The Directors have pleasure in placing before you the 8th Annual Report
 together with the Audited Statement of Accounts for the year ended 31st
 March 2000.
 
 FINANCIAL RESULTS
 
 During the year under review your Company achieved a turnover of Rs.
 5197.22 lacs representing a modest increase of 8.44 percent over Rs.
 4792.41 lacs in the previous Financial Year 1998-99.  A significant
 achievement has been the Company's ability to successfully export
 certain fancy immitation jewellery items and Gold jewellery items in
 the Gulf and European countries. It is a matter of great pride that for
 the first time in its history your Company has manufactured and
 exported Gold jewellery items valued at over Rs. 10 lacs. The Company's
 export turnover at Rs.  96.35 lacs represented a significant growth
 over Rs. 8.82 lacs in the previous year. The Company however, during
 the year continued to face Working Capital constraints as a consequence
 of which a major portion of the Company's production basically involved
 plating and assembling operations for semi-finished jewellery items
 purchased by the Company, thus enabling a faster production cycle and
 reduced Working Capital requirements. The entire business activity
 during the year was carried on at the Company's manufacturing unit at
 Bhayander and Sanjan. No activity whatsoever was undertaken at the
 Silvassa unit following seizure proceedings initiated by the Tax
 authorities in December, 1998.
 
 Although the overall turnover did register a modest growth, there was a
 reduction in overall gross margin as a result of major production being
 by way of plating/assembling operations for outsourced semi-finished
 items wherein the margins are lower. Besides the silvassa unit also was
 not operational during the year. As a result, the Company's
 profitability during the year declined from Rs. 201.72 lacs to Rs.
 109.69 lacs during the year under review.
 
 The summarised financial performance of the Company is as under:
 
                                                        (Rs. in Lacs)
 
                                                 1999-00      1998-99
 
 Total Sales                                     5197.22      4792.41
 
 Profit after Interest but before Depreciation    147.86       243.50
 
 Net Profit                                       109.69       201.72
 
 
 DIVIDEND
 
 The Directors recommend payment of dividend @ 5% on Equity Capital
 subject to the necessary approval of the shareholders at the Annual
 General Meeting. Dividend @ Rs. 0.50 per share, along with corporate
 tax on dividend, would absorb a sum of Rs. 19.43 lacs and would be paid
 to the shareholders whose names appear on the Register of Members as on
 29/12/2000.
 
 BUSINESS PROSPECTS
 
 As mentioned earlier, the Company has been able to successfully tap the
 export market which in the coming years should help the Company in
 fully exploring the export potential for jewellery and other allied
 items. Towards this, the Company has set up a strategic business unit
 (S.B.U) for promoting exports which has since been become operational.
 The Strategic Business Unit has infact started yielding results and
 helped the Company secure export orders of over Rs. 4.00 crores in the
 current financial year, which export orders are in different stages of
 implementation.  Sustained efforts are being made in this direction
 through the S.B.U set up as above with the objective of tapping a huge
 export market which exists for the Indian made jewellery products, not
 only due to its design appeals but also on accounts of cost
 competitiveness.
 
 The Company in future, does expect to emerge as a leading exporter of
 jewellery items from India, which will improve the Company's overall
 performance in the years ahead.
 
 FIXED DEPOSITS/CLAIMS ETC.
 
 1. The Company has not accepted any fixed deposits.
 
 2. The order for Income tax Demand of Rs. 2.34 crores for Assessment
 Year 1996-97 has since been set aside by the appellate authorities and
 there is presently no income tax aims against the Company.
 
 3. Claims towards quality discount on sale of Jewellery items against
 the Company, a provision for which was made in Financial Year 1998-99
 has since been amicably settled.  Following the settlement, the excess
 provision for claims as aforesaid of Rs. 98.97 lacs has been written
 back in the Profit and Loss account for Financial year 1999-00.
 
 DEMATERIALISATION OF SHARES
 
 The Directors would like to inform once again all its shareholders that
 the Company's equity shares have been admitted for trading in
 dematerialised from through the electronic medium consequent upon
 agreement entered into by the Company in this behalf with NSDL and CDSL
 w.e.f. 23/03/2000 and 22/04/2000 respectively.
 
 PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
 FOREIGN EXCHANGE EARNING AND OUTGO
 
 Information regarding conservation of energy etc. as per Sec. 217(1)(e)
 of the Companies Act, 1956 read with Companies (Disclosure of
 Particulars in the Report of Board of Directors) Rules 1988, is given
 below:
 
 a. Conservation of Energy
 
 The particulars regarding conservation of energy are not applicable to
 the Company as the Imitation Jewellery Industry is not covered under
 the schedule prescribed by the said Rules.
 
 b. Technology Absorption
 
 The manufacturing process for immitation Jewellery involves making of
 dies for different designs which are manufactured using in-house
 technology developed by the Company.
 
 c. Foreign Exchange Earnings and Outgo
 
 Details regarding foreign exchange earnings and outgo are given in not
 10 to Schedule P of the Accounts.
 
 PARTICULARS OF EMPLOYEES
 
 There are no employees in respect of whom a statement of particulars
 u/s 217(2A) of the Companies Act, 1956 read with the Companies
 (Particulars of Employees) Rules is required to be given.