Shares reserved for issue under Employee Stock Option Plan ('ESOP 2013')

For details of shares reserved for issue under ESOP 2013 of the Company, refer note 38.

Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share and dividend in Indian rupees, as proposed by the Board of Directors, which is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(a) Term loans from others were taken for purchase of Plant and Machinery and carries interest @ 13.00% p.a. The loan is repayable in 45 monthly installments of ' 148,642/- each including interest starting from March 2014.

(b) Vehicle loans from banks are secured by hypothecation of vehicles. The interest rate ranges from 10.00% to 13.75% p.a. The loans are repayable in 36 to 60 monthly installments inclusive of interest from the date of loan.

(c) Vehicle loans from others are secured by hypothecation of vehicles and carries interest @ 10.22%. The loans is repayable in 60 monthly installments inclusive of interest from the date of loan.

(a) Working capital loans from banks are secured by hypothecation of inventories, book debts, plant and machinery, other fixed assets, fixed deposits, other current assets and equitable mortgage of the Company's factories at Seepz and MIDC, one office at Bandra Kurla Complex, seven flats in Mumbai, and Two Flats at Prabhadevi belonging to Divya Real Estate Pvt. Ltd.

(b) The above facilities are further secured by

(i) personal guarantee of managing director, Mr. Rajeev Sheth,

(ii) corporate guarantee of Divya Real Estate Pvt. Ltd. and Fabrikant Tara International LLC

(iii) fixed deposits of Rs. 8.79 Crores of managing director, Mr. Rajeev Sheth.

(iv) pledge of 3,335,175 equity shares of the Company held by managing director, Mr. Rajeev Sheth

(c) Working capital loans from others are secured by mutual fund investment in SBI MF Magnum Balanced Fund - Regular Plan Growth.

Income Tax Assessment

The Income- Tax assessments of the Company have been completed up to Assessment Year 2012-13. The disputed demand outstanding up to the said assessment year is approximately Rs.38,500,000 Based on the decisions of the appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

1. DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY EXPOSURES

(a) Forward Contracts outstanding as at the reporting date :

There are no forward contract outstanding as at the end of the current and previous year.

(b) Unhedged foreign currency exposure as at the reporting date :

Net Foreign currency exposures that are not hedged by derivative instruments as at the end of the year amounts to Rs.7,670,022,115 (Previous year : Rs.704,451,234).

2. OPERATING LEASES

(a) The Company has given commercial premises on operating lease. In respect of this arrangements, lease rentals income of Rs.2,331,000 (Previous Year : Rs.900,000) are recognized in the statement of profit and loss for the year and are included under Rent (disclosed under Other Income in Note 18)

(b) The Company's significant leasing arrangements are in respect of residential flats and commercial premises taken on lease. The arrangements range between 11 months and 9 years generally and are usually renewable by mutual consent or mutually agreeable terms. Under these arrangements, generally refundable interest free deposits have been given. In respect of above arrangements, lease rentals payable are recognized in the Statement of Profit and Loss for the year and included under Rent (disclosed under Other Expenses in Note 25).

The aggregate rental expenses of all the operating leases for the year are Rs.44,751,602 (Previous year : Rs.74,176,656).

3. SHARE WARRANTS

The Company had allotted 3,05,000 (Three Lac Five Thousand) Convertible Warrants ("Warrants"), on April 02, 2014 to Bennett, Coleman & Company Limited ('BCCL') on a preferential allotment basis, with each warrant convertible into one equity share at a conversion price of Rs.160 per share, not later than 18 months from the date of allotment in accordance with the SEBI (ICDR) Regulations, 2009. In accordance with ICDR regulations, BCCL had paid Rs.12,200,000 towards 25% value of total consideration payable for the Warrants. The aforesaid share warrants were due for conversion in equity shares on or before October 2, 2015, however BCCL has not exercised the option and hence the warrants have lapsed on October 2, 2015. The amount paid against the aforesaid warrants has been forfeited by the Company and transferred to General Reserve.

4. SEGMENT INFORMATION

A. Information about Primary Business Segment

The Company is exclusively engaged in the "Diamond and Gold Jewellery" Business Segment.

* Includes mainly United States of America, Australia, China (including Hong kong), United Arab Emirates, Europe, South- Africa, Canada, Israel and United kingdom

Note: The figures in brackets are in respect of the previous year ended March 31, 2015

Notes:

(a) Segment Revenue in the geographical segment considered for disclosure are as follows:

- Revenue within India includes sales to customers located within India and earnings in India

- Revenue outside India includes sales to customers located outside India and earnings outside India.

(b) Segment revenue, results, assets and liabilities includes the respective amounts identified to each the segment and amounts allocated on a reasonable basis.

The options are granted at an exercise price. Each option entitles the holder to exercise the right to apply for and seek allotment of one equity share of Rs.10/- each. The options have vesting periods as stated above in accordance with the vesting schedule as per the said plans.

The Company has followed the intrinsic value-based method of accounting for stock options based on Guidance Note on Accounting for Employee Share -based Payments, issued by the Institute of Chartered Accountants of India. Had the compensation cost for the Company's stock based compensation plans been determined in the manner consistent with the fair value approach as described in the said Guidance Note,

(a) the Company's net income would be lower by Rs.895,107 (previous year : Rs.231,911), and

5. CORPORATE SOCIAL RESPONSIBILITY (CSR)

During the previous financial year, the company has constituted the Corporate Social Responsibility Committee in terms of Section 135 of the Companies Act, 2013 and the board had adopted a CSR Policy as recommended by the Committee. However during the financial year under review, the Company has not made any expenditure on CSR as the Company is still in the process of identifying the eligible project, by which the public can be benefited appropriately. The Company intends to contribute to the money for CSR activities as soon as the project is identified.

6. INCORPORATION OF TARA GULF SFZCO LLC

During the year, the Company has initiated the process for formation of a wholly owned subsidiary company - M/s Tara Gulf SFZCO LLC in Oman. The incorporation certificate dated March 9, 2016 has been obtained by the Company. However, the Company has not invested any amount till the year ended March 31, 2016 and it is expected to commence the business activity in financial year 2016-17.

7. PRIOR YEAR COMPARATIVES

Prior year comparatives have been reclassified to confirm with the current year's presentation, wherever applicable.