1.  Previous year figures have been regrouped, reworked, rearranged and
 reclassified whenever necessary.
 
 2.  The company is in default for making payment to banks. The banks
 have declared company''s bank account as NPA and also started recovery
 proceeding and filed an application in Debt Recovery Tribunal for
 recovery of loan amount.
 
 3.  The company had applied for settlement with banks and arrived the
 final settlement with Punjab and Sind Bank and in process of settlement
 with ICICI Bank.
 
 4.  The secured creditors of the company ''ICICI Bank'' has filed winding
 up petition u/s 439 of the Companies Act, 1961 in the Bombay High
 Court. The matter is pending before Honorable Bombay High Court. The
 said petition may affect the company''s going concern status.
 
 5.  Related Party Disclosure as per AS 18 (As identified by the
 Management):
 
 (i) Related Party Relationship 
  
 (a) Where Control Exists     1) Kamal & Co. 
 
                              2) Sumona Jewels Private Limited
 
 (b) Key Management 
     Personnel                1) Shri Bhawar U. Jain
 
                              2) Shri Kamal U. Jain
 
                              3) Shri Gautam T. Banerjee
 
 (c) Relatives of Key 
     Management Personnel     NIL
 
 (d) Other Related Parties    NIL
 
 6.  The amounts in the Balance Sheet and Statement of Profit and Loss
 are rounded off to the nearest One Thousand Rupees.