1. SEGMENT REPORTING
The Company is in the business of refining, manufacturing and marketing of precious metal which is considered as the only reportable segment. The Company does not have any geographical segments. Hence, there are no separate reportable segments as per Ind AS 108 on "Operating Segments".
2. MICRO, SMALL AND MEDIUM ENTERPRISES
The Company has no dues to Micro, Small and Medium enterprises as at 31st March, 2018, on the basis of information provided by the parties and available on record. Further, there is no interest paid / payable to micro and small enterprises during the year.
3. EMPLOYEE BENEFITS
As per Ind AS 19 "Employee Benefits", the disclosures are as under :
A. Defined Benefit Plans
The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave benefits (non funded) is also recognized using the projected unit credit method.
4. Balances appearing in the financial statements are pending confirmation and reconciliation.
5. Interest expense is net of interest income of '/Millions 31.05 (296.13).
6. The Company uses Gold Forward exchange contracts to hedge against its foreign currency exposure relating to the underlying transactions and firm commitments. The foreign currency exposure not hedged at the year-end is as under.
B. Defined Contribution Plan :
"Contribution to provident and other funds" is recognized as an expenses in Note 29 "Employee benefits expenses" of the Statement of Profit & Loss Account.
7. Disclosures as required by Regulations 34(3) of the Listing Agreement
B None of the loans have been utilized to make investments in the shares of the company.
8. RELATED PARTY DISCLOSURES Holding Company
Jayneer Infrapower & Multiventures Pvt Ltd(formally known as Jayneer Capital Pvt. Ltd.)
Wholly Owned Subsidiaries
Shirpur Gold Mining Company Pvt Ltd - Singapore
Zee Gold DMCC - Dubai
Step down Subsidiary
Precious Metals Mining and Refining Limited - Papua New Guinea and
Metalli Exploration and Mining - Bamako - Mali
Other related parties
Diligent Media Corporation Limited from 4th December 2017 Jay Properties Pvt. Ltd.
Directors / Key Management Personnel
Shri Subhash Pareek (Manager)
9. Robbery of Unrefined Gold in transit
As reported in the preceding year's Annual Report, on 24th April 2015, 60 Kgs of Gold, during transit to factory at Shirpur, was robbed near Nashik, Maharashtra, of which the seizure made was 13.6939 kgs including 2 kgs from site of robbery and other assets of the robbers, were in Police Custody. On 19th April 2017, the company has taken possession of the said seized 13.6939 Kgs of Gold pursuant to the Order of the Hon'ble Session Court. The said seized gold was accounted in the preceding year as part of inventories and is valued as per Ind AS 2. The Claim for balance gold of 46.3062 Kgs valued at '1241.71 Lakhs including expenses of ' 16.52 lakh is pending for settlement with the Insurance Company and is accounted as "Claims Receivables" under Other Current Assets. On Finalization of Claim by the insurance company, the difference, if any, between the amount claimed and the actual claim received, which the management does not expect to be material will be charged to Statement of Profit & Loss.
10. Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013, a CSR Committee has been formed by the Company. The Company is required to spend Rs, Millions 2.82 for the year against which Rs, Millions NIL has been spent on activities specified in Schedule VII of the Companies Act, 2013. The accumulated balance of such unspent amount is Rs, 7.41 Millions (Rs, 4.59 Millions)
11. First Time Adoption of Ind AS Transition to Ind AS
These are the Company's first Financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS standalone balance sheet at April 01, 2016 (the date of transition). In preparing its opening Ind AS standalone balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company's financial position, financial performance and cash flows is set out in the following tables and notes.
A. Exemptions and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
Use of deemed cost for investments in subsidiaries, jointly ventures and associates
The balance of the investment in subsidiaries and joint controlled entities at the date of transition to Ind AS, determined in accordance with the previous GAAP as the deemed cost of the investment at initial recognition.
B. Ind AS mandatory exceptions Estimates
An entity's estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at April 01, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP
Classification and measurement of financial assets and liabilities
The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109 are met based on facts and circumstances existing at the date of transition.
Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money i.e. the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.
Applying a requirement is impracticable when an entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:
a) The effects of the retrospective application or retrospective restatement are not determinable;
b) The retrospective application or restatement requires assumptions about what management's intent would have been in that period
The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.
12. Recent accounting pronouncement
Standard issued but not yet effective
In March 2018, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115, Revenue from Contract with Customers. The amendments are in line with recent amendments made by International Accounting Standard Board (IASB). This amendment is applicable to the Company from 1 April 2018. The Company will be adopting the amendments from their effective date.
Ind AS 115, Revenue from Contracts with Customers:
I nd AS 115 supersedes Ind AS 11, Construction Contracts and Ind AS 18, Revenue. Ind AS 115 requires an entity to report information regarding nature, amount, timing and uncertainity of revenue and cash flows arising from a contract with customers. The principle of Ind AS 115 is that an entity should recognize revenue that demonstrates the transfer of promised goods and services to the customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard can be applied either retrospectively to each prior period presented or can be applied retrospectively with recognition of cumulative effect of contracts that are not completed contracts at the date of initial application of standard.
Based on the preliminary assessment performed by the Company, the impact of application of the Standard is not expected to be material.
13. No restatement under Ind AS 32 or 109 has been considered for Unsecured Interest free Loan of ' 4499.00 Lakhs received from a body corporate under Essel Group and from other deposits of ' 152.00 Lakhs.
14 Prior Year Comparatives
Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classifications / disclosures.
15. Figures in brackets are for previous year unless otherwise stated.
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