| CORPORATE INFORMATION
1 DESCRIPTION OF THE GROUP
Classic Diamonds (India) Limited is a leading exporter of cut and
polished diamonds and jewellery. The principal operations of the
company is located in India.
As at As at
Particulars 31/03/2014 31/03/2013
(Rs.) (Rs.)
2 Contingent liabilities not provided for
in respect of
a) Property tax 429,884 429,884
b) Disputed sales tax demand in respect of
which the Company preferred an appeal - 60,624,377
c) Disputed income tax demand in respect of
which the Company preferred an appeal 252,592,845 252,592,845
d) Guarantees given to bank and others:
ICICI Bank 254,724,500 254,724,500
Total 507,747,229 568,371,606
3. The Company's production facilities at unit no. 138/139, SDF-V
SEEPZ Andheri (E) has been locked out due to labour problems. The
Company has suspended its operations from the said locations from 21st
November 2011 and has not been functional yet. The company has effected
an Out of Court settlement with the labour unions and has paid all the
dues to the employees as per agreed terms between the labour union and
the Company. Application has been submitted to the industrial court for
withdrawal of appeals by the labour union on the basis of consensus
agreed between the parties.
4. The Company's Factory at Surat has been shut down completely we.f
November 2011.
5. The consortium of bankers which had granted various working
capital and export facilities have withdrawn these facilities and have
called upon the Company to repay their outstanding. Further, the
Company has informed that the Company is in the process of negotiation
with the banks. The banks are covered by way of mortgagee of various
properties / assets of the Company.
6. The year end monetary asset and liabilities which are in foreign
currency have not been restated at closing exchange rate which is in
non-compliance with the requirements of Accounting Standard (AS) 11 -
"The Effects of Changes in Foreign Exchange Rates'.
7. During the year, as required by the Accounting Standard (AS) - 28
"Impairment of Assets", the Company has reviewed potential generation
of economic benefits from fixed assets and concluded that entire plant
and machinery. furniture & fixtures, office equipments, weighting
machine, air conditioner and electrical installations (which were not
in continuous use) aggregating to its written down value of
Rs.30,701,096 as on 31 March 2014 are currently not foreseen to
generate adequate economic returns over their useful lives.
Consequently, these assets have been fully written off.
8. In the opinion of the management all assets, other than fixed
assets and non current investments, have a value on realization in the
ordinary course of business at least equal to the amount at which they
are stated in the balance sheet. The provision for depreciation and
for all known liabilities is adequate and not in excess of the amount
reasonably stated.
Balances of certain debtors, creditors and advances are subject to
confirmation / reconciliation's if any. The management does not expect
any material difference affecting the financial statements on such
reconciliation / adjustments.
9. The Company has not made any provision for gratuity and towards
leave encashment or Bonus as payable to its employees since the company
has shut majority of its operations and has laid off all the employees
as at 31st March 2013. Hence, the guidelines mentioned in AS-15
"Employee Benefits" are not applicable.
10. In the absence of any intimation received from vendors regarding
the status of their registration under "Micro, Small and Medium
Enterprises Development Act, 2006", the company is unable to comply
with the disclosures required to be made under the said Act.
11. Disclosure regarding investment in Associates as required under
Clause 32 of Listing Agreement has been given in Note No 11.
Notes:
i. Secondary segments identified are as per the requirements of
Accounting Standard (AS) -17 "Segment Reporting" taking into account
the organization structure as well as the differing risks and returns.
ii. The segment revenue and segment assets include the revenue and
assets, respectively, which are identifiable with each segment and
amounts allocated to the segments on a reasonable basis.
iii. Figures in the brackets pertain to the previous year.
12. Previous year's figures
Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
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