Spandan holistic institute conducted a project to identify children with mood disorders studying in the school of Ramabai Ambedkar Nagar slums. 581 Children from schools (Ramabai) of Mumbai city were screened using the childhood depression Inventory. 163 children of Ramabai Nagar School were interviewed. Out of this, 53 children in the age group of 9 to 15 years were identified as suffering from depression ranging from few or more features based on reported symptoms, psychometric tests along medical examination. Results show that 9.1 % of the children have depressive symptoms.  Children have shown perceptual dysfunction on the bender gestalt test. Emotional factors affected the way children handled the perceptual tasks. It was found that in slum areas, children had feelings of worthlessness, negative self-image, and conflictual interpersonal relations. The need for achievement was high in the depressive group and they experienced a great deal of anxiety, hostility, and aggression. A supportive and caring environment was needed for the effective management of the disorder. Results were obtained using a two-tailed paired t-test and findings show a significant difference in pre and post scores on depression inventory.