Accounting Policies of Mini Diamonds (India) Ltd. Company

Mar 31, 2025

2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Use of estimates

Preparation of these financial statements in accordance with Ind AS requires management to make
judgments on the basis of certain estimates and assumptions. In addition, the application of accounting

policies requires management judgment. Estimates are based on the managements view on past events
and future development and strategies. Management reviews the estimates and assumptions on a
continuous basis, by reference to past experiences and other factors that can reasonably be used to
assess the book values of assets and liabilities.

b. Presentation of true and fair view

These financial Statements have been prepared by applying Ind AS principles and necessary disclosures
have been made which present a true and fair view of the financial position, financial performance and
cash flows of the Company.

c. Going concern

These financial statements have been prepared on a going concern basis and it is assumed that the
company will continue in operation in the foreseeable future and neither there is an intention nor need to
materially curtail the sale of operations.

d. Accrual basis

These financial statements, except for cash flow information, have been prepared using the accrual basis
of accounting

e. Materiality

Each material class of similar items has been presented separately in these financial Statements.

f. Basis of Measurement

These financial statements have been prepared on an accrual basis, except for certain properties and
financial instruments that have been measured at fair values or revalued amounts as required by the
relevant Ind AS.

g. Offsetting

In preparation of these financial Statements, the Company has not offset assets and liabilities or income
and expenses, unless required or permitted by Ind AS.

h. Functional and Presentation Currency

Ind AS 21 requires that functional currency and presentation currency is determined. Functional currency
is the currency of the primary economic environment in which the entity operates. Presentation currency
is the currency in which the financial statements are presented.

These financial statements are presented in Indian Rupee, which is the functional currency and
presentation currency of the Company.

i. Foreign Currency Transactions

All foreign currency transactions are expressed in the functional currency using the exchange rate at the
transaction date.

Foreign currency balances representing cash or amounts to be received or paid in cash (monetary items)
are re-translated at the end of the year using the exchange rate on that date. Exchange differences on
such monetary items are recognized as income or expense for the year.

Non-monetary balances that are not re measured at fair value and are denominated in a foreign currency
are expressed in the functional currency using the exchange rate at the transaction date. Where a non¬
monetary item is re measured at fair value in the financial statements, the exchange rate at the date when
fair value was determined is used.

j. Tangible fixed assets (PPE)

Property, plant and equipment (PPE) is recognized when the cost of an asset can be reliably measured
and it is probable that the entity will obtain future economic benefits from the asset.

PPE is measured initially at cost. Cost includes the fair value of the consideration given to acquire the
asset (net of discounts and rebates) and any directly attributable cost of bringing the asset to working
condition for its intended use (inclusive of import duties and non-refundable purchase taxes).

k. Depreciation on tangible fixed assets

The depreciable amount of PPE (being the gross carrying value less the estimated residual value) is
depreciated over its useful life as prescribed in Schedule II to the companies Act, 2013 on straight line
basis.

l. Borrowings costs :-

Interest & commitment charges on borrowings granted by the banks and interest on loans obtained from
other parties are recognized in the Statement of Profit & Loss. No amounts of borrowing costs have been
capitalized during the year.

m. Inventories

Stock of Rough & cut and polish diamonds have been valued at cost or net realizable value, whichever
is lower where stock is identified otherwise where stock is mixed it have been valued at technically
evaluated cost or net realizable value, whichever is lower.

Stock of Gold, silver, alloy and consumables were valued at cost. There is no stock laying in Work in
Process at the end of the year. As the physical verification, examination and valuation of diamonds
involving visual appraisal etc. are technical in nature, the same are fully relied upon by us on the
management. According to the management, except where the stock is valued at actual cost the values
assigned are the fairest possible approximations to the cost incurred or its net realizable value. The stock
of Cut and Polished Diamonds are valued using Weighted Average method.

n. Revenue recognition

Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been
transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated
reliably, there is no continuing effective control or managerial involvement with the goods, and the amount
of revenue can be measured reliably.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or duties collected on
behalf of the government. Any discount or rebate in any form, including cash discounts is recorded as a
reduction from revenues.

Revenue from rendering of services is recognized when the performance of agreed contractual task has
been completed.

O. Government Grants

Grants from government are recognized at their fair value where reasonable assurance that the grant will
be receive, and the company will comply with all attached conditions.

Government grants relating to the purchase of property, plant and equipment are included in non-current
liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected
lives of the related assets and presented within other income.

p. Retirement and other employee benefits
a Short-Term Employee Benefits

Short term employee benefits given or promised by the Company are recognized in the period
during which the service has been rendered.

q. Taxes on income

Current tax expense is based on the taxable and deductible amounts to be used for the computation of
the taxable income for the current year. A liability is recognized in the balance sheet in respect of current
tax expense for the current and prior periods to the extent unpaid. An asset is recognized if current tax
has been overpaid.

Current tax assets and liabilities for the current and prior periods are measured at the amount expected
to be paid to (recovered from) the taxation authorities, using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date.

Deferred tax is provided in full for all temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realized or the liability is settled based on tax rates (and tax laws) that have been
enacted or substantively enacted by the balance sheet date.

A deferred tax asset is recognized for deductible temporary differences to the extent that it is probable
that taxable profit will be available against which the deductible temporary difference can be utilized.

Current and deferred tax is recognized in profit or loss for the period, unless the tax arises from a
business combination or a transaction or event that is recognized outside profit or loss, either in other
comprehensive income or directly in equity in the same or different period.

r. Segment reporting: -

Identification of segments

1- Details of Primary Segment are as follows:

Details as per Product and Service Wise are as follows:

s. Earnings per share

Basic EPS is calculated by dividing the profit or loss for the period attributable to the equity holders of the
parent company by the weighted average number of ordinary shares outstanding (including adjustments
for bonus and rights issues).

Diluted EPS is calculated by adjusting the profit or loss and the weighted average number of ordinary
shares by taking into account the conversion of any dilutive potential ordinary shares.

Basic and diluted EPS are presented in the statement of profit and loss for each class of ordinary shares
in accordance with Ind AS 33.

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Mar 31, 2024

2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Use of estimates

Preparation of these financial statements in accordance with Ind AS requires management to make judgments on the basis of certain estimates and assumptions. In addition, the application of accounting

policies requires management judgment. Estimates are based on the managements view on past events and future development and strategies. Management reviews the estimates and assumptions on a continuous basis, by reference to past experiences and other factors that can reasonably be used to assess the book values of assets and liabilities.

b. Presentation of true and fair view

These financial Statements have been prepared by applying Ind AS principles and necessary disclosures have been made which present a true and fair view of the financial position, financial performance and cash flows of the Company.

c. Going concern

These financial statements have been prepared on a going concern basis and it is assumed that the company will continue in operation in the foreseeable future and neither there is an intention nor need to materially curtail the sale of operations.

d. Accrual basis

These financial statements, except for cash flow information, have been prepared using the accrual basis of accounting

e. Materiality

Each material class of similar items has been presented separately in these financial Statements.

f. Basis of Measurement

These financial statements have been prepared on an accrual basis, except for certain properties and financial instruments that have been measured at fair values or revalued amounts as required by the relevant Ind AS.

g. Offsetting

In preparation of these financial Statements, the Company has not offset assets and liabilities or income and expenses, unless required or permitted by Ind AS.

h. Functional and Presentation Currency

Ind AS 21 requires that functional currency and presentation currency is determined. Functional currency is the currency of the primary economic environment in which the entity operates. Presentation currency is the currency in which the financial statements are presented.

These financial statements are presented in Indian Rupee, which is the functional currency and presentation currency of the Company.

i. Foreign Currency Transactions

All foreign currency transactions are expressed in the functional currency using the exchange rate at the transaction date.

Foreign currency balances representing cash or amounts to be received or paid in cash (monetary items) are re translated at the end of the year using the exchange rate on that date. Exchange differences on such monetary items are recognized as income or expense for the year.

Non-monetary balances that are not re measured at fair value and are denominated in a foreign currency are expressed in the functional currency using the exchange rate at the transaction date. Where a nonmonetary item is re measured at fair value in the financial statements, the exchange rate at the date when fair value was determined is used.

j. Tangible fixed assets (PPE)

Property, plant and equipment (PPE) is recognized when the cost of an asset can be reliably measured and it is probable that the entity will obtain future economic benefits from the asset.

PPE is measured initially at cost. Cost includes the fair value of the consideration given to acquire the asset (net of discounts and rebates) and any directly attributable cost of bringing the asset to working condition for its intended use (inclusive of import duties and non-refundable purchase taxes).

k. Depreciation on tangible fixed assets

The depreciable amount of PPE (being the gross carrying value less the estimated residual value) is depreciated over its useful life as prescribed in Schedule II to the companies Act, 2013 on straight line basis.

l. Borrowings costs

Interest & commitment charges on borrowings granted by the banks and interest on loans obtained from other parties are recognized in the Statement of Profit & Loss. No amounts of borrowing costs have been capitalized during the year.

m. Inventories

Stock of Rough & cut and polish diamonds have been valued at cost or net realizable value, whichever is lower where stock is identified otherwise where stock is mixed it have been valued at technically evaluated cost or net realizable value, whichever is lower.

Stock of Gold, silver, alloy and consumables were valued at cost. There is no stock laying in Work in Process at the end of the year. As the physical verification, examination and valuation of diamonds involving visual appraisal etc. are technical in nature, the same are fully relied upon by us on the management. According to the management, except where the stock is valued at actual cost the values assigned are the fairest possible approximations to the cost incurred or its net realizable value. The stock of Cut and Polished Diamonds are valued using Weighted Average method.

n. Revenue recognition

Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. Any discount or rebate in any form, including cash discounts is recorded as a reduction from revenues.

Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed.

O. Government Grants

Grants from government are recognized at their fair value where reasonable assurance that the grant will be receive, and the company will comply with all attached conditions.

Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.

p. Retirement and other employee benefits a Short-Term Employee Benefits

Short term employee benefits given or promised by the Company are recognized in the period during which the service has been rendered.

q. Taxes on income

Current tax expense is based on the taxable and deductible amounts to be used for the computation of the taxable income for the current year. A liability is recognized in the balance sheet in respect of current tax expense for the current and prior periods to the extent unpaid. An asset is recognized if current tax has been overpaid.

Current tax assets and liabilities for the current and prior periods are measured at the amount expected

to be paid to (recovered from) the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is provided in full for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date.

A deferred tax asset is recognized for deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized.

Current and deferred tax is recognized in profit or loss for the period, unless the tax arises from a business combination or a transaction or event that is recognized outside profit or loss, either in other comprehensive income or directly in equity in the same or different period.

r. Segment reporting: -

Identification of segments

1- Details of Primary Segment are as follows:

Details as per Product and Service Wise are as follows:

s. Earnings per share

Basic EPS is calculated by dividing the profit or loss for the period attributable to the equity holders of the parent company by the weighted average number of ordinary shares outstanding (including adjustments for bonus and rights issues).

Diluted EPS is calculated by adjusting the profit or loss and the weighted average number of ordinary shares by taking into account the conversion of any dilutive potential ordinary shares.

Basic and diluted EPS are presented in the statement of profit and loss for each class of ordinary shares in accordance with Ind AS 33.

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Mar 31, 2012

A) AS -1 Disclosure of Accounting Policies

The financial statements have been prepared using mercantile system of accounting under the historical cost convention on a going concern basis. It recognizes significant items of income and expenditure on accrual basis.

b) AS - 2 Valuation of Inventories

Rough Diamonds & Cut and Polished Diamonds have been valued as under Where stocks can be identified:

At cost or net realizable value whichever is lower.

Where the stocks are mixed:

At technically evaluated cost or net realizable value whichever is lower.

Rough Rejection Diamonds have been valued at if s net realizable value.

Gold, Silver, Consumables and Alloys are valued At Cost. i.e. cost of acquisition as on that date.

As the physical verification, examination and valuation of diamonds involving visual appraisal etc. are technical in nature, the same are fully relied upon by us on the management. According to the management, except where the stock is valued at actual cost the values assigned are the fairest possible approximations to the cost incurred or its net realizable value.

c) AS - 4 Contingencies & Events occurring after the Balance Sheet Date

There were no events occurring after the Balance Sheet date.

d) AS - 5 Net Profit or Loss for the Period, Prior Period Items and Changes In Accounting Policies No prior period items and extraordinary items were noticed during the course of audit.

e) AS - 6 Depreciation Accounting

Depreciation has been provided under the written down valur method at the rates prescribed under schedule XIV of the Companies Act, 1956. In respect of the assets added / sold during the year pro-rata depreciation has been provided.

f) AS - 9 Revenue Recognition

The income of the company, derived from sale including exchange fluctuation on exports, is recognized on the completion of sale with the passing of the title.

g) AS-10 Accounting for Fixed Assets

Fixed assets are stated at cost of acquisition to the company including expenditure incurred up to the date the asset is put to use.

h) AS -11 Accounting for the effects of changes In Foreign exchange rates

Transactions denominated in foreign currencies are normally record.? 1 at the Exchange rate prevailing as on the date of transaction.

Monetary items denominated in foreign currencies at the year-end and not covered by forward contract are translated at year- end rate.

Non-monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on translation is adjusted to the profit and loss account.

i) AS -16 Borrowing Cost

Interest & commitment charges on borrowings granted by the banks and interest on loans obtained from other parties are recognised in the Profit & Loss Account. No amounts of borrowing costs have been capitalised during the year.

i) AS - 20 Earnings per share

Earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders, by the weighted average number of equity shares outstanding during the period.

m) AS - 22 Accounting for Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the year after considering various reliefs admissible under provisions of the Income Tax Act, 1961.

The deferred tax for timing difference between the book profit and the tax profit for the year is accounted for using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date.

n) AS - 28 Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.

o) AS -29 Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will not require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2011

A) AS - 1 Disclosure of Accounting Policies

The financial statements have been prepared using mercantile system of accounting under the historical cost convention on a going concern basis. It recognizes significant items of income and expenditure on accrual basis.

b) AS - 2 Valuation of Inventories

Rough Diamonds & Cut and Polished Diamonds have been valued as under:

Where stocks can be identified:

At cost or net realizable value whichever is lower.

Where the stocks are mixed:

At technically evaluated cost or net realizable value whichever is lower.

Rough Rejection Diamonds have been valued at it''s net realizable value.

Gold, Silver, Consumables and Alloys are valued At Cost. i.e. cost of acquisition as on that date.

As the physical verification, examination and valuation of diamonds involving visual appraisal etc. are technical in nature, the same are fully relied upon by us on the management. According to the management, except where the stock is valued at actual cost the values assigned are the fairest possible approximations to the cost incurred or its net realizable value.

c) AS - 4 Contingencies & Events occurring after the Balance Sheet Date

There were no events occurring after the Balance Sheet date.

d) AS - 5 Net Profit or Loss for the Period. Prior Period Items and Changes in Accounting Policies

No prior period items and extraordinary items were noticed during the course of audit.

e) AS - 6 Depreciation Accounting

Depreciation has been provided under the written down value method at the rates prescribed under schedule XIV of the Companies Act, 1956. In respect of the assets added/ sold during the year pro-rata depreciation has been provided.

f) AS - 9 Revenue Recognition

The income of the company, derived from sale including exchange fluctuation on exports, is recognized on the completion of sale with the passing of the title.

g) AS - 10 Accounting for Fixed Assets

Fixed assets are stated at cost of acquisition to the company including expenditure incurred up to the date the asset is put to use.

h) AS - 11 Accounting for the effects of changes in Foreign exchange rates

Transactions denominated in foreign currencies are normally recorded at the Exchange rate prevailing as on the date of transaction.

Monetary items denominated in foreign currencies at the year-end and not covered by forward contract are translated at year- end rate.

Non-monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on translation is adjusted to the profit and loss account.

i) AS - 16 Borrowing Cost

Interest & commitment charges on borrowings granted by the banks and interest on loans obtained from other parties are recognised in the Profit & Loss Account. No amounts of borrowing costs have been capitalised during the year.

j) AS - 17 Segmental Reporting Primary Segment

Company has only one primary reportable segment viz Gems & Jewellery.

Segment Reporting and Related Information requires that an enterprise report a measure of total assets for each reportable segment. The fixed assets and inventories used in the company''s business are not identifiable to any particular reportable segment and can be used interchangeably among geographical segments. Consequently, management believes that it is not practical to provide segment disclosures relating to total assets since a realistic analysis among the various geographic segments is not possible.

l) AS - 20 Earnings per share

Earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders, by the weighted average number of equity shares outstanding during the period.

m) AS - 22 Accounting for Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the year after considering various reliefs admissible under provisions of the Income Tax Act, 1961.

The deferred tax for timing difference between the book profit and the tax profit for the year is accounted for using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date.

n) AS - 28 Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.

o) AS -29 Provisions. Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will not require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2010

A) AS - 1 Disclosure of Accounting Policies

The financial statements have been prepared using mercantile system of accounting under the historical cost convention on a going concern basis. It recognizes significant items of income and expenditure on accrual basis.

b) AS - 2 Valuation of Inventories

Roifgh Diamonds & Cut and Polished Diamonds have been valued as under:

Where stocks can be identified:

At cost or net realizable value whichever is lower.

Where the stocks are mixed:

At technically evaluated cost or net realizable value whichever is lower.

Rough Rejection Diamonds have been valued at its net realizable value.

As the physical verification, examination and valuation of diamonds involving visual appraisal etc. are technical in nature, the same are fully relied upon by us on the management. According to the management, except where the stock is valued at actual cost the values assigned are the fairest possible approximations to the cost incurred or its net realizable value.

c) AS - 4 Contingencies & Events occurring after the Balance Sheet Date

There were no events occurring after the Balance Sheet date.

d) AS - 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies

No prior period items and extraordinary items were noticed during the course of audit.

e) AS - 6 Depreciation Accounting

Depreciation has been provided under the written down value method at the rates prescribed under schedule XIV of the Companies Act, 1956.ln respect of the assets added/ sold during the year pro-rata depreciation has been provided.

f) AS - 9 Revenue Recognition

The income of the company, derived from sale of Cut & Polished Diamonds including exchange fluctuation on exports, is recognized on the completion of sale with the passing of the title.

g) AS - 10 Accounting for Fixed Assets

Fixed assets are stated at cost of acquisition to the company including expenditure incurred up to the date the asset is put to use.

h) AS - 11 Accounting for the effects of changes in Foreign exchange rates

Transactions denominated in foreign currencies are normally recorded at the Exchange rate prevailing as on the date of transaction.

Monetary items denominated in foreign currencies at the year-end and not covered by forward contract are translated at year- end rate.

Non-monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on translation is adjusted to the profit and loss account.

i) AS-16 Borrowing Cost

Interest & commitment charges on borrowings granted by the banks and interest on loans obtained from other parties are recognised in the Profit & Loss Account. No amounts of borrowing costs have been capitalised during the year.

j) AS-17 Segmental Reporting Primary Segment

Company has only one primary reportable segment viz Diamonds.

I) AS - 22 Accounting for Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the year after considering various reliefs admissible under provisions of the Income Tax Act, 1961.

The deferred tax for timing difference between the book profit and the tax profit for the year is accounted for using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date.

m) AS - 28 Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.

n) AS -29 Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will not require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2009

A) AS- 1 Disclosure of Accounting Policies

The financial statements have been prepared using mercantile system of accounting under the historical cost convention on a going concern basis It recognizes significant items of income and expenditure on accrual basis

b) AS - 2 Valuation of Inventories

Rough Diamonds & Cut and Polished Diamonds have been valued as under:

Where stocks can be identified :

At cost or net realizable value whichever is lower.

Where the stocks are mixed :

At technically evaluated cost or net realizable value whichever is lower.

Rough Rejection Diamonds have been valued at its net realizable value,

As the physical verification, examination and valuation of diamonds involving visual appraisal etc. are technical in nature, the same are fully relied upon by us on the management. According to the management, except Where the Stock is valued at actual cost the values assigned are the fairest possible approximations to the cost incurred or its net realizable value.

c) AS - 4 Contingencies & Evefics occurring after the Balance Sheet Date There were no events occurring after the Balance Sheet date.

d) AS - 5 Net Profit or Loss for the Period, Prior Period Items and Changes In Accounting Policies No prior period items and extraordinary items were noticed during the course of audit.

e) AS - 6 Depreciation Accounting Depreciation has been provided under the written down value method at the rates prescribed under schedule XIV of the Companies Act, 1956. In respect of the assets added/ sold during the year pro-rata depreciation has been provided.

f) AS - 9 Revenue Recognition

The income of the company, derived from sale of Cut & Polished Diamonds including exchange fluctuation on exports, is recognized on the completion of sale with the passing of the title.

g) AS - 10 Accounting for Fixed Assets Fixed assets are stated at cost of acquisition to the company including expenditure incurred up to the date the asset is put to use.

h) AS - 11 Accounting for the effects of changes in Foreign exchange rates Transactions denominated in foreign currencies are normally recorded at the Exchange rate prevailing as on the date of transaction. Monetary items denominated in foreign currencies at the year-end and not covered by forward contract are translated at year-end rate.

Non-monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on translation is adjusted to the profit and loss account. i) AS-16 Borrowing Cost

Interest & commitment charges on borrowings granted by the banks and interest on loans obtained from other parties are recognised in the Profit & Loss Account. No amounts of borrowing costs have been capitalised during the year.

j. AS - 17 Segmental Reporting Primary Segment

Company has only one primary reportable segment viz Diamonds.

Secondary Segment

Details as per Geographic Region

Segment Reporting and Related Information requires that an enterprise report a measure of total assets for each reportable segment The fixed assets and inventories used in the companys business are not identifiable to any particular reportable segment and tan be used interchangeably among geographical segments Consequently, management believes that if is not praclical to provide segmeni disclosures relating to total assets since a realistic analysis among the various geographic segments is not possible.

I. AS - 22 Accounting for Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the year after considering various reliefs admissible under provisions of the Income Tax Act, 1961.

The deferred tax for timing difference between the book profit and the fax profit for the year is accounted for using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date.

m, AS - 28 Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that asset may be impaired. If any such Indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount The reduction is treated as ar, impairment loss and is recognised in the Profit and Loss Account,

n. AS -29 Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obiigation or a present obligation that may. but will not require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.