1.1.1 Contingent Liabilities not provided in respect of
 
 a) Corporate Guarantees given by the Company to the extent of Rs.
 18,478.70 millions (Previous year Rs. 13,744.60 millions) for Working
 capital facilities availed by its subsidiaries.
 
 b) Outstanding Letter of Credit : Rs. 149.43 millions (Previous year
 Rs. 426.31 millions)
 
 c) Bank Guarantees : Rs. 2463.40 millions
 
 2.1.2. Claims against the Company not acknowledged as debt :
 
 a) Disputed Income Ta x : Rs. 173.05 millions (Previous Year: Rs. 47.44
 millions)
 
 The Company''s income tax assessments are completed upto Ay. 2007-08. Te
 Company has filed appeals against the assessment orders and appeals are
 pending before CIT (A). The Company, based on tax consultant''s
 assessment, is confident that the cases are likely to be decided
 favourably.
 
 b) Disputed Service Tax : Rs. 43.63 millions (Previous Year : Rs. 43.63
 millions)
 
 The Company has replied the show cause notices and based on the opinion
 received and as per the internal assessment of the Company, the demand
 is not likely to be crystalised.
 
 2.2 Share Capital, FCCB & GDR
 
 a) i) During the year, Company has utilised balance amount of USD 2.00
 millions out of the FCCB proceeds as on 31st March, 2010 and balance as
 on 31st March, 2011 is NIL. The said balance has been utilised towards
 its objects viz. overseas acquisitions and infrastructure activities
 including development of Special Economic Zones.
 
 ii) Upto 31st March, 2009, the Company had converted USD 36.14 millions
 of FCCBs into 58,96,067 equity shares of Rs. 10 each at an initial
 conversion price of Rs. 275/- per equity share. During the year 2008–09
 , the conversion price was adjusted and reset to Rs. 220/- per equity
 share as per terms and condition of Offering Circular dated 21st
 November, 2006 and any equity shares upon conversion would rank pari
 passu with existing share holders. During the year 2010 – 11, the
 Company has converted 6,01,598 equity shares of Rs. 10 each at an
 revised conversion price of Rs. 220/- per equity share and the
 outstanding FCCBs as on 31st March, 2011 amounted to USD 70.91
 millions. Accordingly, the share capital is increased from 8,42,70,000
 shares of Rs. 10 each to 8,48,71,598 shares of Rs. 10 each and also
 share premium has been credited with Rs. 126.34 millions on above
 account.
 
 iii) The FCCBs are due for redemption on 25th November, 2011 at premium
 of USD 4,205.20 per bond of USD 10,000. This premium on redemption of
 FCCBs is contingent in nature, as determination and crystalisation of
 the liabilities is dependent on future uncertain event or actions not
 holding within the control of the Company. The conversion of the bonds
 is possible till the last date. Tus there is uncertainty as to exact
 amount which will remain outstanding on the maturity date. Further the
 Company has also been advised that the premium payable on redemption of
 FCCBs could be adjusted against Share Premium Account.  The Company has
 therefore not provided for premium upto 31st March, 2011 amounting to
 USD 25.42 millions (proportionate basis) based on outstanding FCCBs of
 USD 70.91 millions.
 
 b) Out of the balance Global Depository Receipts (GDRs) proceeds of USD
 2.215 millions as on 31st March, 2010, the Company utilised USD 2.149
 millions towards investment in overseas and Indian subsidiaries and
 towards general corporate purposes including working capital
 requirements as per the objects of the issue. Pending utilisation, the
 balance proceeds of USD 0.066 millions have been kept in deposit
 accounts with overseas banks as on 31st March, 2011.
 
 2.3 Investments In Subsidiaries
 
 The Company had given in the earlier years an amount of Rs. 180 millions
 to one of the subsidiaries. Pending completion of various formalities
 by the said subsidiary, the said amount continues to be classified
 under the Investment Schedule.
 
 2.4 Secured Loans
 
 a) Working capital borrowings from Banks/ Financial Institution are
 secured against hypothecation by way of a first charge on all the
 present and future goods, movable assets, vehicles, furniture,
 stock-in–trade, fixed deposits, book debts, office premises of group
 companies alongwith personal guarantee of the Managing Director.
 
 b) On 22nd June, 2009, the Company issued 12% redeemable non cumulative
 convertible debentures of Rs. 1250 millions to LIC of India.  The tenor
 of debentures is five years (maturity date : 21st June, 2014) and are
 redeemable in eight equal quarterly installments with initial
 moratorium of three years. The said debentures are secured by first pari
 passu charge over certain immoveable properties in Hyderabad (A.P.)
 belonging to one of the wholly owned subsidiaries. During the year, the
 Company has transferred Rs. 250 millions to Debenture Redemption
 Reserve (DRR) and cumulative balance in DRR account is Rs. 500
 millions.
 
 2.5 The Company has committed to transfer the borivali factory land to
 one of the subsidiaries for its development project. As at 31st March,
 2011 the land is not transferred.
 
 2.7 Interest received during the year was Rs. 105.30 millions (Previous
 Year Rs. 95.19 millions) and Tax Deducted at Source from interest
 income was Rs. 15.44 millions for the year ended 31st March, 2011.
 (Previous Year Rs. 17.49 millions).
 
 2.8 Sundry Debtors (Schedule 8)
 
 a) Sundry debtors as on 31st March, 2011 includes Rs. 22.49 millions
 (Previous year Rs. 145.02 millions) due from concerns in which
 Directors are interested as Directors/Partners.
 
 b) Sundry debtors as on 31st March, 2011 includes Rs. 1,606.46 millions
 (Previous year Rs. 2,672.34 millions) due from Associates.
 
 2.9 Loans and Advances (Schedule 10)
 
 a) Advances to suppliers includes Rs. 72.64 millions (Previous year Rs.
 240.13 millions) given to concerns in which Directors are interested as
 Directors/Members/Partners.
 
 b) Advances to suppliers includes Rs. 3.41 millions (Previous year:
 NIL) given to Associates.
 
 2.11 Information required pursuant to Paras 3 & 4 of part II of
 Schedule VI to the Companies Act, 1956 - As per Annexure – I
 
 2.15 Segment Reporting (Accounting Standard –17)
 
 The Management of the Company identifies two major reportable segments
 as Diamond business & Jewellery Business.  (Refer to Annexure II)
 
 2.16 Related Party Transaction (Accounting Standard -18) Refer to
 Annexure – III
 
 2.17 Impairment of Assets
 
 Tere has been no case of impairment of assets reported during the year.
 
 2.18 Disclosure as per Accounting Standard (AS – 19) on Leases,
 issued by the ICAI, are given below:
 
 i. The Company has taken various office premises and fixed assets under
 operating lease or leave and license agreements. Tese are generally
 non-cancelable and ranges between 11 months and 5 years under leave and
 license, or longer for other leases and are renewable by mutual consent
 on mutually agreeable terms. The Company has given refundable interest
 free security deposits under certain agreements.
 
 ii.  Lease payments are recognised in the Profit and Loss Account under
 ''Rent'' in schedule 16.
 
 iii.  The future minimum lease payments under non-cancelable operating
 lease :
 
 a.  not later than one year Rs. 57.55 millions (Previous year : Rs.
 37.56 millions)
 
 b.  later than one year and not later than five years Rs. 149.11
 millions (Previous year : Rs. 65.73 millions)
 
 c.  More than five years Rs. NIL (Previous year : Rs. Nil)
 
 2.21 a) The Company is in the process of identifying enterprises covered
 under the Micro, Small and Medium Enterprises Development Act, 2006
 (the Act ). Based on the details regarding the status of the suppliers,
 to the extent obtained, no supplier is covered under the Act.
 
 b) To the extent information available with the Company, the Company
 does not owe any sum to small scale industrial unit as defined in
 clause (j) of Section 3 of the Industrial (Development & Regulation)
 Act, 1951.
 
 2.22 Previous year''s figures have been regrouped/rearranged/reworked
 wherever necessary and possible so as to confirm to current year''s
 classification.