Asian Star Company Ltd. இன் கணக்கு குறிப்புகள்
Mar 31, 2023
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint ventures. Joint control is the contractually agreed sharing of control of an arrangement, which exist only when decisions about the relevant activities required unanimous consent of parties sharing control. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor.
The Company has invested in Joint venture, Ratnanjali Infra LLP. The Company''s interest in the said LLP is of 45 % share in Profit / Loss of the LLP. The Company has only right over the net assets of the Entity. The net asset is calculated using Equity method of accounting. Joint venture entity of the company is individually not material.
The joint ventures have no significant contingent liabilities to which the Company is exposed to, and the Company has no significant contingent liabilities in relation to its interest in the joint ventures. The risks associated with the Company''s interest in joint ventures are the same as those identified for the Company.
a) The Company has given Corporate guarantee of Rs. 82.22 crores (For F.Y. 2021-22 it was Rs. 76.07 crores) to Banks for facilities availed by its subsidiary company.
b) The Company has disputed liability of Rs. 3.32 crores (For F.Y. 2021-22 it was Rs. 3.32 crores) in respect of Customs duty raised by Commissioner of Customs. In respect of the demand raised by Commissioner of Customs, the Company is of the opinion that the demand is not tenable and has made appropriate submission to the department. The Company has received stay order form Gujarat High Court against the demand of Custom Duty.
c) The Company has disputed Income tax liability of Rs. 1.19 crores for A.Y. 2015-16 & Rs. 0.48 crores for A.Y. 2016-17. Out Of Rs. 1.19 crores for A.Y. 2015-16, demand for Rs. 0.75 crores is on account of errors in tax calculations by the Income Tax Department which will be rectified in due course. The Company is of the opinion that the remaining demands are not tenable and has filed appeal against them with Commissioner of Income Tax (appeals). An appeal filed in Bombay High Court by the Income Tax Department for AY 2012-13 against the order of ITAT passed in favour of the Company for restoring penalty of Rs.1.50 crores is pending. The penalty was levied at assessment level and reversed by CIT Appeals. Decision of CIT appeal was upheld by ITAT.
The above demands i.e. (b) & (c) shall be charged to Profit & Loss statement, if required, on disposal of the matter.
36. Bank loan funds obtained during the year are not used for the purpose other than that mentioned in the sanction letter.
37. The books of accounts are in agreement with the periodical statements submitted to the banks during the F.Y. 2022-23.
38. The title deeds of all the immovable properties are held in the name of the Company.
39. No loans or advances are granted to the promoters, directors, KMP and related parties during the F.Y. 2022-23.
40. No proceedings are initiated or pending against the company for holding any benami property.
41. The Company is not declared as willful defaulter by any bank or financial institution or other lender during the F.Y. 2022-23.
42. The Company has not done any transaction with struck off companies during the F.Y. 2022-23.
43. No charges are pending to be registered with ROC beyond the statutory period.
44. The Company has not received any fund from any person(s) or entity(ies), including foreign entities ("Funding party") with the understanding (whether recorded in writing or otherwise) that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (ultimate beneficiaries); or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
FAIR VALUE RELATED DISCLOSURES Fair Value Measurement
Fair value related disclosures for financial instruments and non-financial assets that are measured at fair value or where fair values are disclosed are summarized in the following notes.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a principal market, in the most advantageous market for the asset or market for the asset or liability the principal in the most advantageous market must be accessible by Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
Valuation Techniques and Inputs used
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
i. Long-term receivables/borrowings are evaluated by the Group based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses, if any, of these receivables.
ii. The fair values of the quoted equity shares are based on price quotations at the reporting date (Level 1 inputs).
iii. The Company enters into derivative financial instruments in the form of Foreign exchange Forwards & Options contracts. The counterparties of these contracts are Banks. These derivatives constitute hedge from an economic perspective and are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly in the revenue from Sale of products or purchases in the Statement of Profit and Loss. Foreign exchange forward and Option contracts are valued using valuation techniques, which employ the use of market observable inputs. The valuation technique applied is the use of "quoted prices in active markets".
iv. The fair values of the Group''s interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period.
Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
⢠Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
⢠Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Comparison by class of the carrying amounts and fair value of Financial Instruments
The management assessed that for all Financial Assets and Financial Liabilities, the carrying amounts are equal to the fair value.
OTHER FAIR VALUE RELATED DISCLOSURES Recurring / non-recurring classification of fair value
All fair value measurements for the period ended 31/03/2023 are recurring in nature and there are no Non-recurring fair value measurements of assets or liabilities in these periods.
Level 3 inputs related disclosure
There are no recurring fair value measurements using significant unobservable inputs (Level 3) in the reporting periods and hence there is no effect of the measurements on profit or loss or other comprehensive income for the period.
Transfers between Level 1 and Level 2
There have been no transfers between Level 1 and Level 2 of the fair value hierarchy for all assets and liabilities held at the end of the reporting period that are measured at fair value on a recurring basis.
Change in Valuation Techniques, if any
There has been no change in the valuation techniques in the reporting periods.
The Company is exposed to a variety of financial risks such as credit risk, liquidity risk and market risk.
Financial risk management is carried out by a finance committee under policies approved and delegated by the Board of Directors. The Board provides written principles for risk management.
The Company finances its operations by a combination of retained profits, disposals of assets, bank borrowings, etc. Liquidity risk is managed by short-term and long-term cash flow forecasts.
The table below provides details regarding the contractual maturities of significant financial liabilities:
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for credit losses and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments.
The Company periodically assesses the financial reliability of customers / corporate taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable and loans receivable. These include customers / corporate, which have high credit-ratings assigned by international and domestic credit-rating agencies. Individual risk limits are set accordingly.
On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, the Company uses a provision matrix to compute the expected credit loss amount for trade receivables. The provision matrix takes into account external and internal credit risk factors and historical data of credit losses from various customers.
None of the Company''s cash equivalents, including term deposits with banks, were past due or impaired as at 31 March, 2023. Of the total trade receivables, Rs. 68,715.53 lakhs as at March 31, 2023 and Rs. 73,161 lakhs as at March 31, 2022 consisted of customer balances that were neither past due nor impaired. The Company''s Credit risk management policies include categorizing the loans and trade receivables based on estimates of Probability of Default and calculation of Expected Credit Losses (ECL).
Loans and advances include loans given to staff Rs. 156.76 lakhs as at March 31,2023 and Rs. 148.86 lakhs as at March 31,2022 which the company perceives no impairment loss to be provided for.
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.
Market risks include Interest Rate Risk and foreign Currency Risk. There are no identifiable Commodity Price Risks or Equity Price
Risks foreseen in the current reporting period.
The Company is mainly exposed to the interest rate risk due to its variable and fixed rate domestic and foreign borrowings. The interest
rate risk arises due to uncertainties about the future market interest rate on these borrowings.
The Company is exposed to foreign exchange risk principally via:
⢠Transactional exposure that arises from the sales / receivables / contracts entered based on orders denominated in a currency other than the functional currency of the Company
⢠Transactional exposure that arises from the cost of goods sold / payables / contracts entered based on orders denominated in a currency other than the functional currency of the Company.
⢠Foreign currency exposure that arises from foreign currency working Capital loans (including interest payable) denominated in a currency other than the functional currency of the Company.
Commodity Risk
The Company is exposed to the commodity rate risk due to uncertainties in availability of Gold for its jewellery operations. Forward contracts for Gold entered into by the company and outstanding as on 31s March, 2023 covers 8 Kgs.for purchase of Gold (For F.Y.2021-2022 it was Nil Kgs.). Sensivity analysis for commodity risk is not done as it is not material.
SENSITIVITY ANALYSIS
The sensitivity analysis reflects the impact on income and equity due to financial instruments held at the balance sheet date. It does not reflect any change in sales or costs that may result from changing interest or exchange rates.
The Company''s objectives when managing capital (defined as net debt plus equity) are to safeguard the Company''s ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders, while protecting and strengthening the balance sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in light of changes to economic conditions and the strategic objectives of the Company. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, buy back shares and cancel them, or issue new shares. The Company finances its operations by a combination of retained profit, bank borrowings, disposals of property assets, etc. The Company borrows uses borrowing facilities to meet the Company''s business requirements.
The Company monitors capital using gearing ratio, which is total debt divided by total capital plus debt.
The capital gearing ratio as on 31st March, 2023 and 31st March, 2022 was 40% and 42%, respectively.
The Company has made not made any Capital commitments as at March 31,2023 and March 31,2022 for purchase of Capital asset or any Investment.
The Company has obtained working capital loan from banks which are secured by:
⢠Fixed deposits - Value Rs. 16,065 lakhs
⢠Hypothecation of Stock in trade and Trade receivables - Value Rs. 1,42,357 lakhs.
⢠Mortgage of premises at Mumbai & Surat - at Market Value Rs. 16,168 lakhs.
Defaults
For loans payable recognised at the end of the reporting period, there have been no defaults of non-payment of loan by the company.
As on 31/3/2017, the Company had transferred one property from "owner-occupied property" to investment property in accordance with IndAS 40. The accounting policy adopted by the Company for measuring this property is the cost model as prescribed in IndAS 40. There are no direct operating expenses or rental income from this property in the current reporting period. There are no restrictions on the realisability of this property or the remittance of income and proceeds of disposal nor any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.
Though the Company measures investment property using cost based measurement, the fair value of investment property as on 31.3.17 was Rs. 5,084 lakhs. Fair values was determined based on evaluation performed by applying a valuation model by an accredited external independent valuer who holds a recognised and relevant professional qualification and has recent experience in the location and category of the investment property being valued. However, no significant change in the market value is observed, and management has decided to keep the fair valuation same as of 31.3.17.
61. The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.
Mar 31, 2018
A. CORPORATE INFORMATION
Asian Star Company Limited (The Company) is a public limited company domiciled and incorporated in India. Its shares are listed on the Bombay stock exchange in India.
The Company is one of the worldâs leading diamantaires primarily engaged in the business of diamond cutting and polishing, jewellery manufacturing and retailing. The Company is also engaged in generation of electricity through wind power in India.
B. SIGNIFICANT ACCOUNTING POLICIES
1. Basis of preparation
These financial statements of the Company have been prepared in accordance with IFRS converged Indian Accounting Standards (IndAS)notified under the Companies (Indian Accounting Standards) Rules, 2015 (âIndASâ).
All the assets and liabilities have been classified as current and non-current as per the Companyâs normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of business operations, the Company has ascertained its operating cycle as 12 months for the purpose of current and non- current classification of assets and liabilities.
2. Accounting policies requiring management judgement and key sources of estimation uncertainty
The accounting policies which have the most significant effect on the figures disclosed in these financial statements are mentioned below and these should be read in conjunction with the disclosure of the significant IndAS accounting policies provided below:
a. Revenue recognition
Revenue recognition requires management judgement of deciding the most appropriate basis for presenting revenue or costs of revenue after reviewing both the legal form and substance of the agreement. Determining the amount of revenue to be recognized for multiple element arrangements also requires management judgement.
b. Useful life of Property, Plant and Equipment
The assessment of the useful life of each asset by considering the historical experience and expectations regarding future operations and expected usage, estimated technical obsolescence, residual value, physical wear and tear and the operating environment in which the asset is located needs significant judgement by the management.
c. Income taxes
The calculation of income taxes requires judgment in interpreting tax rules and regulations. Management judgment is used to determine the amounts of deferred tax assets and liabilities and future tax liabilities to be recognized.
d. Fair value
Certain financial instruments, such as investments in equity securities, derivative financial instruments and certain elements of borrowings, are carried in the financial statements at fair value, with changes in fair value reflected in the income statements. Fair values are estimated by reference to published price quotations or by using other valuation techniques that may include inputs that are not based on observable market data, such as discounted cash flows analysis.
- Fixed Deposits with banks include deposits of Rs. 1,047.89 lacs (For FY 2016-17 it was Rs. 771.80 lacs) with maturity of more than 12 months.
- Fixed Deposits with banks includes deposits of Rs. 14,368.48 lacs (For F.Y. 2016-2017 it was Rs. 13,861.18 lacs) pledged as collateral securities with the bank as security for facilities obtained.
- Fixed Deposits with banks includes deposits of Rs. 657.25 lacs (For F.Y. 2016-2017 it was Rs. 595.94 lacs) kept as margin money against bank guarantees.
2. DURING THE YEAR, COMPANY HAS RECOGNIZED THE FOLLOWING AMOUNTS IN THE FINANCIAL STATEMENTS
a) Defined Contribution Plan
Contribution to Defined Contribution Plan, recognized as expenses for the year are as under:
b) Defined Benefit Plan:
Defined benefits plan as per actuarial valuation as on 31st March, 2018 and recognized in the financial statement in respect of Employee Benefits Scheme:
3. Events after the reporting period
The Board of Directors have recommended dividend of Rs. 1.50 per fully paid up equity share of Rs. 10/- each, aggregating to Rs. 290.94 lacs including Rs. 50.84 lacs dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on March 31, 2018. The actual dividend amount will be dependent on the relevant share capital outstanding on the record date / book closure.
4 . A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint ventures. Joint control is the contractually agreed sharing of control of an arrangement, which exist only when decisions about the relevant activities required unanimous consent of parties sharing control. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor.
During the year the Company has invested in Joint venture, Rananjali LLP. The Companyâs interest in the said LLP is of 45 % share in Profit / Loss of the LLP. The Company has only right over the net assets of the Entity. The net asset is calculated using Equity method of accounting. Joint venture entity of the company is individually not material.
The joint ventures have no significant contingent liabilities to which the Company is exposed, and the Company has no significant contingent liabilities in relation to its interest in the joint ventures. The risks associated with the Companyâs interest in joint ventures are the same as those identified for the Company.
5. CORPORATE SOCIAL RESPONSIBILITY (CSR)
a) Gross amount required to be spent during the year : Rs. 119.93 lacs
b) Amount spent during the year:
6. a) The Company has given guarantee of Rs 328.96 crores (For F.Y. 2016-17 it was Rs. 237.52 crores) to Banks for facilities availed by its subsidiary companies.
b) The Company has disputed service tax liability of Rs.4.46 crores (For F.Y. 2016-17 it was Rs. 4.46 crores).
c) The Company has disputed liability of Rs. 3.32 crores (For F.Y. 2016-17 it was Rs. 3.32 crores) in respect of Customs duty raised by Commissioner of Customs.
The Company is of the opinion that the demand raised by Service Tax Department & Commissioner of Customs is not tenable and has made appropriate submission to the departments. The Company has received stay order form Gujarat High Court against the demand of Custom Duty. The same shall be charged to Profit & Loss statement, if required, on disposal of the matter.
7 . The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the information available with the Company are as under:
FAIR VALUE RELATED DISCLOSURES:
Fair Value measurement:
Fair value related disclosures for financial instruments and non-financial assets that are measured at fair value or where fair values are disclosed are summarized in the following notes.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a principal market, in the most advantageous market for the asset or market for the asset or liability the principal or the most advantageous market must be accessible by Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
Valuation Techniques and Inputs used
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
a. Long-term receivables/borrowings are evaluated by the Group based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses, if any, of these receivables.
b. The fair values of the quoted equity shares are based on price quotations at the reporting date (Level 1 inputs).
c. The Company enters into derivative financial instruments in the form of Foreign exchange Forwards & Options contracts. The counterparties of these contracts are Banks. These derivatives constitute hedge from an economic perspective and are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly in the revenue from Sale of products or purchases in the Statement of Profit and Loss. Foreign exchange forward and Option contracts are valued using valuation techniques, which employ the use of market observable inputs. The valuation technique applied is the use of âquoted prices in active marketsâ.
d. The fair values of the Groupâs interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuerâs borrowing rate as at the end of the reporting period.
Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
- Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Comparison by class of the carrying amounts and fair value of Financial Instruments
The management assessed that for all Financial Assets and Financial Liabilities, the carrying amounts are equal to the fair value.
Note 1. Trade Receivables and Trade Payables have been measured at amortised cost but for the purpose of disclosing their fair value related information as per IndAS 113.97, they have been categorised into Level 1 because their carrying values are approximately same as their level 1 based fair value (based on observable market inputs).
Note 2. Borrowings and Loans have been measured at amortised cost but for the purpose of disclosing their fair value related information as per IndAS 113.97, they have been categorised into Level 2 (as per IndAS 113.82) because they have a specified (contractual) term and the inputs are based on quoted prices for similar assets or liabilities in active markets or based on market-corroborated inputs.
Note 3. Other Financial assets have been measured at amortised cost but for the purpose of disclosing their fair value related information as per IndAS 113.97, they have been categorised into Level 1 because their carrying values would be the same as fair value or transaction price.
Other Fair Value related Disclosures
Recurring / non-recurring classification of fair value:
All fair value measurements for the period ended 31/3/2018 are recurring in nature and there are no Non-recurring fair value measurements of assets or liabilities in these periods.
Level 3 inputs related disclosure
There are no recurring fair value measurements using significant unobservable inputs (Level 3) in the reporting periods and hence there is no effect of the measurements on profit or loss or other comprehensive income for the period.
Transfers between Level 1 and Level 2
There have been no transfers between Level 1 and Level 2 of the fair value hierarchy for all assets and liabilities held at the end of the reporting period that are measured at fair value on a recurring basis.
Change in Valuation techniques, if any
There has been no change in the valuation techniques in the reporting periods.
Financial risk factors
The Company is exposed to a variety of financial risks such as credit risk, liquidity risk and market risk.
Financial risk management is carried out by a finance committee under policies approved and delegated by the Board of Directors. The Board provides written principles for risk management.
The following table outlines the sources and exposure to risks and how the company manages these risks:
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for credit losses and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments.
The Company periodically assesses the financial reliability of customers / corporates taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable and loans receivable. These include customers / corporates, which have high credit-ratings assigned by international and domestic credit-rating agencies. Individual risk limits are set accordingly.
On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, the Company uses a provision matrix to compute the expected credit loss amount for trade receivables. The provision matrix takes into account external and internal credit risk factors and historical data of credit losses from various customers.
None of the Companyâs cash equivalents, including term deposits with banks, were past due or impaired as at 31 March 2018. Of the total trade receivables, Rs.67,492 lacs as at March 31, 2018 and Rs. 59,257 lacs as at March 31, 2017 consisted of customer balances that were neither past due nor impaired. The Companyâs Credit risk management policies include categorizing the loans and trade receivables based on estimates of Probability of Default and calculation of Expected Credit Losses (ECL).
Loans and advances include loans given to staff Rs. 22 lacs as at March 31, 2018 and Rs. 27 lacs as at March 31, 2017 which the company perceives no impairment loss to be provided for.
Financial assets that are past due but not impaired
The Companyâs credit period for customers generally ranges from 20 - 180 days. The ageing of trade receivables that are past due but not impaired is given below:
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Companyâs reputation.
The Company finances its operations by a combination of retained profits, disposals of assets, bank borrowings, etc. Liquidity risk is managed by short-term and long-term cash flow forecasts.
The table below provides details regarding the contractual maturities of significant financial liabilities:
Market Risk
Market risks include Interest Rate Risk and foreign Currency Risk. There are no identifiable Commodity Price Risks or Equity Price Risks foreseen in the current reporting period.
Interest Rate Risk
The Company is mainly exposed to the interest rate risk due to its variable and fixed rate domestic and foreign borrowings. The interest rate risk arises due to uncertainties about the future market interest rate on these borrowings.
Foreign Exchange Risk
The Company is exposed to foreign exchange risk principally via:
- transactional exposure that arises from the sales / receivables denominated in a currency other than the functional currency of the Company
- transactional exposure that arises from the cost of goods sold / payables denominated in a currency other than the functional currency of the Company.
- Foreign currency exposure that arises from foreign currency term loans / Working Capital loans (including interest payable) denominated in a currency other than the functional currency of the Company.
Commodity Risk
The Company is exposed to the commodity rate risk due to uncertainties in availability of Gold and silver for its jewellery operations. Forward contracts for Sale of Gold entered into by the Company and outstanding as on 31st March, 2018 covers 93 Kgs and for purchase of silver covers 30 Kgs. (For F.Y. 2016- 17 it was for Sale of Gold 63 Kgs and for Purchase of Silver -Nil). Sensivity analysis for commodity risk is not done as it is not material.
Sensitivity analysis
The sensitivity analysis reflects the impact on income and equity due to financial instruments held at the balance sheet date. It does not reflect any change in sales or costs that may result from changing interest or exchange rates.
Interest rate risk
Exposure of borrowings/(Interest-rate related derivatives, if any) related to interest rate changes:
8. Capital Management
The Companyâs objectives when managing capital (defined as net debt plus equity) are to safeguard the Companyâs ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders, while protecting and strengthening the balance sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in light of changes to economic conditions and the strategic objectives of the Company. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, buy back shares and cancel them, or issue new shares. The Company finances its operations by a combination of retained profit, bank borrowings, loan from directors, disposals of property assets, etc. The Company borrows uses borrowing facilities to meet the Companyâs business requirements of each local business.
The Company monitors capital using gearing ratio, which is total debt divided by total capital plus debt. The capital gearing ratio as on 31st March, 2018 and 31st March, 2017 was 53% and 55%, respectively.
9. Collaterals
The Company has obtained working capital loan from banks which are secured by:
- Fixed deposits - Value Rs. 14,368 lacs
- Hypothecation of Stock in trade and Trade receivables - Value Rs. 122,961 lacs.
- Mortgage of premises at Mumbai & Surat - Value Rs. 15,371 lacs.
Defaults
For loans payable recognised at the end of the reporting period, there have been no defaults of non-payment of loan by the company.
10. Investment Property
As on 31/3/2017, the Company had transferred one property from âowner-occupied propertyâ to investment property in accordance with IndAS 40. The accounting policy adopted by the Company for measuring this property is the cost model as prescribed in IndAS 40. There are no direct operating expenses or rental income from this property in the current reporting period. There are no restrictions on the realisability of this property or the remittance of income and proceeds of disposal nor any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.
Though the Company measures investment property using cost based measurement, the fair value of investment property as on 31.3.17 was Rs. 5,084 lacs. Fair values was determined based on evaluation performed by applying a valuation model by an accredited external independent valuer who holds a recognised and relevant professional qualification and has recent experience in the location and category of the investment property being valued. However, no significant change in the market value is observed, and management has decided to keep the fair valuation same as of 31.3.17.
11. The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.
Mar 31, 2017
A. CORPORATE INFORMATION
Asian Star Company Limited (The Company) is a public Limited company domiciled and incorporated in India. Its shares are listed on the Bombay stock exchange in India. The Company is one of the worldâs leading diamantaires primarily engaged in the business of diamond cutting and polishing, jewellery manufacturing and retailing. The Company is also engaged in generation of electricity through wind power in India.
B. SIGNIFICANT ACCOUNTING POLICIES
1. Basis of preparation
These financial statements of the Company have been prepared in accordance with IFRS converged Indian Accounting Standards (IndAS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (âIndASâ).
Up to the year ended March31st, 2015, the Company prepared its financial statements in accordance with generally accepted accounting principles in India, including accounting standards read with Section 133 of the Companies Act, 2013 notified under Companies (Accounting Standards) Rules, 2006 (âPrevious GAAPâ). The Financial Statements for the year ended on March31st, 2017 are the first to have been prepared in accordance with the IndAS . The date of transition to IndAS is April 1st, 2015. Accordingly, opening balances as on April 1st, 2015 and March 31st, 2016, have been presented comparatively.
These financial statements are in compliance with IndAS 101, âFirst Time Adoption of Indian Accounting Standardsâ. Refer note 5 for the details of first time adoption exemptions availed as well as Reconciliations upon Transition.
All the assets and liabilities have been classified as current and non-current as per the Companyâs normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of business operations, the Company has ascertained its operating cycle as 12 months for the purpose of current and non- current classification of assets and liabilities.
2. Accounting policies requiring management judgement and key sources of estimation uncertainty
The accounting policies which have the most significant effect on the figures disclosed in these financial statements are mentioned below and these should be read in conjunction with the disclosure of the significant IndAS accounting policies provided below:
i. Revenue recognition
Revenue recognition requires management judgement of deciding the most appropriate basis for presenting revenue or costs of revenue after reviewing both the legal form and substance of the agreement. Determining the amount of revenue to be recognized for multiple element arrangements also requires management judgement.
ii. Useful life of Property, Plant and Equipment
The assessment of the useful life of each asset by considering the historical experience and expectations regarding future operations and expected usage, estimated technical obsolescence, residual value, physical wear and tear and the operating environment in which the asset is located needs significant judgement by the management.
iii. Income Taxes
The calculation of income taxes requires judgement in interpreting tax rules and regulations. Management judgement is used to determine the amounts of deferred tax assets and liabilities and future tax liabilities to be recognized.
iv. Fair Value
Certain financial instruments, such as investments in equity securities, derivative financial instruments and certain elements of borrowings, are carried in the financial statements at fair value, with changes in fair value reflected in the income statements. Fair values are estimated by reference to published price quotations or by using other valuation techniques that may include inputs that are not based on observable market data, such as discounted cash flows analysis.
3. First Time Adoption of IndAS
The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1st April, 2016, with a transition date of 1st April, 2015. These financial statements for the year ended 31st March, 2017 are the first financial statements the Company has prepared under Ind AS. The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended 31st March, 2017, together with the comparative information as at and for the year ended 31st March, 2016 and the opening Ind AS Balance Sheet as at 1st April, 2015, the date of transition to Ind AS.
Optional exemptions adopted as per IndAS
In preparing these Ind AS financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below.
Property, plant and equipment (PPE), investment properties and intangible assets: The Company has availed of the option to use either âthe Fair Value of the asset at the date of transitionâ or the âPrevious GAAP revaluation at or before the date of transitionâ as its deemed cost.
Investments in subsidiaries, joint ventures and associates: The Company has adopted to value its investments in subsidiaries, joint ventures and associates at deemed cost, which is the previous GAAP carrying amount at the date of transition.
Mandatory exceptions from retrospective application of IndAS
In addition to the optional exceptions discussed above. The Company has applied the following mandatory exceptions under IndAS 101:
Estimates: The estimates made under previous GAAP (Indian GAAP) have not been changed by using subsequent information at the IndAS transition date except change in the estimates of useful lives of Land & building. The other estimates as per IGAAP can be changed in future only in case of an error or if the estimates not earlier required under Indian GAAP would be required under IndAS.
Classification and measurement of financial assets: The classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made considering whether the conditions of IndAS 109 are met on the basis of the facts and circumstances that existed on the date of transition to IndAS.
4. First time IndAS adoption Reconciliations:
The difference between the carrying amounts of the assets and liabilities in the financial statements under both IndAS and Previous GAAP as of the Transition date have been recognized directly in âRetained Earningsâ at the Transition date. This note explains the adjustments made by the Company in restating its financial statements prepared under previous GAAP, including the Balance Sheet as at Aprillst, 2015 and the financial statements as at and for the year ended March31st, 2016.
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from Previous GAAP to IndAS in accordance with IndAS 101:
Equity as at April 1st, 2015
Equity as at March 31st, 2016
Profit for the year ended March 31st, 2016
Explanation of material adjustments to cash flow statements
In the reconciliations mentioned above, certain reclassifications have been made to Previous GAAP financial information to align with the IndAS presentation
Notes to the Reconciliations:
1. Property Plant & Equipment:
As per âthe deemed costâ exception given in paragraphs D5 and D6 to IndAS 101, any item of property, plant and equipment can be measured at the date of transition to Ind AS at its fair value or at revalued amount. The Previous GAAP revalued amount can be considered as deemed cost if the revaluation was, at the date of the revaluation, broadly comparable to either the fair value or cost or depreciated cost in accordance with IndAS.
In accordance with above, upon transition to IndAS, the various items of Fixed Tangible Assets have been valued as follows:
- Land & Buildings amounting to Rs. 2,991 Lacs have been measured at Fair Market Value on transition date and the fair market value of Rs.12,811 Lacs has been considered to be the âdeemed costâ of these assets.
- Assets amounting to Rs. 12,988 Lacs have been revalued in accordance with IndAS and the Previous IGAAP revalued amounts have been considered to be the âdeemed costâ of these assets.
- The above changes have led to an increase in the total value of PPE to the tune of Rs.9,820 Lacs as on the transition date, which has been recognised in Equity as a part of âRetained Earningsâ.
- The estimates of useful lives of Land and Buildings have been revised upon fair market valuation and accordingly the revised depreciation has been calculated. In the first year of transition the additional differential depreciation as per IndAS amounted to Rs.59 Lacs.
- For import of machinery under EPCG license, the custom duty saved in the FY 2015-2016 amounted to Rs.174 Lacs. This has led to increase in PPE account and since the benefits of this would be available in subsequent years, it has been credited to âOther non-current Liabilitiesâ account in FY 2015-2016.
- The impact of âdeemed costâ as well as revised depreciation and custom duty savings on the PPE for the FY 2015-2016 was Rs. 9,935 Lacs.
2. Non-Current Investments & Other Non-Current Liabilities:
As per Indian GAAP, Non-Current investments are carried at cost. However the same need to be fair valued as per IndAS 109. Non-current investments of the Company are the investments made in equity instruments in wholly owned subsidiaries. Provision of Financial Guarantees on behalf of subsidiaries is accounted in accordance with IndAS 109 at fair value on transition date and at subsequently at amortised cost using the effective interest method.
As on April 1st, 2015, the Financial Guarantees given by the Holding company to different financial institutions favouring its subsidiaries namely Asian Star Trading (Hongkong) Ltd, Asian Star Jewels Pvt. Ltd and Asian Star DMCC have been fair valued in accordance with IndAS 109 at Rs.173 Lacs. This has led to an increase in the value of âNon-current investmentsâ to the tune of Rs.173 Lacs as on 1/4/2015. The inception dates of these guarantees were before the transition date, hence the value upto the date of transition of Rs. 38 Lacs has been adjusted in Equity as a part of âRetained Earningsâ. And the balance amount (after transition date till the end of tenure of the guarantees), which will be recognised as income in subsequent years of Rs.135 Lacs has been transferred to âDeferred Incomeâ and is reflected under âOther Non-Current Liabilitiesâ as on 1/4/2015.
Out of the above Deferred Income, the guarantee commission income pertaining to the FY 2015-2016 calculated based on effective interest method amounted to Rs. 37 Lacs. This amount is recognized as income and it has been recognized as a deduction from âOther expensesâ account in the Profit & Loss Statement and as a deduction from âDeferred Incomeâ from âOther Non-Current Liabilitiesâ.
During the FY 2015-2016, additional guarantee was issued in favour of Asian Star Trading (Hongkong) Ltd, this has led to increase in the value of Non-Current Assets and Other Non-Current Liabilities by additional 36 Lacs.
The changes to the Non-Current Investments & Other Non-Current Liabilities as on the transition date and as at the end of first year of transition have been summarized as follows:
3. Long Term Loans & Advances:
As per Indian GAAP, the Loans given to Subsidiary Companies were being carried at Historical Costs less repayments. However, as per IndAS 109, these Loans need to be fair valued on the transition date and subsequently carried at amortised cost using effective interest method. The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
As on April 1st, 2015, the Long Term Loans and Advances as per Indian GAAP were Rs. 565 Lacs. As per IndAS the fair value is Rs. 461 Lacs. The above difference of Rs. 104 Lacs has been deducted from Equity as part of âRetained Earningsâ. Similarly, Rs. 72 Lacs of interest on loan to subsidiary are deducted from Finance costs for 31/03/2016.
4. Current Investments
The Aggregate carrying value of quoted investments as per Indian GAAP as on April 1st, 2015 was Rs. 129 Lacs. However the Fair Market value of these investments as on the same date was Rs. 149 Lacs. Hence, the value of Current investments has increased as per IndAS to the extent of this difference of Rs. 19.96 Lacs. This difference has also been recognised in Equity as part of âRetained Earningsâ.
5. Trade Receivables and Current Loans & Advances
As per IndAS, the assets and liabilities needed to be regrouped. These regrouping entries in Trade Receivables account and Current Loans & Advances account amounted to Rs. 46 Lacs as on the transition date and corresponding impact is in âRetained Earningsâ and for 31/03/2016, the regrouping entries in Trade Receivables account and Current Loans & Advances account amounted to Rs. 632 Lacs with corresponding impact in âOther Financial Assetsâ and the difference on account of correct FVTPL accounting of financial instruments as per IndAS amounted to Rs. 85 Lacs, which has been reflected in âRevenue from Operations & Cost of Material Consumed.â
6. Other Financial Assets and Other Financial Liabilities
The derivatives related receivables and payables were being grouped under different accounting heads under IGAAP. However, in accordance with IndAS 32 and lndAS109, these have been reclassified into âOther Financial Assets and Other Financial Liabilities accountsâ. The accounting methodology adopted as per IndAS is calculation of MTM gains/losses, which are valued at Fair market value. Accordingly these adjustments have been made in âRetained Earningsâ to the tune of Rs. 4 Lacs on the transition date and for 31/03/2016, adjustment of Rs. 494 Lacs have been made to âRevenue from Operations & Cost of Materials Consumedâ.
7. Other Equity
As on April 1,2015, the âOther Equityâ amount as per Indian GAAP was Rs. 48,529 Lacs. With the adoption of various IndAS as on the Transition date, the amounts of Various Assets and Liabilities have undergone adjustments. These adjustments have been detailed in the various explanatory notes forming part of this report. All these adjustments have cumulatively impacted the âOther Equityâ and are disclosed separately under the heading âRetained Earningsâ. The impact on âRetained Earningsâ is Rs. 7,095 Lacs as on the transition date as follows:
Similarly for 31/03/2016, adjustments have cumulatively impacted the âOther Equityâ by Rs. 7,049 Lacs. Rs. 7,095 Lacs as above less Rs. 46 Lacs as per reconciliation of total comprehensive income as shown above.
8. Long Term & Short Term Borrowings
Promoters loans have been fair valued as per IndAS 109 using effective interest method, due to which reclassification from long term category to short term category has been made to the tune of Rs. 2,180 Lacs and Rs. 468 Lacs have been adjusted to âretained earningsâ as on the transition date and for 31/03/2016, Rs. 2,738 Lacs have been reclassified from long term category to short term category and Rs. 246 Lacs have been adjusted to âFinance Costsâ.
9. Deferred Tax Liabilities (net)
Deferred tax is provided in full for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date.
As on April 1st, 2015 the deferred tax liability already calculated on timing differences between depreciation as per Companies Act compared to depreciation allowable as per Income Tax Act was Rs. 2,224 Lacs. With the adoption of IndAS, there are various adjustments to the amounts of assets and liabilities (which have been identified under various notes in this document). These adjustments will also have an impact on the tax of the Company as per Indian Income Tax laws. The identified difference between the IndAS balance sheet amounts as compared to the Income Tax Balance Sheet amounts as on April 1,2015 is Rs. 5,618 Lacs. This would impact the deferred tax liability to the extent of Rs. 3,393 Lacs. This has been deducted from Equity as part of âRetained Earningsâ. Similarly for 2015-16, the reworked deferred tax liability based on IndAS caused a reduction in the liability amount to the tune of Rs. 363 Lacs. Hence the cummulative impact in 2015 -16 is Rs. 3,032 Lacs.
10. Other Current Liabilities
As per IndAS 10, if an entity declares dividends to holders of equity instruments (as defined in IndAS 32, Financial Instruments: Presentation), after the reporting period, the entity shall not recognise those dividends as a liability at the end of the reporting period. The dividends, declared after the reporting period but before the financial statements are approved for issue, are not recognised as a liability at the end of the reporting period because no obligation exists at that time. Such dividends are however, disclosed in the notes in accordance with IndAS 1, Presentation of Financial Statements.
Under IGAAP, dividend proposed after the date of the financial statements but prior to the approval of financial statements is considered as an adjusting event, and a provision for dividend payment is recognised in the financial statements of the period to which the dividend relates. Under IndAS, dividend declaration is considered as a non-adjusting subsequent event and provision for dividends is recognised only in the period when the dividend is declared and approved.
As on April 1,2015, the Proposed Equity dividend was 240 lacs and the tax on proposed equity dividend was Rs. 50 Lacs. This total amount of Rs. 290 Lacs has been reduced from Other Current Liabilities and correspondingly in Equity as part of âRetained Earningsâ. Similar adjustment of Rs. 290 Lacs has been made for 31/03/2016.
11. Revenue from Operations & Cost of Materials Consumed
The gains / losses on account of Financial instruments valued at FVTPL as per IndAS has led to transition differences of Rs. 138 Lacs and Rs. 318 Lacs respectively in revenue from Operations & cost of material consumed in the first year of transition.
12. Other Income
Net losses on account of fair market valuation of investments amounted to Rs. 20 lacs & benefit of custom duty amounted to Rs. 3 Lacs in the first year of transition.
13. Employee benefits expense & other Comprehensive Income
Actuarial Loss on plan assets for gratuity as on 31.03.2016 as per IndAS amounted to Rs. 203 Lacs, which has been deducted from P&L Statement and transferred to other Comprehensive Income.
14. Finance costs
The IndAS transition adjustment of Rs. 189 Lacs in the first year of transition consists of interest income on Loans given to Subsidiary and interest expense on loans availed from Promotors as per IndAS 109 calculated as per effective interest method
EXPLANATION OF MATERIAL ADJUSTMENTS TO THE STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31st, 2016
The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.
5. During the year, Company has recognized the following amounts in the financial statements:
a) Defined Contribution Plan
Contribution to Defined Contribution Plan, recognized as expenses for the year are as under:
b) Defined Benefit Plan:
Defined benefits plan as per actuarial valuation as on March 31st, 2017 and recognized in the financial statement in respect of Employee Benefits Scheme:
6. Events after the reporting period
The Board of Directors have recommended dividend of Rs. 1.50 per fully paid up equity share of Rs. 10/- each, aggregating to Rs. 290 Lacs, including Rs. 50 Lacs dividend distribution tax for the financial year 2016-2017, which is based on relevant share capital as on March 31st, 2017. The actual dividend amount will be dependent on the relevant share capital outstanding on the record date / book closure.
7.Corporate Social Responsibility (CSR):
a) Gross amount required to be spent during the year: Rs. 116 Lacs
b) Amount spent during the year:
8. a) The Company has given guarantee of Rs. 237.52 Crores (For F.Y. 2015-16 it was Rs. 242.00 Crores) to Banks for facilities availed by its subsidiary companies.
b) The Company has disputed service tax liability of Rs. 4.46 Crores (For F.Y. 2015-16 it was Rs. 4.46 Crores).
c) The Company has disputed liability of Rs. 3.32 Crores (For F.Y. 2015-16 it was Rs. 3.32 Crores) in respect of Customs duty raised by Commissioner of Customs.
The Company is of the opinion that the demand raised by Service Tax Department & Commissioner of Customs is not tenable and has made appropriate submission to the departments. The Company has received stay order form Gujarat High Court against the demand of Custom Duty. The same shall be charged to Profit & Loss statement, if required, on disposal of the matter.
9. The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the information available with the Company are as under:
Note: For Financial assets and financial liabilities that are measured at Fair Value, the carrying amounts are equal to their fair values.
Fair Value Related Disclosures:
Fair Value measurement:
Fair value related disclosures for financial instruments and non-financial assets that are measured at fair value or where fair values are disclosed are summarized in the following notes.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a principal market, in the most advantageous market for the asset or market for the asset or liability the principal or the most advantageous market must be accessible by Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
Valuation Techniques and Inputs used
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
i. Long-term receivables/borrowings are evaluated by the Group based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses, if any, of these receivables.
ii. The fair values of the quoted equity shares are based on price quotations at the reporting date (Level 1 inputs).
iii. The Company enters into derivative financial instruments in the form of Foreign exchange Forwards & Options contracts. The counterparties of these contracts are Banks. These derivatives constitute hedge from an economic perspective and are carried as financial asset when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arrising from changes in the fair value of derivatives are taken directly to statement of profit and loss. Foreign exchange forward and option contracts are valued using valuaition technique, which employ use of market observable inputs. The valuation technique applied is the use of âQuoted prices in active marketâ
iv. The fair values of the Groupâs interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuerâs borrowing rate as at the end of the reporting period.
Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
- Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
- Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Comparision by class of carrying amount and fair value of fanancial instruments.
The management assessed that for all Financial Assets and Liabilities, the carrying amounts are equal to the fair value.
Note 1. Trade Receivables and Trade Payables have been measured at amortised cost but for the purpose of disclosing their fair value related information as per IndAS 113.97, they have been categorised into Level 1 because their carrying values are approximately same as their level 1 based fair value (based on observable market inputs).
Note 2. Borrowings and Loans have been measured at amortised cost but for the purpose of disclosing their fair value related information as per IndAS 113.97, they have been categorised into Level 2 (as per IndAS 113.82) because they have a specified (contractual) term and the inputs are based on quoted prices for similar assets or liabilities in active markets or based on market-corroborated inputs.
Note 3. Other financial assets have been measured at amortised cost but for the purpose of disclosing their fair value related information as per IndAS 113.97, they have been categorized into level 1, because their carrying values would be same as fair value or transaction price.
Other Fair Value related Disclosures
Recurring/ non-recurring classification of fair value:
All fair value measurements for the period ended 31/3/2017, 31/3/2016 and 1/4/2015 are recurring in nature and there are no Non-recurring fair value measurements of assets or liabilities in these periods.
Level 3 inputs related disclosure
There are no recurring fair value measurements using significant unobservable inputs (Level 3) in the reporting periods and hence there is no effect of the measurements on profit or loss or other comprehensive income for the period.
Transfers between Level 1 and Level 2
There have been no transfers between Level 1 and Level 2 of the fair value hierarchy for all assets and liabilities held at the end of the reporting period that are measured at fair value on a recurring basis.
Change in Valuation techniques, if any
There has been no change in the valuation techniques in the reporting periods.
Financial risk factors
The Company is exposed to a variety of financial risks such as credit risk, liquidity risk and market risk.
Financial risk management is carried out by a finance committee under policies approved and delegated by the Board of Directors. The Board provides written principles for risk management.
The following table outlines the sources and exposure to risks and how the company manages these risks:
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for credit losses and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments.
The Company periodically assesses the financial reliability of customers / corporates taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable and loans receivable. These include customers / corporates, which have high credit-ratings assigned by international and domestic credit-rating agencies. Individual risk limits are set accordingly.
On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, the Company uses a provision matrix to compute the expected credit loss amount for trade receivables. The provision matrix takes into account external and internal credit risk factors and historical data of credit losses from various customers.
None of the Companyâs cash equivalents, including term deposits with banks, were past due or impaired as at March 31st, 2017. Of the total trade receivables Rs. 53,620 Lacs as at March 31, 2017 and Rs. 61,039 Lacs as at March 31st, 2016 consisted of customer balances that were neither past due nor impaired. The Companyâs Credit risk management policies include categorizing the loans and trade receivables based on estimates of Probability of Default and calculation of Expected Credit Losses (ECL).
Loans and advances include loans given to staff Rs. 25 lacs as at March 31st, 2017 and Rs. 28 lacs as at March 31st,2016 which the company perceives no impairment loss to be provided for.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Companyâs reputation.
The Company finances its operations by a combination of retained profits, disposals of assets, bank borrowings, etc. Liquidity risk is managed by short-term and long-term cash flow forecasts.
The table below provides details regarding the contractual maturities of significant financial liabilities as at 31st, March 2017:
Market Risk
Market risks include Interest Rate Risk and foreign Currency Risk. There are no identifiable Commodity Price Risks or Equity Price Risks foreseen in the current reporting period.
Interest Rate Risk
The Company is mainly exposed to the interest rate risk due to its variable and fixed rate domestic and foreign borrowings. The interest rate risk arises due to uncertainties about the future market interest rate on these borrowings.
Foreign Exchange Risk
The Company is exposed to foreign exchange risk principally via:
- transactional exposure that arises from the sales / receivables denominated in a currency other than the functional currency of the company.
- transactional exposure that arises from the cost of goods sold / payables denominated in a currency other than the functional currency of the Company.
- Foreign currency exposure that arises from foreign currency term loans / Working Capital loans (including interest payable) denominated in a currency other than the functional currency of the Company.
Commodity Risk
The Company is exposed to the commodity rate risk due to uncertainities in availibility of gold and silver for itâs jewellery oprations. Forward contracts for sale of gold entered into by the company and outstanding as on 31st march 2017 corers 63 Kgs. (for F.Y - 2015-2016 it was for sale of gold 50 Kgs and for purchase of silver 60 Kgs). Sencivity analysis for commodity risk is not done as it is not material.
Sensitivity analysis
The sensitivity analysis reflects the impact on income and equity due to financial instruments held at the balance sheet date. It does not reflect any change in sales or costs that may result from changing interest or exchange rates.
10. Capital Management
The Companyâs objectives when managing capital (defined as net debt plus equity) are to safeguard the Companyâs ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders, while protecting and strengthening the balance sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in light of changes to economic conditions and the strategic objectives of the Company. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, buy back shares and cancel them, or issue new shares. The Company finances its operations by a combination of retained profit, bank borrowings, disposals of property assets, etc. The Company uses borrowing facilities to meet the Companyâs business requirements of each local business.
The Company monitors capital using gearing ratio, which is total debt divided by total capital plus debt.
The capital gearing ratio as on March 31st, 2017 and March 31st, 2016 was 55% and 57%, respectively.
11. Collaterals
The Company has obtained working capital loan from banks which are secured by:
- Fixed deposits - Value Rs. 14,514 lacs
- Hypothecation of Stock in trade and Trade receivables - Value Rs. 1,20,058 lacs
- Mortgage of premises at Mumbai & Surat - Value Rs. 15,371 lacs.
Defaults
For loans payable recognised at the end of the reporting period, there have been no defaults.
12. Investment Property
As on 31/3/2017, the Company has transferred one property from âowner-occupied propertyâ to investment property in accordance with IndAS 40. The accounting policy adopted by the Company for measuring this property is the cost model as prescribed in IndAS 40. There are no direct operating expenses or rental income from this property in the current reporting period. There are no restrictions on the realisability of this property or the remittance of income and proceeds of disposal nor any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.
Though the Company measures investment property using cost based measurement, the fair value of investment property is Rs. 5,084 Lacs. Fair values are determined based on an annual evaluation performed by applying a valuation model by an accredited external independent valuer who holds a recognised and relevant professional qualification and has recent experience in the location and category of the investment property being valued.
13. The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.
Mar 31, 2016
1.. Surplus / (Deficit] on account of exchange difference on outstanding forward exchange contracts to be recognized in profit and loss statement of subsequent accounting period aggregate to Rs. 5.66 crores (For F.Y. 2014-15 it was Rs 8.75 crores),
2. Derivatives Instruments:
a] Derivative contracts entered into by the Company and outstanding ason31stMarch,2016.
i] For hedging currency related risk:
Forward / option contracts (net] for Purchases entered into by the Company and outstanding as on 31st March, 2016 amount to Rs.79.47 crores (for F.Y. 2014-15 forward / option contracts (net] for Sales was Rs. 856.80 crores).
ii] For hedging commodity related risk:
Forward contracts for Sale of Gold and Purchase of Silver entered into by the Company and outstanding as on 31stMarch,
2016 covers 50 Kgs and 60 Kgs respectively. (For F.Y. 2014-15 it was for Sale of Gold 42 Kgs and for Sale of Silver 210 kgs.)
b] Foreign currency exposure (net Liability) that is not hedged by the derivative instruments as on 31stMarch, 2016, amount to Rs.310.55 crores. (For F.Y. 2014-15 it was Rs. 370.18 crores).
3. a] The Company has given guarantee of Rs. 242.00 crores (For F.Y. 2014-15 it was Rs. 205.74 crores) to banks for facilities availed by its subsidiary companies.
b] The Company has disputed service tax liability of Rs.4.46 crores (For F.Y. 2014-15 it was Rs. 4.46 crores),
c] The Company has disputed liability of Rs. 3.32 crores (For F.Y. 2014-15 it was Rs. 1.63 crores) in respect of Customs duty raised by Commissioner of Customs.
The Company is of the opinion that the demand raised by Service Tax Department & Commissioner of Customs is not tenable and has made appropriate submission to the departments. The Company has received stay order form Gujarat High Court against the demand of Custom Duty. The same shall be charged to profit & loss statement, if required, on disposal of the matter.
4. The figures of previous year have been regrouped / reclassified wherever necessary and possible so as to confirm with the figures of the current year.
Mar 31, 2015
1. Surplus / (Deficit) on account of exchange difference on
outstanding forward exchange contracts to be recognized in profit and
loss statement of subsequent accounting period aggregate to Rs. 8.75
crores (For F.Y. 2013-14 it was Rs 10.22 crores).
2. Derivatives Instruments:
a) Derivative contracts entered into by the Company and outstanding as
on 31st March, 2015.
i) For hedging currency related risk:
Forward / option contracts (net) for Sales entered into by the Company
and outstanding as on 31st March, 2015 amount to Rs. 856.80 crores (For
F.Y. 2013-14 forward / option contracts (net) for Sales was Rs.
1,610.21 crores).
ii) For hedging commodity related risk:
Forward contracts for sale of Gold and Silver entered into by the
Company and outstanding as on 31st March, 2015 covers 42 kgs and 210
kgs respectively. (For F.Y. 2013 - 14 it was 5 kgs and 270 kgs
respectively).
b) Foreign currency exposure (net liablilty) that is not hedged by the
derivative instruments as on 31st March, 2015, amount to Rs. 370.18
crores. (For F.Y. 2013-14 it was Rs. 296.07 crores).
3. a) The Company has given guarantee of Rs. 205.74 crores (For F.Y.
2013-14 it was Rs. 150.43 crores) to Banks for facilities availed by
its subsidiary companies.
b) The Company has disputed income tax liability of Rs. Nil (For F.Y.
2013-14 it was Rs. 0.54 crores).
c) The Company has disputed service tax liability of Rs. 4.46 crores
(For F.Y. 2013-14 it was Rs. 4.46 crores).
d) The Company has disputed liability of Rs. 1.63 crores (For F.Y.
2013-14 it was Rs. Nil) in respect of Customs duty raised by
Directorate of Revenue Intelligence.
The Company is of the opinion that the demand raised by Service Tax
Department & Directorate of Revenue Intelligence is not tenable and has
made appropriate submission to the departments. The same shall be
charged to profit & loss statement, if required, on disposal of the
matter.
4. Related Party Disclosure for the year ended 31st March, 2015
(i) List of Related Parties and relationships:
(A) Particulars of Enterprises controlled by the Company
Name of Related Party Relationship
Asian Star Company Ltd. - (U.S.A.) Subsidiary
Asian Star DMCC Subsidiary
Asian Star Jewels Pvt. Ltd. Subsidiary
Asian Star Trading (Hong Kong) Ltd. Subsidiary
(B) Particulars of Key Management Personnel
Name of Related Party Relationship
Dinesh T. Shah Chairman & CFO
Vipul P. Shah CEO & Managing Director
Dharmesh D. Shah Director
Arvind T. Shah Executive Director
Priyanshu A. Shah Executive Director
Rahil V. Shah Executive Director
(C) Particulars of Enterprises Under
Common control of the Key Management
Personnel
Jewel Art
Asian Star Diamonds International Pvt. Ltd.
Shah Manufacturers
Rahil Agencies
A'Star Exports
Shah Enterprises
(D) Particulars of Relatives of Key Management
Personnel where there are transactions
Sujata V. Shah
Sweta D. Shah
Vimla P. Shah
5. Pursuant to the enactment of Companies Act 2013, the company has
applied the estimated useful lives as specified in Schedule II.
Accordingly the unamortized carrying value is being depreciated /
amortised over the revised / remaining useful lives. The written down
value of Fixed Assets whose lives has expired as at 1st April, 2014
have been adjusted net of tax, in the opening balance of Profit and
Loss Statement amounting to Rs. 207.13 Lacs.
6. The figures of previous year have been regrouped / reclassified
wherever necessary and possible so as to confirm with the figures of
the current year.
Mar 31, 2014
1. Surplus / (Deficit) on account of exchange difference on
outstanding forward exchange contracts to be recognized in profit and
loss statement of subsequent accounting period aggregate to Rs. 10.22
crores (For F. Y. 2012-13 it was Rs 4.83 crores).
2. Derivatives Instrument:
a) Derivative contracts entered into by the Company and outstanding as
on 31st March, 2014. i) For hedging currency related risk:
Forward / option contracts (net) for Sales entered into by the company
and outstanding as on 31st March, 2014 amount to Rs. 1,610.21 crores
(for F. Y. 2012-13 forward / option contracts (net) for purchase was
Rs. 1,154.41 crores)
ii) For Hedging commodity related risk:
Forward contracts for Gold and Silver entered into by the company and
outstanding as on 31st March, 2014 covers 5 Kgs and 270 Kgs
respectively. (For F. Y. 2012-13 it was 82 Kgs and Nil kgs
respectively.)
b) Foreign currency exposure that is not hedged by the derivative
instruments as on 31st March, 2014, amount to Rs. 296.07 crores. (For
F. Y. 2012-13 it was Rs. NIL).
3. The details of amounts outstanding to Micro, Small and Medium
Enterprises under the Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act), based on the information available with the
Company are as under:
4. The Company has given guarantee of Rs. 150.43 crores (previous year
Rs. 138.38 crores) to Banks for facilities availed by its subsidiary
companies. The company has disputed income tax liability of Rs. 0.54
crores (previous year 36.39 crores) and disputed service tax liability
of Rs.4.46 crores (previous year 4.46 crores).
5. Related Party Disclosure for the year ended 31st March, 2014 (i)
List of Related Parties and Relationships:
(A) Particulars of Enterprises controlled by the Company
Name of Related Party Relationship
Asian Star Co. Ltd. (U.S.A.) Subsidiary
Asian Star DMCC Subsidiary
Asian Star Jewels Pvt. Ltd. Subsidiary
Asian Star Trading (Hong Kong) Ltd Subsidiary
(B) Particulars of Key Management Personnel
Name of Related Party Relationship
Dinesh T. Shah Chairman & CFO
Vipul P. Shah CEO & Managing Director
Dharmesh D. Shah Director
Arvind T. Shah Executive Director
Priyanshu A. Shah Executive Director
Rahil V. Shah Executive Director
(C) Particulars of Enterprises Under Common control of the Key
Management Personnel
Jewel Art
Asian Star Diamonds International Pvt. Ltd.
Shah Manufacturers
Rahil Agencies
A''Star Exports
Shah Enterprises
(D) Particulars of Relatives of Key Management Personnel where there
are transactions
Sujata V. Shah
b) Defined Benefit Plan:
Defined benefits plan as per actuarial valuation as on 31st March, 2014
and recognized in the financial statement in respect of Employee
Benefits Scheme:
The Company now recognizes two reportable business segments viz.
diamonds and jewellery. The business which is not reportable during
the year, has been grouped under ''Others'' Segment, this comprises wind
energy generation.
Segment Reporting and Related Information requires that an enterprise
report a meas for each reportable segment.
The fixed assets and inventories used in the company''s business are
not identifiable to any particular reportable segment and can be used interchangeably among geographical segments. Consequently,
management believes that it is not practical to provide segment
disclosures relating to total assets since a realistic analysis among
the various geographic segments is not possible. Therefore, information
has been restricted to direct debtors of each geographical segment.
Mar 31, 2013
1. Surplus / (Deficit) on account of exchange difference on
outstanding forward exchange contracts to be recognised in profit and
loss account of subsequent accounting period aggregate to Rs. 4.83
crore (For F.Y. 2011-12 it was Rs 7.74 crore).
2. Derivatives Instrument:
a) Derivative contracts entered into by the Company and outstanding as
on 31st March, 2013. i) For hedging currency related risk:
Forward / option contracts (net) for purchase entered into by the
company and outstanding as on 31st March, 2013 amount to Rs. 1,154.41
crore (for F.Y.2011-12 forward / option contracts (net) for Sales was
Rs. 2,321.73 crore).
ii) For Hedging commodity related risk:
Forward contracts for Gold entered into by the company and outstanding
as on 31st March, 2013 covers 82 Kgs. (For F.Y.2011-2012 it was 82
Kgs.).
b) Foreign currency exposure that is not hedged by the derivative
instruments as on 31st March, 2013, amount to Rs. Nil. (For
F.Y.2011-12 it was Rs. NIL).
3. The details of amounts outstanding to Micro, Small and Medium
Enterprises under the Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act), based on the information available with the
Company are as under:
4. The Company has given guarantee of Rs. 138.78 crore (previous year
Rs. 132.31 crore) to Banks for facilities availed by its subsidiary
companies. The company has disputed income tax liability of Rs. 36.39
crore (previous year Nil) and disputed service tax liability of Rs.
4.46 crore (previous year Nil).
5. The figures of previous year have been regrouped / reclassified
wherever necessary and possible so as to confirm with the figures of
the current year.
Mar 31, 2012
Balance with banks include unclaimed Dividend of Rs.0.25 lacs (Previous
Year Rs.0.18 lacs).
Fixed Deposits with banks include deposits of Rs.1,057.78 lacs
(Previous Year Rs.438.47 lacs) with maturity of more than 12 months.
Fixed Deposits with banks includes deposits of Rs.450.00 lacs (Previous
Year Rs.450.00 lacs) kept under lien with the bank as security for Bank
Facilities obtained by a subsidiary Company.
1. Surplus / (Deficit) on account of exchange difference on
outstanding forward exchange contracts to be recognized in profit and
loss account of subsequent accounting period aggregate to Rs.774.12
lacs (For F.Y. 2010-11 it was Rs.798.96 lacs).
2. Derivative Instruments:
a) Derivative contracts entered into by the Company and outstanding as
on 31st March, 2012.
i) For hedging currency related risk:
Forward / option contracts (net) for sales entered into by the Company
and outstanding as on 31s1 March, 2012 amount to Rs.2,32,173.78 Lacs
(for F.Y.2010-11 forward / option contracts (net) for Sales was
Rs.54,544.44 Lacs)
ii) For hedging commodity related risk:
Forward contracts for Gold entered into by the Company and outstanding
as on 31st March, 2012 covers 82 Kgs. (For F.Y2010-11 it was 124 Kgs.).
b) Foreign currency exposure that is not hedged by the derivative
instruments as on 31s1 March, 2012, amount to Rs. Nil. (For F.Y2010-11
it was Rs. Nil).
3. The details of amounts outstanding to Micro, Small and Medium
Enterprises under the Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act), based on the information available with the
Company are as under:
4. The Company has given guarantee of Rs. 13,231.30 lacs (Previous
year Rs 6,348.75 lacs) to banks for facilities availed by its
subsidiary companies.
Segment Reporting and Related Information requires that an enterprise
report a measure of total assets for each reportable segment. The fixed
assets and inventories used in the Company's business are not
identifiable to any particular reportable segment and can be used
interchangeably among geographical segments. Consequently, management
believes that it is not practical to provide segment disclosures
relating to total assets since a realistic analysis among the various
geographic segments is not possible. Therefore, information has been
restricted to direct debtors of each geographical segment.
5. The figures of previous year have been regrouped / reclassified
wherever necessary and possible so as to confirm with the figures of
the current year.
Balance with banks include unclaimed dividend of Rs.0.25 lacs (
Previous Year Rs.0.18 lacs).
Fixed Deposits with banks include deposits of Rs.1,057.78 lacs
(Previous Year Rs.438.47 lacs) with maturity of more than 12 months.
Fixed Deposits with banks includes deposits of Rs.450.00 lacs (Previous
Year Rs.450.00 lacs) kept under lien with the bank as security for Bank
Facilities obtained by a subsidiary company.
6. Surplus / (Deficit) on account of exchange difference on
outstanding forward exchange contracts to be recognized in profit and
loss account of subsequent accounting period aggregate to Rs.780.49
lacs. (For F.Y 2010-11 it was Rs.798.96 lacs).
7. Derivatives Instrument:
a) Derivative contracts entered into an outstanding as on 31st March,
2012.
i) For hedging currency related risk:
Forward / Option contracts (net) for sales entered into an outstanding
as on 31st March, 2012 amount to Rs.2,343.16 crores (for F.Y2010-11
forward / option contracts (net) for sales was Rs. 545.44 crores)
ii) For Hedging commodity related risk:
Forward contracts for Gold entered into by the company and outstanding
as on 31st March, 2012 covers 82 Kgs. (For F.Y2010-11 it was 124
Kgs.).
b) Foreign currency exposure (net) for purchases that are not hedged by
the derivative instruments as on 31st March, 2012, amount to Rs.1.39
crores (for F.Y2010-11 it was Rs. NIL).
8. The details of amounts outstanding to Micro, Small and Medium
Enterprises under the Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act), based on the information available with the
Company are as under:
(a) As per Accounting Standard on Segment Reporting (AS-17), issued by
the Institute of Chartered Accountant of India, the company has
reported segments information on consolidated basis including business
conducted by its subsidiaries.
(b) The Company now recognizes two reportable business segments viz.
cut and polished diamonds and Jewellery. The business which is not
reportable during the year, has been grouped under 'Others' Segment,
this comprises wind energy generation.
9. The figures of previous year have been regrouped / reclassified
wherever necessary and possible so as to confirm with the figures of
the current year.
Mar 31, 2011
1. Surplus / (Deficit) on account of exchange difference on
outstanding forward exchange contracts to be recognised in profit and
loss account of subsequent accounting period aggregate to Rs. 798.96
lacs (For F.Y. 2009-10 it was Rs 459.37 lacs).
2. Derivative Instruments:
a) Derivative contracts entered into by the Company and outstanding as
on 31st March, 2011.
i) For hedging currency related risk:
Forward / option contracts (net) for sales entered into by the company
and outstanding as On 31st March, 2011 amount to Rs. 545.44 Crores
(for F.Y.2009-10 forward / option contracts (net) for purchase was Rs.
2,861.65 Crores)
ii) For Hedging commodity related risk:
Forward contracts for Gold entered into by the company and outstanding
as on 31st March, 2011 covers 124 Kgs. (For F.Y.2009- 2010 it was 139
Kgs.).
b) Foreign currency exposure that is not hedged by the derivative
instruments as on 31st March, 2011, amount to Rs. Nil. (for F.Y.2009-10
it was Rs. Nil).
3. The Company has given guarantee of Rs. 3,648.75 lacs (Previous year
Rs Nil) to banks for facilities availed by its subsidiary companies.
4. Investments purchased and sold during the year: Nil
The Company now recognises two reportable business segments viz. cut
and polished diamonds and jewellery. The business which is not
reportable during the year, has been grouped under 'Others' segment,
this comprises wind energy generation.
Segment Reporting and Related Information requires that an enterprise
report a measure of total assets for each reportable segment. The fixed
assets and inventories used in the Company's business are not
identifiable to any particular reportable segment and can be used
interchangeably among geographical segments. Consequently, management
believes that it is not practical to provide segment disclosures
relating to total assets since a realistic analysis among the various
geographic segments is not possible. Therefore, information has been
restricted to direct debtors of each geographical segment.
5 The figures of previous year have been regrouped / reclassified
wherever necessary and possible so as to confirm with the figures of
the current year.
Mar 31, 2010
1. Surplus / (Deficit) on account of exchange difference on
outstanding forward exchange contracts to be recognised in profit and
loss account of subsequent accounting period aggregate to Rs. 459.37
lacs (For F.Y. 2008-09 it was Rs (687.21) lacs).
2. Derivative Instruments:
a) Derivative contracts entered into by the Company and outstanding as
on 31st March, 2010.
I) For hedging currency related risk:
Forward / option contracts (net) for purchase entered into by the
Company and outstanding as on 31st March, 2010 amount to Rs. 2861.65
crore (for F.Y.2008-09 forward / option contracts (net) for sales was
Rs. 1,654.81 crore)
ii) For Hedging commodity related risk:
Forward contracts for Cold entered into by the Company and outstanding
as on 31st March, 2010 covers 139 Kgs. (For F.Y.2008-2009 it was 120
Kgs.).
b) Foreign currency exposure that is not hedged by the derivative
instruments as on 31st March, 2010, amount to Rs. NIL. (for F.Y.2008-09
it was Rs. NIL).
3. There are no Micro and Small Enterprises, to whom the Company owes
dues, which are outstanding for more than 45 days as on 31st March,
2010. This information as required to be disclosed under the Micro,
Small and Medium Enterprises Development Act, 2006 has been determined
to the extent that such parties have been identified on the bases of
information available with the Company.
4. Related Party Disclosure for the year ended March 31, 2010.
(A) Particulars of Enterprises controlled by the Company
Name of Related Party Relationship
Asian Star Co. Ltd. (U.S.A.) Subsidiary
Inter Gems DMCC. Subsidiary
Asian Star jewels Pvt. Ltd. Subsidiary
(6) Particulars of Key Management Personnel
Name of Related Party Relationship
Dinesh T. Shah Chairman
Vipul P. Shah CEO & Managing Director
Dharmesh D. Shah CFO &Jt. Managing Director
Arvind T. Shah Executive Director
Priyanshu A. Shah Executive Director
(C) Particulars of Enterprises Under Common control of The Key
Management Personnel
Jewel Art
Shah Enterprises
Shah Manufacturers
Rahil Agencies
AStar Exports
Nivaan Jewels
Asian Star Diamonds International Pvt. Ltd.
(D) Particulars of Relatives of Key Management Personnel where There
are transactions.
Nirmala D. Shah
SujataV. Shah
Vimla P. Shah
5. Investments purchased and sold during the year: Nil
The Company now recognizes two reportable business segments viz. cut
and polished diamonds and jewellery. The business which is not
reportable during the year, has been grouped under Others segment,
this comprises wind energy generation.
Segment Reporting and Related Information requires that an enterprise
report a measure of total assets for each reportable segment. The fixed
assets and inventories used in the Companys business are not
identifiable to any particular reportable segment and can be used
interchangeably among geographical segments. Consequently, management
believes that it is not practical to provide segment disclosures
relating to total assets since a realistic analysis among the various
geographic segments is not possible. Therefore, information has been
restricted to direct debtors of each geographical segment.
6 The figures of previous year have been regrouped / reclassified
wherever necessary and possible so as to confirm with the figures of
the current year.
7. Additional Information as required under Part IV of Schedule VI to
the Companies Act, 1956.
Notes:
1. Converted at the rate of exchange US$ 1= Rs. 45.14 prevailing on
31/03/2010.
2. Asian Star Jewels Private Limited has not commenced its operations
during the year.
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Asian Star Company Ltd. குறித்த கூடுதல் தகவல்களை
-
Asian Star Company Ltd. நிறுவன தகவல்கள்
- நிறுவன சுயவிவரம்
- நிறுவன வரலாறு
- நிர்வாக குழு
- மூலதன வடிவம்
- புராடெக்ட் மிக்ஸ்
- வங்கியாளர்/தணிக்கையாளர்/பதிவாளர்
-
நிறுவன வரலாறு
- போனஸ்
- மும்பை பங்குச் சந்தையில் விலை வரலாறு
-
Asian Star Company Ltd. முக்கிய நிதியில் விகிதங்கள்
- விகிதங்கள்
-
Asian Star Company Ltd. முடிவுகள்
- காலாண்டு முடிவுகள்
- அரையாண்டு முடிவுகள்
- 9 மாத முடிவுகள்
- வருடாந்திர முடிவுகள்
-
Asian Star Company Ltd. நிதியியல் தகவல்கள்
- தணிக்கை முடிவுகள்
- பணப்பாய்வு
- இருப்பு நிலைக்குறிப்பு
-
Asian Star Company Ltd. அறிக்கை
- கணக்கியல் கோட்பாடுகள்
- தணிக்கையாளர்கள் அறிக்கை
- இயக்குநர்கள் அறிக்கை
- கணக்கு குறிப்புகள்
-
Asian Star Company Ltd. கார்ப்பரேட் அறிவிப்புகள்
- புத்தக முடிவு
- ஈவுத்தொகை
- நிர்வாகக் குழுக் கூட்டங்கள்
