Accounting Policies of Koura Fine Diamond Jewelry Ltd. Company

Mar 31, 2025

a. Basis & Method of Accounting:

These financial statements are prepared in accordance with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention on the accrual basis
except for certain financial instruments which are measured at fair values. GAAP
comprises mandatory accounting standards as prescribed under Section 133 of the
Companies Act, 2013 (‘the Act’), read with Rule 7 of the Companies (Accounts) Rules,
2014. Accounting policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing accounting standard
requires a change in the accounting policy hitherto in use.

b. Use of Estimates:

The preparation of financial statements is conformity with generally accepted accounting
principles requires the management to make estimates and assumptions that affects the
reported balances of assets and liabilities as of the date of financial statement and
reported amount of income and expenses during the year.

Accounting estimates could change from period to period. Actual results could differ
from those estimates. Appropriate changes in estimates are made as the Management
becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are
made and, if material, their effects are disclosed in the notes to the financial statements.

c. Revenue recognition:

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

Income from operations which comprises revenue from operation and other income are
all accounted for on accrual basis.

d. Expenses:

The Company provides for all expenses comprising of Salary to Employees, Financial
Expenses and Administrative Expenses on accrual basis.

e. Fixed Assets & Depreciation:

Fixed assets are stated at cost of acquisition. Cost includes attributable cost incurred for
bringing the assets to its working condition for its intended use. They are stated at
historical cost less accumulated depreciation.

Depreciation on assets is provided on written down value basis (WDV) on the basis of
useful lives of assets as specified in schedule II of the Companies Act, 2013.

Depreciation on fix assets purchased/acquired during the year is provided on pro-rata
basis according to the period each asset was put to use during the year.

f. Retirement Benefits:

Retirement benefits are given as per term & condition of contract with employee. Short
term employee’s benefits are recognized at the undiscounted amount in the profit and loss
account.

g. 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 impairment loss is
recognized whenever the carrying amount of assets exceeds its recoverable amount. After
impairment depreciation is provided on the revised carrying amount of the assets over its
remaining useful life.

During the year there was no impairment of assets of the company.

h. Investments:

Investments, which are readily realizable and intended to be held for not more than one
year from the date on which such investments are made, are classified as current
investments. All other investments are classified as non-current investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase
price and directly attributable acquisition charges such as brokerage, fees and duties etc.
Non-Current investments are carried at cost. However, provision for diminution, if any,
in value is made to recognize a decline other than temporary in the value of the
investments.

On disposal of an investment, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of profit and loss.

i. Taxation:

Income-tax expenses comprise current tax and deferred tax charge or credit. The
Deferred tax asset and deferred tax liability is calculated by applying tax rate and Tax
laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred
tax Assets arising mainly on account of brought forward losses and unabsorbed
depreciation under tax laws, are recognized, only if there is a Virtual certainty of its
realization, supported by convincing evidence. Deferred tax Liability on account of other
timing differences is recognized only to the extent there is a reasonable certainty of its
realization. At each Balance Sheet date, the Carrying amount of deferred tax assets is
reviewed to reassure realization.

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Mar 31, 2024

1. SIGNIFICANT ACCOUNTING POLICIES

1.01 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies
Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements
have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation
of the financial statements are consistent with those followed in the previous year.

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

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 Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its
operating cycle as twelve months for the purpose of current - non-current classification of assets and liabilities.

1.02 USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates
and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the
reported income and expenses during the year. The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences
between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.03 PROPERTY, PLANT & EQUIPMENT

All Fixed Assets are recorded at cost including taxes, duties, freight and other incidental expenses incurred in relation to their
acquisition and bringing the asset to its intended use.

1.04 DEPRECIATION / AMORTISATION
Tangible Assets:

Depreciation on fixed assets is calculated on a straight line method basis using the rates arrived at based on the useful lives
estimated by the management, or those prescribed under the Schedule II to the Companies Act, 2013. Individual assets cost at
residual value is calculated at 5% each .