Fixed Assets are carried at cost of acquisition or construction including incidental expenses related to acquisition and installation on concerned assets, less accumulated depreciation and amortization. The actual cost capitalized includes material cost, freight, installation cost, duties and taxes and other incidental expenses incurred during the construction / installation stage.

2. Depreciation:

The company has provided depreciation on Straight Line Value Method over the estimated useful lives of assets at the rates specified in Part C of Schedule II of The Companies Act, 2013. Depreciation is charged on pro-rata basis from the date of capitalization. Individual asset costing Rs. 5000/- or less are fully depreciated in the year of acquisition.

3. Investments:

Long Term and Non current investments are valued at Cost. Other investments are valued at lower of cost or fair market value as on the date of Balance Sheet. The group provides for diminution in value of investments, other than temporary in nature. During the year company has provided for diminution in value of investments of Rs. 1,93,954/- (P.Y Rs.34,25,565/-) and the same is reduced from the value of investments as carried on in Balance Sheet.

Current Investments includes Fixed capital with partnership firm M/s Lypsa Gems of Rs. 45,000/- (P.Y. Rs. 45,000/-) and Current capital with partnership firm M/s Lypsa Gems of Rs 2,84,963/- (P.Y. 96,71,979/-) and Investment in 100% subsidiary Lypsa Gems & Jewellery DMCC of Rs. 7,48,720/- (USD $ 14000) (P.Y. Rs. 7,48,720/- (USD $ 14000).

4. Secured Loans:

The company has availed the secured loans amounting to Rs. 3748.78 Lacs (P.Y Rs. 1485.93 Lacs against pledge of fixed deposits receipts) which includes Foreign Currency Loans and Rupee Loans against hypothecation of stocks and receivables

5. Cash and Bank Balances: Fixed Deposits Receipts:

The company has total fixed deposits of Rs. 576.11 Lacs with Bank of India (P Y Rs. 858.59 Lacs with Bank of India).

Current Assets, Loans & Advances and Current Liabilities:

The Deferred premium on export of Rs. 64.12 Lacs (P.Y. 128.13 Lacs) is reflected in Balance Sheet under other current liabilities.

The company has classified Receivable on forward contract against Exports of Rs 148.97 Lacs (P.Y. Rs. 572.02 Lacs) in Balance Sheet under short term loans & advances.

6. Revenue Recognition:

(a) Sales, net of taxes are accounted for when property in the goods are transferred to the customers.

(b) Dividend is recognized, when right to receive the dividend arises.

(c) Items of Income and Expenditure such as Exchange Rate difference, Interest on FDR, Profit on Forward Contract, Forward premium, Interest paid are recognized on accrual basis, unless otherwise stated.

(d) Interest income is recognized on time proportion method.

(e) Amounts received or billed in advance of goods sold are recorded as advances from customers.

(f) Revenue from operations include share of profit from partnership firm M/s Lypsa Gems of Rs. -5.49 Lacs (P Y -7.43 Lacs)

(g) During the year, company has started New manufacturing unit at Chhapi - Gujarat on 12th November, 2014. The commercial production at the new manufacturing unit was also started during the year.

7. Preliminary Expenses:

Preliminary Expenses are amortized over a period of five years.

9. Foreign Currency Transactions:

Transactions in foreign currency are recognized at the prevailing exchange rates on the transaction dates. Realized gain or losses on settlement of foreign currency transactions are recognized in the Profit and Loss account. Foreign currency denominated monetary assets and liabilities at the year end are translated at the year end exchange rates and recognized in the Profit and Loss account. Non monetary foreign currency items are carried at cost.

The company enters into forward exchange contract and other instruments that are in substance a forward exchange contract to hedge its risks associated with foreign currency fluctuations. The premium or discount arising on the inception of a forward exchange contract (other than a firm commitment or highly probable forecast) or similar instrument is amortised as expense or income over the life of contract. Exchange difference on such a contract are recognized in the Profit and Loss account in the year in which the exchange rates change. Any Profit or Loss arising on cancellation of such a contract is recognized as income or expense for the year. The company uses forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. 10. Taxation:

Current Tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax for timing differences between the income as per financial statement and income as per the Income Tax Act, 1961 is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance sheet date. Deferred tax assets arising from the timing differences are recognized to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

8. Employee Benefits:

Employee benefits such as Provident fund, ESIC and other benefits are provided by the company.

9. Lease Accounting:

Lease Rentals under operating leases are recognized in the Profit and Loss account on Straight Line Method. The company has not taken any equipment on lease.

10. Treatment of contingent Liability:

The company recognizes a provision where there is a present obligation as 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 may, but probably will not require an outflow of resources is remote. As the company does not have any contingent liability, no disclosure as specified in Accounting Standard 29 - "Provisions, Contingent Liabilities and Contingent Assets" is made.

11. Disclosure of Related Parties:

"Related party Disclosures" as required by Accounting Standard 18 is enumerated below:

Transactions with Group Companies: NIL

Transactions with Key Management Personnel and Related Entities:

During the year M/s Lypsa Gems & Jewellery DMCC a 100% foreign subsidiary of M/s Lypsa Gems & Jewellery Ltd has earned a net profit of Rs. 14,35,28,525/-(P Y Rs. 6,30,39,333/-).

The computation of Net Profit for the purpose of calculation of directors remuneration under Section 349 of the Companies Act 1956 is not enumerated, since no commission has been paid to the Directors.

12. Segment Reporting:

In accordance with the requirements of Accounting Standard 17 "Segment Reporting" the Company's Business Segment is "Trading and working in Diamonds". As the company operates in only one segment, Segment Reporting as per Accounting Standard 17 is not applicable.

13. Inventories:

Raw materials are valued at cost or net realizable value whichever is lower. Cost is computed using weighted average method. Work in progress is computed by adding cost of purchase, appropriate share of conversion and other overheads incurred in bringing the inventories to its present location and condition. Finished Goods are valued at weighted average cost. During the year, there is no change in the method of valuation of closing stock. Finished goods includes cost of purchase, cost of conversion and other overheads incurred in bringing the inventories to its present location and condition.

14. Stock and Turnover:

Information pursuant to paragraphs 4C & 4D (C) of Part II of Schedule VI to the Companies Act, 1956 as applicable to the Company doing manufacturing activity is as: Quantitative details of materials:

15. Share Capital:

During the year company has not allotted shares to the public. The company has issued 70,20,000 Bonus shares in the ratio of 1 equity share for every 2 equity shares held by capitalization of Rs. 5,98,00,000/- standing to the credit of the Securities premium Account and a sum of Rs. 1,04,00,000/- standing to the credit of Profit & Loss Account (forming part of Reserves & Surplus Account).

16. Earnings per Share:

Basic earnings per share is computed by dividing the profit/(loss) after tax (including post tax effect of extra ordinary items, if any) by the weighted average number of equity shares outstanding the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax (including post tax effect of extra ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period, unless they have been issued at a later 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). Since the bonus shares as stated in note no. 21 hereinabove, is an issue without consideration, the issue is treated as if it has occurred prior to the beginning of the year being the earliest period reported, the earnings per share and the adjusted earnings per share for the year ended March 31st, 2014 is as computed as per Accounting Standard 20 is as:

17. Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.

18. Partnership Firm operations:

The accounts of the company reflects its Investments and Income & Expenditure from Partnership firm which are accounted on the basis of the accounts of the firm M/s Lypsa Gems on line-by-line basis with similar items in the company's accounts to the extent of the participating interest of the company as per partnership deed. The partnership firm was dissolved on March 31st, 2015. During the year various fixed assets were transferred by the firm to the company towards the outstanding balance dues from them. The company has also invested USD $ 14000 in its 100% foreign subsidiary company Lypsa Gems & Jewellery DMCC (P.Y. US$ 14000).

19. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all known liabilities is adequate and is not in excess of the amounts reasonably necessary.

20. The Balances of Debtors, Creditors, Loans and advances are subject to reconciliation and confirmation.

21. Balance of Unsecured Loans includes interest charged on such loans, wherever applicable.

22. The information required under Section 217 (2A) (b) (ii) of the Companies Act, 1956 read with Companies Employees Amendment Rules, 2011 is not given as there was no employee in receipt of salary exceeding Rs 5,00,000 per month or Rs 60,00,000 or more per annum.

23. As defined in "The Micro, Small and Medium Enterprises Development Act, 2006", there are no amounts payable to any Micro and Small Scale Enterprises / Undertaking.

24. Previous year figures have been regrouped and rearranged wherever necessary to make them comparable with those of current year.

25. There are certain uncollected dues/receivables in foreign currency which are outstanding for a period of more than six months as on Balance sheet date. The amount of foreign currency receivables outstanding for more than six months is Rs. 1,43,72,660/- (P Y Rs. 14,41,745/-). However Rs. 33,00,353/- is received after the balance sheet date.

26. The company has made an investment of USD $ 14000 in its 100% Foreign subsidiary company M/s Lypsa Gems & Jewellery DMCC (P.Y. US$ 14000) and subsidiary has earned profit of Rs. 14,35,28,525/-for the year 2014-15.

The Net profit earned for the year 2014-15 from partnership firm M/s Lypsa Gems of Rs. -5,49,299/- (P.Y. Rs.-7,43,418/-) is debited to share of profit in companies current capital account.

27. The company has outstanding unclaimed dividend of Rs. 7,49,900/- for the year 2009- 10, Rs. 8,27,000/- for the year 2010-11, Rs. 5,61,855/- for the year 2011-12, Rs 4,33,587/-for F.Y. 2012-13 and Rs.15,50,060.50 for 2013-14.