordance with the requirements of AS 17 on
"Segment Reporting" .
The Company has identified Two Reportable Segments viz. Jewellery
Manufacturing and Investment Activity. Segments have been identified
and reported taking into account nature of products and services, the
different risks and returns and the internal business reporting
systems.
a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Unallocable".
b) Segment Assets and Segment Liabilities represents assets and
liabilities in respective segments. Tax related assets and other assets
and liabilities that cannot be allocated to a segment on reasonable
basis have been disclosed as "Unallocable".
6 Sales include Exchange Gain of Rs.65,93,091/- (Previous Year
Exchange Loss of Rs.6,420/-)
7 Purchase Trading Goods include Exchange Gain/Loss of Rs.Nil
(Previous Year Exchange Loss of Rs.1,76,16,465/-)
8 Pursuant to the approval of the Board of Directors under section 77A
of the Companies Act, 1956 to buy-back equity shares of the Company at
a price not exceeding Rs.50/- per equity share from the open market
through Stock Exchanges for an aggregate amount not exceeding Rs.5.25
crores being 3.53% of the aggregate of the Companys total paid-up
equity share capital and free reserves as on March 31, 2009, the
Company has bought back 600,000 equity shares for a total consideration
of approximately Rs.2.32 Crores (excluding Brokerage, STT and other
charges) by utilising the General Reserve account and Securities
Premium account.
9 A Voluntary Retirement Scheme was announced in the last quarter of
the previous year. Total Payments made pursuant to the scheme aggregate
to Rs. 57,464,739/-. In accordance with the transitional provision
contained in Accounting Standard 15, the company has chosen to amortize
such expenses in equal quarterly installments over a period ending on
31st March, 2010. A sum of Rs. 50,067,841/- (Previous year Rs.
73,96,898/-)has been charged to profit and loss account in the current
year.
10 Previous Year figures have been rearranged or re-grouped, wherever
necessary.
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