The financial statements have been prepared on an accrual basis under
 the historical cost convention in accordance with the accounting
 principles generally accepted in India and materially comply with the
 mandatory Accounting Standards notifi ed by the Central Government of
 India under the Companies (Accounting Standards) Rules, 2006 and by the
 Institute of Chartered Accountants of India and with the relevant
 provisions of the Companies Act, 1956:
 
 i. Revenue recognition: Revenue from sale of goods is recognised when
 the goods are despatched from the factory/stock points or delivered to
 customers as per the terms of the contract.
 
 Interest income is recognised on a time proportion basis, taking into
 account the amount outstanding and the rate applicable.
 
 Dividend income is recognised when the Company''s right to receive the
 payment is established.
 
 ii.  Fixed Assets: Fixed assets are capitalised at acquisition cost
 including directly attributable cost.
 
 iii. Depreciation: Depreciation has been provided on the straight line
 method in accordance with the Companies Act, 1956, except for the
 following:
 
 Computers - @ 25% instead of 16.21%
 
 Vehicles - @ 25% instead of 9.50%
 
 Furniture & Fixtures - @ 20% instead of 6.33%
 
 iv. Amortisation: Trade marks are amortised over a period of 120 months
 from the month of acquisition. The expected pattern of economic benefi
 ts from the use of trademarks is reviewed periodically and additional
 amortisation, if required, is provided.
 
 v. Foreign currency transactions: Foreign currency transactions are
 recorded at the exchange rates prevailing on the date of the
 transaction.
 
 Foreign exchange rate fluctuations relating to monetary assets and
 liabilities (including those relating to integral foreign operations)
 are restated at year end rates or forward cover rates, as applicable.
 The net loss or gain arising on restatement/ settlement is adjusted to
 the Profit and Loss Account.
 
 In respect of forward exchange contracts, the premium or discount
 arising at the inception of such a forward exchange contract is
 amortized as expense or income over the life of the contract. Exchange
 differences on such contracts are recognised in the Profit and Loss
 Account of the reporting period in which the exchange rates change.
 
 vi. Derivative Accounting: The Company uses derivative financial
 instruments to manage risks associated with gold price fluctuations
 relating to certain highly probable forecasted transactions, foreign
 currency fl uctuations relating to certain firm commitments and
 foreign currency and interest rate exposures relating to foreign
 currency loan. The Company applies the hedge accounting principles set
 out in Accounting Standard (AS) 30 – Financial Instruments: Recognition
 and Measurement and has designated derivative financial instruments
 taken for gold price fluctuations as ‘cash flow'' hedges relating to
 highly probable forecasted transactions. All such derivative financial
 instruments are supported by an underlying transaction and are not for
 trading or speculative purposes.
 
 The use of derivative financial instruments is governed by the
 Company''s policies approved by the board of directors, which provide
 written principles on the use of such instruments consistent with the
 Company''s risk management strategy.
 
 Hedging instruments are initially measured at fair value, and are
 remeasured at subsequent reporting dates. Changes in the fair value of
 these derivatives that are designated and effective as hedges of future
 cash fl ows are recognised directly in hedging reserve and the
 ineffective portion is recognised immediately in the Profit and Loss
 Account.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated, or exercised, or no longer qualifi es for hedge
 accounting. For forecasted transactions, any cumulative gain or loss on
 the hedging instrument recognized in hedging reserve is retained until
 the forecast transaction occurs upon which it is recognized in Profit
 and Loss Account. If a hedged transaction is no longer expected to
 occur, the net cumulative gain or loss accumulated in hedging reserve
 is recognized immediately to the Profit and Loss Account.
 
 Changes in the fair value of derivative financial instruments that
 have not been designated as hedging instruments are recognised in the
 Profit and Loss Account as they arise.
 
 vii.  Investments: All long term investments are valued at cost.
 However, provision for diminution in value is made to recognise a
 decline, other than temporary, in the value of investments.
 
 viii.  Transfer to debenture redemption reserve is made pro-rata over
 the life of the debentures in terms of the requirements of the
 Companies Act, 1956.
 
 ix.  Inventories: Inventories are valued at lower of cost and net
 realisable value. The cost of various categories of inventory is
 determined as follows:
 
 a) Gold is valued on First-in-first-out basis.
 
 b) Consumable stores, loose tools, raw materials and components are
 valued on a moving weighted average rate.
 
 c) Work-in-progress and manufactured goods are valued on full
 absorption cost method based on the average cost of production.
 
 d) Traded goods are valued on a moving weighted average rate/ cost of
 purchases.
 
 x.  Product warranty expenses: Product warranty costs are determined
 based on past experience and provided for in the year of sale.
 
 xi.  Employee Benefits:
 
 Short term employee benefits
 
 All short term employee benefits such as salaries, wages, bonus,
 special awards, medical benefits which fall due within 12 months of
 the period in which the employee renders the related services which
 entitles him to avail such benefits and non-accumulating compensated
 absences are recognised on an undiscounted basis and charged to the
 Profit and Loss Account.
 
 Defi ned Contribution plan
 
 Company''s contributions to the Superannuation Fund which is a self
 managed Fund and Pension Fund administered by Regional Provident Fund
 Commissioner are debited to the Profit and Loss Account on an accrual
 basis.
 
 Defi ned Benefit Plan
 
 Contribution to the Company''s Gratuity Trust, liability towards pension
 of retired Managing Director and provision towards leave salary benefi
 t is provided on the basis of an actuarial valuation using the
 projected unit credit method and is debited to the Profit and Loss
 Account on an accrual basis. Actuarial gains and losses arising during
 the year are recognised in the Profit and Loss Account.
 
 Contribution to the Company''s Provident Fund Trust is made at
 predetermined rates and debited to the Profit and Loss Account on an
 accrual basis.
 
 xii. Taxes on Income: Current tax is the amount of tax payable on the
 taxable income for the year as determined in accordance with the
 provisions of the Income-tax Act, 1961.
 
 Deferred tax is recognised 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.
 
 xiii. Segment accounting: Segments are identifi ed based on the types
 of products and the internal organisation and management structure. The
 Company has identifi ed business segment as its primary reporting
 segment with secondary information reported geographically.
 
 The Company''s primary segments consist of Watch, Jewellery and Others,
 where ‘Others'' include Eye wear, Precision Engineering, Machine
 Building and Clocks.
 
 Corporate (unallocated) represents other income and expenses which
 relate to the enterprise as a whole and are not allocated to segments.
 
 xiv. Impairment of assets: Consideration is given at each Balance Sheet
 date to determine whether there is any indication of impairment of the
 carrying amount of the Company''s fixed assets. If any indication
 exists, an impairment loss is recognised when the carrying amount
 exceeds greater of net selling price and value in use.
 
 xv. Use of estimates: The Company uses prudent and reasonable
 assumptions and estimates in the preparation of its financial
 statements, and these are refl ected in the reported amounts of income
 and expenses during the year, and the reported balances of assets and
 liabilities, and disclosures relating to contingent liabilities, as at
 the date of the financial statements.
 
 xvi. Provisions and Contingencies: A provision is recognised when the
 Company has a present obligation as a result of past events and it is
 probable that an outfl ow of resources will be required to settle the
 obligation, in respect of which a reliable estimate can be made.
 Provisions are not discounted to present value and are determined based
 on best estimate required to settle the obligation at the Balance Sheet
 date. These are reviewed at each Balance Sheet date and adjusted to
 refl ect the current best estimates. Contingent Liabilities are not
 recognised but are disclosed in the notes.
 
 Contingent Assets are neither recognised nor disclosed in the 
 financial statements.