a) Basis of Accounting
 
 The Financial statement are prepared on mercantile basis under the
 historical cost convention in accordance with the generally accepted
 accounting principles in India, Accounting Standards notified under
 sub-section (3C) of section 211 of the Companies Act, 1956 and the
 other relevant provisions of the Companies Act, 1956.
 
 b) Revenue Recognition
 
 All revenues and expenses are accounted on accrual basis. Revenue is
 recognized when no significant uncertainties exist in relation to the
 amount of eventual receipt.
 
 c) Fixed Assets
 
 Fixed assets are stated at cost of acquisition/construction, and
 include other direct/indirect and incidental expenses incurred to put
 them into use.
 
 d) Depreciation
 
 Depreciation is provided on Written down Value basis at the rates
 prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on
 additions/deletions is calculated pro rata from/up to the month of
 additions/deletions.
 
 e) Intangibles
 
 Intangible assets are stated at costs less accumulated amortization.
 Intangible assets are amortized over a period of 5 years.
 
 f) Investments 
 
 Investments which are Long Term in nature are stated at cost of
 acquisition with provision where necessary for diminution, other than
 temporary, in the value of investments.
 
 g) Inventories
 
 Classification:
 
 Due to the short period of processing and/or manufacturing, difficulty
 in identifying the stages of process and the insignificant impact on
 valuation, goods in process is classified as raw materials for the
 purpose of classification and valuation
 
 Valuation:
 
 i) Raw Materials:
 
 Raw materials are valued at lower of cost or net realizable value. The
 cost is computed on a specific identification basis.
 
 ii) Finished Goods:
 
 Jewellery is valued at lower of cost on weighted average basis or net
 realized value.
 
 iii) Silver Models:
 
 Silver Models are valued based on technical estimates and accordingly,
 50% is written off in the year of purchase and balance in the
 subsequent year.
 
 iv) Stores and Spares:
 
 Stores and spares are valued at lower of cost or net realizable value.
 The cost is computed on moving weighted average.
 
 h) Employee Benefits
 
 - ¦ Short Term Employee Benefits:
 
 Shorf term employee benefits are recognised in the period during which
 the services have been rendered.  -
 
 - Long Term Employee Benefits:
 
 Provident Fund, Family Pension Fund & Employees'' State Insurance
 Scheme.
 
 As per Provident Fund Act, 1952 all employees of the company are
 entitled to receive benefits under the provident fund & family pension
 fund which is a defined contribution plan. These contributions are made
 to the fund administrated and managed by Government of India. In
 addition, some employees of the company are covered under Employees''
 State Insurance Scheme Act 1948, which are also defined contribution
 schemes recognised and administrated by Government of India.
 
 The Company''s contributions to these schemes are recognised as expense
 in profit and loss account during the period in which the employee
 renders the related service. The company has no furthe''r obligation
 under these plans beyond its monthly contributions.
 
 - Leave Encashment:
 
 - The Company has provided for the liability at year end on account of
 unavailed earned leave as per the actuarial valuation.
 
 - Gratuity:
 
 The Company provide for gratuity obligations through a Defined benefits
 Retirement plan (The Gratuity Plan'') covering all eligible employees.
 The present value of the obligation under such Defined benefits plan is
 determined based on actuarial valuation using the Project Unit Credit
 method, which recognizes each period of service as giving rise to
 additional unit of employee benefit entitlement and measure each unit
 separately to build up final obligation. The obligation is measured at
 the present value of the estimated cash flows. The discount rate used
 for determining the present value of the defined obligation under
 defined benefit plan, is based on the market yields on Government
 securities as at the balance sheet date. Actuarial gains and losses are
 recognised in Profit and Loss Account as and when determined.
 
 i) Foreign Currency Transactions
 
 Transactions in foreign currency are accounted at the exchange rate
 prevailing at the time of transaction. Gains or Losses upon settlement
 of transaction during the'' year is recognised in the profit and loss
 account.
 
 Assets and liabilities denominated in foreign currency are restated at
 the year end rates. Gains or losses arising as a result of the above
 are recognized in the profit and loss account.
 
 In respect of foreign exchange transactions covered by forward exchange
 contracts, the difference between the forward contract rate and the
 exchange rate at the date of the transaction is recognised as income or
 expenses over the life of contracts. Gains or losses on cancellation or
 renewal of forward exchange contracts are recognised as income or
 expenses.
 
 j) Income Tax
 
 Tax expenses comprise of current and deferred tax.
 
 Provision for current income tax is made on the basis of relevant
 provisions of Income Tax Act, 1961 as applicable to the financial year.
 
 Deferred Tax is recognized subject to the consideration of prudence on
 timing differences, being the difference between Taxable Income and
 Accounting Income that originate in one period and are capable of
 reversal in one or more subsequent periods.
 
 Minimum Alternative Tax (MAT) credit is recognized as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay normal income tax during the specified period.
 
 k) Borrowing Cost
 
 Borrowing Cost directly attributable to the acquisition'' of or
 construction of fixed assets are capitalized as part of cost of the
 assets up to the date the asset is put to use. Other borrowing costs
 are charged to the profit & loss account in the year in which they are
 incurred.
 
 l) Impairment of Assets
 
 Where there is an indication that an asset is impaired, the recoverable
 amount if any, is estimated and the impairment loss is recognized to
 the extent carrying amount exceeds recoverable amount.
 
 m) Leases
 
 Leases wherein a significant portion of the risks and reward of
 ownership are retained by the lessor are classified as Operating
 Leases. Lease rentals in respect of such leases are charged to the
 Profit and Loss Account.
 
 n) Provisions and Contingent Liabilities
 
 The Company creates a provision when there is 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 of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or present obligation that probably will not require an
 outflow of resources or where reliable estimate of the amount of the
 obligation cannot be made.
 
 o) Employee Stock Purchase Scheme
 
 In accordance with the Employee Stock Option Scheme and Employee Stock
 Purchase Scheme Guideline, 1999 issued by the Securities and Exchange
 Board of India (SEBI), the excess of market price on day prior to the
 date of issue of the shares over the price at which they are issued is recognized as employee compensation
cost.