Classic Diamonds India Ltd Directors Report

To

The Members,

Your Directors have great pleasure in presenting their Twenty Seventh Annual Report together with the Audited Statement of Accounts for the financial year ended 31^st March, 2014

1. FINANCIAL RESULTS:

(Rupees in Lacs)

PARTICULARS		FOR THE YEAR ENDED 31-Mar-14	FOR THE YEAR ENDED 31-Mar-13
1. FINANCIAL RESULTS
Sales (Incl. Exch. Difference)		NIL	1009.76
Other Income		0.98	1141.56
Profit before Interest & Depreciation	(A)	(6,590.30)	(18830.82)
Less: I) Interest		4737.32	3,885.83
2) Depreciation		228.60	325.41
Total of Interest and Depreciation	(B)	4965.92	4211.24
Misc items (C)		338.64	381.63
Profit before taxation (A-B-C)		(11894.87)	(23423.68)
Provision for & Deferred Taxation		NIL	1417.02
Profit after taxation		(11894.87)	(25126.45)
Bal in P & L Account brought/forward		(8874.61)	16251.84
		(20769.48)	(8874.61)
2. APPROPRIATIONS
Proposed Dividend (incl Tax)		-	-
Transfer to General Reserve Balance carried forward		(20769.48)	(8874.61)
		(20769.48)	(8874.61)

2. DIVIDEND:

In view of loss during the year the management has decided not to declare the dividend

3. LISTING ON NSE & BSE:

The shares of your company are listed on the Bombay Stock Exchange Limited (BSE Code: 523200) and the National Stock Exchange of India Limited (NSE Code: CLASSIC EQ)

4. FINANCE:

The Companys accounts where they were having limits with the Banks has been declared NPA (Non Performing Assets) by the Bank for non realization of export proceeds. The directors of the Company are trying their best to realize the export proceeds at the earliest

5. DIRECTORS:

The Company has 4 Directors. The following is the list of Directors of the Company:

Name of the Director	Designation
Kumar C. Bhansali	Chairman & Managing Director
Nirav Bhansali	Whole Time Director
Madhukar G. Patankar	Independent Non-Executive Director
Nishikant Jha	Independent Non-Executive Director

6. AUDITORS:

M/s JMR & Associates Chartered Accountants will continue to hold the office of Auditor as per Section 139 of the Companies Act 2013 from the conclusion of this Annual General Meeting, until the conclusion of Twenty-Eight Annual General Meeting to be held after this meeting, subject to ratification at every Annual General Meeting and to fix their remuneration for the financial year ending 31st March, 2014.

7. CORPORATE GOVERNANCE:

A separate section on Corporate Governance is included in the Annual Report and the certificate from the companys auditors confirm the compliance of conditions on Corporate Governance as stipulated in the said clause 49 of the Listing Agreement annexed thereto.

8. FIXED DEPOSIT:

The company has not invited or accepted any deposit during the financial year 2014- 2015 under review under Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.

10. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The information pursuant to Section 134(3) (m) of the Companies Act, 2013 is given below:

A. CONSERVATION OF ENERGY

As the company is not covered in the list of industries required to furnish information in Form A relating to conservation of energy, the same is not given.

B. TECHNOLOGY ABSORPTION

Research and Development (R & D)

1. Specific areas in which the company carries out R & D:

The Company has been successful in manufacturing its own Laser Cutting Machine for the Diamond factory. In the jewellery sector in house design and manufacture of certain consumables are carried out.

2. Benefits derived as a result of the above R & D:

The Company achieves better productivity and cost reduction. Reduction in Production leads time

Reduction in rework and rejection in the manufacturing process

Total traceability of each piece during the entire manufacturing process through in house software development

3. Future plan of Action:

The company will strive to improvise the manufacturing methodology to effect further cost reduction and increase productivity.

4. Expenditure on R & D:
a. Capital	NIL
b. Recurring	NIL

c. Total R & D expenditure as included in the manufacturing cost percentage of total turnover NIL

5. Efforts in brief made towards Technology absorption and innovation:

The company keeps abreast of global technical developments, innovations and trends in its line of business and strives to constantly reduce costs and improve the quality of its products.

6. Benefits derived as a result of the above efforts e.g. cost reduction, product development and improvement; import substitution etc. will be reflected in precision manufacturing of high quality products and substantial -cost reduction.- -

7. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year) following information may be furnished:

The Company has not imported any technology.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO:

Information regarding foreign exchange earnings and outgo is given below:

Total Foreign Exchange used	: NIL
Total Foreign Exchange earned	: NIL

12. DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirement under section 134(3) (c) of the companies act, 2013, with respect to Directors Responsibility Statement, it is hereby confirmed that:

• that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

• that they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period

• that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

• that they have prepared the annual accounts on a going concern basis and

• that in case of listed company, had laid down internal function controls to be followed by the company and that such internal financial controls are adequate and were operating effectively

• that they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively

13. CAUTIONARY STATEMENT:

Statements in this Directors Report and Management Discussion & Analysis describing the Companies objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable Securities laws and regulations. Actual results could differ materially from those expressed or implied due to risk of uncertainties associated with our expectations with respect to, but not limited to, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business, technological changes, exposure to market risks, general economic and political conditions in India and which have an impact on our business activities or investments, the monetary and fiscal policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, the performance of the financial markets in India and globally and raw material availability and prices, demand & pricing in the Companys principal markets, and other incidental factors.

14. ACKNOWLEDGEMENT:

The Directors wish to convey their appreciation to all the employees of the company for their personal efforts as well as for the excellent contribution made by all employees of the Company through their commitment, competence, cooperation and diligence to duty their collective contribution in such trying times, which enabled the company to meet the challenges set before it.

Your Directors would like to express their grateful appreciation for the assistance and cooperation received from the banks during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the continued support of customers and suppliers of the company.

Your Directors thank the shareholders for their confidence in the company.

	BY THE ORDER OF THE BOARD
Registered Office:	Mr. Kumar C. Bhansali
Off Premises No.701, 7th Floor,	Chairman & Managing Director
Majestic Shopping Centre Premises Co-op.Soc.ltd.
J.S.S. Rd., Mumbai 400 004	Mr. Nirav K. Bhansali
Dated: 30th May, 2014	Whole Time Director