Accounting Policies of Alka Diamond Industries Ltd. Company

Mar 31, 2015

1. Corporate Information :-

ALKA DIAMOND INDUSTRIES LIMITED (The Company) was incorporated under the provision of Companies Act 1956 on 28th day of September 1989

2. Basis of Preparation of Financial Statement:-

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the relevant provisions of the Companies Act 2013.

The financial statements are prepared on accrual basis and under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the nearest rupees.

2. Use of Estimates:

The preparation of financial statements are in conformity with generally accepted accounting principles requires estimates and assumption to be made that effect the reported amount of assets and liabilities on the date of the financial Statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimated are recognized in the period in which the results are materialized.

3. Revenue Recognition:-

The company follows the accrual basis of accounting except in the following cases, where the same are recorded on the basis of realization or ascertainment of rights and obligations

a. Insurance claims

b. Payment of bonus and leave salary

c. Gratuity

4. Fixed Assets

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use

5. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value (W.D.V.) Method in accordance with the Schedule XIV of the Companies Act, 1956.

6. Inventories:

This is not applicable for your company.

7. Impairment of fixed Assets

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indication that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets". Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made for the difference.

8. INVESTMENTS

Investments are stated at cost of acquisition.

9. Prior Period Items:

Material amount of Income and expenditure pertaining to prior years are disclosed separately.

10. Contingencies and events occurring after the date of Balance Sheet: - NIL

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Mar 31, 2014

1. Basis of Accounting :-

The Financial statements are prepared under the historical cost convention on accrual basis except Electricity, Telephone Expenses and Maintenance Expenses.

2. Fixed Assets:-

All fixed assets are valued at cost less Depreciation.

3. Depreciation:-

Depreciation on Fixed Assets is provided on Written Down Value (W.D.V.) Method in accordance with the Schedule XIV of the Companies Act, 1956.

4. Inventories:-

a) Rough Diamonds : - Valued at Cost or Market Price whichever is Lower.

b) Polished Diamonds : - Valued at Cost or Market Price whichever is Lower.

c) Rough Diamonds Rejection: - Valued at Market Price.

d) Gold and Jewellery : - Valued at Cost or Market Price whichever is Lower.

5. Foreign Currency Transactions: -

a) Transaction in Foreign Currencies is normally recorded at the exchange rate prevailing at the time of transaction.

b) Realized gains or losses on Foreign Exchange transaction are recorded in the Profit & Loss Account at the time of actual realization of gains or losses.

6. Revenue Recognition:-

In appropriate circumstance, revenue is recognized when no significant uncertainty as to determination or realization exists.

7. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

8. Contingencies and events occurring after the date of Balance Sheet: - NIL

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Mar 31, 2013

1. Basis of Accounting:-

The Financial statements are prepared under the historical cost convention on accrual basis except Electricity, Telephone Expenses and Maintenance Expenses.

2. Fixed Assets:-

All fixed assets are valued at cost less Depreciation.

3. Depreciation:-

Depreciation on Fixed Assets is provided on Written Down Value (W.D.V.) Method in accordance with the Schedule XIV of the Companies Act, 1956.

4. Revenue Recognition: -

In appropriate circumstance, revenue is recognized when no significant uncertainty as to determination or realization exists.

5. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

6. Contingencies and events occurring after the date of Balance Sheet: - NIL

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Mar 31, 2012

1. Basis of Accounting:-

The Financial statements are prepared under the historical cost convention on accrual basis except Electricity, Telephone Expenses and Maintenance Expenses.

2. Fixed Assets:-

All fixed assets are valued at cost less Depreciation.

3. Depreciation:-

Depreciation on Fixed Assets is provided on Written Down Value (W.D.V.) Method in accordance with the Schedule XIV of the Companies Act, 1956.

4. Inventories:-

a) Rough Diamonds : - Valued at Cost or Market Price whichever is Lower.

b) Polished Diamonds : - Valued at Cost or Market Price whichever is Lower.

c) Rough Diamonds Rejection: - Valued at Market Price.

d) Gold and Jewellery : - Valued at Cost or Market Price whichever is Lower.

5. Foreign Currency Transactions: -

a) Transaction in Foreign Currencies is normally recorded at the exchange rate prevailing at the time of transaction.

b) Realized gains or losses on Foreign Exchange transaction are recorded in the Profit & Loss Account at the time of actual realization of gains or losses.

6. Revenue Recognition:-

In appropriate circumstance, revenue is recognized when no significant uncertainty as to determination or realization exists.

7. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

8. Contingencies and events occurring after the date of Balance Sheet: - NIL

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Mar 31, 2010

1. Basis of Accounting:-

The Financial statements are prepared under the historical cost convention on accrual basis except Electricity, Telephone Expenses and Maintenance Expenses.

2. Fixed Assets:-

All fixed assets are valued at cost less Depreciation.

3. Depreciation:-

Depreciation on Fixed Assets is provided on Written Down Value (W.D.V.) Method in accordance with the Schedule XIV of the Companies Act, 1956.

4. Inventories:- a) Rough Diamonds : - Valued at Cost or Market Price whichever is Lower.

b) Polished Diamonds : - Valued at Cost or Market Price whichever is Lower.

c) Rough Diamonds Rejection: - Valued at Market Price.

d) Gold and Jewellery : - Valued at Cost or Market Price whichever is Lower.

5. Foreign Currency Transactions: -

a) Transaction in Foreign Currencies is normally recorded at the exchange rate prevailing at the time of transaction.

b) Realized gains or losses on Foreign Exchange transaction are recorded in the Profit & Loss Account at the time of actual realization of gains or losses.

6. Revenue Recognition:-

In appropriate circumstance, revenue is recognized when no significant uncertainty as to determination or realization exists.

7. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

8. Contingencies and events occurring after the date of Balance Sheet: - NIL

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Mar 31, 2009

1. Basis of Accounting:-

The Financial statements are prepared under the historical cost convention on accrual basis except Electricity, Telephone Expenses and Maintenance Expenses.

2. Fixed Assets:-

All fixed assets are valued at cost less Depreciation.

3. Depreciation:-

Depreciation on Fixed Assets is provided on Written Down Value (W.D.V.) Method in accordance with the Schedule XIV of the Companies Act, 1956.

4. Inventories:-

a) Rough Diamonds : - Valued at Cost or Market Price whichever is Lower.

b) Polished Diamonds : - Valued at Cost or Market Price whichever is Lower.

c) Rough Diamonds Rejection : - Valued at Market Price.

d) Gold and Jewellery : - Valued at Cost or Market Price whichever is Lower.

5. Foreign Currency Transactions: -

a) Transaction in Foreign Currencies is normally recorded at the exchange rate prevailing at the time of transaction.

b) Realized gains or losses on Foreign Exchange transaction are recorded in the Profit & Loss Account at the time of actual realization of gains or losses.

6. Revenue Recognition:-

In appropriate circumstance, revenue is recognized when no significant uncertainty as to determination or realization exists.

7. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

8. Contingencies and events occurring after the date of Balance Sheet: - NIL