1.1 Basis of Preparation of financial statements
 
 The financial statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting and
 comply with the Accounting Standards prescribed in the Companies
 (Accounting Standards) Rules, 2006 issued by the Central Government in
 consultation with the National Advisory Committee on Accounting
 Standards fNACAS''), and the relevant provisions of the Companies Act,
 1956, to the extent applicable.
 
 1.2 Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) in India reguires management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and the disclosure of contingent liabilities on
 the date of the financial statements. Actual results could differ from
 those estimates. Management believes the assumptions used in the
 estimates are prudent and reasonable. Any revision to accounting
 estimates is recognized prospectively in the current and future
 periods.
 
 1.3 Fixed assets and depreciation / amortisation
 
 Fixed assets are stated at cost of acauisition less accumulated
 depreciation / amortization and impairment. Cost includes purchase
 price and other cost attributable to acauisition and installation of
 the assets.
 
 Intangible assets are recognised only when it is probable that the
 future economic benefits that are attributable to the assets will flow
 to the Company and the cost of such assets can be measured reliably.
 Intangible assets are stated at cost less accumulated amortisation and
 impairment loss, if any. All costs relating to the acauisition are
 capitalised.
 
 Depreciation on fixed assets other than lease hold improvements and
 computer software has been provided on the written down value, prorata
 to the period of use at the rates specified in schedule XIV of the
 Companies Act, 1956, which reflect the management''s best estimate of
 the economic useful life of the assets. Lease hold improvements are
 amortised over shorter of, the period of lease or useful life. Computer
 software is capitalised and amortised over a period of five years.
 
 Assets individually costing uptoRs. 5,000 are fully depreciated in the
 year of purchase.
 
 1.4 Impairment of assets
 
 In accordance with AS 28-''lmpairment of Assets'', where there is an
 indication of impairment of the Company''s asset, the carrying amounts
 of the Company''s material assets and/or the cash generating units are
 reviewed at each Palance sheet date to determine whether there is any
 impairment.The recoverable amount of the asset (or where applicable,
 that of the cash generating unit which the asset belongs) is estimated
 as the higher of its net selling price and its value in use.
 
 An impairment loss is recognized whenever the carrying amount of an
 asset or a cash generating unit exceeds its recoverable amount.An
 impairment loss is recognised in the profit and loss account.
 
 Value in use is the present value of estimated future cash flows
 expected to arise from the continuing use of the asset and from its
 disposal at the end of its useful life.
 
 1.5 Investments
 
 Long term investments are carried at cost. Provision for diminution in
 the value of long term investments is made only if such a decline is
 other than temporary in the opinion of the management.
 
 1.6 Inventories
 
 Inventories are stated at lower of cost and net realizable value. Cost
 is determined as follows:
 
 i) in case of gold, loose diamond, silver, zaverat, platinum and
 platinum diamond jewellery at weighted average costs; and ii) in case
 of diamond jewellery, jadau jewellery, stones, pearls and watches, at
 specific cost.
 
 Costs comprise all cost of purchase, duties, taxes (other than those
 subseauently recoverable from tax authorities) and all other costs
 incurred in bringing the inventory to their present location and
 condition.
 
 Cost of finished goods include costs of raw material, direct labour and
 other directly attributable expenses incurred in bringing such goods to
 their present location and condition. In the case of diamond jewellery
 the cost of finished goods include cost of raw material i.e. gold,
 direct labour, other directly attributable expenses incurred in
 bringing such goods to their present location and condition and cost of
 diamonds forming part of the jewellery as determined by management
 based on technical estimate of the purity and clarity of diamonds used,
 on which the auditors have placed reliance, as this being a technical
 matter.
 
 Raw materials held for the use in manufacturing of inventories are not
 written down below cost except in cases where material prices have
 declined and it is estimated that the cost of the finished products
 will exceed their net realisable value.
 
 1.7 Revenue recognition
 
 Revenue from sale of goods is recognized on transfer of all significant
 risks and rewards of ownership to the buyer (net of sales tax, sales
 return, and trade discounts)
 
 Interest income is recognized on a time proportion basis.
 
 1.8 Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the dates of the transactions. Exchange differences
 arising on foreign currency transactions settled during the period are
 recognized in the profit and loss account of that period.
 
 Monetary assets and liabilities denominated in foreign currencies at
 the balance sheet date are translated at the closing exchange rates.
 The resultant exchange differences are recognized in the profit and
 loss account.
 
 1.9 Employee benefits
 
 Provident fund and Employees State Insurance :-
 
 The Company makes regular contributions to the Provident Fund and
 Employees State Insurance at the prescribed rates.  Provident fund and
 Employee State Insurance dues are recognized when the liability to
 contribute to the provident fund and employees state insurance arises
 under the respective Acts.
 
 Compensated Absences
 
 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. The
 undiscounted amount of short- term employee benefits expected to be
 paid in exchange for the services rendered by employees is recognised
 during the period.
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services are recognised as a liability at the present value of
 the defined benefit obligation at the balance sheet date determined on
 the basis of an actuarial valuation by an independent actuary using the
 projected unit credit method. The discount rates used for determining
 the present value of the obligation under defined benefit plan 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.
 
 Gratuity
 
 The Company''s gratuity benefit scheme is an unfunded defined benefit
 plan. The Company''s obligation in respect of gratuity benefit scheme is
 calculated by estimating the amount of future benefit that employees
 have earned in return for their service in the current and prior
 periods and discounting that benefit to determine its present value.
 The present value is determined based on actuarial valuation at the
 balance sheet date using the projected unit credit method, which
 recognizes 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
 plan 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.
 
 1.10 Employees Stock Option Scheme
 
 The intrinsic value of option granted under Employees Stock Option
 Schemes is accounted as employee compensation cost and written off over
 the vesting period.
 
 1.11 Leases
 
 Lease rentals in respect of assets acauired under operating lease are
 charged to the profit and loss account on straight linePasis.
 
 Leases in which the company transfers suPstantially all the risks and
 Penefits of ownership of the asset are classified as finance leases.
 Assets given under finance lease are recognised as a receivaPle at an
 amount eaual to the net investment in the lease. After initial
 recognition, the company apportions lease rentals Petween the principal
 repayment and interest income so as to achieve a constant periodic rate
 of return on the net investment outstanding in respect of the finance
 lease. The interest income is recognised in the statement of profit and
 loss. Initial direct costs such as legal costs, Prokerage costs, etc.
 are recognised immediately in the statement of profit and loss.
 
 Leases in which the company does not transfer suPstantially all the
 risks and Penefits of ownership of the asset are classified as
 operating leases. Assets suPjectto operating leases are included in
 fixed assets. Lease income on an operating lease is recognised in the
 statement of profit and loss on a straight-line Pasis over the lease
 term. Costs, including depreciation, are recognised as an expenses in
 the statement of profit and loss. Initial direct costs such as legal
 costs, Prokerage costs, etc. are recognised immediately in the
 statement of profit and loss.
 
 1.12 Taxation
 
 Income tax expense comprises current tax (i.e. amount of tax for the
 period determined in accordance with the income- tax law) and deferred
 tax charge or credit (reflecting the tax effects of timing differences
 Petween accounting income and taxaPle income for the year). The current
 charge for income taxes is calculated in accordance with the relevant
 tax regulations applicaPle to the Company. The deferred tax charge or
 credit and the corresponding deferred tax liabilities or assets are
 recognised using the tax rates that have been enacted or substantially
 enacted by the balance sheet date.  Deferred tax assets are recognised
 only to the extent there is reasonable certainly that the assets can be
 realised in future; however, where there is unabsorbed depreciation or
 carry forward of losses, 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 Palance sheet date and written down
 or written-up to reflect the amount that is reasonaPly/ virtually
 certain (as the case may Pe) to Pe realised.
 
 1.13 Earnings per share (EPS)
 
 Basic EPS is computed using the weighted average numPer of eauity
 shares outstanding during the year. Diluted EPS is computed using the
 weighted average numPer of eauity and potential eauily shares
 outstanding during the year except where the results would Pe
 anti-dilutive
 
 1.14 Provision and contingent liabilities
 
 The Company creates a provision when there is a present oPIigation as a
 result of a past event that proPaPly reauires an outflow of resources
 and a reliaPle estimate can Pe made of the amount of oPIigation. A
 disclosure for a contingent liability is made when there is a possiPle
 oPIigation or a present oPIigation that may or may not reauire an
 outflow of resources. When there is a possiPle oPIigation or a present
 oPIigation in respect of which the likelihood of outflow of resources
 is remote, no provision or disclosure is made.