GENOA JEWELERS LIMITED Consolidated Balance Sheet as at 31st March, 2016

Transcription

1 GENOA JEWELERS LIMITED Consolidated Balance Sheet as at Note 31st March, 31st March, $ $ EQUITY AND LIABILITIES Shareholders' Funds Share Capital 1 46,821,633 38,876,633 Reserves and Surplus 2 (29,228,219) (30,882,202) 17,593,414 7,994,431 Share application money pending allotment - - Non Current Liabilities Long-Term Borrowings 3 323,273 7,945, ,273 7,945,000 Current Liabilities Short-Term Borrowings 4 2,207,528 2,820,838 Trade Payables 5 18,875,254 15,998,107 Other Current Liabilities 6 4,302,824 4,727,704 Short-Term Provisions 7 513,660 1,502,740 25,899,266 25,049,389 Total 43,815,953 40,988,820 ASSETS Non-Current Assets Fixed Assets Tangible Assets 6,756,001 3,542,734 Intangible Assets 1,422,402 - Non-Current Investments 8 435, ,454 Deferred Tax Assets (refer Note No. 25) 736,755 - Long-Term Loans and Advances 9 4,387,873 8,000,730 13,738,286 12,034,918 Current Assets Inventories 10 17,027,109 14,489,723 Trade Receivables 11 3,579,946 2,339,166 Cash and Bank Balance 12 5,670,405 8,236,912 Short-Term Loans and Advances 13 3,770,876 3,888,101 Other Current Assets 14 29,331-30,077,667 28,953,902 Total 43,815,953 40,988,820 Notes on Financial Statements 1 to 23 For B. KHOSLA & CO. Chartered Accountants F.R. No.: C For and on behalf of the Board Director SANDEEP MUNDRA Partner M.No.: Place: Jaipur Date: May 18th, 2016 Date: May 18th, 2016

2 GENOA JEWELERS LIMITED Consolidated Statement of Profit and Loss for the period from 1st April, 2015 to 31st March, 2016 Year ended Year ended Note 31st Mar st Mar 2015 $ $ REVENUE I. Revenue From Operations ,812, ,992,410 II. Other Income 16 1,874,039 1,292,429 III. Total Revenue (I + II) 178,686, ,284,839 IV. EXPENSES Cost of Materials Consumed - - Purchases of Stock-In-Trade 17 74,422,464 84,303,837 Decrease/(Increase) of Stock-In-Trade 18 (2,537,385) (3,227,084) Employees Benefit Expenses 19 26,761,886 27,082,675 Financial Costs , ,375 Depreciation and Amortization Expense 21 2,665, ,902 Other Expenses 22 76,246,888 79,109,991 Total expenses 177,994, ,764,696 V. Profit before exceptional and extraordinary items and tax (III-IV) 691,747 11,520,143 VI. Exceptional Items ,388 VII. Profit before extraordinary items and tax (V - VI) 691,747 11,369,755 VIII. Extraordinary Items - - IX. Profit before tax (VII- VIII) 691,747 11,369,755 X Tax Expense: - - Add /Less: Provision For Taxation (1) Current Tax (129,009) 2,170,212 (2) Deferred Tax Charges/(Credits) (736,755) - Profit for the Period 1,557,511 9,199,543 Notes on Financial Statements 1 to 23 For B. KHOSLA & CO. Chartered Accountants F.R. No.: C For and on behalf of the Board Director SANDEEP MUNDRA Partner M.No.: Place: Jaipur Date: May 18th, 2016 Date: May 18th, 2016

3 GENOA JEWELERS LIMITED B. Notes accompanying Consolidated financial statement for the period ended SHAREHOLDER'S FUND 1 SHARE CAPITAL a The details of Authorised,Issued,Subscribed and fully paid up, and subscribed but not fully paid up capital are as under :- Share Capital Number Amount Number Amount Authorised $ $ 50,000,000 Shares of US $1 each 50,000,000 50,000,000 50,000,000 50,000,000 Issued, Subscribed and Paid up Shares of US $1 each 46,821,633 46,821,633 38,876,633 38,876,633 46,821,633 38,876,633 2 RESERVE & SURPLUS a Foreign Currency Translation Reserve Opening Balance 3,034,734 2,491,362 Add/ (Less): Movement during the year 96,472 3,131, ,372 3,034,734 b Surplus/ (Deficit) Opening balance (33,916,936) (43,116,479) Add: Net Profit For the current year 1,557,511 9,199,543 Surplus/ (Deficit) (32,359,425) (33,916,936) (29,228,219) (30,882,202) NON CURRENT LIABILITIES 3 LONG TERM BORROWING Secured Loan Term Loan from Bank Term Loan# (Refer Note (a) ) 323,273 - Unsecured Loans from Related Parties: From Holding Company (Vaibhav Global Limited) 7,945,000 (Refer Note (b) ) 323,273 7,945,000 # Current maturities are disclosed under other current liabilities (a) Long Term Loan in respect of TJC,UK for GBP 525,000 (Previous year NIL) is secured by :- (i ) First charge on EPG Licence on Sky. (ii) Additionally secured by Corporate guarantee of the immediate parent company as well as ultimate parent company. (b) Company had taken loan from holding company for which no specific terms & conditions for repayment of principal has been defined. The company has during the year paid interest at an p.a. The Loan was Converted into Equity in the two tranches of $4.5 mln on 11th August,2015 and $3.445 Mln on 22nd Feburary,2016. CURRENT LIABILITIES 4 SHORT TERM BORROWINGS a. Secured Loan Repayable on demand From Bank * 2,057,528 2,670,838 A 2,057,528 2,670,838 b. Unsecured Loan Repayable on demand from Affiliates STS Gems Thai Ltd.# 150, ,000 B 150, ,000 (A+B) 2,207,528 2,820,838 *Loan From bank is secured by (i)first ranking charge over the inventory of raw materials, finished goods including stock in transit and counter idemnity of the company for NFB(BG) limit. (ii) Additionally secured by Corporate guarantee of the immediate parent company as well as ultimate parent company # Company has taken loan from affiliates company for which no specific terms & conditions for repayment of principal has been defined. In the opinion of the management, this loan is in the nature of short term borrowings. Interest p.a. 5 TRADE PAYABLES To Others 5,242,158 5,337,327 To Affiliates/ Other Related Parties 13,633,096 10,660,780 18,875,254 15,998,107 6 OTHER CURRENT LIABILITIES Current Maturity of Term Loan 431,031 Other Liabilities 3,871,793 4,727,704 4,302,824 4,727,704 7 SHORT TERM PROVISION Provision For Taxation ,730 Others Provisions- for warranties & return 513, , ,660 1,502,740 NON -CURRENT ASSETS 8 NON CURRENT INVESTMENT (Long Term - at Cost less provision for other then temporary diminuation) Trade Investment (ii) Qouted Investment : 78,14,530 (88,23,530 ) shares of US $ each fully paid up of Richland Resources Limited 435, , , ,454 -Aggregate amount of quoted investment 435, ,454 -Market value of Quoted Investment 336, ,441 9 LONG TERM LOANS AND ADVANCES (Unsecured and considered good unless otherwise stated) Capital Advance 1,325,745 4,158,261 Security Deposits 1,231, ,658 Loans & Advances to related parties Considered good 1,830,500 2,941,811 Considered doubtful - -

4 B. Notes accompanying Consolidated financial statement for the period ended 1,830,500 2,941,811 Less: Provision for Doubtful Debts - 1,830,500-2,941,811 4,387,873 8,000, INVENTORIES (As Taken, Valued And Certified By The Management) Finished Stock 17,027,109 14,489,723 17,027,109 14,489, TRADE RECEIVABLES (Unsecured and considered good unless otherwise stated) Outstanding For More Than Six Months from the date they are due for payment - - Others Unsecured, Considered good # 3,579,946 2,339,166 Unsecured, Considered doubtful 413,365-3,993,311 2,339,166 Less: Provision for doubtful trade receivable 413,365 3,579,946-2,339,166 3,579,946 2,339,166 # (Includes $ from related party) 12 CASH AND BANK BALANCE Balance with Banks - in current account 5,513,980 8,064,642 - in Fixed Deposits (Pledged) 144,220 5,658, ,825 8,213,467 Cash on hand 12,205 23,445 5,670,405 8,236,912

5 B. Notes accompanying Consolidated financial statement for the period ended 13 SHORT TERM LOANS AND ADVANCES (Unsecured and considered good unless otherwise stated) Advance to staff 37,889 17,656 Advance to Supplier 0 377,999 Prepaid Expenses 3,112,695 3,265,222 Other advances recoverable 481, ,224 Tax recoverable 138,416-3,770,876 3,888, OTHER CURRENT ASSETS Interest Receivable 29,331-29, REVENUE FROM OPERATIONS Sale of Products: Finished Goods Sales 176,683, ,983,185 Inter Company Sales 128,995 9, ,812, ,992, OTHER INCOME Interest 498, ,437 Exchange Gain - - Gain on Sale of Investment 24,401 - Miscellaneous Income 1,351, ,992 1,874,039 1,292, PURCHASE Finished Goods Purchased 74,422,464 84,303,837 74,422,464 84,303, CHANGES IN STOCK-IN-TRADE Decrease/(Increase) of Stock-in-Trade consists of Finished Goods: Opening Stocks Finished Goods 14,489,724 11,262,640 14,489,724 11,262,640 Less: Closing Stocks Finished Goods 17,027,109 14,489,724 17,027,109 (2,537,385) 14,489,724 (3,227,084) (2,537,385) (3,227,084) 19 EMPLOYEES BENEFIT EXPENSE Salaries, Wages, Bonus etc. 22,575,428 23,137,462 Contributions to Employees Fund 3,593,447 3,375,768

6 B. Notes accompanying Consolidated financial statement for the period ended Staff Welfare Expenses 235, ,891 Recruitment and Training 357, ,554 26,761,886 27,082, FINANCIAL COST Interest Expenses 353, ,968 Bank Commission 81,916 98, , , DEPRECIATION & AMORTRATION Depreciation 2,665, ,902 2,665, , OTHER EXPENSES A. Direct Expenses Freight, taxes and duties 2,710,704 4,462,798 Other Manufacturing / Direct Expenses 1,403,285 1,251,186 4,113,989 5,713,985 B. Administration & Selling Expenses Rent, Rates and Taxes 1,736,468 1,548,699 Insurance 244, ,561 Travelling and Conveyance 818, ,129 Legal and Professional 1,098,166 1,244,274 Postage and Telephone 1,543,325 1,691,755 Printing and Stationery 139, ,949 Repair & Maintenance 156, ,241 Advertisement and Business Promotion 2,758,075 3,673,649 Discount, Brokerage and Commission - 21,647 Office Expenses (Misc. Expenses) 2,721,540 2,793,341 Donation 110,652 - Audit Fees 85, ,510 Exhange Fluctuation (Net) 67, ,461 Bad Debts 453,700 37,996 TV Channel Expenses - - Content & Broadcasting 40,126,001 39,531,692 Call handling & Collection Charges 7,289,429 7,896,300 Packing & Distribution Charges 11,504,507 12,435,227 Information Technology Expenses 1,277,323 1,186,575 72,132,899 73,396,006 Total Other Expenses 76,246,888 79,109, EXCEPTIONAL ITEMS Loans to subsidiary written off - 150, , Contingent Liabilities & Commitments (A) Lease Commitments: Some of the subsidiaries have lease agreements towards their retail stores, office and other premises. These non-cancelable operating leases have various expiry dates. The total future minimum lease payments (excluding certain escalations) in this respect are as follows: Year Not later than one year 7,473,119 2,287,114 Later than one year & not later than five years 5,223,492 10,052,489 Later than five years 1,046, ,785 (B) Contingent Liabilities: Particulars 31-Mar Mar-15 ($) ($) Capital Commitments: Estimated amount of contracts remaining to be executed on 1,453, capital account and not provided for - Contingent Liabilities: Guarantees given to bank & other by the Company 4,633,583 4,783,965

7 B. Notes accompanying Consolidated financial statement for the period ended (C ) Claim Not Acknowledged as Debt Against Company Litigation are in process for trademark/advertising case in a putative class action lawsuit and patent infringment lawsuit with a competitor. The lawsuit was dismissed earlier for lack of standing and determined that the patent-in-suit is invalid and should be canceled. The Plaintiff is appealing the decision. The company expect that the decision will be upheld. The outcome and any potential loss can not be resonably estimated at this point of time, therfore the company has not accrued a liability in the financial statments related to legal matters. Although the company believes it has substantial defenses in this matter, there could be future judgements or settlements that could have a material adverse effect on the Company's financial statements. 25 Tax expenses for the quarter is net of deferred tax asset of $7,36,755 pertaining to one of subsidiaries in USA which is now recognised in Consolidated Financial Statements. Hitherto, the deferred tax asset was not recognised in absence of virtual certainty as required under Accounting Standard 22 - "Accounting for Taxes on Income". 26 Deffered Tax Assets The Tax Effect on temporsry differences, which are comprised of Deferred Tax Assets and liabilities are as Follows:- Particulars Amount Accumulated Depreciation 75, Inventory (Uniform Capitalisation Rules) 483, Allowance For Doubtful Accounts 140, Contributions 37, , In the opinion of the management, there are no material transfers of goods within the Group and therefore no adjustment for the elimination of unrealized profit in the value of inventory lying in stock is required. 27 The group predominantly has only one reportable segment, i.e. retail of fashionable and lifestyle products. Therefore, no disclosure is required under Accounting Standard 17 "Segment Reporting". 28 Related Party Disclosures: List of Related Parties (with whom transactions carried out) Name Relationship Vaibhav Global Limited Holding Company STS Gems Limited, Hongkong STS Gem Thai Limited STS Jewels Inc STS Gems Japan Limited PT STS Bali Sanjeev Agarwal Director, Relative of KMP Related Party Transaction/ Balances 31 March March 2015 Balances as at year end Trade Receivables STS Jewels Inc. USA 640,594 1,237,624 STS Gems Thai Limited - 51,083 Vaibhav Global Ltd 16,986 - Trade payables Vaibhav Global Ltd 10,631,113 6,298,848 STS Jewels Inc. USA 316, ,632 STS Gems Limited, Hongkong 2,514,600 4,009,770 STS Gems Thai Limited 186,649 - STS Bali 104,754 62,141 Loans and Advances Given STS Jewels Inc. USA 730, ,000 STS Gems Limited, Hongkong 1,100,000 2,211,811 STS Gems Japan Borrowings Vaibhav Global Ltd - 7,945,000 STS Gems Thai Limited 150, ,000 Guarantees Vaibhav Global Ltd 4,633,583 4,783,965 Transaction during the year Interest Vaibhav Global Limited 121, ,208 STS Gem Thai Limited 7,500 7,500 Issue of Shares (by conversion of loan) Vaibhav Global Limited 7,945,000 4,500,000 Loan Written off STS Gems Japan Limited - 150,388 Sales Vaibhav Global Ltd 76,398 - STS Jewels Inc. USA 29,359 20,647 STS Gems Limited, Hongkong 21, Purchases Vaibhav Global Ltd 39,676,189 43,963,859 STS Jewels Inc. USA 1,198,276 1,729,711 STS Gems Limited, Hongkong 19,008,358 22,917,645 STS Bali 1,250,428 62,141 STS Gems Thai Limited 5,031,233 5,308,057 Remuneration Sanjeev Agarwal 6,031 17, The previous year figures have been regrouped, rearranged, restated & reclassified wherever necessary. For B. KHOSLA & CO. Chartered Accountants F.R. No.: C For and on behalf of the Board SANDEEP MUNDRA Partner M.No.: Place: Jaipur Date: May 18th, 2016 Date: May 18th, 2016 Director