1 CONTINGENT LIABILITIES NOT PROVIDED FOR :
 
 a) The Company has outstanding performance guarantee of Rs.10,019,250/-
 as on the Balance Sheet date, executed in favour of Deputy Commissioner
 of Customs (Previous year Rs.10,019,250/-)
 
 b) The Municipal Corporation of Greater Mumbai has preferred an appeal
 in the High Court of Judicature at Bombay against the order of Small
 Causes Court rejecting the claim of Municipal Corporation of Greater
 Mumbai for an amount of Rs.13,696,775/- (Previous year Rs.13,696,775/-) on
 account of property tax.
 
 c) The Company has executed Bank Guarantee of Rs.200,000,000/- (Previous
 year Rs.150,000,000/-) favouring The Hongkong and Shanghai Banking
 Corporation Limited and of Rs.100,000,000/- (Previous year Rs.Nil)
 favouring YES Bank Limited, Mumbai for its wholly owned subsidiary,
 Goldiam Jewellery Limited, Mumbai.
 
 d) Commitment under contribution agreement with Kotak Alternate
 Opportunities (India) Fund is Rs.Nil (Previous year Rs.6,250,000/-)
 
 2 Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for is Rs.Nil.  (Previous year Rs.Nil.)
 
 3 Details of Related parties transactions are as under :
 
 a) List of related parties and relationship where control exists or
 with whom transactions were entered into: 
 
 Sr. 
 No.  Relationship            Name of the Related Party
 
 1    Subsidiaries            Diagold Designs Limited
 
                              Goldiam Jewellery Limited 
 
                              Goldiam Jewels Limited 
 
                              Goldiam USA, Inc.
 
 2    Associates              Goldiam HK Limited
 
                              Temple Designs LLP
 
 3 Key Management Personnel   Mr. Manhar R. Bhansali (Chairman & 
                              Managing Director)
 
                              Mr. Rashesh M. Bhansali (Vice Chairman
                              & Managing Director)
 
 4 IN THE OPINION OF THE DIRECTORS:
 
 a) The Current Assets and Loans & Advances are approximately of the
 value stated, if realised in the ordinary course of business.
 
 b) The provision for depreciation and for all known liabilities is
 adequate and not in excess of the amount reasonably necessary.
 
 5 JOINT VENTURE :
 
 In compliance with the Accounting Standard relating to Financial
 Reporting of Interests in Joint Ventures (AS-27), issued by the
 Institute of Chartered Accountants of India, the Company has interests
 in the following jointly controlled entity, which is incorporated
 outside India.
 
 6 GENERAL DESCRIPTION OF DEFINED BENEFIT PLAN: GRATUITY :
 
 The Company makes annual contribution to the Employees Group
 Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of
 India, a funded benefit plan for qualifying employees. The scheme
 provides for lump sum payment to vested employees at retirement, death
 while in employment or on termination of employment of an amount
 equivalent to 15 days service for each completed year of service or
 part thereof depending on the date of joining. The benefit vests after
 five years of continuous service.
 
 (i) Defined Benefit Plan :
 
 Gratuity includes gratuity cost of Rs.66,431/- (Previous year
 Rs.1,336,754/-).  Leave Encashment Rs.202,019/- (Previous year Rs.165,345/-).
 
 (ii) Defined Contribution Plan :
 
 Contribution to Provident Fund is Rs.203,879/- (Previous year
 Rs.462,871/-), ESIC and Labour Welfare Fund includes Rs.109,820/- (Previous
 year Rs.206,348/-).
 
 7 The Ministry of Corporate Affairs, Government of India, vide General
 Circular No.2 and 3 dated 8th February, 2011 and 21st February, 2011
 respectively has granted a general exemption from compliance with
 Section 212 of the Companies Act,1956, subject to fulfilment of
 conditions stipulated in the Circular. The Company has satisfied the
 conditions stipulated in the Circular and hence is entitled to the
 exemption. Necessary information relating to the subsidiaries has been
 included in the Consolidated Financial Statements.
 
 8 FINANCIAL INSTRUMENTS/FORWARD CONTRACTS :
 
 The Company has entered into following forward/derivative instruments :
 
 The Company is exposed to foreign currency fluctuations on foreign
 currency assets and forecasted cash flows denominated in foreign
 currency. The Company limits the effects of foreign exchange rate
 fluctuations by following established risk management policies
 including the use of derivatives.  The Company enters into forward
 contracts and option contracts, where the counterparty is bank. The
 forward contracts or options are not used for trading or speculation
 purpose.
 
 Outstanding Forward Contract for hedging currency risk against Export
 Receivables and Balance with Banks in EEFC accounts entered into by the
 Company as on 31st March, 2011 is US$ 3.6 million (Previous year US$
 Nil) equivalent to Rs.16.72 crores (Previous year Rs.Nil) and for Import
 Payables and Bank Borrowings outstanding Forward Contract entered into
 by the Company as on 31st March, 2011 is US$ Nil (Previous year US$
 Nil) equivalent to Rs.Nil (Previous year Rs.Nil).
 
 In respect of derivatives contract relating only to the Companys own
 export and imports business and foreign currency debt obligations, in
 accordance with the principles of prudence and other applicable
 guidelines as per Accounting Standards read with Schedule VI of the
 Companies Act, 1956, the Company has charged Rs.Nil (Previous year Rs.5.20
 crores) in the Profit and Loss Account in respect of outstanding
 contracts as at 31st March, 2011 and 31st March, 2010. No such
 contracts were outstanding as on 31st March, 2011.
 
 9 Information given in accordance with the requirements of AS 17 on
 Segment Reporting :
 
 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.
 
 a) Revenue and expenses have been identified to a segment on the basis
 of relationship to operating activities of the segment. Revenue and
 expenses which relate to enterprise as a whole and are not allocable to
 a segment on reasonable basis have been disclosed as Unallocable.
 
 b) Segment assets and Segment Liabilities represents assets and
 liabilities in respective segments. Ta x related assets and other
 assets and liabilities that cannot be allocated to a segment on
 reasonable basis have been disclosed as Unallocable.
 
 10 Salaries & wages include Directors remuneration of Rs.3,906,878/-
 (Previous year Rs.Nil)
 
 11 Sales include Exchange Loss of Rs.35,130,068/- (Previous year Exchange
 Gain of Rs.6,593,091/-).
 
 12 The amount of profit in respect of forward exchange contracts to be
 recognised in the Profit and Loss Account for the next accounting
 period is Rs.741,920/- (Previous year Rs.Nil).
 
 13 Purchase Trading Goods includes Exchange Gain/Loss of Rs.Nil (Previous
 year Rs.Nil).
 
 14 Previous year figures have been rearranged or re-grouped, wherever
 necessary.