Turner Industries Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

13 Corporate information

The registered office of the company is located at City centre, No. 186 (New No.23 Purasawakkam High Road, Basement H8, Kilpauk, Chennai- 600 010.

The Principal activities of the Company to engage in Trading of Diamonds The Operations of the Company is mostly concentrated within India.

14 Significant accounting policies

Basis of accounting and preparation of financial statements

14.1 (a) Basis of accounting

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). The Company 1 prepared these financials statements to comply in all material respects with the Account Standards notified under the Companies (Accounting Standards) Rules, 2014 (as amendi and the relevant provisions of the Companies Act, 2013. The financial statements have b< prepared on accrual basis and the directions issued by the Reserve Bank of Indo the extent applicable to the Company.

14.2 (b)Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requitfee Management to make estimates and assumptions that affect the reported amounts of ass and liabilities and disclosure of contingent assets and liabilities at the date of the finani statements and reported amounts of revenues and expenses duringethreporting period. Although such estimates are made on a reasonable and prudent basis taking into account available information, actual results could differ from those estimates.

14.3 (c) Presentation and disclosures in financial statements:

All the assets and liabilities have been classified as current or non curreauper the normal operating cycle of the Company and other criteria set out in Schedule III to the Compan Act, 2013. Based on the nature of products and the time between the acquisition of assets processing and their realisation in cash and cash eqvalcnts, the Company has ascertainet its operating cycle as 12 months for the purpose of current and mimrrent classification of assets and liabilities.

Trade payables due after 12 months is NIL and Security deposit payable to Sub contracto amounting to which are in nature of long term has been classified as Long term liabilitie based on management representation

14.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are she term balances (with an original maturity of three months or less from the date of acquisitio highly liquid investments that arc readily convertible into known amountficash and which are subject to insignificant risk of changes in value.

14.5 Cash flow statement

Cash flows are prepared in accordance with the indirect method prescribed in Account Standard-3.

14.6 Fixed Assets and Depreciation / Amortisation

(i) Tangible fixed assets and depreciation

Tangible fixed assets acquired by the Company are reported at acquisition cost, with deductions for accumulated depreciation and impairment losses, if any.

The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to bring the asset to the location and condition for its intended use. Examples of directly attributable expenses included in the acquisitions! are delivery and handling costs, installation, legal services and consultancy services.

Where the construction or development of any such asset requiring a substantial period of time to set up for its intended use, is funded by borrowings, the corresponding borrowing costs are capitalised up to the date when the asset is ready for its intended use.

Depreciation is provided on a straight line basis at rates and in the manner specified in Schedule II to the Companies Act, 2013, unless the use of a higher rate or an accelerated charge is justified through technical estimates. During the year, the cornea has been converted from partnership firm to private limited company. Since the partnership firm has followed only Depreciation as per IT act, the opening WDV(Written value) is as per incom tax act. During the year after conversion the company is foWing calculation of depreciation both as per Companies Act and Income tax Act

(ii) Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment loss, if any. Profit or Loss on disposal of inmtgible assets is recognised in the Statement of Profit and Loss.

14.7 Revenue Recognition

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is exclusive of GST and are net of returns.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Service income is recognised, net of service tax, when the related services are provided.

14.8 Investments

Investments that are readily realisable and are intended to be held for not more than one ye: from the date, on which such investments are made, are classified as current investments. A other investments are classified as long term investments. Currehtvestments are stated at lower of cost and fair value. Long term investments are stated at cost of acquisition. Provisi for diminution is made when such diminution is considered other than temporary in nature. Non-current investments are carried at costProvision for diminution in the value of non current investments is made only if such a decline is other than temporary in the opinion of the management.

Current investments are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of 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.

14.9 Employee benefit)

(i) Defined Benefit \ Contribution Plan:

Fixed attributions to Provident Fund and Employees State Insurance aie recognized in the accounts

at actual cost to the company. Company''s contributions paid’payable dump the year to Rwident

Fund and ESIC are recognized in the Statement of Profit and Less. Company''s Caitnbution towards

Provid.it Find and ESIC is based on a percentage of salary.

(ii) Short -Tenn Employee Benefit:

Sat term employ ee benefits are recognized in the Statemert of Profit and Loss relating to tie year in which tlie employee h as rendered service.

(iii) lamination Benefits

Temriration benefits arc recognised in the profit and loss aaxnrt for the period in which the same is aoente.

15 Segmat repotting

The Company has only one segment, lienee the Segmental reporting regulations are not applicable.

15.1 Earnings per share

Basie earning; per share is computed by dividing tit profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by fit weighted average nuiber of equity shares otstanding duriiptteyear.DilutedeamingspershareiscaTpile d by dividing the profit / (loss) alter tax

(including the post tax effect ofextraoidinary items if any) as adjusted lor dividend, interest and other clxiges to expense or income relating to the dilutive potaiial equity shares, by die weighted average mmter of equity shares considered tor deriving basic earnings per share and die weighted average nunter of equity sixties which could have been issued on the conversion of all dilutive potential equity shares.

15.2 Segment reporting

The Company provides only Financial Services and does not hav e any other segment of business. So die Segtmital reporting regulations are not applicable to the company.

Basic earnings per shine is computed by dividing the profit / (loss) after'' tax (including the post tax

effect of extraordinary items, if any) by the weighted average number of equity shares outstanding

during the year. Diluted earnings per share is compute d by dividing the profit / (loss) after tax

(including the post tax effect of extraordinary items, if any) as adjusted for dividend interest and

other charges to expense or income relating to the dilutive potential equity shares, by the weighted

average number of equity shares considered for deriving basic earnings per share and the weighted

average number of equity shares which could have been issued on the conversion of all dilutive

potential equity shares. Potential equity shares are deemed to be dilut ive only if their conversion to

equity shares would decrease the net profit per share from continuing ordinary'' operations. Potential

dilutive equity shares are deemed to be converted as at the beginning of the period unless they have

been issued at a late r date. The dilutive potential equity shares are adjusted for the proceeds

receivable had the shares been actually issued at fair value (i.e. average market value of the

outstanding shares). Dilutive potential equity shares are determined independently for each period

presented The number of equity shares and potentially dilutive equity shares are adj listed for share

splits / reverse share splits and bonus shares, as appropriate.

15.4 Provision for Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income tliat originate in me period and are capable of reversal in ore or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or

substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised on ly if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to tlx; extent that reasonable certainty exists tliat suffici ent future taxable income will be

available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right f or such set off. Deferred tax assets are reviewed at each Balance Slieet date for their rcalisability.

Qrrrent and deferred tax relating to items directly related to equity are recognised in equity and not in the Statement of Profit and Loss.

15.5 Impairment of Assets

The company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. An asset is identified as impaired, when the carrying amount of the assets exceeds its recoverable value. Based on such assessment, impairment lo ss if any, is recognised in the statement of profit and loss account for the period in which the asset is identified as impaired. The impairment loss recognised in the prior accounting periods is reversed if there has been a change in the estimate of recov erable amount.

An impainnent loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. An assessment is also done at each Balance Sheet date whether there is any indication that an impairment loss recognised for an asset in prior account ing periods may no longer exist or may have decreased. If any such indication exists, the asset’s recoverable amount is estimated. The carrying amount of the fixed asset is increased to the revised estimate of its recoverable amount but so t hat the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of impainnent loss is recognised in the statement of Profit and Loss for t he year.

After recognition of impairment loss or reversal of impainnent loss as applicable, the depreciation charge for the fixed asset is adjusted in future periods to allocate the asset’s revised carrying amount, less its residual value (if any), on stra ight line basis over its __remaining useful life._

15.6 Provisions and contingencies

Provisions involving a substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Provision is not discounted to its present va lue and is determined based on the best estimate required to settle an obligation at the year end.

These are reviewed every year end and adjusted to reflect the best current estimate.

Contingent liabilities are not recognised but are disclosed in the finan cial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

A provision is recognised when there is a present obligation as a result of a past event, that probably requires an outflow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present valu e and is determined based on the last estimate required to settle the obligation at the year end. These are reviewed at each year end and adjusted to refle ct the best current estimate. Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

During the financial year 2020 -2021, the company had paid Rs. 13,10,000( 10% of 1.31 Crores) as Deposit for Sendee Tax Demand against company, based on the judgement the liability may or may not arise.The payment of Rs. 13,10,000 had been accounted under __Current Assets -Deposit_

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Mar 31, 2024

2 Significant accounting policies

2.01 Basis of accounting and preparation of financial statements

(a) Basis of accounting

Thefinancial statementsoftheCompanyhavebeenpreparedinaccordancewith theGenerallyAcceptedAccounting PrinciplesinIndia (Indian GAAP). The
Company hasprepared thesefinancials statementsto comply in all material respectswith the Accounting Standards notified under the Companies
(Accounting Standards)Rules,2014(asamended)andtherelevantprovisions oftheCompaniesAct,2013.Thefinancial statementshavebeenpreparedon
accrual basis and the directions issued by the Reserve Bank of India to the extent applicable to the Company.

(b) Use of estimates

Thepreparation ofthefinancial statementsin conformity with Indian GAAP requirestheManagementtomakeestimatesandassumptionsthataffectthe
reported amountsofassetsandliabilities anddisclosureofcontingent assetsandliabilities atthedateofthefinancial statementsandreported amountsof
revenuesandexpensesduring thereporting period. Although suchestimatesaremadeonareasonableandprudent basistaking into accountall available
information, actual results could differ from those estimates.

(c) Presentation and disclosures in financial statements:

All theassetsandliabilities havebeenclassifiedascurrent or noncurrent asperthenormal operating cycleoftheCompany andother criteria setout in
Scheduled totheCompaniesAct,2013.Basedonthenatureofproductsandthetimebetweentheacquisitionofassetsforprocessingandtheir realisationin

cashandcashequivalents,theCompany hasascertaineditsoperating cycleas12monthsfor thepurposeofcurrent andnon-current classificationofassets
and liabilities.

Trade payables due after 12 months is NIL and Security deposit payable to Sub contractor amounting to which are in nature of long term has been classified
as Long term liabilities based on management representation

2.2 Inventory

(a) finished goods, packing materials, stores, components; consumables and stock-in-trade are carried at the lower of cost and net realisable value.

(b) Costofinventory comprisesallcostsofpurchase,duties,taxes(otherthanthosesubsequentlyrecoverablefrom taxauthorities) andallothercostsincurred
in bringing the inventory to their present location and condition.

(c) CostofConsumablescomprisesall costsof purchase,duties, taxes(other thanthosesubsequentlyrecoverablefrom taxauthorities) andall other costs
incurred in bringing the inventory to their present location and condition.

(d) ChangeinValueofInventory istheMaterial thatwasconsumedfor theoperation.Diminision intheValueofInventory wascommunicatedbyPhoenix
ARC and adopted as such.

2.3 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cashcomprisescashonhandanddemanddepositswith banks.Cashequivalentsareshort-term balances(with anoriginal maturity ofthreemonthsorless
from thedateofacquisition),highly liquid investmentsthatarereadily convertibleinto known amountsofcashandwhich aresubjecttoinsignificant riskof
changes in value.

2.4 Cash flow statement

Cash flows are prepared in accordance with the indirect method prescribed in Accounting Standard-3.

2.5 Fixed Assets and Depreciation / Amortisation
(i) Tangible fixed assets and depreciation

Tangible fixed assets acquired by the Company are reported at acquisition cost, with deductions for accumulated depreciation and impairment losses, if any.
Theacquisitioncostincludesthepurchaseprice(excluding refundabletaxes)andexpensesdirectly attributable tobring theassettothelocationandcondition
foritsintendeduse.Examplesofdirectly attributable expensesincluded intheacquisitioncostaredelivery andhandling costs,installation, legalservicesand
consultancy services.

Wheretheconstruction ordevelopment ofanysuchassetrequiring asubstantialperiod oftime tosetup for itsintended use,isfunded byborrowings, the
corresponding borrowing costs are capitalised up to the date when the asset is ready for its intended use.

Depreciationisprovided onastraightlinebasisatratesandinthemannerspecifiedinScheduleIItotheCompaniesAct,2013,unlesstheuseofahigherrate
or anacceleratedchargeisjustified through technicalestimates.During theyear,thecompany hasbeenconvertedfrom partnership firm toprivate limited
company.sincethepartnership firm hasfollowed only DepreciationasperITact,theopeningWDV(Written value)isasperincometaxact.During theyear
after convertion the company is following calculation of depreciation both as per Companies Act and Income tax Act
(ii) Intangible Assets

Intangible assetsacquired separatelyaremeasuredon initial recognition at cost.Following initial recognition, intangible assetsarecarried at costless
accumulatedamortization andaccumulatedimpairment loss,ifany.Profit orLossondisposalofintangible assetsisrecognisedintheStatementofProfit and
Loss.

2.6 Revenue Recognition

Revenuefromsaleofgoodsisrecognisedontransferofallsignificant risksandrewardsofownership tothebuyer.Theamountrecognisedassaleisexclusive
of GST and are net of returns.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Service income is recognised, net of service tax, when the related services are provided.

2.7 Investments

Investments that arereadily realisableand areintended to beheld for not more than oneyearfrom thedate,onwhich suchinvestments aremade,are
classifiedascurrentinvestments.All otherinvestmentsareclassifiedaslongterminvestments.Current Investmentsarestatedatlower ofcostandfair value.
Long term investments are stated at cost of acquisition. Provision for diminution is made when such diminution is considered other than temporary in nature.
Non-current investmentsarecarried atcost.Provision for diminution in thevalueofnon-current investmentsismadeonly if suchadeclineisother than
temporary in the opinion of the management.

Current investments arecarried at lower of costand fair value. Thecomparison of costand fair value isdoneseparatelyin respectof eachcategoryof
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.

2.8 Employee benefits

(i) Defined Benefit \ Contribution Plan :

Fixedcontributions toProvident FundandEmployeesStateInsurancearerecognizedintheaccountsatactualcosttothecompany.Company’scontributions
paid/payable during theyeartoProvident Fund andESICarerecognizedin theStatementofProfit andLoss.Company’s Contribution towards Provident
Fund and ESIC is based on a percentage of salary.

(ii) Short-Term Employee Benefit :

Short term employee benefits are recognized in the Statement of Profit and Loss relating to the year in which the employee has rendered service.

(iii) Termination Benefits

Termination benefits are recognised in the profit and loss account for the period in which the same is accrue.

2.9 Segment reporting

The Company has only one segment, hence the Segmental reporting regulations are not applicable.

2.10 Earnings per share

Basicearningspershareiscomputed by dividing theprofit /(loss)aftertax(including theposttaxeffectof extraordinary items,if any)by theweighted
averagenumber ofequity sharesoutstanding during theyear.Diluted earningspershareiscomputed bydividing theprofit /(loss)aftertax(including the
posttaxeffectofextraordinary items,ifany)asadjustedfordividend, interestandotherchargestoexpenseorincomerelating tothedilutive potential equity
shares,bytheweighted averagenumberofequity sharesconsideredforderiving basicearningspershareandtheweighted averagenumberofequity shares
which could have been issued on the conversion of all dilutive potential equity shares.

2.11 Segment reporting

TheCompanyprovidesonly FinancialServicesanddoesnothaveanyothersegmentofbusiness.SotheSegmentalreporting regulationsarenotapplicableto
the company.

2.12 Earnings per share

Basicearningspershareiscomputed by dividing theprofit /(loss)aftertax(including theposttaxeffectof extraordinary items,if any)by theweighted
averagenumber ofequity sharesoutstanding during theyear.Diluted earningspershareiscomputed bydividing theprofit /(loss)aftertax(including the
posttaxeffectofextraordinary items,ifany)asadjustedfordividend, interestandotherchargestoexpenseorincomerelating tothedilutive potential equity
shares,bytheweighted averagenumberofequity sharesconsideredforderiving basicearningspershareandtheweighted averagenumberofequity shares
which could havebeenissuedon the conversion of all dilutive potential equity shares.Potential equity sharesaredeemedto bedilutive only if their
conversiontoequity shareswould decreasethenetprofit persharefrom continuing ordinary operations.Potentialdilutive equity sharesaredeemedtobe
convertedasatthebeginning oftheperiod, unlesstheyhavebeenissuedatalaterdate.Thedilutive potential equity sharesareadjustedfor theproceeds
receivablehad the sharesbeenactually issuedat fair value (i.e.averagemarket value of the outstanding shares).Dilutive potential equity sharesare
determined independently for eachperiod presented.Thenumber of equity sharesand potentially dilutive equity sharesareadjustedfor sharesplits /
reverse share splits and bonus shares, as appropriate.

2.13 Provision for Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferredtaxisrecognisedontiming differences,beingthedifferencesbetweenthetaxableincomeandtheaccountingincomethatoriginateinoneperiod and

arecapableofreversalinoneormoresubsequentperiods. Deferredtaxismeasuredusingthetaxratesandthetaxlawsenactedorsubstantially enactedasat

thereporting date. Deferred taxliabilities arerecognisedfor all timing differences. Deferred taxassetsin respectof unabsorbeddepreciation and carry
forward oflossesarerecognisedonlyifthereisvirtual certaintythattherewill besufficient future taxableincomeavailabletorealisesuchassets.Deferredtax
assetsarerecognisedfor timing differencesof other itemsonly to theextentthat reasonablecertainty existsthat sufficient future taxableincomewill be
availableagainstwhich thesecanberealised. Deferredtaxassetsandliabilities areoffsetifsuchitemsrelatetotaxesonincomeleviedbythesamegoverning
tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.
Current and deferred tax relating to items directly related to equity are recognised in equity and not in the Statement of Profit and Loss.

2.14 Impairment of Assets

ThecompanyassessesateachBalanceSheetdatewhether thereisanyindication thatanassetmaybeimpaired. An assetisidentified asimpaired, whenthe
carrying amountoftheassetsexceedsitsrecoverablevalue.Basedonsuchassessment,impairment lossifany,isrecognisedinthestatementofprofit andloss

accountfortheperiodinwhich theassetisidentified asimpaired. Theimpairment lossrecognisedintheprior accountingperiodsisreversediftherehasbeen
a change in the estimate of recoverable amount.

Animpairment lossisrecognisedwheneverthecarrying amountofanassetexceedsitsrecoverableamount.AnassessmentisalsodoneateachBalanceSheet
datewhetherthereisanyindication thatanimpairment lossrecognisedforanassetinprior accountingperiodsmaynolongerexistormayhavedecreased.If
any suchindication exists,theasset’srecoverableamount isestimated.Thecarrying amount of thefixed assetisincreasedto therevised estimateof its
recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss
been recognised for the asset in prior years. A reversal of impairment loss is recognised in the statement of Profit and Loss for the year.

After recognition ofimpairment lossorreversalofimpairment lossasapplicable,thedepreciation chargefor thefixed assetisadjustedin future periodsto
allocate the asset’s revised carrying amount, less its residual value (if any), on straight line basis over its remaining useful life.

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Mar 31, 2014

ACCOUNTING CONVENTION

The Financial Statements are prepared under the historical cost convention and in accordance with applicable accounting standards.

FIXED ASSETS

Fixed Assets are stated at cost less depreciation. Cost of Fixed Assets include all direct expenditure and expenditure during construction period allocated of Fixed Assets.

Depreciation on the fixed assets has not been provided. Since the fixed assets with the company is not in use and it is under litigation and the balance affixed assets has been discarded as mentioned in my report of Auditor''s report. But depreciation has been provided on new assets introduced in Block Assets during the year.

INCOME RECOGNITION

Income & Expenditure are accounted on accural basis.

Sales

Sales are recorded and supply of goods takes place in accordance with the terms of sales. Sales do not include Excise Duties.

There were no amounts due to Supplies water the Micro, Small and Medium Enterprises Development Act 2006, (MSMED Act, 2006) Units Sundry Creditors as on 31.03.2014

ACCOUNTING STANDARD

The Profit and Loss A/C. and Balance Sheet Complied with the accounting standards referred in section see 211 (3C) of companies Act 11086.

SECURED LOAN

There are no secured loan borrowed by the company.

CHANGE IN ACCOUNTING POLICY

There is no change in policy of accounts Expenditure in Foreign CurrencyNIL Previous Year figures have been rearranged and regrouped wherever necessary. Sundry Debtors unsecured considered goods

Outstanding for a period exceeding six months Rs. 27.55 Lakhs

Others Rs. 56.24 Lakhs

(The Company does not hold any security except the personal guarantee of debtors.)

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Mar 31, 2013

ACCOUNTING CONVENTION

The Financial Statements are prepared under the historical cost convention and in accordance with applicable accounting standards. FIXED ASSETS

Fixed Assets are stated at cost less depreciation. Cost of Fixed Assets include all direct expenditure and expenditure during construction period allocated of Fixed Assets.

Depreciation on the fixed assets has not been provided. Since the fixed assets with the company is not in use and it is under litigation and the balance of fixed assets has been discarded as mentioned in my report or Auditor''s report. But depreciation has been provided on new assets introduced in Block Assets during the year.

INCOME RECOGNITION

Income & Expenditure are accounted on accural basis.

Sales

Sales are recorded and supply of goods takes place in accordance with the terms of sales. Sales do not include Excise Duties.

There were no amounts due to Supplies water the Micro, Small and Medium Enterprises Development Act 2006, (MSMED Act, 2006) Units Sundry Creditors as on 31.03.2013

ACCOUNTING STANDARD

The Profit and Loss A/C. and Balance Sheet Complied with the accounting standards referred in section see 211 (3C) of companies Act 11086.

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Mar 31, 2012

ACCOUNTING CONVENTION

The Financial Statements are prepared under the historical cost convention and in accordance with applicable accounting standards.

FIXED ASSETS

Fixed Assets are stated at cost less depreciation. Cost of Fixed Assets include all direct expenditure and expenditure during construction period allocated of Fixed Assets.

Sales

Sales are recorded and supply of goods takes place in accordance with the terms of sales . sales do not include excise duties. There were no amounts due to Supplies water the Micro. Small and Medium Enterprises Development Act 2006, (MSMED Act, 2006) Units Sundry Creditors as on 31.03.2012

ACCOUNTING STANDARD

The Profit and Loss A/C. and Balance Sheet Complied with the accounting standards referred in section see 211 (3C) of companies Act 11086.

SECURED LOAN

There are no secured loan borrowed by the company.

TAXES

Since there is a toss 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.6.02.866(RY. Loss 1,53.451)

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 suit 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.