NOTE 21: SIGNIFICANT ACCOUNTING POLICIES 

1. Basis of Preparation of Financial Statements : 

a) These financial statements are brpared 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 coin prises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 ('Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by SEBI. 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. Accounting policies not specifically referred to are consistent with generally accepted accounting Practices. 

2. Fixed Assets and Debrciation : 

a) Fixed Assets are stated at cost less accumulated debrciation. The cost is inclusive of all direct incidental expenses related to acquisition. 

b) Debrciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Debrciation for assets purchased / sold during a period is proportionately charged. 

3. Investments : 

Non-current investments and unquoted current investments are stated at cost. Temporary diminution in the value of non-current investments is not recognised. 

4. Inventories : 

Inventories of Raw Materials are valued at cost. Finished Goods are valued at lower of cost or net realisable value. Stock in Process is valued at approximate cost. 

5. Revenue recognition : 

Sales includes Labour charges . Interest is recognized using the time-proportion method, based on rates implicit in the transaction.Dividend income is recognized when the Company's right to receive dividend is established. 

6. Retirement Benents : 

There is no employee eligible for retirement benefits. 

7. Income Tax :

Provision for tax is made for both current and deferred taxes. Current tax is  provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing differences, which are capable of being reversed in subsequent periods are recognised using tax rates and tax laws, which have been enacted or substantially enacted.

8. Impairment of Assets : As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine : Ja) the provision for impairment loss rif any, required; or  (b) the reversal, if any, required of impairment loss recognised in the brvious periods.  Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount  Recoverable amount is determined :  Ja) in the case of an individual asset, at the higher of the net selling price and the value in use ; (b) in case of a cash generating unit (a group of assets that generates identifiedJndependent cash flows) at the higher of the cash generating unit's net selling price and the value in use. 

9. The accounts of certain Sundry Debtors. Sundry Creditors, Advances and Lenders are subject to confirmation /  reconciliations and adjustments, if any. The Management does not expect any material difference affecting the current year's financial statements 

10. In the opinion of the Board, Current Assets, Loans and Advances (including Capital Advances) have a value on realisation in the ordinary course of business, at least equal to the amount at which they are stated. 

11. DUES TO MICRO SMALL AND MEDIUM ENTERPRISES 

As at March 31,2015, Rs.Nil is outstanding to micro and small enterprises (Rs.Nil as at March 31,2014). 

12. LITIGATION 

The company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The company's management does not reasonably expect that thesB legal actions, when ultimately concluded and determined, will have a maten'al and adverse effect on the company's results of operations or financial condition. 

13. Deferred tax liability (net) at the year end comprises liming differences on account of  Debrciation Rs.323055/- far the current year and Rs.326337/- for the brvious year. 

As per our Report of even date attached 

For RAM PRASAD SHARMA & ASSOCIATES

For DEEP DIAMOND INDIA LIMITED 

Chartered Accountants 

DHANANJAY SHARMA 

 Partner

Firm No.: 112430W

Membership No.: 039332

PRAKASH SOLANKI  Chairman 

Dinesh Solan Managing Director

Sangeeta  Jain Director

Mumbai : 27th May, 2015