A Basis of preparation of financial statements:
 
 (i) The financial statements have been prepared and presented under the
 historical cost convention except for certain fixed assets which are
 revalued in accordance with the provisions of the Companies Act, 1956
 and the accounting principles generally accepted in India and comply
 with the accounting standards prescribed in the Companies (Accounting
 Standards) Rules, 2006'' by Central Government, to the extent
 applicable.
 
 (ii) Accounting Policies not specifically referred to otherwise are
 consistent with and in consonance with generally accepted accounting
 principles.
 
 B.  Use of estimates
 
 The preparation of the financial statements in conformity with
 generally accepted accounting principles (GAAP) in India requires
 management to make estimates and assumptions that affect the reported
 amount of assets, liabilities and the disclosure of contingent
 liabilities on the date of the financial statements. Actual results
 could differ from those estimates. Any revision to the accounting
 estimates is recognised prospectively in current and future periods.
 
 C.  Fixed assets and depreciation:
 
 i) Fixed assets are stated at acquisition/construction cost net of
 recoverable taxes and includes amounts added on revaluation less
 accumulated depreciation and impairment loss if any. Cost of
 construction include cost attributable to bring the asset to its
 intended use, and includes related borrowing costs and adjustment
 arising from exchange rate variation, attributable to fixed assets are
 capitalised.
 
 ii) Depreciation on fixed assets (other than Leasehold Land) has been
 provided on straight-line method at the rates and in the manner
 prescribed in Schedule XIV to the Companies Act, 1956. Cost of
 leasehold land is amortised over the life of the lease period and on
 amounts added on revaluation, depreciation is provided as aforesaid on
 residual life of the assets as certified by valuers.
 
 D.  Intangible assets are stated at cost of acquisition less
 accumulated amortisation. These assets are amortised over a period of
 five years on a straight line basis.
 
 E.  Impairment of assets:
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the profit and loss account. If at the balance sheet date
 there is an indication that a previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount subject to a maximum of depreciable
 historical cost.
 
 F.  Investments
 
 Long term investments are stated at cost, less any other than,
 temporary diminution in value.
 
 Current investments are carried at lower of cost or market/ fair value
 determined on an individual investment basis.
 
 Profit or loss on sale of investments is determined on the basis of
 weighted average carrying amount of investments disposed off.
 
 G.  Foreign currency transactions:
 
 Foreign currency transactions are recorded using the exchange rates
 prevailing on the date of the transaction.  Exchange differences
 arising on foreign exchange transactions settled during the year are
 generally recognised in the profit and loss account of the year.
 
 Monetary assets and liabilities denominated in foreign currencies as at
 the balance sheet date are translated at the exchange rate on that
 date; the resultant exchange differences are recognized in the profit
 and loss account.
 
 In respect of Forward Exchange Contracts (excluding cash flow hedges),
 the differences between the contract rate and spot rate on the date of
 the contract is charged to Profit and Loss Account over the period of
 contract and the difference between the year end rate and spot rate on
 the date of contract is also recognised in Profit and Loss Account.
 
 The exchange difference arising on translations and realised gains and
 losses on foreign currency transactions are generally recognised in
 Profit and Loss Account, except in case of long term liabilities where
 they relate to acquisition of fixed assets, in which case they are
 adjusted to the carrying cost of fixed assets.
 
 Non-monetary foreign currency items are carried at cost.
 
 H.  Derivative instruments and hedge accounting:
 
 The Company enters into derivative financial instruments (option
 contracts and forward contracts) to hedge foreign currency risk of firm
 commitments and highly probable forecast transactions.
 
 In respect of Derivative financial instruments entered to hedge foreign
 currency risk of highly probable forecast transactions that qualify as
 Cash flow hedges, the gains or losses are reflected in the Hedging
 Reserve Account in the Balance Sheet and are subsequently recognised in
 the Profit and Loss Account of the period in which the hedged
 transaction materialises as per principles of hedge accounting
 enunciated in Accounting Standard (AS) – 30, Financial Instruments:
 Recognition and Measurement. In respect of other derivative financial
 instruments, which are hedges, the gains or losses are accounted for in
 Profit and Loss Account.
 
 I.  Inventories:
 
 i) Raw materials are valued at cost or net realizable value whichever
 is lower. Cost of Raw Materials – for Jewellery division is computed
 using the First in First out (FIFO) method, – for diamond division,
 specific items of cost are allocated and assigned to inventory wherever
 practicable and in other cases, the weighted average method is used to
 compute cost.
 
 ii) Stock in process is considered as part of stock of raw materials
 and is not valued separately.
 
 iii) Finished goods – for Jewellery division are valued at estimated
 cost or net realizable value, whichever is lower, - for Diamond
 division, polished diamonds are valued at technical estimate of cost or
 net realizable value, whichever is lower. Cost includes cost of
 materials consumed and related conversion costs which are technically
 evaluated by the management, in view of the nature of the variation in
 the value of individual diamonds, existence of multiple grades and the
 differentials in conversion costs. The Company has therefore complied
 with AS2 – Valuation of Inventories issued by the Institute of
 Chartered Accountants of India to the extent practicable.
 
 iv) Stores, spares parts and loose tools are valued at cost.
 
 J.  Basis of accounting:
 
 All significant items of income and expenditure having a material
 bearing on the financial statements are recognised on accrual basis.
 
 K.  Employee''s retirement benefits:
 
 a) Short term employee benefits:
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short- term employee benefits. These
 benefits include compensated absences such as paid annual leave and
 sickness leave. The undiscounted amount of short-term employee benefits
 expected to be paid in exchange for the services rendered by employees
 is recognized during the year.
 
 (b) Post employment benefits:
 
 i) Defined Contribution Plans:
 
 The Company''s provident fund scheme is a defined contribution plan.
 
 The Company''s contribution paid/payable under the schemes is recognised
 as expense in the Profit and Loss account during the period in which
 the employee renders the related service. The Company makes specified
 monthly contributions towards employee provident fund.
 
 (ii) Defined Benefit Plans:
 
 The Company''s gratuity benefit scheme is a defined benefit plan. The
 Company''s net obligation in respect of the gratuity benefit scheme is
 calculated by estimating the amount of future benefit that employees
 will earn in return for their service in the current and prior periods;
 that benefit is discounted to determine its present value, and the fair
 value of any plan assets is deducted.
 
 The present value of the obligation under such defined benefit plan is
 determined based on actuarial valuation by an independent actuary at
 each balance sheet date using the Projected Unit Credit Method, which
 recognises each period 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 the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under defined benefit plans, are based on the market
 yields on Government securities as at the balance sheet date.
 
 Actuarial gains and losses are recognized immediately in the Profit and
 Loss Account.
 
 (iii) Other Long term employment benefits:
 
 Company''s liabilities towards Compensated Absences to employees are
 determined on the basis of valuations, as at balance sheet date,
 carried out by an independent actuary using Projected Unit Credit
 Method. Actuarial gains and losses comprise experience adjustments and
 the effects of changes in actuarial assumptions and are recognized
 immediately in the Profit and Loss Account.
 
 L.  Taxation:
 
 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 (reflecting the tax effects of timing differences
 between accounting income and taxable income for the year).
 
 The deferred tax charge or credits and the corresponding deferred tax
 liabilities or assets are recognised using the tax rates and tax laws
 that have been enacted or substantively enacted at the balance sheet
 date. Deferred tax assets are recognised only to the extent that there
 is a reasonable certainty that the assets can be realised in future;
 however, where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is a virtual certainty of realisation of such assets. Deferred tax
 assets are reviewed as at each balance sheet date and written down or
 written up to reflect the amount that is virtually/reasonably (as the
 case may be) certain to be realised.
 
 M.  Borrowing cost:
 
 Borrowing Costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue.
 
 N.  Provisions, contingent liabilities and contingent assets:
 
 The Company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may or may 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. Contingent assets are
 neither recognised nor disclosed in the financial statements.
 
 O.  Revenue recognition:
 
 Revenue is recognised only when it can be reliably measured and it is
 reasonable to expect ultimate collection.  Turnover includes sale of
 goods and services and gain / loss on corresponding hedge contract.
 
 Dividend income is recognised when right to receive is established.
 
 Interest income is recognised on time proportion basis.
 
 P.  Earnings per share (‘EPS''):
 
 Basic EPS is computed using the weighted average number of equity
 shares outstanding during the year.  Diluted EPS is computed using the
 weighted average number of equity and dilutive equity equivalent shares
 outstanding during the year except where the results would be
 anti-dilutive.
 
 Q.  Employee stock option based compensation:
 
 The Company calculates the compensation cost based on the intrinsic
 value method wherein the excess of value of underlying equity shares as
 of the date of the grant of options over the exercise price of such
 options is recognised and amortised over the vesting period on a
 straight line basis. The Company follows SEBI guidelines for accounting
 of employee stock options.