| Related Party Transactions:
As per accounting standard 1 8 (AS18) issued by the Institute of
Chartered Accountants of India, the Company's related parties are as
under:
Key Managerial Persons:
1. Sri Rikhabchand Samdaria, Chairman
AUDITOR'S REMUNERATION 2013-14 2012-2013
For Audit Rs.30000 30000
TOTAL Rs.30000 30000
Interested Party payments, if any Nil
TAXES
Since there is a loss no provision for taxation has been provided The
deferred tax liability has been provided on the depreciation provided
during the year on car and inverter.
FOREIGN EXCHANGE TRANSACTIONS :
Foreign Exchange Transactions of revenue in nature are accounted at the
exchange rates prevailing on the date of transaction and are recognized
in the Profit and Loss Account. There are no Foreign Exchange
Transactions with respect to Assets and Liabilities. Profit on
realization of Foreign Exchange is Rs.7,40,861 and previous year profit
for Rs.2,85,284
ADVANCE FOR MACHINERY:
The Liabilities for sundry creditor towards purchase of Machinery from
M/s. Diamond Processing Corporation and M/s. Star Machinery has been
adjusted against the Machinery advances to M/s. R.V. Diamonds. Since
They belongs to the same group as per the information and explanation
given to us. After adjust the credit balance against the advances for
Machinery the net balance has been shown in the balance sheet but
Amount advance to R.V. Diamond for purchase of machinery during the
year 1995 (Rs.67.52 lakh). Company has filed suite against them which
is still pending in the High Court.
PROVIDENT FUND:
As per the information provided the provisions of provident fund, state
insurance are not applicable is accounted on accrual basis and is
charges to revenue account. In the opinion of the Board of Directors,
Sundry debtors, Current assets, Loans and Advances have a value on
realization, in the ordinary course of business, atleast equal to the
amount at which they are stated. The company is yet to receive
confirmations from parties in respect of balances outstanding in sundry
debtors and creditors.
SEGMENT REPORTING :
The Company's business consists of one primary reportable business
segment purchase and sale of Precious stones hence segment report is
not required under Accounting Standard - 17.
Provision is recongnized in respect of obligations where, based on the
evidence available, their existence at the Balance Sheet date is
considered probable.
A Provision is recognized if, as a result of a past event, the Company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle the obligation Provisions are determined by the best estimate of
the outflow of economic benefits required to settle the obligation at
the reporting date. Provisions, contingent liabilities and contingent
assets are reviewed at each balance sheet date. Re-imbursement
expected in respect of expenditure to settle a provision is recognized
only when it is virtually certain that the Re-imbursement will be
received.
A Contingent Asset is not recognized in the Accounts.
Previous years figures have been regrouped wherever necessary As per
our report of even date.
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