1.  Estimated amount of contracts remaining to be executed on capital
 account (net of advances) not provided for is Nil (Previous year - Nil)
 
 2.  Contingent liabilities not provided for:
 
 (a) Sales tax and entry tax demands are disputed by the Company Rs.
 4,79,057/- (Previous year Rs 8,31,901/-)
 
 (b) The Company had received an order from the tax authorities dated
 December 27, 2006 for the period April 1, 2003 to March 31, 2004
 demanding a tax payment of Rs 9,99,60,890. The Commissioner of Income
 Tax (Appeals) has passed an adverse order confirming the order of
 assessing authority. The Company has appealed against the said order
 before the Income Tax Appellate Tribunal, and the Income Tax Appellate
 Tribunal has passed an order in favour of the company, allowing the
 deduction under section 10B of the Income Tax Act, which is the major
 portion of the demand raised by the department. However,the Tribunal
 did not allow an expense of Rs. 200 lakhs. Against the order of the
 Income Tax Appellate Tribunal, the company and the Income Tax
 Department both have appealed before the Hon''ble High Court of
 Karnataka and the Company firmly believes that the issue will be
 settled in its favour.  Further, the Company had received an order from
 the tax authorities dated November 13, 2009,( rectified by order dated
 December 31, 2009) for the period April 1, 2006 to March 31, 2007
 demanding an additional tax payment of Rs 36,99,89,925. The Company has
 appealed before the Commissioner of Income Tax (Appeals) against the
 said order and the Company firmly believes that the issue will be
 settled in its favour.
 
 Further, the Company had received an order from the tax authorities
 dated December 30, 2010,( rectified by order dated January 19, 2011 and
 order dated January 27, 2011) for the period April 1, 2007 to March 31,
 2008 demanding an additional tax payment of Rs 88,23,82,070. The
 Company has appealed before the Commissioner of Income Tax (Appeals)
 against the said order and the Company firmly believes that the issue
 will be settled in its favour.
 
 (c) The Company has received a Demand Notice from Employees State
 Insurance Corporation, Karnataka Region for the period from April 2000
 to March 2003 demanding for Rs. 1,19,03,054/- The Company has appealed
 against the order and paid Rs. 29,75,764/- under protest, which is
 pending decision before Appellate Authority. The management firmly
 believes that the issue will be settled in its favour.
 
 During the year Company has received a Demand Notice from Employees
 State Insurance Corporation, Karnataka Region for the period from April
 2006 to September 2007 demanding for Rs. 47,22,209/-. The Company has
 appealed against the order and paid Rs. 9,43,800/- under protest, which
 is pending decision before Appellate Authority. The management firmly
 believes that the issue will be settled in its favour.
 
 (d) The Company has received an order from the Commissioner of Central
 Excise, Bangalore demanding Service Tax of Rs.2,44,83,060/- with the
 equal amount as penalty for the period from April 2006 to March 2007.
 The Company has appealed against the order before the Appellate
 Tribunal and paid Rs.1,22,41,530/- under protest, which is pending
 decision before Appellate Authority. The management firmly believes
 that the issue will be settled in its favour.
 
 4.  Directors remuneration includes remuneration payable to Executive
 chairman and Managing director of Rs.2,39,976/- ( Previous Year
 Rs.2,39,976/- )
 
 5.  Brief particulars of Employees who were entitled to receive or were
 in receipt of emoluments aggregating to Rs.60,00,000/- or more per
 annum and/or Rs.500,000/- or more per month, if employed, for a part of
 the year is Nil ( Previous Year Nil).
 
 6.  The company has taken a key man''s insurance policy from Life
 Insurance Corporation of India on the life of Mr. Rajesh Mehta,
 Executive chairman for a sum assured of Rs 300 lakhs with ten year term
 and paid annual premium of Rs.30,29,175/- during the year which has
 been accounted under administrative & selling expenses. Amount
 receivable on maturity or otherwise shall be accounted as income in the
 year of receipt.
 
 7. Income from operations includes bank interest earned Rs.
 4,886,033,210/-; (Previous Year Rs.  516,38,47,252/-). Interest earned
 on fixed deposits with banks is recognized as income from operations
 since these deposits are utilized for the business of the company.
 
 9.  Zero coupon FCCB were issued on 17th February 2007 for US $ 150
 millions (Rs. 661.35 crores at issue).The Bond holders have an option
 to convert FCCB into Equity shares at an initial conversion price of
 Rs.575/- per equity share of Rs.2/- each of the company at a fixed
 exchange rate of conversion at Rs.44.09 equal to US$ 1, between
 19.02.2007 to 10.02.2012. The conversion price is subject to adjustment
 in circumstances as described in the offering letter. The company may
 redeem the bonds in whole, but not in part, at any time at the accreted
 principle amount in the event of certain changes relating to taxation
 in India, and subject to the receipt of regulatory approval. Unless
 previously converted redeemed or re-purchased and cancelled, the bonds
 will mature on 21.02.2012 @ 148.22% of their principle amount subject
 to the receipt of regulatory approval, the company will, at the option
 of bond holder, redeem any outstanding bonds upon their occurrence of a
 de-listing of the shares from the NSE or BSE, at the accreted principle
 amount. During the year, some of the Bond holders have exercised their
 options to convert FCCB into equity shares and consequent to this
 29,444,587 (Previous Year 8,807,085) equity shares of Re 1/- each have
 been allotted by the Company.
 
 10.  Related party disclosures
 
 (In term of Accounting Standard - 18)
 
 A.  Relationship:
 
 a) Related parties where control exists: Rajesh Global Solutions
 Limited Rajesh Jewels
 
 Laabh Jewel Gold Pvt Ltd
 
 b) Directors and their relatives:
 
 Mr. Rajesh Mehta - Executive Chairman
 
 Mr. Prashant Mehta - Managing Director
 
 Mr. Mahesh Mehta
 
 c) Key Management personnel:
 
 Mr. Rajesh Mehta - Executive Chairman
 
 Mr. Prashant Mehta - Managing Director
 
 Mr. Bhavesh Mehta - Executive Officer
 
 11. Accounting Standard 19-Leases:
 
 The company has let out and taken premises under cancelable operating
 lease agreements, which the company intends to renew in the normal
 course of its business. The Lessees cannot sublease these properties.
 Total lease rentals recognized as income in the Profit & Loss Account
 for the year with respect to above is Rs 6,40,151/- ( Previous Year
 Rs.7,26,353/-) and total Lease rentals recognized as expenditure is Rs
 49,26,749/- (Previous Year Rs 61,63,414/-).
 
 12.  Company has identified that there is no material impairment of
 assets and as such no provision is required as per AS-28 issued by the
 ICAI.
 
 13.  In the opinion of the management, no provision is required against
 contingent liabilities referred to in Schedule ''S'' Para B Point 2.
 
 14.  Based on the information/documents available with the Company, the
 amount due to small-scale industries is nil.
 
 15.  Unclaimed dividend accounts are subject to reconciliation.
 
 16. The previous year''s figures are regrouped / rearranged wherever
 deemed necessary.