Professional Diamonds Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2014

Summary of Signifcant Accounting Policies followed by the Company Basis of Preparation of Financial Statements :

These fnancial statements have been prepared on an accrual basis and under historical Cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting principles in India, the applicable accounting standards notifed under section 211 (3C) and the other relevent provisions of the Companies Act, 1956. All the assets and liabilities have been classifed as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of the products and the time between the acuquisation of assets for processing and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle to be less than 12 monts.

1 System of Accounting and Preparation of Financial Statements :

1.01 Basis of Accounting : All income and expenditure items are accounted on accrual basis.

1.02 Fixed Assets : All fxed assets are valued at cost less depreciation.

1.03 Depreciation : Depreciation on fxed assets is provided on streight line basis as per section 205 (2) (b) of the Companies Act, 1956. Depreciation is provided on all fxed assets at the corresponding rates based on the Income Tax rates amended w.e.f 2nd April 1987.

1.04 Inventories : The inventories are stated at lower of cost or net realisable value.

1.05 Foreign Exchange Transactions:Purchases and sales in foreign currency are accounted at exchange rates prevailing on the date of transaction.Current Assets and Liabilities in foreign currecny as at Balance Sheet date are reconverted at the rates prevailing at the year end and the resultant net gains or loss are adjusted in the accounts.

1.06 Retirement benefits : Provision for Gratuity is made for the actual liability at the year end

1.07 Use of Estimates :

The preparation of fnancial statements in conformity with generally accepted accounting prinicples require estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the fnancial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

1.08 Impairment of Fixed Assets :

Considering AS-28 - Impairment of Assets as specifed by the Institute of Chartered Accountants of India, the Company at the end of each year determines whether there are any assets that require a provision for impairment loss.

Impairment loss is charged to the Profit and loss account in the year in which , an asset is identifed as impaired, when the carrying rate of the asset exceeds its recoverable value. The impairment loss booked in prior accounting periods is reveresed if there is a upward change in the estimate of recoverable account.

1.09 Long term Investment are stated at cost of acquisition. Provision for diminution in the value of long term investment is made only if such diminution is considered other than temporary in nature.

1.10 Provisions, Contingent Assets and Contingent Liabilities :

Provisions involving substantial degree of estimation in quantum are recognized when, there is and present, as a result of past events likely obligation with a high probablity of an outfow of resources. Contingent Assets are not recognized nor disclosed in the fnancial statements . Contingent Liabilities, if material, are disclosed in the notes to the accounts.

1.11 Taxation :

a) Provisions for taxation is made after considering various reliefs admissible under the provisions of the Income Tax Act, 1961.

b) Disputed amounts of tax are considered in contingent liabilities.

c) The Company has implemented Accounting Standard 22''- "Accounting of Taxes on Income", issued by the institute of Chartered Accountants of India which is mandatory in nature. The Company has recognized Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2012

1.01 Basis of Accounting : All income and expenditure items are accounted on accrual basis.

1.02 Fixed Assets : All fixed assets are valued at cost less depreciation.

1.03 Depreciation : Depreciation on fixed assets is provided on straight line basis as per section 205 (2) (b) of the Companies Act, 1956. Depreciation is provided on all fixed assets at the corresponding rates based on the Income Tax rates amended w.e.f. 2nd April 1987.

1.04 Inventories : The inventories are stated at lower of cost or net realisable value.

1.05 Foreign Exchange Transactions:Purchases and sales in foreign currency are accounted at exchange rates prevailing on the date of transaction.Current Assets and Liabilities in foreign currency as at Balance Sheet date are reconverted at the rates prevailing at the year end and the resultant net gains or loss are adjusted in the accounts.

1.06 Retirement Benefits : Provision for Gratuity is made for the actual liability at the year end

1.07 Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles require estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

1.08 Impairment of Fixed Assets :

Considering AS-28 - Impairment of Assets as specified by the Institute of Chartered Accountants of India, the Company at the end of each year determines whether there are any assets that require a provision for impairment loss.

Impairment loss is charged to the profit and loss account in the year in which , an asset is identified as impaired, when me carrying rate of the asset exceeds its recoverable value. The impairment loss booked in prior accounting periods is reversed if there is a upward change in the estimate of recoverable account.

1.09 Long term Investment are stated at cost of acquisition. Provision for diminution in the value of long term investment is made only if such diminution is considered other than temporary in nature.

1.10 Provisions, Contingent Assets and Contingent Liabilities :

Provisions involving substantial degree of estimation in quantum are recognized when, there is and present, as a result of past events likely obligation with a high probability of an outflow of resources. Contingent Assets are not recognized nor disclosed in the financial statements . Contingent Liabilities, if material, are disclosed in the notes to the accounts.

1.11 Taxation:

a) Provisions for taxation is made after considering various reliefs admissible under the provisions of the Income Tax Act, 1961.

b) Disputed amounts of tax are considered in contingent liabilities.

c) The Company has implemented 'Accounting Standard 22' - "Accounting of Taxes on Income", issued by the institute of Chartered Accountants of India which is mandatory in nature. The Company has recognized Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2011

A) Basis of Accounting : All income and expenditure items are accounted on accrual basis.

b) Fixed Assets : All fixed assets are valued at cost less depreciation.

c) Depreciation : Depreciation on fixed assets is provided on straight line basis as per section 205 (2) (b) of the Companies Act, 1956. Depreciation is provided on all fixed assets at the corresponding rates based on the Income Tax rates amended w.e.f. 2nd April 1987.

d) Inventories : The inventories are stated at lower of cost or net realisable value.

e) Foreign Exchange Transactions: Purchases and sales in foreign currency are accounted at exchange rates prevailing on the date of transaction. Current Assets and Liabilities in foreign currecny as at Balance Sheet date are reconverted at the rates prevailing at the year end and the resultant net gains or loss are adjusted in the accounts.

f) Retirement Benefits : Provision for Gratuity is made for the actual liability at the year end

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Mar 31, 2010

A) Basis of Accounting : All income and expenditure items are accounted on accrual basis.

b) Fixed Assets : All fixed assets are valued at cost less depreciation.

c) Depreciation : Depreciation on fixed assets is provided on straight line basis ar per section 205(2)(b) of the Companies Act, 1956. Depreciation is provided on all fixed assets i- the corresponding rates based on the Income Tax rates amended w.e.f. 2nd April 1987.

d) Inventories : The inventories are stated at lower of cost or net realisable value.

e) Foreign Exchange Transactions:Purchases and sales in foreign currency are accounted at exchange rates prevailing on the date of transaction. Current Assets and Liabilities in foreign currency as at Balance Sheet date are reconverted at the rates prevailing at the year end and the resultant net gains or loss is adjusted in the accounts.

f) Retirement Benefits : Provision for Gratuity is made for the actual liability at the year end.