Accounting Policies of Orosil Smiths India Ltd. Company

Mar 31, 2018

Note: - 22 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

I. Background

Orosil Smiths India Limited was incorporated in June 01, 1994 as per Companies Act,1956, The Company is operating in Gems and Jewellery sector.

II. Significant Accounting Policies followed by the Company

(a) Basis of preparation

(i) Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by the Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with of the Companies (Indian Accounting Standard) Rules, 2015 as amended and other relevant provisions of the Act.

These financial statements for the year ended 31st March, 2018 are the first financial with comparatives, prepared under Ind AS. For all previous periods including the year ended 31st March, 2017, the company had prepared its financial statements in accordance with the accounting standard notified under companies (Accounting Standard) Rule, 2006 (as amended) and other relevant provisions of the Act (hereinafter referred to as ''Previous GAAP'') used for its statutory reporting requirement in India.

The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the Opening Ind AS Balance Sheet as at 31st March, 2016 being the date of transition to Ind AS.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

1) Certain financial assets and liabilities that are measured a fair value;

2) Assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

3) Defined benefit plans - plan assets measures at fair value; (iii) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

(iv) Rounding of amounts

All amount disclosed in the financial statements and notes have been rounded off to the nearest Rupees as per the requirement of Schedule III, unless otherwise stated.

(b) Use of estimates and judgments

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factor (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Difference between actual result and estimates are recognized in the period in which the result are known/materialized.

The said estimates are based on the facts and event, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

(c) Property, plant and equipment

The Company has applied for the one time transition exemption of considering the carrying cost on the transition date i.e. April 1, 2016 as the deemed cost under Ind AS. Hence regarded as historical cost.

Freehold Land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation on Building, Plant and Equipment, is provided on a pro-rata basis on written Down Value Method (WDV) over the estimated useful life of assets. Leasehold land is amortized over the period of lease. Leasehold improvements are amortized over the period of lease or estimated useful life, whichever is lower. The company depreciates its property, plant and equipment over the useful life in the manner prescribed in Schedule II to the Act, and management believe that useful life of assets are same as those prescribed in Schedule II to the Act. The residual values are not more than 5% of the original cost of the assets. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. In case of pre-owned assets, the useful life is estimated on a case to case basis. Gain and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of Profit and Loss.

(d) Intangible Assets

Software are stated at cost, less accumulated amortization and impairments, if any. Gain and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of Profit and Loss.

(e) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, bank overdraft, deposits held at call with financial institution, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subjected to an insignificant risk of changes in value.

(f) Inventories

Inventories of Raw Materials, Work-in-Progress, Stores and spares, Finished Goods and Stock-in-trade are stated ''at cost or net realizable value, whichever is lower. Goods-in-Transit are stated ''at cost''. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost formulae used are ''First-in-First-out''. Due allowance is estimated and made for defective and obsolete items, wherever necessary.

(g) Investments and other financial assets (i) Classification

The company classifies its financial assets in following measurement categories:

(1) Those to be measured subsequently at fair value [either through other comprehensive income, or through the Statement of Profit and Loss), and

(2) Those measured at amortized cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value, Transaction costs of financial assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

Equity instruments:

The Company measures its equity investment other than in subsidiaries, joint ventures and associates at fair value through profit and loss.

(iii) Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

(iv) Significant Estimates: The carrying value of exposure is determined by an independent valuer. The company uses judgement to select from variety of methods and make assumptions which are mainly based on market conditions existing at the end of each reporting period.

(h) Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment or more frequently if event or changing circumstances indicate that they might be impaired. Other assets are tested for impairment whenever event or changing circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds it recoverable amount. The recoverable amount is the higher of an assets fair value less cost of disposal and value in use. For the purpose of assessing impairment assets are grouped at the lowest level 4 which there are separately identifiable cash inflow which are largely independent of the cash inflow from other assets or group of assets (cash generating unit). Non - financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

(i) Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement.

Non-current assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal Company classified as held for sale continue to be recognized.

(j) Income Tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the financial statement. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related deferred income tax assets is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses, only if, it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are off set where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in the Statement of Profit and Loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Minimum Alternate Tax credit is recognized as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

Tax expenses recognized in the Statement of Profit and Loss

Particulars	Year ended 31st March, 2018	Year ended 31st March, 2017
Current Tax
Current tax on taxable income for the year	NIL	NIL
Total current tax expense	Nil	NIL
Deferred tax
Deferred tax charge/(credit)	NIL	NIL
MAT credit (taken)/utilized	NIL	NIL
Total deferred income tax expenses/(benefit)	NIL	NIL
Tax in respect of earlier years	NIL	NIL
Total income tax expenses	NIL	NIL

(k) Manufacturing & Operating expenses

The company classifies separately manufacturing and operating expenses which are directly linked to manufacturing and service activities of the group.

(i) Borrowings

Borrowing are initially recognized at net of transaction costs incurred and measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the Statement of Profit and Loss over the period of the borrowings using the effective interest method. Preference share, which are mandatorily on a specific date are classified as liabilities. The dividend on theses preference share is recognized in Statement of Profit and Loss as finance costs.

(m) Segment Reporting

The Company operates under single operating segment and hence requirement of Segment reporting is not applicable.

(n) Borrowing Costs

Borrowing cost directly attributable to the acquisition, construction or production of qualifying asset are capitalized during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period which they are incurred and reported in finance costs.

(o) Provisions and contingent liabilities

Provisions are recognized only when there is present obligation, as a result of past event, and when a reliable estimate of amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjust reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligation which will be confirmed only by future events not wholly within the control of the Company or

• Present obligation arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized. However, when inflow of economic benefit is probable, related asset is disclosed.

(p) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliable measured. Revenue from services are recognized as per the contractual arrangement.

Other Income

Interest Income: Interest income is recognized on the time proportion basis taking into account outstanding and the rate applicable.

(q) Post-employment, long term and short term employee benefits

Defined contribution plans

Provided fund: Contribution towards provided fund for certain employee is made to the regulatory authorities, where the company has no further obligation. Such benefits are classified as Defined contribution schemes as the company does not carry and further obligation, apart from the contribution made on a monthly basis.

Defined benefit plans

Gratuity is post-employment benefit defined under The Payment of Gratuity Act, 1972 and in the nature of defined benefit plan. The liability is recognized in the financial statement in respect of gratuity is the present value of the defined benefit obligation at the reporting date, together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the reporting date by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumption are credit or charged to statement of OCI in the year in which such gains or losses are determined.

Other long-term employee benefits

Liability in respect of compensated absence is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit cost method.

Actuarial gains and losses arising from past experience and changes in actuarial assumption are charged to statement of profit & loss in the year in which such gains or losses are determined.

Short-term employee benefits

Expenses in respect of other short-term benefits is recognized on the basis of amount paid or payable for the period during which service rendered by the employee.

(r) Foreign currency transaction

(i) Functional and presentation currency

The financial statement are presented in Indian rupee (INR), Which is Company''s function and presentation currency.

(ii) Transaction and balances

Transaction in foreign currencies is recognized at the prevailing exchange on the transaction dates. Realized gains and losses on settlement of foreign currency transaction are recognized in the statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rate and resultant exchange difference is recognized in Statement of Profit and Loss.

(s) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.

ft) Earnings per share

Basis earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholder (after deducting attributable taxes) by the weighted average number of equity share outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholder and weighted average number of share outstanding during the period are adjusted for the effects of all dilutive potential equity share.

(u) The preparation of company''s financial statements requires management to make judgements, estimates and assumptions that effect the reported amounts of revenues, expenses, assets, and liabilities, and related disclosures. Significant management judgements and estimates:

The following are significant management''s judgments and estimates in applying the accounting policies of the company that have the most significant effect on the financial statements.

1) Deferred tax assets recognition is based on an assessment of the probability of future taxable income against which the deferred tax assets can be utilized.

2) The evaluation of applicability of indicators of impairment of assets require assessments of several external and internal factors which could result in deterioration of recoverable amount of the assets.

3) At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.

4) Management''s estimates of the Defined Benefit Obligation (DBO) is based on a number of critical assumptions such as standard rates of inflation, discount rate and anticipation of future salary increase. Variation in this assumption may significantly impact the DBO amount and the annual defined benefit expenses.

5) Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instruments. The management uses the best information available. Estimated fair values may vary from the actual price that would be achieved in an arm''s length transaction at the reporting date.

6) Management reviews its estimates of useful lives of depreciable/amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence.

23. Contingent Liabilities

The company has given Bank Guarantee to Sales Tax authorities amounting to Rs. 2,62,062 as at March 31, 2017 (Previous year Rs. 2,50,980).

24. Related Party Disclosures

(A) List of Related Parties and Relationship a) Key Management Personnel

Mr. B.K. Narula, Managing Director

Ms. Rita Narula, Whole Time Director

Ms. Kanchan Gupta, Company Secretary (Resigned on 02.12.2017)

Ms. Shefali Kesarwani, Company Secretary

Mr. Sanjay Bana, CFO

b) Directors

Ms. Bhavana Sampath Kumar, Non -executive Independent Director

Mr. Vineet Aggarwal, Non -executive Independent Director

Mr. Karan Suri, Non -executive Director

c) Relatives of key Management Personnel who may expected to influence:

Ms. Ridhi Suri	Daughter of Key Managerial Personnel
Ms. Sidhi Narula	Daughter of Key Managerial Personnel

d) Entities over which key Management Personnel are able to exercise significant influence

B. K. Narula (HUF)

Xtrems Retails Private Ltd.

Sridhi Infra Pvt. Ltd.

Sukarma Finance Ltd.

Privy Corporate and Fiscal Advisors Limited (Formerly known as Corporate Research & intelligence Services Ltd.)

Particulars	2017-18	2016-17
Remuneration
Mr. B.K. Narula	12	12
Ms. Rita Narula	5,40,000	5,40,000
Director Sitting Fees
Ms. Bhavana Sampath Kumar	10,000	5,000
Mr. Karan Suri	2,500	NIL
Salary, Bonus & Conveyance
Mr. Sanjay Bana	4,53,420	3,87,000
Ms. Kanchan Gupta	1,70,093	1,85,995
Ms. Shefali Kesarwani	69,435	NIL
Rent paid
Ms. Rita Narula	1,20,000	1,20,000
Rent Received
Sukarma Finance Ltd.	66,000	66,000
Loan taken
B.K.Narula (HUF)	1,00,000	NIL
Sukarma Finance Ltd	NIL	1,25,000
Sridhi Infra Pvt. Ltd	NIL	1,49,052
Ms. Ridhi Suri	NIL	1,00,000
Loan Repayment
B.K.Narula (HUF)	2,50,000	1,50,000
Sukarma Finance Ltd	NIL	1,91,797
Sridhi Infra Pvt. Ltd	NIL	1,49,052
Ms. Ridhi Suri	NIL	1,00,000
Sales
B.K.Narula (HUF)	18,02,000	7,89439
Ms. Rita Narula	11,46,533	7,25,809
Ms. Ridhi Suri	5,93,982	NIL
Xtrems Retails Private Ltd	1,21,359	1,92,960
Sukarma Finance Ltd	NIL	85,128
Sridhi Infra Pvt. Ltd	NIL	6,75,948
Purchase
Sukarma Finance Ltd	NIL	2,39,983
Xtrems Retails Private Ltd	1,89,719	NIL
B.K.Narula (HUF)	NIL	4,20,865
Sridhi Infra Pvt. Ltd	NIL	21,80,027
Sale of Investment
Ms. Sidhi Narula	NIL	3,60,000

(B) The following transaction were carried out with related party in the ordinary course of business

25. Capital and other Commitment

There are no Capital and other commitment outstanding as at March 31, 2018.

Particulars	For the year ended March 31, 2018	For the year ended March 31, 2017
Number of share outstanding during the year	4,13,16,000	4,13,16,000
Net profit after tax available for equity Shareholder (rupees)	(3,13,612)	(28,00,200)
Basis/Diluted earning per equity share (in Rupees)	(0.01)	(0.07)

29. Employee Benefits Defined Benefits plan

(i) Gratuity

The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employee who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees'' last drawn basis salary per month computed proportionately for 15 days salary multiplied for the number of year of service. The scheme is unfunded.

The following table summarize the components of net benefit expense recognized in the Statement of Profit and Loss and the amount recognized in the balance sheet.

Particulars	Gratuity Benefits
	As at 31 March 2018	As at 31 March 2017
Total Expenses recognized in the Statement of profit & Loss	56,799/-	48,580/-
Actual contribution and benefit payments for year
Actual benefit payments	-	-
Actual contributions	-	-
Other comprehensive (income)/-expenses	(20,683/-)	(2,026/0
Net Asset / (liability) recognized in the Balance Sheet (opening)	(2,34,475/-)	(1,87,921/0
Present value of defined benefit obligation	-	-
Fair value of plan assets	-	-
Funded status [surplus /(Deficit)]	-	-
Unrecognized past service costs	-	-
Net assets / (liability) recognized in the Balance Sheet	(2,70,591/-)	(2,34,475/-)

26. Remuneration to Director	Current Year	Previous Year
	5,40,012/-	5,40,012/-
27. Amount Paid to Auditors	Current Year	Previous Year
(a) As Audit Fees	50.000/-	41.500/-
(b) For other service	15.000/-	15.000/-

28. Earning per Share

Actuarial assumption used

Particulars	As at 31 March 2018	As at 31 March 2017
Discount rate	7.75%	6.85%
Salary Growth rate	7.00%	7.00%
Mortality	IALM 2006-08 Ultimate	IALM 2006-08 Ultimate
Expected rate of return	0	0
Withdrawal rate (Per Annum)	5.00%	5.00%

30. Based on the information available with the management, there are no outstanding dues to Micro, Small and medium Enterprises as per Micro, Small and Medium Enterprise Development Act, 2006 as at year end (previous year - Nil)

31. The company has identified Fixed assets amounting Rs. 10.47 Lacs as held for sale and therefore it has been discarded from Fixed Assets as its book value or net realizable value, whichever is lower. Since, these assets comprise of books, the fair market value thereof as at balance sheet date is not determinable in the absence of comparable price quote. The company is in process of identification of buyer for such assets and has not received any offer so far. The management is of the view that these books will fetch the value on disposal at it which it is carried.

32. The company does not have any exposure in respect of foreign currency denominated assets and liabilities (not hedged by derivative instruments) as at 31 March 2018.

33. Balance of trade receivable, Trade Payable and Loans and Advances are subject to independent confirmation and reconciliation.

34. Keeping in view the prudence and absence of virtual certainty of future taxable income, the deferred tax assets on unabsorbed business losses and depreciation has not been created as on the reporting date.

35. Previous year figures have been taken from financial statement audited and opined by previous statutory auditors.

36. Financial instruments

i) Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Financial assets and liabilities measured at fair value - recurring fair value measurements

Rs. in lacs

Particulars	Level 1	Level 2	Level 3	Total
As at 31 March 2018
Financial assets
Investments at fair value through OCI
Equity Instruments	-	-	26.55	26.55
Total	-	-	26.55	26.55
As at 31 March 2017 through OCI
Financial assets
Investments at fair value
Equity Instruments	-	-	26.55	26.55
Total	-	-	26.55	26.55
As at 31 March 2016 through OCI
Financial assets
Investments at fair value
Equity Instruments	-	-	31.87	31.87
Total			31.87	31.87

37. Financial risk management

i) Financial instruments by category

Particulars	31 March 2018		31 March 2017		1 April 2016
	FVTPL	Amortized Cost	FVTPL	Amortized Cost	FVTPL	Amortized Cost
Financial assets
Trade receivable	-	16.97	-	6.50	-	6.49
Cash and Cash Equivalents	-	2.04	-	1.40	-	8.01
Other Bank Balance	-	2.30	-	3.24	-	6.31
Other Financial assets	-	3.27	-	0.01	-	-
Other current assets	-	27.28	-	25.37	-	35.44
Total	-	S1.86	-	36.S2	-	S6.2S
Financial Liabilities
Borrowings	-	9.68	-	21.62	-	32.38
Trade payables	-	0.68	-	25.82	-	2.26
Other financial liabilities	-	-	-	-	-	0.11
Other current liabilities	-	0.88	-	3.22	-	4.67
Total	-	11.24	-	61.90	-	39.42

(a) The carrying value of trade receivables, cash and cash equivalents, other bank balances, other financial and other current assets recorded at amortized cost, is considered to be a reasonable approximation of fair value.

(b) The carrying value of borrowings, trade payables and other financial liabilities and other current liabilities recorded at amortized cost is considered to be a reasonable approximation of fair value.

ii) Risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

The Company''s risk management is carried out by finance department of the Company under policies approved by the Board of Directors. The Board of Directors provide written principles for overall risk management, as well as policies covering specific areas, such as credit risk, liquidity risk and interest rate.

(A) Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents, deposits with banks and financial institutions, security deposits, loans given and principally from credit exposures to customers relating to outstanding receivables. The Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date.

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls.

In respect of trade and other receivables, the Company is not exposed to any significant credit risk. The Company has very limited history of customer default and considers the credit quality of trade receivables that are not past due or impaired to be good.

The credit risk for cash and cash equivalents, bank deposits and loans is considered negligible, since the counterparties are reputable organisations with high quality external credit ratings.

The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature, though incurred loss provisions are disclosed under each sub-category of such financial assets.

Details of trade receivables that are past due is given below:

Particulars	As at 31st March 2018	As at 31st March 2017	As at 1st April 2016
Not Due	NIL	NIL	NIL
0-30 days past due	13,25,000	NIL	20,506
31-60 days past due	10,000	NIL	NIL
61-90 days past due	NIL	NIL	2,00,000
More than 90 days past due	362039	6,50,002	4,28,012
TOTAL	16,97,039	6,50,002	6,48,518

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Contractual maturities of financial liabilities

The tables below analysis the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant.

Rs. in lacs

31 March 2018	Payable on demand	Less than 1 Year	1-2 year	2-3 year	More than 3 years	Total
Non-Derivatives
Borrowings	-	9.68	-	-	-	9.68
Trade Payable		0.68	-			0.68
Other current Liabilities		0.88	-			0.88
Total	-	11.24	-	-	-	11.24

Rs. in lacs

31 March 2017	Payable on demand	Less than 1 Year	1-2 year	2-3 year	More than 3 years	Total
Non-Derivatives
Borrowings		11.95	9.67			21.62
Trade Payable		25.82	-			25.82
Other Financial Liabilities		3.21	-			3.21
Total	-	40.98	9.67	-	-	50.65

1 April 2016	Payable on demand	Less than 1 Year	1-2 year	2-3 year	More than 3 years	Total
Non-Derivatives
Borrowings		10.76	9.67	11.95		32.38
Trade Payable		2.26	-			2.26
Other Financial Liabilities		4.78	-			4.78
Total	-	17.80	9.67	11.95	-	39.42

(C) Interest rate risk

The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. As at 31 March 2018, the Company'' s exposure to long term borrowing is limited to current maturity of long term loan of Rs. 9.68 lacs only.

38. Capital Management

The Company''s capital management objectives are

To ensure the Company''s ability to continue as a going concern To provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.

39.First-Time-Adoption of Ind AS

These are the Company''s first financial statement prepared in accordance with Ind AS.

The company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April, 2017, with a transition date of 1st April, 2016. Ind AS 101-First-time Adoption of Indian Accounting Standards requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended 31st March, 2017 for the company be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below. The resulting difference in the carrying values of the assets and liabilities as at the transition date between the Ind AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity).

Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Exemption and exceptions availed

Set out below are the applicable Ind AS 101 optional exemption and mandatory exception applied in the transition from previous GAAP to Ind AS

1. Ind AS optional exemption

(a) Deemed Cost for property, plant and equipment

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the Previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the Company has elected to measure all of its property, plant and equipment at their Previous GAAP carrying value.

2. Ind As mandatory exceptions

fa) 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 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

fb) Classification and measurement of financial assets

The classification and measurement of financial assets will be made considering whether the condition 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 assets. The measurement exemption applies for financial liabilities as well.

Applying a requirement is impracticable when the entity cannot apply if after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:

a) The effects of the retrospective application are not determinable;

b) The retrospective application requires assumptions about what management''s intent would have been in that period;

c) The retrospective application requires significant estimates of amount and it is impossible to distinguish objectively information about those estimates that exited at that time.

(c) De-recognition of financial assets and liabilities

Ind As 101 require first-time adopter to apply the de-recognition provision of Ind AS 109 Prospectively for transaction occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirement in Ind AS 109 retrospectively from a date of the entity''s choice, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transaction was obtained at the time of initially accounting for those transactions.

The company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

(B) Reconciliation between Previous GAAP and Ind AS

Ind AS 101, First-Time adoption of Indian Accounting Standard, require an entity to reconcile equity, total comprehensive income and cash flow for prior period. The following tables represent the reconciliation from previous GAAP to Ind AS.

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Mar 31, 2017

20. BACKGROUND

Orosil Smiths India Limited was incorporated in June 01, 1994 as per Companies Act, 1956, The Company operating in Gems and Jewellery sector.

Operational Outlook

During the Financial year ended March 31, 2017 the Company had a total income of Rs 18,011,022 (March 31, 2016 Rs 32,325,339) along with Loss after Tax of 2,800,200 (March 31, 2016Rs 2,540,968). As at March 31, 2017 the Company''s accumulated losses is Rs 13,936,572.

Share Holders having more than 5% shares of the Company has committed to provide continued operational and financial support to the Company. Accordingly, the accompanying financial statements have been prepared on a going concern basis.

21. SIGNIFICANT ACCOUNTING POLICIES

21.1 Basis of preparation of financial statements

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (GAAP) under the historical cost convention on accrual basis, except for certain tangible assets which are being carried at revalued amounts. These financial statements have been prepared to comply in all material aspects with the accounting standards specified under Section 133 of the Companies Act, 2013 (the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Companies Act, 2013.

The accounting policies adopted in the preparation of these financial statements are consistent with those applied in previous year.

21.2 Tangible Assets

Tangible assets are stated at cost (or revalued amounts, as the case may be), net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises purchase price and any other attributable cost of bringing the asset to its working condition for its intended use.

The cost of fixed assets not ready for their intended use is recorded as capital work-in-progress before such date. Cost of construction that relate directly to specific fixed assets and that are attributable to construction activity in general and can be allocated to specific fixed assets are included in capital work-in-progress.

Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Gains or losses arising from disposal of assets are measured as the differences between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the asset is disposed off.

Depreciation is provided on a pro-rata basis on Written Down Value Method (WDV) using the rates arrived based on the useful lives of assets specified in Part C of Schedule II thereto of the Companies Act, 2013

21.3 Leases

Where the Company is the lessee

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Los s on a straight-line basis over the period of the lease.

21.4 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenues from services are recognized as per the contractual arrangement.

21.5Other Income

Interest Income:

Interest Income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

21.6 Employee benefits

Provident Fund: Contribution towards provident fund for certain employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.

Gratuity liability is a defined benefit obligation and is provided on the basis of an actuarial valuation on projected unit credit method. The Company recognizes the actuarial gains and losses in the Statement of profit & loss in the period in which they arise.

Liability for leave encashment is provided on the basis of an actuarial valuation on projected unit credit method. The Company recognizes the actuarial gains and losses in the Statement of profit & loss in the period in which they arise.

21.7Current and deferred taxes

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions. Deferred tax is recognized for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the Company re-assesses unrecognized deferred tax assets, if any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws

Minimum Alternative Tax credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

21.8Provisions and contingencies

Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle o r are liable estimate of the amount cannot be made.

21.9Earnings Per Share

In determining the Earnings Per Share (EPS), the Company considers the net profit after tax and includes the post tax effect of any extraordinary / exceptional item. In absence of any dilutive effect of equity shares, the basic and diluted EPS are calculated on the same basis. The number of shares used in computing basic and diluted earnings per shares, the weighted average number of equity shares outstanding during the year is used.

21.10Segment Information

The Company operates under single reportable segment and hence requirement of Accounting Standard-17 “Segment Reporting” specified under Section 211 (3C) of the Act is not applicable.

22. RELATED PARTY DISCLOSURES (A)List of Related Parties and Relationship Associates

Sukarma Finance Ltd

Priy Corporate and Fiscal Advisors limited (Formerly Known as Corporate Research & Intelligence Services Ltd.)

Key Management Personnel

Mr. B. K. Narula , Director

Mrs. Rita Narula, Director

Mrs. Bhavana Sampath Kumar , Director

Mr. Vineet Aggarwal, Director

Mr. Karan Suri

Mrs Kanchan Gupta, Company Secretary

Mr s. Rakhi Ahuja, Company Secretary(Resigned on 27.04.2017)

Mr. Sanjay Bana, CFO

Relatives of Key Management Personnel

Mr. C L Narula Ms. Sidhi Narula

Entities over which Key Management Personnel are able to exercise significant influence

B. K. Narula (HUF)

Xtrems Retails Ltd.

BKN Educational Society Sridhi Infra Pvt. Ltd.

Veritas Medical Private Limited

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Mar 31, 2015

I. BACKGROUND

Orosil Smiths India Limited was incorporated in June 01, 1994 as per Companies Act, 1956, The Company operating in Gems and Jewellery sector.

Operational Outlook

During the Financial year ended March 31, 2015 the Company had a total income of Rs 37,205,116 (March 31, 2014 Rs 50,115,659) along with Loss after Tax of 2,766,710 (March 31, 2014 Rs 1,086,761). As at March 31, 2015 the Company's accumulated losses is Rs 8,595,404.

Share Holders having more than 5% shares of the Company has committed to provide continued operational and financial support to the Company. Accordingly, the accompanying financial statements have been prepared on a going concern basis.

1.1 Basis of preparation of financial statements

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (GAAP) under the historical cost convention on accrual basis, except for certain tangible assets which are being carried at revalued amounts. These financial statements haye been prepared to comply in all material aspects with the accounting standards specified under Section 133 of the Companies Act, 2013 (the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Companies Act, 2013.

The accounting policies adopted in the preparation of these financial statements are consistent with those applied in previous year.

1.2 Tangible Assets

Tangible assets are stated at cost (or revalued amounts, as the case may be), net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises purchase price and any other attributable cost of bringing the asset to its working condition for its intended use.

The cost of fixed assets not ready for their intended use is recorded as capital work-in-progress before such date. Cost of construction that relate directly to specific fixed assets and that are attributable to construction activity in general and can be allocated to specific fixed assets are included in capital work-in-progress.

Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Gains or losses arising from disposal of assets are measured as the differences between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the asset is disposed off.

Depreciation is provided on a pro-rata basis on Written Down Value Method (WDV) using the rates arrived based on the useful lives of assets specified in Part C of Schedule II thereto of the Companies Act, 2013.

1.3 Leases

Where the Company is the lessee

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease.

1.4 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenues from services are recognized as per the contractual arrangement.

1.5 Other Income

Interest Income:

Interest Income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

1.6 Employee benefits

Provident Fund: Contribution towards provident fund for certain employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.

Gratuity liability is a defined benefit obligation and is provided on the basis of an actuarial valuation on projected unit credit method. The Company recognizes the actuarial gains and losses in the Statement of profit & loss in the period in which they arise. ,

Liability for leave encashment is provided on the basis of an actuarial valuation on projected unit credit method. The Company recognizes the actuarial gains and losses in the Statement of profit & loss in the period in which they arise.

1.7 Current and deferred taxes

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions. Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the Company re-assesses unrecognized deferred tax assets, if any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws

Minimum Alternative Tax credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

1.8 Provisions and contingencies

Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

1.9 Earnings Per Share

In determining the Earnings Per Share (EPS), the Company considers the net profit after tax and includes the post tax effect of any extraordinary / exceptional item. In absence of any dilutive effect of equity shares, the basic and diluted EPS are calculated on the same basis. The number of shares used in computing basic and diluted earnings per shares, the weighted average number of equity shares outstanding during the year is used.

1.10 Segment Information

The Company operates under single reportable segment and hence requirement of Accounting Standard-17 "Segment Reporting" specified under Section 211 (3C) of the Act is not applicable.

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Mar 31, 2014

Not Available.

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Mar 31, 2012

(1) Basis of preparation of financial statements: -

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting in accordance with the Generally Accepted Accounting Principles (GAAP) in India and comply with the mandatory accounting standards as notified under the Companies (Accounting Standards) Rules, 2006, to the extent applicable and in accordance with the provisions of the Companies Act, 1956, as adopted consistently by the Company.

(2) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

(3) Revenue Recognition: -

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Goods

Revenue from Sale of Goods is recognized when the significant risk and reward of ownership of goods are transferred to the customer and is stated net of sales tax and sales return.

Interest

Revenue is recognized on accrual basis.

Dividend

Revenue is recognized when the payment is received.

(4) Fixed Assets: - Tangible Assests

Fixed Assets are stated at the original cost inclusive of inward freight, incidental expenses related to acquisition and related pre-operational expenses.

INTangible Assests

Intangible Assests are stated at cost of acquisitions net of accumulated amortization/ depletion . All costs, including financing cost till commencement of commercial productionattributable to the intangible assets are capitalized.

5) Depreciation: - Depreciation has been provided on Written Down Value method at the rates

prescribed in Schedule XIV to the Companies Act, 1956. All assets costing Rs.5000 or below are depreciated in full by way of a one time depreciation charge. However no depreciation has been provided on Master Pieces of Gold and Silver, Library Books and Props. The Company's has not provided depreciation on the Web Portal - Jewelry YTT, as it was not in operation during the year. The Company will provide the depreciation on the Web Portal - Jewelry YTT, as and when it becomes operational.

Leasehold Improvements are amortized over the period of Lease.

(6) Inventories: - Method of Valuation

(a) Raw Material - at cost

(b) Finished Goods - at lower of cost or estimated realizable value.

(7) Provision for Income Tax: -

Provision for taxation has been ascertained as per the applicable provisions of the Income Tax Act, 1961.

(8) Deferred Taxation: -

Deferred tax is recognized, subject to the consideration of prudence on timing differences, being the difference between taxable Incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

(9) Borrowing Costs

Borrowing costs that are attributable to the acquisition of assets are capitalized as part of the cost of such Assets. All other borrowing costs are recognized as an expense in the period in which they are incurred.

(10) Investments

Investments are classified into Current and Long Term investments. Current investments are stated at lower of cost and fair value. Long term Investments are stated at cost.

(11) Retirement Benefits

Employees' benefits of short term nature are recognized as expenses as and when it accrues. Long term employee benefits (e.g. long-service leave) and post employment benefits (e.g. Gratuity) are recognized as expenses based on actuarial valuation at the end which takes into account actuarial gains and losses.

(12) Impairment of Assets: -

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting period is reversed if there has been change in the estimate of the recoverable amount.

(13) Foreign Exchange Transactions:-

Transaction denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transactions or that approximate the actual rate at the date of transactions.

Monetary items denominated in foreign currencies at the year end are restated at year end rates. 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 recognized in the profit and loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

(14) Provisions, Contigent Liabilities and Contigent Assets

Provisions involving sunstantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is possible that there will be an outflow of resources. Contigent Liabilities are not recognized but are disclosed in notes. Contignent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

(1) Basis of preparation of financial statements: -

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting in accordance with the Generally Accepted Accounting Principles (GAAP) in India and comply with the mandatory accounting standards as notified under the Companies (Accounting Standards) Rules, 2006, to the extent applicable and in accordance with the provisions of the Companies Act, 1956, as adopted consistently by the Company.

(2) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates.

(3) Revenue Recognition: -

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Goods

Revenue from Sale of Goods is recognized when the significant risk and reward of ownership of goods are transferred to the customer and is stated net of sales tax and sales return.

Training and Education Income

Revenue in respect of Training and Education is recognized on rendering of services, only when it is reasonably certain that the ultimate collection will be made.

Interest

Revenue is recognized on accrual basis.

Dividend

Revenue is recognized when the payment is received.

(4) Fixed Assets: -

Fixed Assets are stated at the original cost inclusive of inward freight, incidental expenses related to acquisition and related pre-operational expenses.

5) Depreciation: - Depreciation has been provided on Written Down Value method at the rates prescribed in Schedule XIV to the Companies Act, 1956. All assets costing Rs.5000 or below are depreciated in full by way of a one time depreciation charge. However no depreciation has been provided on Master Pieces of Gold and Silver, Library Books and Props. The Companys has not provided depreciation on the Web

Portal-Jewellery YTT, as it was not in operation during the year. The Company will provide the depreciation on the Web Portal - Jewellery YTT, as and when it becomes operational.

Leasehold Improvements are amortized over the period of Lease.

(6) Inventories: - Method of Valuation

(a) Raw Material - at cost

(b) Finished Goods - at lower of cost or estimated realizable value.

(7) Provision for Income Tax: -

Provision for taxation has been ascertained as per the applicable provisions of the Income Tax Act, 1961.

(8) Provision for Fringe Benefit Tax

Provision for Fringe Benefit Tax has been ascertained as per the applicable provisions of the Income Tax Act, 1961.

(9) Deferred Taxation: -

Deferred tax is recognized, subject to the consideration of prudence on timing differences, being the difference between taxable Incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent, years

(10) Borrowing Costs

Borrowing costs that are attributable to the acquisition of assets are capitalized as part of the cost of such Assets. All they other borrowing costs are recognized as an expense in the period in which are incurred.

(11) Investments

Investments are classified into Current and Long Term investments. Current investments are stated at lower of cost and fair value. Long term Investments are stated at cost. A Provision for diminution is made to recognize a decline, other than the temporary, in the value of Long-term Investments.

(12) Retirement Benefits

Employees benefits of short term nature are recognized as expenses as and when it accrues. Long term employee benefits (e.g. long-service leave) and post employment benefits (e.g. Gratuity) are recognized as expenses based on actuarial valuation at the end which takes into account actuarial gains and losses.

(13) Impairment of Assets:-

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting period is reversed if there has been change in the estimate of the recoverable amount.