Mar 31, 2014
I. Basis of 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 notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial state-
ments 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.
ii. 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 recognized in the periods in which
the results are known/materialize.
iii. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any.
iv. Depreciation
Depreciation on fixed assets is provided to the extent of depreciable
amount on written down value method (WDV) at the rates and in the
manner prescribed in Schedule XIV to the Companies Act, 1956 over their
useful life except.
v. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset 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 recognized in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
vi. Foreign Currency Transactions
a. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
b. Monetary items denominated in foreign currencies at the year-end are
restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the year-end rate
and rate on the date of the contract is recognized as exchange
difference and the premium paid on forward contracts is recognized over
the life of the contract.
c. Non-monetary foreign currency items are carried at cost.
d. 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.
vii. Investments
Long 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.
viii. Inventories
a. Raw Material is valued at cost on FIFO basis or Market Value
whichever is lower.
b. WIP Stock is valued at cost on FIFO basis.
c. Finished Goods is valued at cost on FIFO basis or net realizable
value whichever is lower.
d. Diamond included in the above stock is valued at specific
identification method on FIFO basis
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any.
Cost of inventories comprises of cost of purchase, cost of conversion
and other costs including manufacturing overheads incurred in bringing
them to their respective present location and condition.
ix. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
The Company recognizes revenue on dispatch of goods. In case of Job
Work, the revenue is recognized upon com- pletion of the job and
dispatch of goods.
Revenue from operations includes sale of goods, services, sales tax,
service tax, excise duty and sales during trial run period, adjusted
for discounts (net), Value Added Tax (VAT) and gain/loss on
corresponding hedge contracts.
Dividend income is recognized when right to receive is established.
Interest income is recognized on time proportion basis taking into
account the amount outstanding and rate applicable.
x. Employee Benefits
Gratuity
In respect of Gratuity, the provision is made on Accrual Basis as per
actuarial valuation at the year end.
Leave Encashment
Provision is made for Leave Encashment liability on the basis of Actual
Calculation.
Provident Fund & Family Pension
Contribution to provident fund & family pension fund are provided for &
payments in respect thereof are made to the relevant authorities on
actual basis.
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss ac- count of the year in
which the related service is rendered.
Post-employment and other long term employee benefits are recognized as
an expense in the Profit and Loss account for the year in which the
employee has rendered services. The expense is recognized at the
present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post-
employment and other long term benefits are charged to the Profit and
Loss account.
xi. Financial Derivatives and Commodity Hedging Transactions
Financial derivatives and commodity hedging contracts are accounted on
the date of their settlement. In respect of derivative contracts,
premium paid, gains/losses on settlement and losses on restatement are
recognized in the Profit and Loss account except in case where they
relate to the acquisition or construction of fixed assets, in which
case, they are adjusted to the carrying cost of such assets.
xii. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
xiii. Provision for Current and Deferred Tax
Provision for current tax is made after taking in to consideration
benefits admissible under the provisions of the Income tax Act, 1961.
Deferred tax resulting from "Timing Difference" between Block and
Taxable profit is accounted for using the tax rates & laws that have
been enacted or substantively enacted on the balance sheet date. The
Deferred tax assets is recognized and carried forward only to the
extent that there is virtual certainty supported by convincing evidence
that the asset will be realized in future.
Net outstanding balance in Deferred tax account is recognized as
Deferred tax liabilities/asset.
The Deferred tax account is used solely for reversing timing difference
as and when crystallized.
xiv. Cash Flow Statement
The Cash Flow statement is being prepared in accordance with the format
prescribed in Accounting Standard 3 prescribed by the ICAI.
xv. Prior Period Items
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Income/Expense of earlier year accounts"
xvi. Related Party Transaction
Disclosure of transaction with Related Parties, as required by
Accounting Standard 18 "Related Party Disclosure" has been set out in a
separate note forming part of this schedule. Related parties as defined
under clause 3 of the accounting standard 18 have been identified on
the basis of representations made by key management personnel and
information available with the company.
xvii. Earning per Share
Basic and Diluted earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
Mar 31, 2013
I. Basis of 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 notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. 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.
ii. 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 recognized in the periods in which
the results are known / materialize.
iii. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any.
iv. Depreciation
Depreciation on fixed assets is provided to the extent of depreciable
amount on written down value method (WDV) at the rates and in the
manner prescribed in Schedule XIV to the Companies Act, 1956 over their
useful life except.
v. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset 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 recognized in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
vi. Foreign Currency Transactions
a. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
b. Monetary items denominated in foreign currencies at the year-end
are restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the year-end rate
and rate on the date of the contract is recognized as exchange
difference and the premium paid on forward contracts is recognized over
the life of the contract.
c. Non-monetary foreign currency items are carried at cost.
d. 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.
vii. Investments
Long 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.
viii. Inventories
a. Raw Material is valued at cost on FIFO basis or Market Value
whichever is lower.
b. WIP Stock is valued at cost on FIFO basis.
c. Finished Goods is valued at cost on FIFO basis or net realizable
value whichever is lower.
d. Diamond included in the above stock is valued at specific
identification method on FIFO basis
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any.
Cost of inventories comprises of cost of purchase, cost of conversion
and other cost including manufacturing overheads incurred in bringing
them to their respective present location and condition.
ix. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
The Company recognizes revenue on dispatch of goods. In case of Job
Work, the revenue is recognized upon completion of the job and dispatch
of goods.
Revenue from operations includes sale of goods, services, sales tax,
service tax, excise duty and sales during trial run period, adjusted
for discounts (net), Value Added Tax (VAT) and gain / loss on
corresponding hedge contracts.
Dividend income is recognized when right to receive is established.
Interest income is recognized on time proportion basis taking into
account the amount outstanding and rate applicable.
x. Employee Benefits
Gratuity
In respect of Gratuity, the provision is made on Accrual Basis as per
actuarial valuation at the year end.
Leave Encashment
Provision is made for Leave Encashment liability on the basis of Actual
Calculation.
Provident Fund & Family Pension
Contribution to provident fund & family pension fund are provided for &
payments in respect thereof are made to the relevant authorities on
actual basis.
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Post-employment and other long term employee benefits are recognized as
an expense in the Profit and Loss account for the year in which the
employee has rendered services. The expense is recognized at the
present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post-
employment and other long term benefits are charged to the Profit and
Loss account.
xi. Financial Derivatives and Commodity Hedging Transactions
Financial derivatives and commodity hedging contracts are accounted on
the date of their settlement. In respect of derivative contracts,
premium paid, gains / losses on settlement and losses on restatement
are recognized in the Profit and Loss account except in case where they
relate to the acquisition or construction of fixed assets, in which
case, they are adjusted to the carrying cost of such assets.
xii. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
xiii. Provision for Current and Deferred Tax
Provision for current tax is made after taking in to consideration
benefits admissible under the provisions of the Income tax Act, 1961.
Deferred tax resulting from "Timing Difference" between Block and
Taxable profit is accounted for using the tax rates & laws that have
been enacted or substantively enacted on the balance sheet date. The
Deferred tax assets is recognized and carried forward only to the
extent that there is virtual certainty supported by convincing evidence
that the asset will be realized in future.
Net outstanding balance in Deferred tax account is recognized as
Deferred tax liabilities / asset.
The Deferred tax account is used solely for reversing timing difference
as and when crystalized.
xiv. Cash Flow Statement
The Cash Flow statement is being prepared in accordance with the format
prescribed in Accounting Standard 3 prescribed by the ICAI.
xv. Prior Period Items
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Income / Expense of earlier year
accounts"
xvi. Related Party Transaction
Disclosure of transaction with Related Parties, as required by
Accounting Standard 18 "Related Party Disclosure" has been set out in a
separate note forming part of this schedule. Related parties as defined
under clause 3 of the accounting standard 18 have been identified on
the basis of representations made by key management personnel and
information available with the company.
xvii. Earning per Share
Basic and Diluted earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
Mar 31, 2012
I. Basis of 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 notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. 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.
ii. 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.
iii. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any.
iv. Depreciation
Depreciation on fixed assets is provided to the extent of depreciable
amount on written down value method (WDV) at the rates and in the
manner prescribed in Schedule XIV to the Companies Act, 1956 over their
useful life except.
v. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset 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 period is reversed
if there has been a change in the estimate of recoverable amount.
vi. Foreign Currency Transactions
a. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
b. Monetary items denominated in foreign currencies at the year-end
are restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the year-end rate
and rate on the date of the contract is recognized as exchange
difference and the premium paid on forward contracts is recognized over
the life of the contract.
c. Non-monetary foreign currency items are carried at cost.
d. 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.
vii. Investments
Long 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.
viii. Inventories
a. Raw Material is valued at cost on FIFO basis or Market Value
whichever is lower.
b. WIP Stock is valued at cost on FIFO basis.
c. Finished Goods is valued at cost on FIFO basis or net realizable
value whichever is lower.
d. Diamond included in the above stock is valued at specific
identification method on FIFO basis.
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence, if any.
Cost of inventories comprises of cost of purchase, cost of conversion
and other costs including manufacturing overheads incurred in bringing
them to their respective present location and condition.
ix. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
The Company recognizes revenue on dispatch of goods. In case of Job
Work, the revenue is recognized upon completion of the job and dispatch
of goods.
Revenue from operations includes sale of goods, services, sales tax,
service tax, excise duty and sales during trial run period, adjusted
for discounts (net), Value Added Tax (VAT) and gain / loss on
corresponding hedge contracts.
Dividend income is recognized when right to receive is established.
Interest income is recognized on time proportion basis taking into
account the amount outstanding and rate applicable.
x. Employee Benefits Gratuity
In respect of Gratuity, the provision is made on Accrual Basis as per
acturial valuation at the year end.
Leave Encashment
Provision is made for Leave Encashment liability on the basis of Actual
Calculation.
Provident Fund & Family Pension Contribution to provident fund & family
pension fund are provided for & payments in respect thereof are madeto
the relevant authorities on actual basis.
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Post-employment and other long term employee benefits are recognized as
an expense in the Profit and Loss account for the year in which the
employee has rendered services. The expense is recognized at the
present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post-
employment and other long term benefits are charged to the Profit and
Loss account.
xi. Financial Derivatives and Commodity Hedging Transactions
Financial derivatives and commodity hedging contracts are accounted on
the date of their settlement. In respect of derivative contracts,
premium paid, gains / losses on settlement and losses on restatement
are recognized in the Profit and Loss account except in case where they
relate to the acquisition or construction of fixed assets, in which
case, they are adjusted to the carrying cost of such assets.
xii. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
xiii. Provision for Current and Deferred Tax
Provision for current tax is made after taking in to consideration
benefits admissible under the provisions of the Income tax Act, 1961.
Deferred tax resulting from ETiming Differences between Block and
Taxable profit is accounted for using the tax rates & laws that have
been enacted or substantively enacted on the balance sheet date. The
Deferred tax assets is recognized and carried forward only to the
extent that there is virtual certainty supported by convincing evidence
that the asset will be realized in future.
Net outstanding balance in Deferred tax account is recognized as
Deferred tax liabilities / asset.
The Deferred tax account is used solely for reversing timing difference
as and when crystalized.
xiv. Cash Flow Statement
The Cash Flow statement is being prepared in accordance with the format
prescribed in Accounting Standard 3 prescribed by the ICAI.
xv. Prior Period Items
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through H Income / Expense of earlier year
accountsffl
xvi. Related Party Transaction
Disclosure of transaction with Related Parties, as required by
Accounting Standard 18 H Related Party Disclosures has been set out in
a seprate not forming part of this schedule. Related parties as defined
under clause 3 of the accounting standard 18 have been identified on
the basis of representations made by key management personnel and
information available with the company.
xvii. Earning per Share
Basic and Diluted earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
During the finacial year 2008-09 the company had issued 15,65,000
prefential share warrant which were to be converted into 15,65,000
Equity shares of Rs. 10 each at par on or before 14th April, 2010. Out
of which 3,90,000 prefential share warrant converted into 3,90,000
equity shares on 31st March, 2010. And balance 11,75 000 prefential
share warrant converted into 11,75.000 equity shares 14th April, 2010.
Further the Company had taken approval of the shareholders at the
A.G.M. held on 30th September 2010 for the issue of 15,60,000
preferential share warrants against which 25% application money has
been received and the In-Principal Approval from the Bombay Stock
Exchange is in process.
Mar 31, 2011
1) BASIS OF ACCOUNTING :
The Accounts of the Company are prepared under the historical cost
convention using the Accrual method of Accounting.
2) REVENUE RECOGNITION:
The Company recognises Revenue on Despatch of goods. In the case of job
work, the revenue is recognised upon completion of the job and despatch
of goods.
3) USE OF ESTIMATES :
The preparation of financial statements is in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, reported amounts of revenues and expenses and the
disclosure of contingent liabilities on the date of the financial
statements. Actual results could differ from those estimates. Any
revision to accounting estimates is recognized in the period in which
such revisions are made.
4) FIXED ASSETS:
Fixed Assets are stated at their original cost including incidental
expenses related to acquisation and installation less accumalated
depreciation.
5) DEPRECIATION:
The Company has been providing depreciation on Straight Line Basis and
in accordance with the rates specified in Schedule XIV of The Companies
Act,1956.
6) INVENTORIES: Inventories are valued as under:
a) Raw Material is valued at Cost on FIFO Basis or Market Value which
ever is lower.
b) WIP Stock is valued at cost on FIFO basis.
c) Finished Goods is valued at cost on FIFO basis or net realisable
value which ever is lower.
d) Diamond included in the above stock is valued at specific
identification method on FIFO basis.
7) FOREIGN EXCHANGE TRANSACTIONS :
a) Monetary items denominated in foreign currencies at the year end are
restated at the rate of exchange ruling at the Balance Sheet Date.
b) Transactions arising in foreign currency during the year are
converted at rate closely approximating those ruling on the transaction
date. Exchange difference due on actual realisation or actual payment
are taken to revenue or are capitalised as the case may be.
8) RETIREMENT BENEFITS :
Gratuity
In respect of Gratuity, the provision is made on Accrual Basis as per
acturial valuation at the year end.
Leave Encashment
Provision is made for Leave Encashment liability on the basis of Actual
Calculation.
Provident Fund & Family Pension
Contribution to Provident Fund & Family Pension Fund are provided for &
payments in respect thereof are made to the relevant authorities on
actual basis.
9) COMMODITY HEDGING TRANSACTIONS:
Financial Derivatives and commodity hedging contracts are accounted on
the date of their settlement and realised gain/ loss in respect of
settled contracts are recognised in the Profit and Loss Account, along
with the underlying transactions.
10) 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
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
11) PROVISION FOR CURRENT & DEFFERED TAX
Provision for Current Tax is made after taking into consideration
benefits admissible under the provisions of Income Tax Act, 1961
Deffered Ta x resulting from ÃTiming Differenceà between Book and
Taxable Profit is accounted for using the tax rates & laws that have
been enacted or substantively enacted on the Balance Sheet date.The
Deffered Tax Asste is recognised and carried forward only to the extent
that there is a virtual certainity supported by convincing evidence
that the asset will be realised in future.
Net outstanding balance in Deffered Tax account is recognised as
Deffered Tax Laibility/Asset The Deffered Tax account is used soley for
reversing timing difference as and when crystalized.
12) CASH FLOW STATEMENT :
The Cash flow Statement is being prepared in accordance with the format
prescribed in Accounting Stanadard-3 prescribed by the Institute of
Chartered Accountants of India.
13) PRIOR PERIOD ITEMS :
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through ÃIncome / Expense of earlier years
AccountÃ
14) RELATED PARTY TRANSACTIONS :
Disclosure of transactions with Related Parties, as required by
Accounting Standard 18 ÃRelated Party Disclosuresà has been set out in
a separate note forming part of this Schedule. Related parties as
defined under clause 3 of the Accounting Standard 18 have been
identified on the basis of representations made by key managerial
personnel and information available with the Company.
15) EARNING PER SHARE :
The Company reports basic and diluted earnings per share (EPS) in
accordance with the Accounting Standard 20 issued by The Institute of
Chartered Accountants of India. The Basic EPS has been computed by
dividing the income available to equity shareholders by the weighted
average number of equity shares outstanding during the accounting year
The Diluted EPS has been computed using the weighted average number of
equity shares and dilutive potential equity shares outstanding at the
end of the year.
16) DOUBTFUL DEBTS/ADVANCES / DEPOSITS/ INVESTMENT :
Provision is made in the accounts for Debts / Advances / Deposits /
Investment which in the opinion of the management are considered
doubtful of recovery.
17) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Provision involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
18) INVESTMENT
Long-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 termporary in the opinion of the management.
Mar 31, 2010
1) BASIS OF ACCOUNTING:
The Accounts of the Company are prepared under the historical cost
convention using the Accrual method ot Accounting.
2) REVENUE RECOGNITION:
The Company recognises Revenue on Despatch of goods. In the case of job
work, the revenue is recognised upon completion of the job and despatch
of goods.
3) USE OF ESTIMATES :
The preparation of financial statements is in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, reported ë amounts of revenues and expenses and the
disclosure of contingent liabilities on the date of the financial
statements. Actual results could differ from those estimates. Any
revision to accounting estimates is recognized in the period in which
such revisions are made.
4) FIXED ASSETS:
Fixed Assets are stated at their original cost including incidental
expenses related to acquisation and installation less accumalated
depreciation.
5) DEPRECIATION:
The Company has been providing depreciation on Straight Line Basis and
in accordance with the rates specified in Schedule XIV of The Companies
Act, 1956.
6) INVENTORIES:
Inventories are valued as under:
a) Raw Material is valued at Cost on FIFO Basis or Market Value which
ever is lower.
b) WIP Stock is valued at cost on FIFO basis.
c) Finished Goods is valued at cost on FIFO basis or net realisable
value which ever is lower.
d) Diamond included in the above stock is valued at specific
identification method on FIFO basis.
7) FOREIGN EXCHANGE TRANSACTIONS:
a) Monetary items denominated in foreign currencies at the year end are
restated at the rate of exchange ruling at the Balance Sheet Date.
b) Transactions arising in foreign currency during the year are
converted at rate closely approximating those ruling on the transaction
date. Exchange difference due on actual realisation or actual payment
are taken to revenue or are capitalised as the case may be.
8) RETIREMENT BENEFITS : Gratuity
In respect of Gratuity, the provision is made on Accrual Basis as per
acturial valuation at the year end.
Leave Encashment
Provision is made for Leave Encashment liability on the basis of Actual
Calculation.
Provident Fund & Family Pension
Contribution to Provident Fund & Family Pension Fund are provided for &
payments in respect thereof are made to the relevant authorities
on.actual basis.
9) COMMODITY HEDGING TRANSACTIONS:
Financial Derivatives and commodity hedging contracts are accounted on
the date of their settlement and realised gain loss in respect of
settled contracts are recognised in the Profit and Loss Account, along
with the underlying transactions.
10) 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
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
11) PROVISION FOR CURRENT & DEFFERED TAX
Provision for Current Tax is made after taking into consideration
benefits admissible under the provisions of Income Tax Act, 1961
Deffered Tax resulting from "Timing Difference" between Book and
Taxable Profit is accounted for using the tax rates &
laws that have been enacted or substantively enacted on the Balance
Sheet date.The Deffered Tax Asste is recognised and carried forward
only to the extent that there is a virtual certainity supported by
convincing evidence that the asset will be realised in future.
Net outstanding balance in Deffered Tax account is recognised as
Deffered Tax Laibility/Asset The Deffered Tax account is used soley for
reversing timing difference as and when crystalized.
12) CASH FLOW STATEMENT :
The Cash flow Statement is being prepared in accordance with the format
prescribed in Accounting Stanadard-3 prescribed by the Institute of
Chartered Accountants of India.
13) PRIOR PERIOD ITEMS :
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Income / Expense of earlier years
Account"
14) RELATED PARTY TRANSACTIONS :
Disclosure of transactions with Related Parties, as required by
Accounting Standard 18 "Related Party Disclosures" has been set out in
a separate note forming part of this Schedule. Related parties as
defined under clause 3 of the Accounting Standard 18 have been
identified on the basis of representations made by key managerial
personnel and information available with the Company.
15) EARNING PER SHARE :
The Company reports basic and diluted earnings per share (EPS) in
accordance with the Accounting Standard 20 issued by The Institute of
Chartered Accountants of India. The Basic EPS has been computed by
dividing the income available to equity shareholders by the weighted
average number of equity shares outstanding during the accounting year
The Diluted EPS has been computed using the weighted average number of
equity shares and dilutive potential equity shares outstanding at the
end of the year.
16) DOUBTFUL DEBTS/ADVANCES/DEPOSITS/INVESTMENT:
Provision is made in the accounts for Debts / Advances / Deposits /
Investment which in the opinion of the management are considered
doubtful of recovery.
17) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Provision involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
18) INVESTMENT
Long-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 termporary in the opinion of the management.