Mar 31, 2015
1) Basis of Preparation of Financial Statements
The Financial statements of the Company have been prepared on accrual
basis under the historical cost Convention, in accordance with
generally accepted accounting principles in India (Indian GAAP) to
comply with the accounting standards specified in Section 133 of the
Companies Act,2013 read with Rule 7 of the Companies (Accounts) Rules
2014 and relevant provisions of the Companies Act,2013.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to the
existing accounting standard or a more appropriate presentation of the
financial statements requires a change in the accounting policy
hitherto in use.
2) Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
3) Fixed Assets
(a) Tangible Assets:
Fixed assets are recorded at the cost of acquisition inclusive of
freight, duties, taxes and incidental expenses related to acquisition.
Expenditure incurred during construction period has been added to the
cost of assets. Application software bundled with hardware are
capitalized along with such hardware/computers/server.
(b) Leased Assets:
i. Assets taken on finance lease, including taken on hire purchase
arrangements, wherein the Company has an option to acquire the asset,
are accounted for as fixed assets in accordance with the Accounting
Standard 19 on "Leases", (AS 19).
ii. Assets taken on lease under which the lessor effectively retains
all the risk and rewards of ownership are classified as operating
lease. Lease payments under operating leases are recognized as expenses
on accrual basis in accordance with the respective lease agreement.
iii. The cost of improvements to lease properties are capitalized and
disclosed appropriately.
4) Impairment of Assets:
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
5) Depreciation / Amortisation
Depreciation on Fixed Assets is provided on WDV method over the useful
lives of the assets, as prescribed under Schedule II of the Companies
Act, 2013 with effect from 1st April, 2014. The expenditure incurred on
improvement to leasehold premises is written off evenly over the period
of the lease. Individual Assets costing below Rs. 5000/- each are fully
depreciated in the year of acquisition.
6) Investment
i) Long - term investments including investment in Subsidiaries are
stated at cost. Provision for diminution in the value of long-term
investments is made only if such a decline is other than temporary in
the opinion of the management.
ii) Current investments are carried individually, at lower of cost and
fair value.
Cost of investments include acquisition charges such as brokerage, fees
and duties.
7) Foreign Currency Transactions
Transactions in foreign currency are recorded at the rate in force on
the date of transactions.
Foreign currency assets, except investments and liabilities other than
for financing fixed assets are stated at the rate of exchange
prevailing at the date of the Balance Sheet and resultant gains/losses
are charged to the Statement of Profit and Loss.
Premium or discount arising at the inception of forward foreign
exchange contracts is amortized as expense or income over the life of
the contracts. Any profit or loss arising on cancellation or renewal of
such forward contract is recognized as income or expense for the
period.
Exchange differences arising on settlement or restatement of foreign
currency denominated liabilities relating to the acquisition of fixed
asset are recognized in the Statement of Profit and Loss.
8) Revenue Recognition
a) Revenue on sale of products is recognized as and when the products
are dispatched to customers or acknowledged by the customers. Sales are
stated net of returns and excluding sales tax.
b) Other revenue is recognized only when it is reasonably certain that
the ultimate collection will be made.
9) Inventories
Inventories of raw materials, finished goods, rejections, trading goods
and stores are valued as under: -
Raw Materiali Lower of cost and net realisable value
Rough Diamond Rejections At net realisable value
Trading Goods Lower of cost and net realisable value
Finished Goods - Polished
Diamonds Lower of cost and net realisable value
Work in progress -
Jewellery
: Lower of market value and material cost plus proportionate labour and
overheads.
Finished Goods - Jewellery
Lower of market value and material cost plus labour and overheads.
Finished Goods - Gold; Lower of cost and market value
Consumable Stores & Tools At cost
10) Employee Benefits
i. Defined Benefit Plan - Leave Salary:
The company has provided for liability towards leave salary based on
actuarial valuation. The Company's liability towards leave salary is
determined on the basis of year end actuarial valuations applying the
Projected Unit Credit Method done by an independent actuary. The
actuarial gains or losses determined by the actuary are recognized in
the Statement of Profit and Loss as income or expense.
ii. Defined Contribution Plans :
Contributions payable by the Company to the concerned Government
authorities in respect of Provident Fund, Family Pension Fund and
Employees State Insurance are charged to Statement of Profit & Loss.
iii. Defined Benefit Plan - Gratuity:
The Company's liability towards gratuity is determined on the basis
of year end actuarial valuations applying the Projected Unit Credit
Method done by an independent actuary. The actuarial gains or losses
determined by the actuary are recognized in the Statement of Profit and
Loss as income or expense.
11) Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying asset are capitalized as part of the cost of asset. A
qualifying asset is one that necessarily takes a substantial period of
time to get ready for its intended use or sale. All other borrowing
costs are recognized as an expense in the period in which they are
incurred.
12) Taxation
The Company is eligible for tax incentives under the Indian Taxation
Laws. These incentives presently include an exemption from payment of
normal Income Tax for operation in Special Economic Zones. Income from
operations in SEZ is subject to MAT. Such MAT is eligible for set off
as given hereunder. The management estimates the provisions for current
tax after considering such tax benefits.
Deferred tax is recognized, subject to prudence, on timing differences,
being the difference between the taxable income and the accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets are recognized for
unabsorbed depreciation and carry forward losses to the extent there is
virtual certainty that sufficient future taxable income will be
available against which deferred tax assets can be realized.
Minimum Alternate Tax (MAT) credit: MAT is recognised 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. In the year in
which the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in the Guidance Note
issued by the ICAI, the said asset is created by way of a credit to the
Statement of Profit and Loss and is shown as MAT Credit Entitlement.
The Company reviews the same at each Balance Sheet date and writes down
the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal
Income Tax during the specified period.
13) Earnings Per Share
Earnings per share (EPS) 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.
Dilutive EPS is calculated by dividing the net profit or loss for the
period attributable to equity shareholders, by the weighted average
number of equity shares considered for deriving the basic EPS and also
the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted at the beginning
of the year and not issued at a later date.
14) Segment Reporting
The Company is primarily engaged in the business of Diamond and
jewellery comprising of Diamond Studded Jewellery and Plain Gold
Jewellery. This represents a primary segment. The company operates in
India as well as abroad. The secondary segmental reporting is on the
basis of the geographical location of its customers.
15) Cash Flow Statement
Cash flows are reported using indirect methods as set out in Accounting
Standard (AS) - "Cash Flow Statement", whereby profit / (loss)
before extraordinary items and tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based
on the available information.
Cash and cash equivalents :
Cash comprises cash at bank and in hand and demand deposits with banks.
Cash equivalents are short term balances that are readily convertible
into known amounts of cash and which are subject to insignificant risk
of changes in value.
16) Provisions for Contingent Liabilities and Contingent Assets
Contingent liabilities are not provided for and are disclosed by way of
notes after careful evaluation by the management of the facts and legal
aspects of the matters involved. Contingent assets are neither
recognized nor disclosed in the financial statements.
Mar 31, 2014
1) Basis of Preparation of Financial Statements
The accounts have been prepared on accrual basis, in accordance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standards) Rules, 2006 and the provisions of the Companies
Act 1956, to the extent applicable read with general circular 15/2013
dated 13th September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act 2013, to the extent
applicable. Accounting policies have been consistently applied except
where a newly issued accounting standard is initially adopted or a
revision to the existing accounting standard or a more appropriate
presentation of the financial statements requires a change in the
accounting policy hitherto in use.
2) Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
3) Fixed Assets
(a) Tangible Assets:
Fixed assets are recorded at cost of acquisition inclusive of freight,
duties, taxes and incidental expenses related to acquisition.
Expenditure incurred during construction period has been added to the
cost of assets.
(b) Leased Assets:
i. Assets taken on finance lease, including taken on hire purchase
arrangements, wherein the Company has an option to acquire the asset,
are accounted for as fixed assets in accordance with the Accounting
Standard 19 on "Leases", (AS 19).
ii. Assets taken on lease under which the lessor effectively retains
all the risk and rewards of ownership are classifed as operating lease.
Lease payments under operating leases are recognized as expenses on
accrual basis in accordance with the respective lease agreement.
iii. The cost of improvements to lease properties are capitalized and
disclosed appropriately.
4) Impairment of Assets:
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of profit and Loss in the year in which an asset is identified
as impaired. The impairment loss recognized in prior accounting periods
is reversed if there has been a change in the estimate of recoverable
amount.
5) Depreciation / Amortisation
Depreciation is charged on the fixed assets under the written down value
method in accordance with the provisions of Schedule XIV to the
Companies Act, 1956. The expenditure incurred on improvement of assets
acquired on lease is written off evenly over the period of the lease.
6) Investment
Long  term investments including investment in Subsidiaries are stated
at cost. Provision for diminution in the value of long-term investments
is made only if such a decline is other than temporary in the opinion
of the management.
7) Foreign Currency Transactions
Transactions in foreign currency are recorded at the rate in force on
the date of transactions.
Foreign currency assets, except investments and liabilities other than
for fnancing fixed assets are stated at the rate of exchange prevailing
at the date of the Balance Sheet and resultant gains/losses are charged
to the Statement of profit and Loss.
Premium or discount arising at the inception of forward foreign
exchange contracts is amortized as expense or income over the life of
the contracts. Any profit or loss arising on cancellation or renewal of
such forward contract is recognized as income or expense for the
period.
Exchange differences arising on settlement or restatement of foreign
currency denominated liabilities relating to the acquisition of fixed
asset are recognized in the Statement of profit and Loss.
8) Revenue Recognition
a) Revenue on sale of products is recognized as and when the products
are dispatched to customers or acknowledged by the customers. Sales are
stated net of returns and excluding sales tax.
b) Other revenue is recognized only when it is reasonably certain that
the ultimate collection will be made.
9) Inventories
Inventories of raw materials, fnished goods, rejections, trading goods
and stores are valued as under: -
Raw Material Lower of cost and net realisable value
Rough Diamond Rejections At net realisable value
Trading Goods Lower of cost and net realisable value
Finished GoodsÂPolished Diamonds Lower of cost and net realisable value
Work in progress  Jewellery Lower of market value and material cost
plus proportionate labour and overheads.
Finished Goods  Jewellery Lower of market value and material cost
plus labour and overheads.
Finished Goods  Gold Lower of cost and market value
Consumable Stores & Tools At cost
10) Employee benefits
i. Defined benefit Plan  Leave Salary:
The company has provided for liability towards leave salary based on
actuarial valuation. The Company''s liability towards leave salary is
determined on the basis of year end actuarial valuations applying the
Projected Unit Credit Method done by an independent actuary. The
actuarial gains or losses determined by the actuary are recognized in
the Statement of profit and Loss as income or expense. ii. Defined
Contribution Plans :
Contributions payable by the Company to the concerned Government
authorities in respect of Provident Fund, Family Pension Fund and
Employees State Insurance are charged to Statement of profit & Loss.
iii. Defined benefit Plan  Gratuity:
The Company''s liability towards gratuity is determined on the basis of
year end actuarial valuations applying the Projected Unit Credit Method
done by an independent actuary. The actuarial gains or losses
determined by the actuary are recognized in the Statement of profit and
Loss as income or expense.
11) Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying asset are capitalized as part of the cost of asset. A
qualifying asset is one that necessarily takes a substantial period of
time to get ready for its intended use or sale. All other borrowing
costs are recognized as an expense in the period in which they are
incurred.
12) Taxation
The Company is eligible for tax incentives under the Indian Taxation
Laws. These incentives presently include an exemption from payment of
normal Income Tax for operation in Special Economic Zones. Income from
operations in SEZ is subject to MAT. Such MAT is eligible for set off
as given hereunder. The management estimates the provisions for current
tax after considering such tax benefits.
Deferred tax is recognized, subject to prudence, on timing differences,
being the difference between the taxable income and the accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets are recognized for
unabsorbed depreciation and carry forward losses to the extent there is
virtual certainty that suffcient future taxable income will be
available against which deferred tax assets can be realized.
Minimum Alternate Tax (MAT) credit: MAT is recognised 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. In the year in
which the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in the Guidance Note
issued by the ICAI, the said asset is created by way of a credit to the
Statement of profit and Loss and is shown as MAT Credit Entitlement. The
Company reviews the same at each Balance Sheet date and writes down the
carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal
Income Tax during the specified period.
13) Earnings Per Share
Earnings per share (EPS) 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.
Dilutive EPS is calculated by dividing the net profit or loss for the
period attributable to equity shareholders, by the weighted average
number of equity shares considered for deriving the basic EPS and also
the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted at the beginning
of the year and not issued at a later date.
14) Provisions for Contingent Liabilities and Contingent Assets
Contingent liabilities are not provided for and are disclosed by way of
notes after careful evaluation by the management of the facts and legal
aspects of the matters involved. Contingent assets are neither
recognized nor disclosed in the financial statements.
d. Rights, Preferences and Restriction of Share holders
The company has only one class of Equity shares having par value of Rs.
10/-. The equity share have rights, Preferences and restrictions which
are in accordance with the provision of law, in particular the
Companies Act 1956.
f. Particulars of shares issued for consideration other than cash,
shares bought back and bonus shares in last five years :
i) Company bought back 792,883 Equity shares in Financial year 2009-10;
ii) Issue of bonus shares ÂNIL.
g. There are no shares reserved for issuing under options, contracts /
commitments for sale of shares / disinvestments h. Particulars of
calls in arrears by directors and officers of the company. Â NIL
i. Security convertible into equity shares : During FY 2012-13, the
Company has issued 1 (one) Zero percent Fully Convertible Debentures
(FCDs) having face value of Rs. 39,00,00,000/- (Rupees Thirty Nine Crore
Only) on a preferential basis to D.B Corp Limited. The said FCD will be
compulsorily convertible into such number of equity shares with face
value of Rs. 10/- each at the end of 18 months from the date of allotment
at a price determined as per SEBI (ICDR) Regulations, 2009(i.e. 4th
June 2014).
Except this during the year, the company has not issued any security
which are to be converted in to equity shares.
Mar 31, 2013
A. Basis of Preparation of Financial Statements
The accounts have been prepared on accrual basis, in accordance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standards) Rules, 2006 and the provisions of the Companies
Act 1956, to the extent applicable. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to the existing accounting standard or
a more appropriate presentation of the financial statements requires a
change in the accounting policy hitherto in use.
b. Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
c. Fixed Assets
(1) Tangible Assets:
Fixed assets are recorded at cost of acquisition inclusive of freight,
duties, taxes and incidental expenses related to acquisition.
Expenditure incurred during construction period has been added to the
cost of assets.
(2) Leased Assets:
i. Assets taken on finance lease, including taken on hire purchase
arrangements, wherein the Company has an option to acquire the asset,
are accounted for as fixed assets in accordance with the Accounting
Standard 19 on "Leases", (AS 19).
ii. Assets taken on lease under which the lessor effectively retains
all the risk and rewards of ownership are classified as operating
lease. Lease payments under operating leases are recognized as expenses
on accrual basis in accordance with the respective lease agreement.
iii. The cost of improvements to lease properties are capitalized and
disclosed appropriately.
(3) Impairment of Fixed Assets:
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
d. Depreciation / Amortisation
Depreciation is charged on the fixed assets under the written down
value method in accordance with the provisions of Schedule XIV to the
Companies Act, 1956. The expenditure incurred on improvement of assets
acquired on lease is written off evenly over the period of the lease.
e. Investment
Long - term investments including investment in Subsidiaries are stated
at cost. Provision for diminution in the value of long-term investments
is made only if such a decline is other than temporary in the opinion
of the management.
f. Foreign Currency Transactions
Transactions in foreign currency are recorded at the rate in force on
the date of transactions.
Foreign currency assets, except investments and liabilities other than
for financing fixed assets are stated at the rate of exchange
prevailing at the date of the Balance Sheet and resultant gains/losses
are charged to the Statement of Profit and Loss.
Premium or discount arising at the inception of forward foreign
exchange contracts is amortized as expense or income over the life of
the contracts. Any profit or loss arising on cancellation or renewal of
such forward contract is recognized as income or expense for the
period.
Exchange differences arising on settlement or restatement of foreign
currency denominated liabilities relating to the acquisition of fixed
asset are recognized in the Statement of Profit and Loss.
g. Revenue Recognition
1) Revenue on sale of products is recognized as and when the products
are dispatched to customers or acknowledged by the customers. Sales are
stated net of returns and excluding sales tax.
2) Other revenue is recognized only when it is reasonably certain that
the ultimate collection will be made
h. Inventories
Inventories of raw materials, finished goods, rejections, trading goods
and stores are valued as under: -
Raw Material Lower of cost and net realisable value
Rough Diamond Rejections At net realisable value
Trading Goods Lower of cost and net realisable value
Finished Goods - Polished Diamonds Lower of cost and net realisable
value
Work in progress - Jewellery Lower of market value and material cost
plus proportionate labour and overheads.
Finished Goods - Jewellery Lower of market value and material cost plus
labour and overheads.
Finished Goods - Gold Lower of cost and market value
Consumable Stores & Tools At cost
i. Employee Benefits
1) Defined Benefit Plan - Leave Salary:
The company has with effect from current year provided for liability
towards leave salary based on actuarial valuation. The Company was
accounting for leave salary on payment basis as per the policy of the
company in the previous year. The Company''s liability towards leave
salary is determined on the basis of year end actuarial valuations
applying the Projected Unit Credit Method done by an independent
actuary. The actuarial gains or losses determined by the actuary are
recognized in the Statement of Profit and Loss as income or expense.
2) Defined Contribution Plans :
Contributions payable by the Company to the concerned Government
authorities in respect of Provident Fund, Family Pension Fund and
Employees State Insurance are charged to Statement of Profit & Loss.
3) Defined Benefit Plan - Gratuity:
The Company''s liability towards gratuity is determined on the basis
of year end actuarial valuations applying the Projected Unit Credit
Method done by an independent actuary. The actuarial gains or losses
determined by the actuary are recognized in the Statement of Profit and
Loss as income or expense. j. Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying asset are capitalized as part of the cost of asset. A
qualifying asset is one that necessary takes a substantial period of
time to get ready for its intended use or sale. All other borrowing
costs are recognized as an expense in the period in which they are
incurred. k. Taxation
The Company is eligible for tax incentives under the Indian Taxation
Laws. These incentives presently includes an exemption from payment of
normal Income Tax for operation in Special Economic Zones. Income from
operations in SEZ is subject to MAT. Such MAT is eligible for set off
as given hereunder. The management estimates the provisions for current
tax after considering such tax benefits.
Deferred tax is recognized, subject to prudence, on timing differences,
being the difference between the taxable income and the accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets are recognized for
unabsorbed depreciation and carry forward losses to the extent there is
virtual certainty that sufficient future taxable income will be
available against which deferred tax assets can be realized.
Minimum Alternate Tax (MAT) credit: MAT is recognised 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. In the year in
which the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in the Guidance Note
issued by the ICAI, the said asset is created by way of a credit to the
Statement of Profit and Loss and is shown as MAT Credit Entitlement.
The Company reviews the same at each Balance Sheet date and writes down
the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal
Income Tax during the specified period.
l. Earnings Per Share
Earnings per share (EPS) 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.
Dilutive EPS is calculated by dividing the net profit or loss for the
period attributable to equity shareholders, by the weighted average
number of equity shares considered for deriving the basic EPS and also
the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted at the beginning
of the year and not issued at a later date.
m. Provisions for Contingent Liabilities and Contingent Assets
Contingent liabilities are not provided for and are disclosed by way of
notes after careful evaluation by the management of the facts and legal
aspects of the matters involved. Contingent assets are neither
recognized nor disclosed in the financial statements.
Mar 31, 2012
1) Basis of Preparation of Financial Statements
The accounts have been prepared on accrual basis, in accordance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standards) Rules, 2006 and the provisions of the Companies
Act 1956, to the extent applicable. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to the existing accounting standard or
a more appropriate presentation of the financial statements requires a
change in the accounting policy hitherto in use.
2) Presentation and Disclosure of Financial Statements:
For the year ended March 31, 2012, the revised Schedule VI notified
under the Companies Act, 1956, has become applicable to the Company.
The adoption of revised schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it significantly impacts presentation and
disclosures made in the financial statements, particularly presentation
of the Balance Sheet. The Company has reclassified previous year
figures to confirm to this year's classification.
3) Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
4) Fixed Assets
(a) Tangible Assets:
Fixed assets are recorded at cost of acquisition inclusive of freight,
duties, taxes and incidental expenses related to acquisition.
Expenditure incurred during construction period has been added to the
cost of assets.
(b) Leased Assets:
i. Assets taken on finance lease, including taken on hire purchase
arrangements, wherein the Company has an option to acquire the asset,
are accounted for as fixed assets in accordance with the Accounting
Standard 19 on ÃLeasesÃ, (AS 19).
ii. Assets taken on lease under which the lessor effectively retains
all the risk and rewards of ownership are classified as operating
lease. Lease payments under operating leases are recognized as expenses
on accrual basis in accordance with the respective lease agreement
iii. The cost of improvements to lease properties are capitalized and
disclosed appropriately.
(c) Impairment of Fixed Assets:
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
5) Depreciation / Amortisation
Depreciation is charged on the fixed assets under the written down
value method in accordance with the provisions of Schedule XIV to the
Companies Act, 1956. The expenditure incurred on improvement of assets
acquired on lease is written off evenly over the period of the lease.
6) Investment
Long à term investments including investment in Subsidiaries are stated
at cost. Provision for diminution in the value of long-term investments
is made only if such a decline is other than temporary in the opinion
of the management.
7) Foreign Currency Transactions
Transactions in foreign currency are recorded at the rate in force on
the date of transactions.
Foreign currency assets, except investments and liabilities other than
for financing fixed assets are stated at the rate of exchange
prevailing at the date of the Balance Sheet and resultant gains/losses
are charged to the Statement of Profit and Loss.
Premium or discount arising at the inception of forward foreign
exchange contracts is amortized as expense or income over the life of
the contracts. Any profit or loss arising on cancellation or renewal of
such forward contract is recognized as income or expense for the
period.
Exchange differences arising on settlement or restatement of foreign
currency denominated liabilities relating to the acquisition of fixed
asset are recognized in the Statement of Profit and Loss.
8) Revenue Recognition
a) Revenue on sale of products is recognized as and when the products
are dispatched to customers or acknowledged by the customers. Sales are
stated net of returns and excluding sales tax.
b) Other revenue is recognized only when it is reasonably certain that
the ultimate collection will be made
9) Inventories
Inventories of raw materials, finished goods, rejections, trading goods
and stores are valued as under:
Raw Material Lower of cost and net realisable value
Rough Diamond Rejections At net realisable value
Trading Goods Lower of cost and net realisable value
Finished Goods à Polished Diamonds Lower of cost and net realisable
value
Work in progress à Jewellery Lower of market value and material cost
plus proportionate labour and overheads.
Finished Goods à Jewellery Lower of market value and material cost plus
labour and overheads.
Finished Goods à Gold Lower of cost and market value
Consumable Stores & Tools At cost
10) Employee Benefits
i. Defined Benefit Plan à Leave Salary:
Leave Salary is paid to all employees as per the policy of Company
every year.
ii. Defined Contribution Plans :
Contributions payable by the Company to the concerned Government
authorities in respect of Provident Fund, Family Pension Fund and
Employees State Insurance are charged to Profit & Loss A/c.
iii. Defined Benefit Plan à Gratuity:
The Company's liability towards gratuity is determined on the basis of
year end actuarial valuations applying the Projected Unit Credit Method
done by an independent actuary. The actuarial gains or losses
determined by the actuary are recognized in the Statement of Profit and
Loss as income or expense.
11) Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying asset are capitalized as part of the cost of asset. A
qualifying asset is one that necessary takes a substantial period of
time to get ready for its intended use or sale. All other borrowing
costs are recognized as an expense in the period in which they are
incurred.
12) Taxation
The Company is eligible for tax incentives under the Indian Taxation
Laws. These incentives presently includes an exemption from payment of
Income Tax for operation in Special Economic Zones. The management
estimates the provisions for current tax after considering such tax
benefits.
Deferred tax is recognized, subject to prudence, on timing differences,
being the difference between the taxable income and the accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets are recognized for
unabsorbed depreciation and carry forward losses to the extent there is
virtual certainty that sufficient future taxable income will be
available against which deferred tax assets can be realized.
Minimum Alternate Tax (MAT) credit: MAT is recognised 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. In the year in
which the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in the Guidance Note
issued by the ICAI, the said asset is created by way of a credit to the
Statement of Profit and Loss and is shown as MAT Credit Entitlement.
The Company reviews the same at each Balance Sheet date and writes down
the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal
Income Tax during the specified period.
13) Earnings Per Share
Earnings per share (EPS) 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.
Dilutive EPS is calculated by dividing the net profit or loss
for the period attributable to equity shareholders, by the weighted
average number of equity shares considered for deriving the basic EPS
and also the weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted at the beginning
of the year and not issued at a later date.
14) Provisions for Contingent Liabilities and Contingent Assets
Contingent liabilities are not provided for and are disclosed by way of
notes after careful evaluation by the management of the facts and legal
aspects of the matters involved. Contingent assets are neither
recognized nor disclosed in the financial statements.
Mar 31, 2011
1.1 Accounting Concepts
The accounts have been prepared on accrual basis, in accordance with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956, which have been prescribed by the Companies (Accounting
Standards) Rules, 2006 and the provisions of the Companies Act 1956, to
the extent applicable. Accounting policies have been consistently
applied except where a newly issued accounting standard is initially
adopted or a revision to the existing accounting standard or a more
appropriate presentation of the financial statements requires a change
in the accounting policy hitherto in use.
1.2 Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
iabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognised in the period
in which the results are known / materialised.
1.3 Revenue Recognition
a) Revenue on sale of products is recognised as and when the products
are dispatched to customers or acknowledged by the customers. Sales
are stated net of returns and excluding sales tax.
b) Revenue is recognised only when it is reasonably certain that the
ultimate collection will be made
1.4 Fixed Assets
Fixed assets are recorded at cost of acquisition inclusive of freight,
duties, taxes and incidental expenses related to acquisition.
Expenditure incurred during construction period has been added to the
cost of assets.
1.5 Leased Assets
a) Assets taken on finance lease, including taken on hire purchase
arrangements, wherein the Company has an option to acquire the asset,
are accounted for as fixed assets in accordance with the Accounting
Standard 19 on "Leases", (AS 19).
b) Assets taken on lease under which the lessor effectively retains all
the risk and rewards of ownership are classified as operating lease.
Lease payments under operating leases are recognised as expenses on
accrual basis in accordance with the respective lease agreement.
c) The cost of improvements to lease properties are capitalised and
disclosed appropriately.
1.6 Impairment of Fixed Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting periods is
reversed if there has been a change in the estimate of recoverable
amount
1.7 Depreciation
Depreciation is charged on the fixed assets under the written down
value method in accordance with the provisions of Schedule XIV to the
Companies Act, 1956. The expenditure incurred on improvement of assets
acquired on lease is written off evenly over the balance period of the
lease.
1.8 Investment
Long - term investments including investment in Subsidiaries are stated
at cost. Provision for diminution in the value of long-term nvestments
is made only if such a decline is other than temporary in the opinion
of the management.
1.9 Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying asset are capitalised as part of the cost of asset. Other
borrowing costs are recognised as an expense in the period in which
they are incurred.
1.10 Foreign Currency Transactions
Transactions in foreign currency are recorded at the rate in force on
the date of transactions.
Foreign currency assets, except investments and liabilities other than
for financing fixed assets are stated at the rate of exchange
prevailing at the date of balance sheet and resultant gains/losses are
charged to the profit and loss account.
Premium or discount arising at the inception of forward foreign
exchange contracts is amortised as expense or income over the life of
the contracts. Any profit or loss arising on cancellation or renewal of
such forward contract is recognised as income or expense for the
period.
Exchange differences arising on settlement or restatement of foreign
currency denominated liabilities relating to the acquisition of fixed
asset are recognised in the Profit and Loss account.
1.11 Inventories
Inventories of raw materials, finished goods, rejections, trading goods
and stores are valued as under: -
Raw Material Lower of cost and net realisable value
Rough Diamond Rejections At net realisable value
Trading Goods Lower of cost and net realisable value
Finished Goods à Polished Diamonds Lower of cost and net realisable
value
Work in progress à Jewellery Lower of market value and material cost
plus proportionate labour and overheads.
Finished Goods à Jewellery Lower of market value and material cost plus
labour and overheads.
Finished Goods à Gold Lower of cost and market value
Consumable Stores & Tools At cost
1.12 Taxation
The Company is eligible for tax incentives under the Indian Taxation
Laws. Tese incentives presently includes an exemption from payment of
Income Tax for operation in Special Economic Zones. The management
estimates the provisions for current tax after considering such tax
benefits.
Deferred tax is recognised, subject to prudence, on timing differences,
being the difference between the taxable income and the accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets are recognised for
unabsorbed depreciation and carry forward losses to the extent there is
virtual certainty that sufficient future taxable income will be
available against which deferred tax assets can be realised.
1.13 Employee Benefits
i. Leave Salary is paid to all employees as per the policy of Company
every year.
ii. Defined Contribution Plans :
Contributions payable by the Company to the concerned Government
authorities in respect of Provident Fund, Family Pension Fund and
Employees State Insurance are charged to Profit & Loss A/c.
iii. Defined Benefit Plan :
The Company's liability towards gratuity is determined on the basis of
year end actuarial valuations applying the Projected Unit Credit Method
done by an independent actuary. The actuarial gains or losses determined
by the actuary are recognised in the Profit and Loss Account as income
or expense.
1.14 Earning Per Share
Earning per share (EPS) 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.
Dilutive EPS is calculated by dividing the net profit or loss for the
period attributable to equity shareholders, by the weighted average
number of equity shares considered for deriving the basic EPS and also
the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted at the beginning
of the year and not issued at a later date.
1.15 Provisions for Contingent Liabilities and Contingent Assets
Contingent liabilities are not provided for and are disclosed by way of
notes after careful evaluation by the management of the facts and legal
aspects of the matters involved. Contingent assets are neither
recognised nor disclosed in the financial statements.
Mar 31, 2010
1.1 Accounting Concepts
The accounts have been prepared on accrual basis, in accordance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standards) Rules, 2006 and the provisions of the Companies
Act 1956, to the extent applicable. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to the existing accounting standard or
a more appropriate presentation of the fnancial statements requires a
change in the accounting policy hitherto in use.
1.2 Use of estimates
The preparation of fnancial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the fnancial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognised in the period
in which the results are known / materialised.
1.3 Revenue Recognition
a) Revenue on sale of products is recognised as and when the products
are dispatched to customers & acknowledged by the customers. Sales are
stated net of returns and excluding sales tax.
b) Revenue is recognised only when it is reasonably certain that the
ultimate collection will be made
1.4 Fixed Assets
Fixed assets are recorded at cost of acquisition inclusive of freight,
duties, taxes and incidental expenses related to acquisition.
Expenditure incurred during construction period has been added to the
cost of assets.
1.5 Leased Assets
a) Assets taken on fnance lease, including taken on hire purchase
arrangements, wherein the Company has an option to acquire the asset,
are accounted for as fxed assets in accordance with the Accounting
Standard 19 on ÃLeasesÃ, (AS 19) issued by the Institute of Chartered
Accountants of India.
b) Assets taken on lease under which the lessor effectively retains all
the risk and rewards of ownership are classifed as operating lease.
Lease payments under operating leases are recognised as expenses on
accrual basis in accordance with the respective lease agreement.
c) The cost of improvements to lease properties are capitalised and
disclosed appropriately.
1.6 Impairment of Fixed Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Proft and Loss account in the year in which an asset is identifed as
impaired. The impairment loss recognised in prior accounting periods is
reversed if there has been a change in the estimate of recoverable
amount
1.7 Depreciation
Depreciation is charged on the fxed assets under the written down value
method in accordance with the provisions of Schedule XIV to the
Companies Act, 1956. The expenditure incurred on improvement of assets
acquired on lease is written off evenly over the balance period of the
lease.
1.8 Investment
Long à term investments are stated at cost. Provision for diminution in
the value of long-term investments is made only if such a decline is
other than temporary in the opinion of the management.
1.9 Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying asset are capitalised as part of the cost of asset. Other
borrowing costs are recognised as an expense in the period in which
they are incurred.
1.10 Foreign Currency Transactions
Transactions in foreign currency are recorded at the rate in force on
the date of transactions.
Foreign currency assets, except investments and liabilities other than
for fnancing fxed assets are stated at the rate of exchange prevailing
at the date of balance sheet and resultant gains/losses are charged to
the proft and loss account.
Premium or discount arising at the inception of forward foreign
exchange contracts is amortised as expense or income over the life of
the contracts. Any proft or loss arising on cancellation or renewal of
such forward contract is recognised as income or expense for the
period.
Exchange differences arising on settlement or restatement of foreign
currency denominated liabilities relating to the acquisition of fxed
asset are recognised in the Proft and Loss account.
1.11 Inventories
Inventories of raw materials, fnished goods, rejections, trading goods
and stores are valued as under: -
Raw Material Lower of cost and net realisable value
Rough Diamond Rejections At net realisable value
Trading Goods Lower of cost and net realisable value
Finished Goods
- Polished Diamonds Lower of cost and net realisable value
Work in progress
- Jewellery Lower of market value and material cost
plus proportionate labour and overheads.
Finished Goods
- Jewellery Lower of market value and material cost
plus labour and overheads.
Finished Goods
- Gold Lower of cost and market value
Consumable Stores & Tools At cost
1.12 Taxation
Provision for current tax is made on the basis of estimated taxable
income for the current accounting year in accordance with the Income
Tax Act, 1961.
Deferred tax is recognised, subject to prudence, on timing differences,
being the difference between the taxable income and the accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets are recognised for
unabsorbed depreciation and carry forward losses to the extent there is
virtual certainty that suffcient future taxable income will be
available against which deferred tax assets can be realised.
1.13 Employee Benefts
a) Leave Salary is paid to all employees as per the policy of Company
every year.
b) Defned Contribution Plans :
Contributions payable by the Company to the concerned Government
authorities in respect of Provident Fund, Family Pension Fund and
Employees State Insurance are charged to Proft & Loss A/c.
c) Defned Beneft Plan :
The CompanyÃs liability towards gratuity is determined on the basis of
year end actuarial valuations applying the Projected Unit Credit Method
done by an independent actuary. The actuarial gains or losses
determined by the actuary are recognised in the Proft and Loss Account
as income or expense.
1.14 Earning Per Share
Earning per share (EPS) is calculated by dividing the net proft or loss
for the period attributable to equity shareholders, by the weighted
average number of equity shares outstanding during the period.
Dilutive EPS is calculated by dividing the net proft or loss for the
period attributable to equity shareholders, by the weighted average
number of equity shares considered for deriving the basic EPS and also
the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted at the beginning
of the year and not issued at a later date.
1.15 Provisions for Contingent Liabilities and Contingent Assets
Contingent liabilities are not provided for and are disclosed by way of
notes after careful evaluation by the management of the facts and legal
aspects of the matters involved. Contingent assets are neither
recognised nor disclosed in the fnancial statements.
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