(v) Provisions and Contingencies
The company creates a provision when there is present obligation as a result of a past event
that probably requires an outflow of resources and a reliable estimate can be made of the
amount of obligation. A disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an outflow of resources or
where a reliable estimate of the obligation cannot be made.
(vi) Employee Benefits
The retirement benefits, Gratuity and Leave encashment benefits will be debited as and
when paid.
(vii) Segment information
The Company is engaged in following segment viz. Jewellery of Gold and Diamond Studded
and in providing Consultancy related to Marketing of Pharmaceutical products. For
reportable segments as per IND AS -108 refer note 28.
(viii) Borrowing Costs
Borrowing Costs that are attributable to the acquisition or construction of qualifying assets
are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily
takes a substantial period of time to get ready for its intended use or sale. All other
borrowing costs are charged to revenue. Borrowing costs consists of interest and other
costs that an entity incurs in connection with the borrowing of funds.
(ix) Foreign Currency Transactions
a) Transactions in Foreign Currency are accounted at the exchange rate prevailing on the
date of Transactions. Exchange fluctuations between the transaction date and the
settlement date in respect of Revenue Transactions are recognized in Profit & Loss Account.
b) All export proceeds not realised at the yearend are restated at the rate prevailing at the
year end. The exchange difference arising there from has been recognised as income /
expenses in the Current Year's Profit & Loss A/c along with underlying transaction.
c) The premium or discount arising at the inception of forward exchange contract is
amortised as expense or income over the life of the contract. Exchange differences on such
contracts are recognised in the statement of profit and loss in the year in which the
exchange rates change. Any profit or loss arising on cancellation or renewal of forward
exchange contracts is recognised as income or as expense for the year. None of the forward
exchange contracts are taken for trading or speculation purpose.
(x) Cash flow Statement
Cash flows are reported using the indirect method, whereby the net profit before tax is
adjusted for the effects of transactions of a non-cash nature, any defects or accruals of past
or future operating cash receipts and payments and item of income or expenses associated
with investing or financing cash flows. The cash flows from operating, investing and
financing activities of the company are segregated.
(xi) Cash and Cash Equivalent
Cash and Cash Equivalents for the purpose of cash flow statement comprise cash in hand
and cash at bank including fixed deposit with original maturity period of three months and
short term highly liquid investments with an original maturity of three months or less.
(xii) Inventories
Inventories are valued at the lower of cost and net realisable value except scrap and by
products which are valued at net realisable value.
Costs incurred in bringing the inventory to its present location and condition are accounted
for as follows:
• Raw materials: cost includes cost of purchase and other costs incurred in bringing the
inventories to their present location and condition. Cost is determined on weighted average
basis.
• Finished goods and work in progress: cost includes cost of direct materials and labour and
a proportion of manufacturing overheads based on the normal operating capacity, but
excluding borrowing costs. Cost is determined on weighted average basis.
Net realisable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and the estimated costs necessary to make the sale.
Obsolete inventories are identified and written down to net realisable value. Slow moving
and defective inventories are identified and provided to net realisable value.
(xiii) Earnings Per Share(EPS)
Basic and diluted EPS is computed by dividing the net profit attributable to equity
shareholders for the year by the weighted average number of equity shares outstanding
during the year.ss
The Rights, powers and preferences relating to each class of share capital and the qualifications, limitations and
restrictions thereof are contained in the Memorandum and Articles of Association of the Company. The principle rights
are as follows :
Equity Shares of Rs. 1/- each The Company has only one class of share capital namely Equity shares having a face value of
Rs. 1/- per share.
a. In respect of every Equity Share (whether fully paid or partly paid),voting right shall be in the same proportion as the
capital paid up on such Equity Share bears to the total paid up Equity capital of the Company
During the year ended 31st March 2024, the amount of per share dividend recognized as distributions to equity
shareholders was Rs. Nil (31st March 2023 Rs. Nil)
b. In the event of liquidation, the shareholders of Equity Shares are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion to their shareholdings.
24 Contingent Liabilities (Ind AS 37)
Contingent Liabilities Not Provided For :-31/03/2024
a) Estimated amount of contracts remaining to be
executed on capital account NIL
b) Claims against company not acknowledged as debts NIL
25 OTHER NOTES :
i) . During the year Company has received money on account allotment of shares in the
previous year, as per the valuation for allotment of shares on approval from BSE and
same is accounted under Security Premium.
ii) The Company has written off the Advances of Rs. 1,02,25,000/- paid as business advance
towards the acquisition of business. In view of the Management business deal is being
forfeited and the same is not recoverable and written off.
iii) During the year company has written off Investment to the tune of Rs.3,26,264/-at cost,
as detailed below:
29 Deferred taxes on Income (Ind AS 12):-
The company is entitled to create deferred tax asset in the books of A/cs with respect to timing
difference of carried forward Capital Loss as well as depreciation.
30 In the absence of confirmation from some of the parties and pending reconciliation the debit
and credit balances with regard to recoverable and payable have been taken as reflected in
the books. In the opinion of the Directors, Loans and Advances and Current Assets, if realized in
the ordinary course of business, have the value at which they are stated in the Balance Sheet.
31 Earnings Per Share (Ind AS 33)
As per (Ind AS 33) "Earning Per Share'' issued by Institute of Chartered Accountant of India the
Company gives following disclosure for the year.
33 Financial Risk Management Objective & Policies
This section gives an overview of the significance of financial instruments for the Company and
provides additional information on the balance sheet. Details of significant accounting policies,
including the criteria for recognition, the basis of measurement and the basis on which income
and expenses are recognised, in respect of each class of financial assets and financial liabilities
are disclosed.
The management has assessed that the fair value of current and non-current loan and advances,
other non-current asset, trade receivables approximate their carrying amounts largely due to the
short term maturities of these instruments.
The fair value of Investments are based on the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale. The following methods and assumptions were used to estimate the fair values:
1) The fair values of the quoted equity shares are based on price quotations at the reporting
date.
2) Investment in Subsidiary and Associate Companies are carried at cost.
3) The fair values of the unquoted debentures, mutual fund and equity shares have been
estimated using Net Asset Value (NAV) as at reporting date.
The valuation of unquoted equity shares requires management to make certain assumptions
about the Model Inputs, including forecast of cash flows, discount rate, credit risk and volatility.
The probabilities of the various estimates within range can be reasonably assessed and are used
in management's estimate of fair value for these unquoted shares. Wherever, the probability is
low, valuation has been done based on redemption assumptions.
The significant unobservable inputs used in the fair value measurement categorized within Level
3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31st March,
2024 and 31st March, 2023 are as shown below:
Fair Value Hierarchy
The different levels have been defined below:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs)
Note-1 Due to decrease in Turnover in Current financial year
Note-2 During the year there were no manufacturing activities taken place
Note-3 Due to the collection of old outstanding dues
Note-4 Due to increase in the outstanding payable to creditors
Note-5 Due to decrease in Turnover in Current financial year
Note-6 Due to decrease in Turnover and decrease in profit in the current financial year
Note-7 Due to increase in investment in Gold and increase in its FMV
35. Other Statutory Information
I. The company has not traded or invested in crypto currency or virtual currency during the
financial year.
II. As per information available, the company has no transactions which are not recorded in the
books of accounts and which are surrendered or disclosed as income during the year in the
tax assessment or in search or survey or under any other relevant provisions of the Income
Tax Act, 1961.
III. The company is not covered under the requirements of Section 135 of the Companies Act,
2013, with respect to the CSR activities.
IV. The company is holding all the immovable properties in its own name as investment.
V. The company do not hold any benami property and no proceedings has been initiated or
pending against the company for holding any benami property under Benami Transactions
(Prohibition) Act 1988 and rules made there under
VI. The company has not been declared as willful defaulter by any bank or financial Institution or
any other lender during the year.
VII. The company do not had any transactions during the year with the companies which are
struck off under section 248 of the companies Act 2013 or section 560 of the companies Act
1956.
VIII. The company does not have any charge which are required to be registered with ROC under
the terms of the loans & liabilities.
IX. As per the information & details available on records and the disclosure given by the
management, the company has complied with the number of layers prescribed under clause
(87) of section 2 of the companies Act read with the Companies (Restriction on number of
layers) Rules 2017.
36. The figures for the previous year have been regrouped / rearranged / reclassified wherever
necessary.
As per our report of even date attached
For V R S K & Co. LLP For Deep Diamond India Limited
(Formerly known as V R S K & Co.)
Chartered Accountants
Firm reg No. 111426W
(SureshG. Kothari) (Ganpat Lal Nyati) (Sonali Laddha)
Partner Managing Director Whole Time Director & CEO
M.No.047625 (DIN - 09608005) (DIN - 09782074)
UDIN: 24047625BKESKW9483
Place: Mumbai
Date: 24-05-2024
Prashant Tali
(Company Secretary)
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