A) BASIS OF PREPARATION OF ACCOUNTS :
 
 The financial statements have been prepared and presented under
 historical cost convention on the accrual basis of accounting and
 comply with the Accounting Standards as specified in the Companies
 (Accounting Standard) Rules, 2006, other pronouncements of the
 Institute of Chartered Accountants of India (ICAI), the relevant
 provisions of the Companies Act, 1956 and guidelines issued by the
 Securities and Exchange Board of India, to the extent applicable. The
 Financial Statements have been prepared under historical cost
 convention on an accrual basis except in case of assets for which
 provision for impairment is made. Accounting policies have been
 consistently applied by the Company and are consistent with those used
 in the previous year.
 
 B) USE OF ESTIMATES :
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent liabilities at the date of
 financial statements and reported amounts of revenue and expenses for
 the year.  Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates. Difference between the actual results and
 estimates are recognised in the period in which the results are known /
 materialised.
 
 C) FIXED ASSETS:
 
 Fixed Assets are stated at cost (Net of VAT wherever applicable) less
 accumulated depreciation and impairments, if any. Cost comprises the
 purchase price and any attributable costs of brining the asset to its
 working condition for intended use. They are stated at historical cost.
 
 D) IMPAIRMENT OF ASSETS :
 
 i) At each Balance Sheet date, the Company determines whether a
 provision should be made for impairment loss on fixed assets by
 considering the indications that an impairment loss may have occurred
 in accordance with Accounting Standard (AS)-28 Impairment of Assets.
 
 ii) After Impairment, depreciation is provided on the revised carrying
 amount of the assets.
 
 iii) A previously recognized impairment loss is increased or reversed
 depending on changes in circumstances.  However, the carrying value
 after reversal is not increased beyond the carrying value that would
 have prevailed by charging usual depreciation if no impairment loss had
 been recognized.
 
 E) DEPRECIATION:
 
 Depreciation on Fixed Assets is provided on Written Down Value method
 and at the rates prescribed in Schedule XIV of the Companies Act, 1956.
 Depreciation on addition to fixed assets is provided on prorata basis
 from the date of acquisition or installation. Depreciation on assets
 sold, discarded, demolished or scrapped, is provided up to the date on
 which the said asset is sold, discarded, demolished or scrapped.
 
 F) INVESTMENTS:
 
 i) Investments that are intended to be held for more than a year from
 the date of acquisition and those having fixed maturity period of more
 than a year are classified as long-term Investments and are stated at
 cost. Provision for diminution in value of long-term investments are
 made, if the diminution in value is other than temporary.
 
 ii) Current investments are valued at cost or market value, whichever
 is lower, on scrip wise basis. Cost is determined on First In First Out
 (FIFO) basis.
 
 iii) Reclassification of investments are made at the lower of cost and
 fair value at the date of transfer wherever available.
 
 G) INVENTORIES:
 
 i) Raw materials are valued at cost or net realisable value, whichever
 is lower, on First In First Out (FIFO) basis.
 
 ii) Stores and Spares are valued at cost on First In First Out (FIFO)
 basis.
 
 iii) Work in progress, manufactured finished goods and traded goods are
 valued at lower of cost and net realisable value. Cost of work in
 progress and manufactured finished goods comprises of direct material,
 cost of conversion and other costs incurred in bringing these
 inventories to their present location and condition. Trading goods are
 valued at cost or net realisable value, whichever is lower.
 
 H) FOREIGN CURRENCY TRANSACTIONS :
 
 a) Investment in foreign subsidiaries and Joint venture are recorded at
 the exchange rate prevailing on the date of making the investment.
 
 b) Monetary Assets (including bank account maintained in foreign
 currency) except those which are covered by forward exchange contracts
 and monetary liabilities, i.e. items to be received or paid in foreign
 currency, are stated at the exchange rates prevailing on the date of
 Balance Sheet. In case of transactions which are covered by forward
 exchange contracts, the difference between the forward rate and the
 spot rate is recognised as income or expense over the life of
 contracts.Realised gains and losses on foreign currency transactions
 are recognised in the Profit & Loss Account.
 
 c) Transactions denominated in foreign currencies current assets
 (including bank account maintained in foreign currency) and current
 liabilities (including bank loans taken in foreign currency), i.e.
 items to be received or paid in foreign currency, are stated at the
 exchange rates prevailing on the date of the Balance Sheet.
 
 d) Monetary items which are covered by forward exchange contracts, the
 difference between the year end rate and rate on the date of the
 contract is recognised as exchange difference and is recognised over
 the life of the contract.
 
 e) The Company uses foreign exchange forward contracts and options to
 hedge its exposure to movements in foreign exchange rates. These
 foreign exchange forward contracts and options are not used for trading
 or speculation purpose. Any profit or loss arising on cancellation or
 renewal of foreign exchange forward contracts is recognised as income
 or expense for the year. In respect of foreign currency option
 contracts which are entered into to hedge highly probable forecasted
 transactions, the cost of these contracts, if any, is expensed over the
 period of the contract. Any profit or loss arising on settlement or
 cancellation of currency options is recognised as income or expense for
 the period in which settlement or cancellation takes place. The effect
 of these currency option contracts outstanding at the year-end, in the
 form of unrealised gains/losses, is recognised.
 
 I) RECOGNITION OF INCOME AND EXPENDITURE :
 
 Revenues/Incomes and Costs/Expenditures are generally accounted on
 accrual basis as they are earned or incurred.
 
 SALES :
 
 Revenue is recognised when the significant risks and rewards of
 ownership to the goods is passed to the buyer.
 
 Domestic sales are accounted on dispatch of products to customers and
 Export sales (Net of Returns) are accounted on the basis of dates of
 Airway Bills. Domestic Sales are disclosed net of Value Added Tax and
 returns as applicable.
 
 DIVIDEND :
 
 Revenue is recognised when the right to receive is established.
 
 INTEREST :
 
 Interest income is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 J) EMPLOYEE BENEFITS :
 
 a) Defined Contribution Plan :
 
 Employee benefits in the form of contribution to Provident Fund managed
 by Government authorities, Employees State Insurance Corporation and
 Labour Welfare Fund are considered as defined contribution plan and the
 contributions are charged to the Profit and Loss Account of the year
 when the contributions to the respective funds are due.
 
 b) Defined Benefit Plan :
 
 Retirement benefit in the form of Gratuity benefit is considered as
 defined benefit obligation and is provided for on the basis of an
 actuarial valuation.
 
 Gratuity :
 
 The Company has an obligation towards gratuity, a defined benefit
 retirement plan covering eligible employees.  The plan provides for
 payment to vested employees at retirement, death while in employment or
 on termination of employment of an amount based on the respective
 employees salary and the tenure of employment.  Vesting occurs upon
 completion of given years of service. The Company makes payment to
 group gratuity policy issued by Life Insurance Corporation of India.
 
 Actuarial Valuation :
 
 The liability in respect of defined plans, is accrued in the books of
 account on the basis of actuarial valuation carried out using the
 Projected Unit Credit Method, which recognises each year of service as
 giving rise to additional unit of employee benefit entitlement and
 measures each unit separately to build up the final obligation.  The
 obligation is measured at the present value of benefit plans, based on
 the market yields as at the Balance Sheet date, having maturity periods
 approximating to the terms of related obligations. Actuarial gains and
 losses are recognised immediately in the Profit and Loss Account.
 
 K) RESEARCH AND DEVELOPMENT EXPENDITURE:
 
 Revenue expenses on Research & Development are charged to the Profit &
 Loss Account in the year in which these are incurred. Capital
 expenditure is taken as addition to the fixed assets.
 
 L) EARNING PER SHARE
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year. The
 weighted average number of equity shares outstanding during the period
 are adjusted for events of buy back of shares. For the purpose of
 calculating diluted earnings per share, the net profit or loss
 attributable to equity shareholders and the weighted average number of
 shares outstanding during the year are adjusted for the effects of all
 dilutive potential equity shares.
 
 M) PROVISION FOR CURRENT AND DEFERRED TAX :
 
 Tax expense comprises of Current and Deferred tax.
 
 Income Tax expense comprises of current tax (i.e. amount of tax for the
 year determined in accordance with the Income tax law) and deferred tax
 charge or credit.
 
 Deferred income tax reflects the impact of current year timing
 differences between taxable income / losses and accounting income for
 the year and reversal of timing differences of earlier years. Deferred
 tax is measured on the tax rates and tax laws enacted or substantively
 enacted as at the Balance Sheet date. Deferred tax assets are
 recognized only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized. In respect of carry forward losses
 deferred tax assets are recognised only to the extent there is virtual
 certainty that sufficient future taxable income will be available
 against which such losses can be setoff.
 
 N) SEGMENT REPORTING :
 
 Identification of Segment
 
 The Company has identified Two Reportable Segments viz. Jewellery
 Manufacturing and Investment Activity.  Segments have been identified
 and reported taking into account nature of products and services, the
 different risks and returns and the internal business reporting
 systems.
 
 The Company has two business segments viz. Jewellery Manufacturing and
 Investment Activity.
 
 O) PROVISIONS / CONTINGENCIES :
 
 A Provision is created when an enterprise has a present obligation as a
 result of past event that probably requires an outflow of resources and
 a reliable estimate can be made of the amount and it is probable that
 an outflow of resources will be required to settle the obligation. A
 disclosure for 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. When there is a possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 The Company does not recognise assets which are of contingent nature
 until there is virtual certainty of reliability of such assets.
 However, if it has become virtual certain that an inflow of economic
 benefits will arise, assets and related income are is recognised in the
 financial statements of the period in which the change occurs.
 
 P) MISCELLANEOUS EXPENDITURES :
 
 Expenses included under the head Miscellaneous Expenditure are
 Voluntary Retirement payments.  A Voluntary Retirement Scheme was
 announced in the last quarter of the financial year ended on 31st
 March, 2009.  In accordance with the transitional provision contained
 in Accounting Standard 15, the Company has chosen to amortize such
 expenses in equal quarterly installments upto the year ended on 31st
 March, 2010.