A) Basic of accounting:
 
 i) All income and expenditure items are accounted on accrual basis
 except insurance claims and gratuity are accounted on realisation/
 payment.
 
 ii) All fixed assets are stated at cost less depreciation.
 
 
 iii) In view of compliance of AS 23 the Company has not incurred
 financing cost during the year which requires capitalisation.
 
 B) Depreciation :
 
 Depreciation on the assets has been provided for by the straight line
 method at the rates specified in Schedule XIV of the Companies Act,
 1956.
 
 All the investments of the company have been considered by the
 management to be of long term nature and are VALUED at cost.
 
 D) Inventories:
 
 Inventories are valued as under 2010-11 2009-10
 
 i) Rough Diamonds At Average Cost Of Purchases At Average Cost Of
 Purchases
 
 ii) Cut & Polished Diamonds At Average Cost Of Purchases At Average
 Cost Of Purchases
 
 iii) Raw Silver At Average Cost Of Purchases At Average Cost Of
 Purchases
 
 iv) Gold in Gold Jewellery At Average Cost Of Purchases At Average Cost
 Of Purchases
 
 v) Diamond studded in Gold Jewellery At Average Cost Of Purchases At
 Average Cost Of Purchases
 
 vi) Precious & Semi precious stones At Average Cost Of Purchases At
 Average Cost Of Purchases
 
 vii) Silver alloy At Average Cost Of Purchases At Average Cost Of
 Purchases
 
 viii) Pearl At Average Cost Of Purchases At Average Cost Of Purchases
 
 E) Foreign Exchange Transaction
 
 i) The transactions in foreign currency relating to imports & exports
 are recorded at the exchange rate prevailing at the time of the
 transaction.
 
 ii) Realised gains/losses on foreign exchange transactions are
 recognised in the Profit and Loss Account, at the time of actual
 realisation of gains/ losses 
 
 iii) Unrealised exports are recorded at the exchange rate prevailing at
 the close of the year and unrealised exports for which Exchange sale
 forward contracts have been entered into with the banks are recorded at
 the exchange rate prevailing at the close of the year.