SHRENUJ & COMPANY LIMITED

Transcription

1 SHRENUJ & COMPANY LIMITED (Reports and Accounts of Subsidiary Companies) Financial Year

2 Contents Reports and Accounts of : Page No. 1. Alija International Pty Ltd Astral Holdings Inc Astral Jewels LLC Astral USA, Inc Bernies International LLC Daily Jewellery Ltd Global Marine Diamond Company Intergems H. K. Ltd Ithemba Diamonds (Pty) Ltd Lume Group AG Shrenuj Australia Pty. Ltd Shrenuj Bostwana Pty. Ltd Shrenuj DMCC Shrenuj GmbH Shrenuj Japan Corporation Shrenuj Jewelry (Far East) Ltd Shrenuj Lifestyle Ltd Shrenuj (Mauritius) Pvt. Ltd Shrenuj N V Shrenuj Overseas Ltd Shrenuj (Shanghai) Diamonds Pvt. Ltd Shrenuj South Africa Pty Ltd Shrenuj USA LLC Simon Golub & Sons Inc Uxolo Diamond Cutting Works (Pty) Ltd

3 ALIJA INTERNATIONAL PTY LTD. Compilation Report To Alija International Pty Ltd For the year ended 31st March 2012 We have compiled the accompanying special purpose financial statements of Alija International Pty Ltd, which comprise the statement of financial position as at 31st March 2012, the income statement for the year then ended, a summary of significant accounting policies and other explanatory notes. The specific purpose for which the special purpose financial statements have been prepared is set out in Note 1. The Responsibility of the Directors of Alija International Pty Ltd The directors of Alija International Pty Ltd are solely responsible for the information contained in the special purpose financial statements and have determined that the significant accounting policies adopted as set out in Note 1 to the financial statements are appropriaie to meet their needs and for the purpose that the financial statements were prepared. Our Responsibility On the basis of information provided by the directors of Alija International Pty Ltd, we have compiled the accompanying special purpose financial statements in accordance with the significant accounting policies adopted as set out in Note 1 to the financial statements and APES 315: Compilation of Financial Information. Our procedures use accounting expertise to collect, classify and summarise the financial information, which the directors provided, in compiling the financial statements. Our procedures do not include verification or validation procedures. No audit or review has been performed and accordingly no assurance is expressed. The special purpose financial statements were compiled exclusively for the benefit of the directors of Alija International Pty Ltd. We do not accept responsibility to any other person for the contents of the special purpose financial statements. Name of Firm: Diane Yeomans & Associates Pty Ltd Address: Level 1, 105 Swan St Richmond VIC 3121 Date: Signed: Maria Ralton 1 1

4 Balance Sheet As at 31st March 2012 ASSETS CURRENT ASSETS AUD AUD AUD AUD INR INR INR INR Cash on Hand ,259 5,259 Bank Account (CBA) 4,682 9, , ,161 Bank Account (US$) 1,450 6,819 76, ,628 Trade Debtors 719,353 1,102,147 37,832,573 57,964,666 TOTAL CURRENT ASSETS 725,584 1,118,404 38,160,277 58,819,662 NON-CURRENT ASSETS Fixtures and Fittings - 105,519-5,549,508 Less Accumulated Depreciation - (71,736) - (3,772,776) - 33,783-1,776,732 Goodwill at Cost 600, ,000 31,555,500-31,555, , ,000 31,555,500 31,555,500 TOTAL NON-CURRENT ASSETS 600, ,783 31,555,500 33,332, TOTAL ASSETS 1,325,584 1,752,187 69,715,777 92,151,895 LIABILITIES CURRENT LIABILITIES Trade Creditors - 35,824-1,884,074 GST Liability 1,472 78,504 77,416 4,128,722 Loan Shrenuj UK 1,075,865 1,075,865 56,582,430 56,582,430 Loans - Facet - 148,580-7,814,194 Loan FACET HK SACL - 136,321-7,169,462 Loan Shrenuj Australia Pty Ltd 1,111 5,807 58, ,405 Provision for Income Tax - (74) - (3,892) TOTAL CURRENT LIABILITIES 1,078,448 1,480,826 56,718,276 77,880,341 TOTAL LIABILITIES 1,078,448 1,480,826 56,718,276 77,880,341 NET ASSETS 247, ,361 12,997,553 14,271,553 EQUITY Issued and Paid Up Capital ,259 5,259 Share premium reserve 600, ,000 31,555,500 31,555,500 Retained Earnings (352,963) (328,739) (18,563,207) (17,289,206) TOTAL EQUITY 247, ,361 12,997,553 14,271,553 2

5 Trading Profit and Loss Statement For the year ended 31st March 2012 SALES AUD AUD AUD AUD INR INR INR INR Sales 9,685 1,253, ,358 65,945,631 TOTAL SALES 9,685 1,253, ,358 65,945,631 COST OF GOODS SOLD Opening Inventories - 1,097,796-57,735,836 Purchases ,646 20,301 1,506,565 Customs & Duty - (12,804) - (673,394) Repairs - 1,378-72,472 Currency gain (loss) 11,953 13, , ,379 Returns & Allowances 4, ,205 - TOTAL COST OF GOODS SOLD (16,526) (1,128,219) (869,144) (59,335,858) GROSS PROFIT (6,841) 125,679 (359,785) 6,609,773 OVERHEAD EXPENSES Accountancy - 6, ,234 Advertising & printing - 7, ,650 Administration Expenses 8,564 7, , ,407 Bank charges 299 2,672 15, ,527 Computer Supplies ,626 Depreciation - 6, ,704 Discount Allowed 5,490 18, , ,806 Employees Amenities ,930 Employment Expenses ,471 Filing Fees ,150 Freight and Couriers - 13, ,056 Insurances - 11, ,956 Internet Costs ,913 Legal Expenses 1,544 3,969 81, ,740 Licenses and Permits ,933 37,656 Light, Heat and Power ,458 Postage ,550 Printing and Stationery - 9, ,536 Rates and Taxes - 1,630-85,726 Rent & occupancy costs - 9, ,794 Security ,290 Storage Charges - 1,247-65,583 Superannuation - 12, ,369 Telephone - 2, ,681 Trade fairs - 32,692-1,719,354 Travel 1,357 10,508 71, ,642 Valuations ,622 Wages - 155,454-8,175,714 Work cover ,707 TOTAL OVERHEAD EXPENSES (17,615) (317,611) (926,417) (16,703,957) OTHER INCOME Interest Received ,890 42,653 Cartage Fees 100-5,259 - TOTAL OTHER INCOME ,149 42,653 NET PROFIT (24,224) (191,121) (1,274,001) (10,051,531) These statements should be read in conjunction with the attached compilation report. Prepared by Diane Yeomans & Associates Pty Ltd (Exchange Rate used for translation 1 AUD = INR

6 ASTRAL HOLDINGS INC GROUPINGS OF BALANCE SHEET FOR PERIOD ENDED 31ST MARCH, 2012 PROFIT & LOSS STATEMENT FOR THE PERIOD 31ST MARCH, 2012 Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 Particulars Sch. USD USD INR INR I. EQUITY AND LIABILITIES Mar-12 Mar-11 Mar-12 Mar-11 (1) Shareholder s Funds INCOME (a) Share Capital 1 5,810,714 5,810, ,591, ,591,021 Revenue from Operations 19 (b) Reserves and Surplus 2 (3,095,133) (2,598,375) (157,449,416) (132,179,336) Other Income 20 (c) Share Warrants (2) Minority Interests 3 EXPENSES (3) Non-Current Liabilities Cost of materials consumed 21 (a) Long-Term Borrowings 4 21,490,255 21,798,020 1,093,209,272 1,108,865,277 Purchase of Stock in trade 21 (b) Deferred Tax Liabilities (Net) 5 Changes in inventories of Finished Goods, (c) Other Long Term Liabilities 6 WIP and Stock in Trade 21 (d) Long Term Provisions 7 Employee Benefit Expense 22 (4) Current Liabilities (a) Short-Term Borrowings 8 3,400,000 1,800, ,958,000 91,566,000 Finance Cost Depreciation , ,157-19,698,187-12,623,747 (b) Trade Payables 9 Other Expenses ,532 30,434 5,571,893 1,548,178 (c) Other Current Liabilities 10 78,632 13,620 4,000, , , ,591 25,270,079 14,171,924 (d) Short-Term Provisions 11 PROFIT BEFORE TAXATION (496,758) (278,591) (25,270,079) (14,171,924) Total Equity & Liabilities 27,684,468 26,823,979 1,408,308,887 1,364,535,812 Less: Provision for Taxation - Current Provision for Deferred Taxation II. ASSETS (1) Non-Current Assets PROFIT AFTER TAXATION (496,758) (278,591) (25,270,079) (14,171,924) (a) Fixed Assets 12 Minority Interest (i) Tangible Assets Add: Balance Brought Forward (1,380,522) (1,101,931) (70,227,154) (56,055,230) (ii) Intangible assets Tax in respect of previous year (iii) Capital Transfer of Profit from Divisions Work in Progress 270, ,406 13,754,688 8,159,853 (1,877,280) (1,380,522) (95,497,234) (70,227,154) 270, ,406 13,754,688 8,159,853 (b) Non-current investments 13 25,534,974 24,920,892 1,298,964,127 1,267,725,776 (c) Deferred tax assets (net) 19 (d) Long term loans and advances 14 1,303,400 1,303,400 66,303,958 66,303,958 (e) Other non-current assets 15 65,825 71,825 3,348,518 3,653,738 (2) Current Assets (a) Current investments 16 (b) Inventories 16 (c) Trade receivables 16 (d) Cash and cash equivalents ,022 10,598 7,784, ,120 (e) Short-term loans and advances , ,858 18,153,366 18,153,366 (f) Other current assets 18 Branch Account A Debtors / Creditors (Contra) B Total Assets 27,684,468 26,823,979 1,408,308,887 1,364,535,812 4

7 GROUPINGS OF BALANCE SHEET AS AT 31ST MARCH, 2012 Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 SCHEDULE 1 - Share Capital Authorized Capital XXXXXX Equity Shares of Rs. 2/- each. Issued Subscribed And Paid-up XXXXXXXYY Equity Shares of Rs.2/- each fully paid up 5,810,714 5,810, ,591, ,591,021 5,810,714 5,810, ,591, ,591,021 SCHEDULE 2 - Reserve and Surplus Capital Reserve (1,217,853) (1,217,853) (61,952,182) (61,952,182) Securities Premium Reserve Revaluation Reserve Share options outstanding Account General Reserve Goodwill Written off Amalgamation Reserve Hedging Reserve Exchange Fluctuation Reserve Surplus in P&L A/c. (1,877,280) (1,380,522) (95,497,234) (70,227,154) (3,095,133) (2,598,375) (157,449,416) (132,179,336) SCHEDULE 3 - Minority Interest Equity Share of Profit Share of Exchange Fluctuation Reserve Non-Current Liabilities SCHEDULE 4 - Long Term Borrowings 1. Secured Loans Long Term Loans - From Banks 5,850,000 4,050, ,589, ,023,500 - From Others 5,850,000 4,050, ,589, ,023, Unsecured Loans Long Term Loans - From Banks - From Others 870, ,000 44,256,900 44,256,900 Loans & Advances from Related Parties 14,770,255 16,878, ,362, ,584,877 Other Loans & Advances 15,640,255 17,748, ,619, ,841,777 Total 21,490,255 21,798,020 1,093,209,272 1,108,865,277 SCHEDULE 5 - Deferred Tax Liability (Net) Liability (-) Assets Net Liability SCHEDULE 6 - Other Long Term Liabilities Trade Payables Deferred Payment Liabilities Deposits Long Term finance lease obligations Others SCHEDULE 7 - Long Term Provisions Provision for employee benefits Others Current Liabilities SCHEDULE 8 - Short Term Borrowings 1. Secured Loans Short Term Loans - From Banks 3,400,000 1,800, ,958,000 91,566,000 - From Others 3,400,000 1,800, ,958,000 91,566, Unsecured Loans Short Term Loans - From Banks - From Others Loans & Advances from Related Parties Other Loans & Advances Total 3,400,000 1,800, ,958,000 91,566,000 GROUPINGS OF BALANCE SHEET AS AT 31ST MARCH, 2012 (CONTD) Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 SCHEDULE 9 - Trade Payables Sundry Creditors Advance from Customers SCHEDULE 10 - Other Current Liabilities Duties & Taxes payable Unpaid Dividend Deposits Short Term finance lease obligations Interest Accrued but not due 66,632 13,620 3,389, ,849 Income received in advance Extra Line Extra Line Other Outstanding Liabilities 12, ,440-78,632 13,620 4,000, ,849 SCHEDULE 11 - Short-Term Provisions Taxation Provision for employee benefits Others TOTAL EQUITY & LIABILITIES 27,684,468 26,823,979 1,408,308,887 1,364,535,812 Non-Current Assets SCHEDULE 12 - Fixed Assets Tangible Assets Intangible Assets Net Block Capital Work in Progress 270, ,406 13,754,688 8,159, , ,406 13,754,688 8,159,853 SCHEDULE 13 - Non-current Investments Trade Investments 25,534,974 24,920,892 1,298,964,127 1,267,725,776 Other Investments 25,534,974 24,920,892 1,298,964,127 1,267,725,776 SCHEDULE 14 - Long Term Loans & Advances 1. Secured Advances / Deposits Short term Deposit with Government Authorities Security Deposits 2. Unsecured Advances Capital Advances Security Deposits Loans & Advances to Related Parties - 1,303,400-1,303,400-66,303,958-66,303,958 Other Loans & Advances 1,303,400 1,303,400 66,303,958 66,303,958 Total 1,303,400 1,303,400 66,303,958 66,303,958 SCHEDULE 15 - Other Non Current Assets Long Term Trade Receivables Others 65,825 71,825 3,348,518 3,653,738 Current Assets SCHEDULE 16 - Current Assets 1 Current Investments Trade Investments Other Investments 2 Inventories Raw Material Finished Goods WIP Stores, Spares etc. Goods in transit 3 Trade Receivables Outstanding for over six months Considered Good Considered Doubtful Other Debtors Considered Good 65,825 71,825 3,348,518 3,653,738 4 Cash and Cash Equivalents Cash on hand Balances with Scheduled Banks Current Accounts 153,022 10,598 7,784, ,120 Fixed Deposits Bank Deposits with more than 12 months maturity Margin Deposit Accounts 153,022 10,598 7,784, ,

8 GROUPINGS OF BALANCE SHEET AS AT 31ST MARCH, 2012 (C0NTD.) Particulars Sch. USD USD INR INR GROUPINGS OF BALANCE SHEET AS AT 31ST MARCH, 2012 (C0NTD.) Particulars Sch. USD USD INR INR SCHEDULE 17 - Short-term Loans & Advances A. Secured Advances Fringe Benefit Tax Advance Tax, T.D.S. Income Tax Refundable Forward Contract (Net of INR & $) Sales Tax/ Service Tax Refundable Deposits B. Unsecured Advances Interest Receivable Prepaid Expenses Advance to Suppliers & Others Due from Subsidiary Company Advances recoverable in cash or in kind or for value to be received 356, ,858 18,153,366 18,153, , ,858 18,153,366 18,153,366 Total 356, ,858 18,153,366 18,153,366 SCHEDULE 18 - Other Current Assets Others SCHEDULE 19 - Deferred Tax Asset (Net) Assets (+) Liability (-) SCHEDULE A - Branch Accounts (+DR/-CR) H.O. SDL - Div SGJL - Div SCL - Seepz Trading Div Bagging Division Lavanya Div Transfer of Profit/Loss for the year SCHEDULE B - Debtors/ Creditors (Contra) TOTAL ASSETS 27,684,468 26,823,979 1,408,308,887 1,364,535,812 SCHEDULE 19 - Revenue from Operations Sales Total (a)... Service Charges Total (b)... Other Operating Revenues Total (c)... Total (a) + (b) + (c)... (A) SCHEDULE 20 - Other Income Consultancy fees Rent Interest Income Dividend Income Commission Income Profit on Sale of Assets / Investment Other Sundry Receipts Net gain / loss on Foreign Currency translation / transaction Mar-12 Mar-11 Mar-12 Mar-11 SCHEDULE 21 - Materials Cost Materials Consumed Stock at commencement Mar-12 - Mar-11 Mar-12 Mar-11 - Add: Purchases - - Foreign Exchange Rate Diff. - - Sale of Rough Diamonds/ Raw Materials - - Less: Stock at close - - Total (d)... Grand Total (a)+(b)+(c)+(d)(b) Purchase of Finished Goods Total (e)... Variation in Stock Stock at close Less: Stock at commencement Total (f)... Materials Cost (e)-(f) (C) SCHEDULE 22 - Employee Benefit Expenses Salary, Wages, Allowances & other Benefits Directors Remuneration Gratuity Group Insurance P. F. Contribution Staff Welfare Expenses ESOP Total... SCHEDULE 23 - Finance Cost Interest Expense On Term Loan 231, ,014 11,762,263 9,564,272 To Banks To Others 126,018 48,656 6,410,536 2,475,131 Other Borrowing Cost 30,000 11,500 1,526, ,005 Exchange Rate Difference Less interest received Total... (D) 387, ,157 19,698,187 12,623,747 Depreciation (E) SCHEDULE 24 - Other Expenses 1. Manufacturing Expenses Stores & Spares consumed Power & fuel Subcontracting charges Rent Rates & Taxes Building repairs Machinery repairs Other Manufacturing Expenses Total Selling & Distribution Expenses Marketing / Advisory Expenses Freight & forwarding charges Sales Promotion Expenses - - Advertisement Expenses - - Export Commission - - Other Selling & Distribution Expenses Total... 3.Miscellaneous Expenses: Insurance Other Repairs Legal & Professional Charges 88,603 23,617 4,507,235 1,201,397 Net loss on foreign currency transaction / translation Travelling, Conveyance and Vehicle expenses Sundry Expenses 5,344 6, , ,781 Remuneration to Auditors Donations Bank Charges 1,285 65, Loss on sale / discarded of Investments / Assets Prior Period Items 14, , Total ,532 30,434 5,571,893 1,548,178 Other Expenses (F) 109,532 30,434 5,571,893 1,548,178 6

9 GROUPINGS OF BALANCE SHEET AS AT (CONTD) 3. Miscellaneous Expenses: (CONTD) Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 Provision for Income Tax (G) Deferred Tax Liability (H) Provision for Wealth-Tax (I) TOTAL (C) TO (I) (J) 496, ,591 25,270,079 14,171,924 Net profit after tax (A) - (J) (496,758) (278,591) (25,270,079) (14,171,924) Minority Interest Tax in respect of previous year Surplus in Profit & Loss A/c. B/f (1,380,522) (1,101,931) (70,227,154) (56,055,230) Transfer of Profit from Divisions TOTAL (1,877,280) (1,380,522) (95,497,234) (70,227,154) 7 7

10 ASTRAL JEWELS LLC GROUPINGS OF BALANCE SHEET FOR THE PERIOD ENDED: Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 I. EQUITY AND LIABILITIES (1) Shareholder s Funds (a) Share Capital 1 230, ,000 11,700,100 11,700,100 (b) Reserves and Surplus 2 (680,390) (942,170) (34,611,440) (47,928,188) (c) Share Warrants (2) Minority Interests 3 (3) Non-Current Liabilities (a) Long-Term Borrowings 4 8,300 8, , ,221 (b) Deferred Tax Liabilities (Net) 5 (c) Other Long Term Liabilities 6 931,026 1,227,130 47,361,294 62,424,103 (d) Long Term Provisions 7 (4) Current Liabilities (a) Short-Term Borrowings 8 (b) Trade Payables 9 (c) Other Current Liabilities 10 (d) Short-Term Provisions 11 Total Equity & Liabilities 488, ,260 24,872,175 26,618,236 II. ASSETS (1) Non-Current Assets (a) Fixed Assets 12 (i) Tangible Assets - 5, ,828 (ii) Intangible assets (iii) Capital Work in Progress - 5, ,828 (b) Non-current investments 13 (c) Deferred tax assets (net) 19 (d) Long term loans and advances 14 (e) Other non-current assets 15 (2) Current Assets (a) Current investments 16 (b) Inventories ,485-9,232,142 (c) Trade receivables , ,343 24,565,683 16,550,198 (d) Cash and cash equivalents 16 6,025 11, , ,068 (e) Short-term loans and advances 17 (f) Other current assets 18 Branch Account A Debtors / Creditors (Contra) B Total Assets 488, ,260 24,872,175 26,618,236 PROFIT & LOSS STATEMENT FOR THE PERIOD : Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 INCOME Revenue from Operations , ,955 25,491,211 22,227,901 Other Income , ,955 25,491,211 22,227,901 EXPENSES Cost of materials consumed 21 Purchase of Stock in trade 21-22,447-1,141,879 Changes in inventories of Finished Goods, WIP and Sotck in Trade , ,024 9,232,142 20,857,921 Employee Benefit Expense 22 Finance Cost 23 Depreciation 7,042 10, , ,790 Other Expenses 24 50, ,200 2,584,094 8,658, , ,889 12,174,463 31,177,664 PROFIT BEFORE TAXATION 261,780 (175,934) 13,316,748 (8,949,763) Less: Provision for Taxation - Current Provision for Deferred Taxation PROFIT AFTER TAXATION 261,780 (175,934) 13,316,748 (8,949,763) Minority Interest Add: Balance Brought Forward (942,170) (766,236) (47,928,188) (38,978,425) Tax in respect of previous year Transfer of Profit from Divisions (680,390) (942,170) (34,611,440) (47,928,188) GROUPINGS OF BALANCE SHEET AS AT Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 SCHEDULE 1 - Share Capital Authorized Capital XXXXXX Equity Shares of Rs. 2/- each. - - Issued Subscribed And Paid-up XXXXXXXYY Equity Shares of Rs.2/- each fully paid up 230, ,000 11,700,100 11,700, , ,000 11,700,100 11,700,100 SCHEDULE 2 - Reserve and Surplus Capital Reserve Securities Premium Reserve Revaluation Reserve Share options outstanding Account General Reserve Goodwill Written off Amalgamation Reserve Hedging Reserve Exchange Fluctuation Reserve Surplus in P&L A/c. (680,390) (942,170) (34,611,440) (47,928,188) (680,390) (942,170) (34,611,440) (47,928,188) SCHEDULE 3 - Minority Interest Equity Share of Profit Share of Exchange Flctuation Reserve Non-Current Liabilities SCHEDULE 4 - Long Term Borrowings 1. Secured Loans Long Term Loans - From Banks - From Others 2. Unsecured Loans Long Term Loans - From Banks - From Others Loans & Advances from Related Parties 8,300 8, , ,221 Extra Line Other Loans & Advances 8,300 8, , ,221 Total 8,300 8, , ,221 SCHEDULE 5 - Deferred Tax Liability (Net) Liability (-) Assets Net Liability SCHEDULE 6 - Other Long Term Liabilities Trade Payables 931,026 1,227,130 47,361,294 62,424,103 Deferred Payment Liabilities Deposits Long Term finance lease obligations Extra Line Others 931,026 1,227,130 47,361,294 62,424,103 SCHEDULE 7 - Long Term Provisions Provision for employee benefits Extra Line Others 8

11 Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 Current Liabilities SCHEDULE 8 - Short Term Borrowings 1. Secured Loans Short Term Loans - From Banks - From Others 2. Unsecured Loans Short Term Loans - From Banks - From Others Loans & Advances from Related Parties Extra Line Other Loans & Advances Total SCHEDULE 9 - Trade Payables Sundry Creditors Advance from Customers SCHEDULE 10 - Other Current Liabilities Duties & Taxes payable Unpaid Dividend Deposits Short Term finance lease obligations Interest Accrued but not due Income received in advance Extra Line Extra Line Other Outstanding Liabilities SCHEDULE 11 - Short-Term Provisions Taxation Provision for employee benefits Others TOTAL EQUITY & LIABILITIES 488, ,260 24,872,175 26,618,236 Non-Current Assets SCHEDULE 12 - Fixed Assets Tangible Assets - 5, ,828 Intangible Assets - - Net Block - 5, ,828 Capital Work in Progress - 5, ,828 SCHEDULE 13 - Non-current Investments Trade Investments Other Investments SCHEDULE 14 - Long Term Loans & Advances 1. Secured Advances / Deposits Short term Deposit with Government Authorities Security Deposits 2. Unsecured Advances Capital Advances Security Deposits Loans & Advances to Related Parties Other Loans & Advances Total SCHEDULE 15 - Other Non Current Assets Long Term Trade Receivables Others Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 Current Assets SCHEDULE 16 - Current Assets 1 Current Investments Trade Investments Other Investments 2 Inventories Raw Material Finished Goods - 181,485-9,232,142 WIP Stores, Spares etc. Goods in transit - 181,485-9,232,142 3 Trade Receivables Outstanding for over six months Considered Good 482, ,343 24,565,683 16,550,198 Considered Doubtful Other Debtors Considered Good 482, ,343 24,565,683 16,550,198 4 Cash and Cash Equivalents Cash on hand ,261 15,261 Balances with Scheduled Banks Current Accounts 5,725 10, , ,807 Fixed Deposits Bank Deposits with more than 12 months maturity Margin Deposit Accounts 6,025 11, , ,068 SCHEDULE 17 - Short-term Loans & Advances A. Secured Advances Fringe Benefit Tax Advance Tax, T.D.S. Income Tax Refundable Forward Contract (Net of INR & $) Sales Tax/ Service Tax Refundable Deposits Extra Line Extra Line B. Unsecured Advances Interest Receivable Prepaid Expenses Advance to Suppliers & Others Due from Subsidiary Company Advances recoverable in cash or in kind or for value to be received Total SCHEDULE 18 - Other Current Assets Others SCHEDULE 19 - Deferred Tax Asset (Net) Assets (+) Liability (-) SCHEDULE A - Branch Accounts (+DR/-CR) H.O. SDL - Div SGJL - Div SCL - Seepz Trading Div Bagging Division Lavanya Div Transfer of Profit/Loss for the year SCHEDULE B - Debtors/Creditors (Contra) TOTAL ASSETS 488, ,260 24,872,175 26,618,

12 GROUPINGS OF PROFIT & LOSS STATEMENT FOR THE PERIOD Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 SCHEDULE 19 - Revenue from Operations Sales 501, ,955 25,491,211 22,227,901 Total (a) 501, ,955 25,491,211 22,227,901 Service Charges Total (b) Other Operating Revenues Total (c) Total (a) + (b) + (c) (A) 501, ,955 25,491,211 22,227,901 SCHEDULE 20 - Other Income Consultacy fees Rent Interest Income Dividend Income Commission Income Profit on Sale of Assets / Investment Other Sundry Receipts Net gain / loss on Foreign Currency translation / transaction Total (d) Grand Total (a)+(b)+(c)+(d) (B) 501, ,955 25,491,211 22,227,901 SCHEDULE 21 - Materials Cost Materials Consumed Stock at commencement Add: Purchases Foreign Exchange Rate Diff. Sale of Rough Diamonds/Raw Materials Less: Stock at close Purchase of Finished Goods - 22,447-1,141,879 Total (e) - 22,447-1,141,879 Variation in Stock Stock at close - 181,485-9,232,142 Less: Stock at commencement 181, ,509 9,232,142 30,090,063 Total (f) (181,485) (410,024) (9,232,142) (20,857,921) Materials Cost (e)-(f) (C) 181, ,471 9,232,142 21,999,800 SCHEDULE 22 - Employee Benefit Expenses Salary, Wages, Allowances & other Benefits Directors Remuneration Gratuity Group Insurance P. F. Contribution Staff Welfare Expenses ESOP Total SCHEDULE 23 - Finance Cost Interest Expense On Term Loan To Banks To Others Other Borrowing Cost Exchange Rate Difference Less interest received Total (D) Depreciation (E) 7,042 10, , ,790 Particulars Sch. USD USD INR INR Mar-12 Mar-11 Mar-12 Mar-11 SCHEDULE 24 - Other Expenses 1. Manufacturing Expenses Stores & Spares consumed Power & fuel Subcontracting charges Rent Rates & Taxes Building repairs Machinery repairs Other Manufacturing Expenses Total 2. Selling & Distribution Expenses Marketing / Advisory Expenses Freight & forwarding charges ,491 - Sales Promotion Expenses Advertisement Expenses Export Commission Other Selling & Distribution Expenses - 1,232-62,672 Total 737 1,232 37,491 62, Miscellaneous Expenses: Insurance - (9,652) - (490,997) Other Repairs Legal & Professional Charges Net loss on foreign currency transaction / translation Travelling, Conveyance and Vehicle expenses Sundry Expenses (632) 1,251 (32,150) 63,638 Remuneration to Auditors 5,938 4, , ,246 Donations Bank Charges 1,038-52,803 - Loss on sale / discarded of Investments / Assets Prior Period Items 43, ,236 2,223,884 8,812,515 Total 50, ,968 2,546,603 8,595,402 Other Expenses (F) 50, ,200 2,584,094 8,658,074 Provision for Income Tax (G) Deffered Tax Liability (H) Provision for Wealth-Tax (I) TOTAL (C) TO (I) (J) 239, ,889 12,174,463 31,177,664 Net profit after tax (A) - (J) 261,780 (175,934) 13,316,748 (8,949,763) Minority Interest Tax in respect of previous year Surplus in Profit & Loss A/c. B/f. (942,170) (766,236) (47,928,188) (38,978,425) Transfer of Profit from Divisions TOTAL (680,390) (942,170) (34,611,440) (47,928,188) 10

13 GROUPINGS OF BALANCE SHEET FOR THE YEAR ENDED: 31ST MARCH, 2012 ASTRAL USA PROFIT & LOSS STATEMENT FOR THE PERIOD 31ST MARCH, 2012 Particulars Sch. USD USD INR INR I. EQUITY AND LIABILITIES (1) Shareholder s Funds (a) Share Capital 1 4,000,000 4,000, ,480, ,480,000 (b) Reserves and Surplus 2 (1,018,367) (962,834) (51,804,330) (48,979,366) (c) Share Warrants (2) Minority Interests 3 (3) Non-Current Liabilities (a) Long-Term Borrowings 4 702, ,242 35,723,051 35,723,051 (b) Deferred Tax Liabilities (Net) 5 (c) Other Long Term Liabilities 6 (d) Long Term Provisions 7 (4) Current Liabilities (a) Short-Term Borrowings 8 (b) Trade Payables 9 (c) Other Current Liabilities 10 7,800 3, , ,871 (d) Short-Term Provisions 11 Total Equity & Liabilities 3,691,675 3,742, ,795, ,391,556 Particulars Sch. USD USD INR INR INCOME Revenue from Operations 19 Other Income 20 EXPENSES Cost of materials consumed 21 Purchase of Stock in trade 21 Changes in inventories of Finished Goods, WIP and Stock in Trade 21 Employee Benefit Expense 22 Finance Cost 23 Depreciation Other Expenses 24 55,532 22,042 2,824,913 1,121,277 55,532 22,042 2,824,913 1,121,277 PROFIT BEFORE TAXATION (55,532) (22,042) (2,824,913) (1,121,277) Less: Provision for Taxation - Current Provision for Deferred Taxation PROFIT AFTER TAXATION (55,532) (22,042) (2,824,913) (1,121,277) Minority Interest Add: Balance Brought Forward (962,835) (153,015) (48,979,417) (7,783,873) Tax in respect of previous year Transfer of Profit from Divisions - (787,777) - (40,074,216) (1,018,367) (962,834) (51,804,330) (48,979,366) II. ASSETS (1) Non-Current Assets (a) Fixed Assets 12 (i) Tangible Assets (ii) Intangible assets (iii) Capital Work in Progress (b) Non-current investments 13 1,229,399 1,229,399 62,539,527 62,539,527 (c) Deferred tax assets (net) 19 (d) Long term loans and advances 14 2,430,800 2,485, ,654, ,452,646 (e) Other non-current assets 15 (2) Current Assets (a) Current investments 16 (b) Inventories 16 (c) Trade receivables 16 (d) Cash and cash equivalents 16 16,682 13, , ,599 (e) Short-term loans and advances 17 14,794 14, , ,784 (f) Other current assets 18 Branch Account A Debtors / Creditors (Contra) B Total Assets 3,691,675 3,742, ,795, ,391,

14 GROUPINGS OF BALANCE SHEET AS AT 31ST MARCH 2012 Particulars Sch. USD USD INR INR SCHEDULE 1 - Share Capital Authorized Capital Issued Subscribed And Paid-up Equity Shares 4,000,000 4,000, ,480, ,480,000 4,000,000 4,000, ,480, ,480,000 SCHEDULE 2 - Reserve and Surplus Capital Reserve Securities Premium Reserve Revaluation Reserve Share options outstanding Account General Reserve Goodwill Written off Amalgamation Reserve Hedging Reserve Exchange Fluctuation Reserve Surplus in P&L A/c. (1,018,367) (962,834) (51,804,330) (48,979,366) SCHEDULE 3 - Minority Interest Equity Share of Profit Share of Exchange Fluctuation Reserve Non-Current Liabilities SCHEDULE 4 - Long Term Borrowings 1. Secured Loans Long Term Loans - From Banks - From Others (1,018,367) (962,834) (51,804,330) (48,979,366) 2. Unsecured Loans Long Term Loans - From Banks - From Others 630, ,000 32,048,100 32,048,100 Loans & Advances from Related Parties 72,242 72,242 3,674,951 3,674,951 Extra Line Other Loans & Advances 702, ,242 35,723,051 35,723,051 Total 702, ,242 35,723,051 35,723,051 SCHEDULE 5 - Deferred Tax Liability (Net) Liability (-) Assets Net Liability GROUPINGS OF BALANCE SHEET AS AT 31ST MARCH 2012 Particulars Sch. USD USD INR INR SCHEDULE 6 - Other Long Term Liabilities Trade Payables Deferred Payment Liabilities Deposits Long Term finance lease obligations Extra Line Others SCHEDULE 7 - Long Term Provisions Provision for employee benefits Extra Line Others Current Liabilities SCHEDULE 8 - Short Term Borrowings 1. Secured Loans Short Term Loans - From Banks - From Others 2. Unsecured Loans Short Term Loans - From Banks - From Others Loans & Advances from Related Parties Extra Line Other Loans & Advances Total SCHEDULE 9 - Trade Payables Sundry Creditors Advance from Customers SCHEDULE 10 - Other Current Liabilities Duties & Taxes payable 3,800 3, , ,871 Unpaid Dividend Deposits Short Term finance lease obligations Interest Accrued but not due Income received in advance Other Outstanding Liabilities 4, ,480 - SCHEDULE 11 - Short-Term Provisions Taxation Provision for employee benefits Others 7,800 3, , ,871 TOTAL EQUITY & LIABILITIES 3,691,675 3,742, ,795, ,391,556 12

15 Schedules Forming Integral Part of the Balance Sheet as at 31st March, 2012 Schedule : 12 Fixed Asset Sr. Particulars Rate Gross Block Depreciation Net Block No Value Addition Deduction Acquisitions Other Value Value Addition Deduction Value As on As on at the during during Adjustments at the end beginning during during at the end beginning the year the year the year the year I (i) (ii) Tangible Assets Own Assets Land Building Plant and Equipment Electrical Installations Office Equipment Furnitures & Fixtures Vehicles Yacht SUB TOTAL ( i ) Assets taken on Finance Lease Leasehold Land Vehicles Office Equipment SUB TOTAL ( ii ) II III IV TOTAL A ( i+ii ) Intangible Assets Computer Software Trademarks Technical Knowhow Goodwill TOTAL ( B ) Capital Work-in-progress Building Under Construction TOTAL ( C ) Intangible Assets Under Development Trademarks Technical Knowhow ,345,575 - TOTAL ( D ) ,345,575 - Total [ A + B + C + D ] (Current Year) 14,345,575 - (Previous Year) 13 13

16 GROUPINGS OF BALANCE SHEET AS AT 31ST MARCH 2012 Particulars Sch. USD USD INR INR Non-Current Assets SCHEDULE 13 - Non-current Investments Trade Investments 1,229,399 1,229,399 62,539,527 62,539,527 Other Investments SCHEDULE 14 - Long Term Loans & Advances 1. Secured Advances / Deposits Short term Deposit with Government Authorities Security Deposits 1,229,399 1,229,399 62,539,527 62,539, Unsecured Advances Capital Advances Security Deposits Loans & Advances to Related Parties 2,430,800 2,485, ,654, ,452,646 Other Loans & Advances 2,430,800 2,485, ,654, ,452,646 Total 2,430,800 2,485, ,654, ,452,646 SCHEDULE 15 - Other Non Current Assets Long Term Trade Receivables Others Current Assets SCHEDULE 16 - Current Assets 1 Current Investments Trade Investments Other Investments 2 Inventories Raw Material Finished Goods WIP Stores, Spares etc. Goods in transit 3 Trade Receivables Outstanding for over six months Considered Good Considered Doubtful Other Debtors Considered Good 4 Cash and Cash Equivalents Cash on hand Balances with Scheduled Banks Current Accounts 16,682 13, , ,599 Fixed Deposits Bank Deposits with more than 12 months maturity Margin Deposit Accounts 16,682 13, , ,599 SCHEDULE 17 - Short-term Loans & Advances A. Secured Advances Fringe Benefit Tax Advance Tax, T.D.S. Income Tax Refundable Forward Contract (Net of INR & $) Sales Tax/ Service Tax Refundable Deposits B. Unsecured Advances Interest Receivable Prepaid Expenses 14,794 14, , ,784 Advance to Suppliers & Others Due from Subsidiary Company Advances recoverable in cash or in kind or for value to be received 14,794 14, , ,784 Total 14,794 14, , ,784 SCHEDULE 18 - Other Current Assets Others SCHEDULE 19 - Deferred Tax Asset (Net) Assets (+) Liability (-) SCHEDULE A - Branch Accounts (+DR/-CR) H.O. SDL - Div SGJL - Div SCL - Seepz Trading Div Bagging Division Lavanya Div Transfer of Profit/Loss for the year SCHEDULE B - Debtors/Creditors (Contra) TOTAL ASSETS 3,691,675 3,742, ,795, ,391,556 14

17 GROUPINGS OF PROFIT & LOSS STATEMENT FOR THE PERIOD 31 MARCH 2012 Particulars Sch. USD USD INR INR SCHEDULE 19 - Revenue from Operations Sales Total (a)... Service Charges Total (b)... Other Operating Revenues Total (c)... Total (a) + (b) + (c)... (A) SCHEDULE 20 - Other Income Consultancy fees Rent Interest Income Dividend Income Commission Income Profit on Sale of Assets / Investment Other Sundry Receipts Net gain / loss on Foreign Currency translation / transaction Total (d)... Grand Total (a)+(b)+(c)+(d) (B) SCHEDULE 21 - Materials Cost Materials Consumed Stock at commencement Add: Purchases Foreign Exchange Rate Diff. Sale of Rough Diamonds/Raw Materials Less: Stock at close Purchase of Finished Goods Total (e)... Variation in Stock Stock at close Less: Stock at commencement Total (f)... Materials Cost (e)-(f) (C) SCHEDULE 22 - Employee Benefit Expenses Salary, Wages, Allowances & other Benefits Directors Remuneration Gratuity Group Insurance P. F. Contribution Staff Welfare Expenses ESOP Total... GROUPINGS OF PROFIT & LOSS STATEMENT FOR THE PERIOD 31 MARCH 2012 Particulars Sch. USD USD INR INR SCHEDULE 24 - Other Expenses 1. Manufacturing Expenses Stores & Spares consumed Power & fuel Subcontracting charges Rent Rates & Taxes Building repairs Machinery repairs Other Manufacturing Expenses Total Selling & Distribution Expenses Marketing / Advisory Expenses Freight & forwarding charges Sales Promotion Expenses Advertisement Expenses Export Commission Other Selling & Distribution Expenses Total Miscellaneous Expenses: Insurance Other Repairs Legal & Professional Charges 46,144 17,532 2,347, ,853 Net loss on foreign currency transaction / translation Travelling, Conveyance and Vehicle expenses Sundry Expenses 5,204 4, , ,424 Remuneration to Auditors Donations Bank Charges Loss on sale / discarded of Investments / Assets Prior Period Items 4, ,077 - Total... 55,532 22,042 2,824,913 1,121,277 Other Expenses (F) 55,532 22,042 2,824,913 1,121,277 Provision for Income Tax (G) Deferred Tax Liability (H) Provision for Wealth-Tax (I) TOTAL (C) TO (I) (J) 55,532 22,042 2,824,913 1,121,277 Net profit after tax (A) - (J) (55,532) (22,042) (2,824,913) (1,121,277) Minority Interest Tax in respect of previous year Surplus in Profit & Loss A/c. B/f. (962,835) (153,015) (48,979,417) (7,783,873) Transfer of Profit from Divisions - (787,777) (40,074,216) TOTAL (1,018,367) (962,834) (51,804,330) (48,979,366) SCHEDULE 23 - Finance Cost Interest Expense On Term Loan To Banks To Others Other Borrowing Cost Exchange Rate Difference Less interest received Total... (D) Depreciation (E) 15 15

18 BERNIES INTERNATIONAL LLC GROUPINGS OF BALANCE SHEET AS AT 31 ST MARCH 2012: Particulars Sch. USD USD INR INR I. EQUITY AND LIABILITIES (1) Shareholder s Funds (a) Share Capital 1 60,000 60,000 3,052,200 3,052,200 (b) Reserves and Surplus 2 (167,466) (70,139) (8,518,995) (3,567,971) (c) Share Warrants (2) Minority Interests 3 (71,643) (6,758) (3,644,479) (343,779) (3) Non-Current Liabilities (a) Long-Term Borrowings 4 700, ,000 35,609,000 35,609,000 (b) Deferred Tax Liabilities (Net) 5 (c) Other Long Term Liabilities 6 (d) Long Term Provisions 7 (4) Current Liabilities (a) Short-Term Borrowings 8 (b) Trade Payables 9 8,665 2, , ,894 (c) Other Current Liabilities 10 2, ,618 19,992 (d) Short-Term Provisions 11 Total Equity & Liabilities 532, ,558 27,071,133 34,874,336 II.ASSETS (1) Non-Current Assets (a) Fixed Assets 12 (i) Tangible Assets 8,441 15, , ,114 (ii) Intangible assets 100, ,000 5,087,000 5,087,000 (iii) Capital Work in Progress 108, ,591 5,516,394 5,880,114 (b) Non-current investments 13 (c) Deferred tax assets (net) 19 (d) Long term loans and advances 14 (e) Other non-current assets 15 (2) Current Assets (a) Current investments 16 (b) Inventories 16 15, , ,549 20,748,856 (c) Trade receivables , ,845 19,261,061 5,282,595 (d) Cash and cash equivalents 16 27,545 58,242 1,401,215 2,962,771 (e) Short-term loans and advances 17 2, ,914 - (f) Other current assets 18 PROFIT & LOSS STATEMENT FOR THE PERIOD ENDED 31 ST MARCH 2012: Particulars Sch. USD USD INR INR INCOME Revenue from Operations , ,759 46,771,099 36,105,440 Other Income , ,759 46,771,099 36,105,440 EXPENSES Cost of materials consumed , ,203 21,825,010 21,731,817 Purchase of Stock in trade 21 Changes in inventories of Finished Goods, WIP and Stock in Trade ,536 60,784 19,968,307 3,092,082 Employee Benefit Expense , ,972 6,084,509 8,595,606 Finance Cost 23 Depreciation 7,150 6, , ,662 Other Expenses ,306 99,713 6,781,276 5,072,399 1,081, ,467 55,022,823 38,837,566 PROFIT BEFORE TAXATION (162,212) (53,708) (8,251,724) (2,732,126) Less: Provision for Taxation - Current Provision for Deferred Taxation PROFIT AFTER TAXATION (162,212) (53,708) (8,251,724) (2,732,126) Minority Interest 64,885 21,483 3,300,700 1,092,840 Add: Balance Brought Forward (70,139) (37,914) (3,567,971) (1,928,685) Tax in respect of previous year Transfer of Profit from Divisions (167,466) (70,139) (8,518,995) (3,567,971) (Exchange rate used for translation 1 USD = INR 50.87) Total Assets 532, ,558 27,071,133 34,874,336 (Exchange rate used for translation 1 USD = INR 50.87) 16

19 BERNIES INTERNATIONAL LLC USD USD INR INR SCHEDULE 1 - Share Capital Authorized Capital Issued Subscribed And Paid-up 60,000 60,000 3,052,200 3,052,200 60,000 60,000 3,052,200 3,052,200 SCHEDULE 2 - Reserve and Surplus Capital Reserve Securities Premium Reserve Revaluation Reserve Share options outstanding Account General Reserve Goodwill Written off Amalgamation Reserve Hedging Reserve Exchange Fluctuation Reserve Surplus in P&L A/c. (167,466) (70,139) (8,518,995) (3,567,971) (167,466) (70,139) (8,518,995) (3,567,971) SCHEDULE 3 - Minority Interest Equity 40,000 40,000 2,034,800 2,034,800 Share of Profit (111,643) (46,758) (5,679,279) (2,378,579) Share of Exchange Fluctuation Reserve (71,643) (6,758) (3,644,479) (343,779) Non-Current Liabilities SCHEDULE 4 - Long Term Borrowings 1. Secured Loans Long Term Loans - From Banks - From Others 2. Unsecured Loans Long Term Loans - From Banks - From Others Loans & Advances from Related Parties 700, ,000 35,609,000 35,609,000 Other Loans & Advances 700, ,000 35,609,000 35,609,000 Total 700, ,000 35,609,000 35,609,000 SCHEDULE 5 - Deferred Tax Liability (Net) Liability (-) Assets Net Liability SCHEDULE 6 - Other Long Term Liabilities Trade Payables Deferred Payment Liabilities Deposits Long Term finance lease obligations Others SCHEDULE 7 - Long Term Provisions Provision for employee benefits Others Current Liabilities SCHEDULE 8 - Short Term Borrowings 1. Secured Loans Short Term Loans - From Banks - From Others 2. Unsecured Loans Short Term Loans - From Banks - From Others Loans & Advances f)rom Related Parties Other Loans & Advances Total (Exchange rate used for translation 1 USD = INR 50.87) USD USD INR INR SCHEDULE 9 - Trade Payables Sundry Creditors 8,665 2, , ,894 Advance from Customers 8,665 2, , ,894 SCHEDULE 10 - Other Current Liabilities Duties & Taxes payable ,392 Unpaid Dividend Deposits Short Term finance lease obligations Interest Accrued but not due Income received in advance Other Outstanding Liabilities 2, ,618 14,600 2, ,618 19,992 SCHEDULE 11 - Short-Term Provisions Taxation Provision for employee benefits Others TOTAL EQUITY & LIABILITIES 532, ,558 27,071,133 34,874,336 Non-Current Assets SCHEDULE 12 - Fixed Assets Tangible Assets 8,441 15, , ,114 Intangible Assets 100, ,000 5,087,000 5,087,000 Net Block 108, ,591 5,516,394 5,880,114 Capital Work in Progress 108, ,591 5,516,394 5,880,114 SCHEDULE 13 - Non-current Investments Trade Investments Other Investments SCHEDULE 14 - Long Term Loans & Advances 1. Secured Advances / Deposits Short term Deposit with Government Authorities Security Deposits 2. Unsecured Advances Capital Advances Security Deposits Loans & Advances to Related Parties Other Loans & Advances Total SCHEDULE 15 - Other Non Current Assets Long Term Trade Receivables Others Current Assets SCHEDULE 16 - Current Assets 1 Current Investments Trade Investments Other Investments (Exchange rate used for translation 1 USD = INR 50.87) 17 17

20 Particulars Sch. USD USD INR INR 2 Inventories Raw Material Finished Goods 15, , ,549 20,748,856 WIP Stores, Spares etc. Goods in transit 15, , ,549 20,748,856 3 Trade Receivables Outstanding for over six months Considered Good Considered Doubtful Other Debtors Considered Good 378, ,845 19,261,061 5,282, , ,845 19,261,061 5,282,595 4 Cash and Cash Equivalents Cash on hand ,327 1,628 Balances with Scheduled Banks Current Accounts 27,342 58,210 1,390,888 2,961,143 Fixed Deposits Bank Deposits with more than 12 months maturity Margin Deposit Accounts 27,545 58,242 1,401,215 2,962,771 SCHEDULE 17 - Short-term Loans & Advances A. Secured Advances Fringe Benefit Tax Advance Tax, T.D.S. Income Tax Refundable Forward Contract (Net of INR & $) Sales Tax/ Service Tax Refundable Deposits 2, ,914-2, ,914 - B. Unsecured Advances Interest Receivable Prepaid Expenses Advance to Suppliers & Others Due from Subsidiary Company Advances recoverable in cash or in kind or for value to be received Total 2, ,914 - SCHEDULE 18 - Other Current Assets Others TOTAL ASSETS 532, ,558 27,071,133 34,874,336 SCHEDULE 19 - Revenue from Operations Sales 915, ,608 46,571,790 33,503,389 Total (a) 915, ,608 46,571,790 33,503,389 Service Charges Total (b)... Other Operating Revenues 3,918 51, ,309 2,602,051 Total (c)... 3,918 51, ,309 2,602,051 Total (a) + (b) + (c) (A) 919, ,759 46,771,099 36,105,440 SCHEDULE 20 - Other Income Consultancy fees Rent Interest Income Dividend Income Commission Income Profit on Sale of Assets / (Exchange rate used for translation 1 USD = INR 50.87) Particulars Sch. USD USD INR INR Investment Other Sundry Receipts Net gain / loss on Foreign Currency translation / transaction Total (d) Grand Total (a)+(b)+(c)+(d) (B) 919, ,759 46,771,099 36,105,440 SCHEDULE 21 - Materials Cost Materials Consumed Stock at commencement Add: Purchases 429, ,203 21,825,010 21,731,817 Foreign Exchange Rate Diff. - - Sale of Rough Diamonds/ Raw Materials Less: Stock at close 429, ,203 21,825,010 21,731,817 Purchase of Finished Goods Total (e) 429, ,203 21,825,010 21,731,817 Variation in Stock Stock at close 15, , ,549 20,748,856 Less: Stock at commencement 407, ,664 20,748,856 23,840,938 Total (f) (392,536) (60,784) (19,968,307) 3,092,082) Materials Cost (e)-(f) (C) 821, ,987 41,793,317 24,823,899 SCHEDULE 22 - Employee Benefit Expenses Salary, Wages, Allowances & other Benefits 96, ,665 4,926,098 7,257,369 Directors Remuneration - - Gratuity - - Group Insurance - - P. F. Contribution 10,606 11, , ,484 Staff Welfare Expenses 12,166 14, , ,753 ESOP Total 119, ,972 6,084,509 8,595,606 SCHEDULE 23 - Finance Cost Interest Expense On Term Loan To Banks To Others Other Borrowing Cost Exchange Rate Difference Less interest received Total (D) Depreciation (E) 7,150 6, , ,662 SCHEDULE 24 - Other Expenses 1. Manufacturing Expenses Stores & Spares consumed Power & fuel Subcontracting charges Rent Rates & Taxes Building repairs Machinery repairs Other Manufacturing Expenses Total 2. Selling & Distribution Expenses Marketing / Advisory Expenses Freight & forwarding charges Sales Promotion Expenses Advertisement Expenses 9,464 8, , ,352 Export Commission Other Selling & Distribution Expenses 2,206 3, , ,510 Total 11,670 11, , ,862 18

21 Particulars Sch. USD USD INR INR 3. Miscellaneous Expenses: Insurance 338 2,094 17, ,522 Other Repairs - - Legal & Professional Charges 5,005 4, , ,956 Net loss on foreign currency transaction / translation Travelling, Conveyance and Vehicle expenses 7,184 5, , ,660 Sundry Expenses 106,989 70,936 5,442,530 3,608,514 Remuneration to Auditors - - Donations 1,190 2,102 60, ,929 Bank Charges 930 1,788 47,309 90,956 Loss on sale / discarded of Investments / Assets Prior Period Items Total 121,636 87,744 6,187,622 4,463,537 Other Expenses (F) 133,306 99,713 6,781,276 5,072,399 Provision for Income Tax (G) Deferred Tax Liability (H) Provision for Wealth-Tax (I) TOTAL (C) TO (I) (J) 1,081, ,467 55,022,823 38,837,566 Net profit after tax (A) - (J) (162,212) (53,708) (8,251,724) (2,732,126) Minority Interest 64,885 21,483 3,300,700 1,092,840 Tax in respect of previous year - - Surplus in Profit & Loss A/c. B/f. (70,139) (37,914) (3,567,971) (1,928,685) Transfer of Profit from Divisions TOTAL (167,466) (70,139) (8,518,995) (3,567,971) (Exchange rate used for translation 1 USD = INR 50.87) 19 19

22 DAILY JEWELLERY LIMITED REPORT OF THE DIRECTORS The directors have pleasure to present their annual report and the audited financial statements for the year ended to 31st March, PRINCIPAL ACTIVITIES The principal activities of the Company are retailing of jewellery. FINANCIAL RESULTS AND APPROPRIATION The results for the year ended 31st March, 2012 and the state of affairs of the Company at that date are set out on the annexed pages of the financial statements. The directors propose no transfer to or from any reserves and no dividend is recommended. FIXED ASSETS Details of the movements in fixed assets during the year are shown in Note 8 to the financial statements. DIRECTORS The directors who held office during the year were: Doshi Shreyas Kirtilal Patel Dipan Jagdish In accordance with the Company s Articles of Association, all directors shall retire and, being eligible, offer themselves for re-election. DIRECTORS INTERESTS No contracts of significance to which the Company, its holding company or its fellow subsidiary was a party and in which a director had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year. At no time during the year was the Company, its holding company or its fellow subsidiary a party to any arrangements to enable the directors of the company to acquire benefits by means of acquisition of shares in or debenture of the company or any other body corporate. AUDITORS The financial statements have been audited by Messrs. Dave Kwok & Co., Certified Public Accountants, who retire and, being eligible, offer themselves for re-appointment. Hong Kong, On behalf of the Board, Chairman 20

23 DAILY JEWELLERY LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST MARCH, 2012 Note HK$ HK$ INR INR TURNOVER 3 24,415,778 22,490, ,945, ,332,892 Cost of sales (12,315,510) (10,207,100) (80,677,674) (66,865,691) Gross profit 12,100,268 12,283,381 79,267,646 80,467,201 Other revenue 3 1 4, ,756 Administrative expenses (11,693,039) (12,215,702) (76,599,929) (80,023,842) PROFIT FROM OPERATIONS 4 407,230 71,916 2,667, ,115 Finance costs 6 (378,677) (355,998) (2,480,675) (2,332,107) PROFIT/(LOSS) BEFORE TAXATION 28,553 (284,082) 187,048 (1,860,993) Taxation 7 NET PROFIT/(LOSS) FOR THE YEAR 28,553 (284,082) 187,048 (1,860,993) OTHER COMPREHENSIVE INCOME TOTAL COMPREHENSIVE INCOME FOR THE YEAR 28,553 (284,082) 187,048 (1,860,993) The annexed notes form an integral part of these financial statements. (Exchange Rate used for translation 1 HK$ = INR ) STATEMENT OF FINANCIAL POSITION AS AT 31ST MARCH, 2012 Note HK$ HK$ INR INR NON-CURRENT ASSETS Fixed assets 8 635, ,042 4,163,837 5,404,768 Unlisted Investments 9 3,965 3,965 25,974 25, , ,007 4,189,812 5,430,742 CURRENT ASSETS Inventories 2(e) 20,436,470 22,649, ,877, ,376,300 Deposits 1,449,321 1,454,728 9,494,357 9,529,778 Trade and other receivables 10 20,238,863 17,909, ,582, ,323,481 Bank balances and cash 1,998,090 1,089,336 13,089,288 7,136,131 Amount due from directors - 2,339,630-15,326,682 44,122,744 45,442, ,043, ,692,372 CURRENT LIABILITIES Bank overdraft - 34, ,613 Trade and other payables 11 44,734,900 46,713, ,053, ,016,397 Amount due to related company 12 11,176,497 10,701,526 73,216,114 70,104,627 55,911,397 57,449, ,269, ,346,637 NET CURRENT LIABILITIES (11,788,653) (12,006,635) (77,226,287) (78,654,265) TOTAL ASSETS LESS CURRENT LIABILITIES (11,149,075) (11,177,628) (73,036,475) (73,223,523) NET LIABILITIES (11,149,075) (11,177,628) (73,036,475) (73,223,523) CAPITAL AND RESERVES SHARE CAPITAL 13 5,000,000 5,000,000 32,754,500 32,754,500 ACCUMULATED LOSSES (16,149,075) (16,177,628) (105,790,975) (105,978,023) SHAREHOLDERS DEFICIT (11,149,075) (11,177,628) (73,036,475) (73,223,523) The annexed notes form an integral part of these financial statements. (Exchange Rate used for translation 1 HK$ = INR ) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2012 Share Accumulated Share Accumulated Capital (Losses)/Profits Total Capital (Losses)/Profits Total HK$ HK$ HK$ INR INR INR Balance as at 31st March, ,000,000 (15,893,546) (10,893,546) 32,754,500 (104,117,030) (71,362,530) Total comprehensive income for the year - (284,082) (284,082) - (1,860,993) (1,860,993) Balance as at 31st March, ,000,000 (16,177,628) (11,177,628) 32,754,500 (105,978,023) (73,223,523) Total comprehensive income for the year - 28,553 28, , ,048 Balance as at 31st March, ,000,000 (16,149,075) (11,149,075) 32,754,500 (105,790,975) (73,036,475) (Exchange Rate used for translation 1 HK$ = INR ) 21 21