Accounting Policies of Sovereign Diamonds Ltd. Company

Mar 31, 2025

D. Material Accounting Policy Information

1. Current versus non-current classification and Operating cycle:

The Company presents assets and liabilities in the balance sheet based on current/
non-current classification.

An asset is classified as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating
cycle,

• Held primarily for the purpose of trading,

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle
a liability for at least twelve months after the reporting period.

All other assets are classified as non-current
A liability is classified as current when:

• It is expected to be settled in normal operating cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.

All other liabilities are classified as non-current. The operating cycle is the time
between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has ascertained its operating cycle as 12 months for the
purpose of current or non-current classification of assets and liabilities.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2. Property, plant and equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment
are stated at their cost of acquisition less accumulated depreciation and impairment
losses, if any. The cost comprises purchase price, including import duties and non¬
refundable purchase taxes, after deducting trade discounts and rebates, borrowing cost
if capitalisation criteria are met and directly attributable cost of bringing the asset to its
working condition for the intended use and estimated costs of dismantling and removing
the item and restoring the site on which it is located. Capital expenditure incurred on
rented properties is classified as ‘Leasehold improvements'' under property, plant
and equipment. The cost of a self-constructed item of property, plant and equipment
comprises the cost of materials and direct labour, any other costs directly attributable
to bringing the item to working condition for its intended use, and estimated costs of
dismantling and removing the item and restoring the site on which it is located.
Subsequent costs are included in the asset''s carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Company. All other repair and maintenance
costs are recognised in statement of profit and loss as incurred.

If significant parts of an item of plant and equipment are required to be replaced at
intervals, the Company depreciates them separately based on their specific useful lives.

All other repair and maintenance costs are recognized in statement of profit and loss as
incurred.

An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as
the difference between the net disposal proceeds and the carrying amount of the asset)
is included in the statement of profit and loss when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if
appropriate. Changes in the expected useful life or the expected pattern of consumption
of future economic benefits embodied in the asset is accounted for by changing the
amortisation period or method, as appropriate, and are treated as changes in accounting
estimates.

Depreciation on property, plant and equipment is provided on written-down value,
computed on the basis of useful lives (as set out below) prescribed in Schedule II of the
Act:

Capital work-in-progress represents expenditure incurred in respect of capital projects
and are carried at cost. Cost comprises purchase cost, related acquisition expenses,
development / construction costs, borrowing costs and other direct expenditure.

3. Investment property

Properties held to earn rentals or / and for capital appreciation or both but not for sale in
the ordinary course of business, use in the production or supply of goods or services or
for administrative purposes, are categorized as investment properties.

Property used in production or supply of goods or services and also held to earn rentals
/ capital appreciation is accounted separately as investment property only if portion
of property held to earn rental / capital appreciation can be sold separately (or leased
out separately under a finance lease). If the portions could not be sold separately,
the property is investment property only if an insignificant portion is held for use in
the production or supply of goods or services or for administrative purposes. Further
property with provision of ancillary services to the occupants is treated as investment
property if the services are insignificant to the arrangement as a whole.

These are measured initially at cost of acquisition, including transaction costs and
other direct costs attributable to bringing asset to its working condition for intended
use. Subsequent to initial recognition, investment properties are stated at cost less
accumulated depreciation and accumulated impairment loss, if any. The cost shall also
include borrowing cost if the recognition criteria are met. Subsequent expenditure is
capitalised to the asset''s carrying amount only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can
be measured reliably. All other repairs and maintenance costs are expensed as and
when incurred. When part of an investment property is replaced, the carrying amount
of the replaced part is de-recognised. Said assets are depreciated on straight line basis
based on expected life span of assets which is in accordance with Schedule II of the
Act.

Though the Company measures investment property using cost based measurement,
fair value of investments properties under each category are disclosed under to the
financial statements. Fair values are determined based on the evaluation performed
by an accredited external independent valuer applying a recognized and accepted
valuation model or estimation based on available sources of information from market.
An investment property is derecognised on disposal or on permanent withdrawal from
the use or when no future economic benefits are expected from its disposal. Any gain or
loss arising on derecognition of the assets (calculated as the difference between the net
disposal proceeds and the carrying amount of the assets) is included in the Statement
of Profit and Loss when the asset is derecognised.

Transfers to or from the investment property is made only when there is a change in
use. Transfer between investment property and owner occupied property do not change
the carrying amount of the property transferred and they do not change the cost of that
property for measurement or disclosure purpose.

4. Impairment of non-financial assets

At each reporting date, the Company assesses whether there is any indication based
on internal/external factors, that an asset may be impaired. If any such indication exists,
the Company estimates the recoverable amount of the asset to determine the extent
of impairment loss. Recoverable amount is the higher of an asset''s or cash-generating
unit''s (CGU) fair value less cost of disposal and its value in use. In assessing value in
use, the estimated future cash-flow expected from the continuing use of the assets and
from its disposal is discounted to their present value using a pre-tax discount rate that
reflects the current market assessments of time value of money and the risk specific of
the assets. 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 and the reduction is treated as
an impairment loss and is recognised in the statement of profit and loss. All assets are
subsequently reassessed for indications that an impairment loss previously recognised
may no longer exist. An impairment loss is reversed if the asset''s or cash generating
unit''s recoverable amount exceeds its carrying amount.

5. Inventories

Raw Material: Lower of cost or net realisable value. Cost is determined on Weighted
Average Cost basis

Work in progress: At cost determined on Weighted Average Cost basis up-to estimated
stage of completion. Cost of work in progress and manufactured finished goods
comprises direct material, cost of conversion and other costs incurred in bringing these
inventories to their present location and condition.

Finished goods: Lower of cost or net realisable value. Cost is determined on Weighted
Average Cost basis, includes direct material and labour expenses and appropriate
proportion of manufacturing overheads based on the normal capacity for manufactured
goods.

Net realisable value is the estimated selling price in the ordinary course of business less
estimated costs of completion and estimated costs necessary to make the sale.

6. Leases

The Company assess whether a contract contains a lease, at the inception of the
contract. A contract is, or contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the use of an identified asset, the
Company assesses whether

(i) the contract involves the use of identified asset;

(ii) the Company has substantially all of the economic benefits from the use of the
asset through the period of lease and

(iii) the Company has right to direct the use of the asset.

The Company evaluates if an arrangement qualifies to be a lease as per the requirements
of Ind AS 116. The Company uses judgement in assessing the lease term (including
anticipated renewals/termination options).

Short-term leases and leases of low-value assets

The company applies the short-term lease recognition exemption to its short-term
lease of Property, Plant and Equipment (i.e. those leases that have a lease term of
12 months or less from the commencement date and do not contain purchase option).
It also applies the lease of low-value assets recognition exemption to lease that are
considered of low value and is not intended for sublease. Lease payments on short term
lease and lease of low value assets are recognised as expenses on a straight line basis
over the lease term or another systematic basis if that basis is more representative of
the pattern of the lessee''s benefit.

The Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards
of ownership of an asset are classified as operating leases. Rental income from
operating lease is recognized on a straight- line basis or another systematic basis
as per the terms of the relevant lease. Initial direct costs incurred in negotiating and
arranging an operating lease are added to the carrying amount of the leased asset and
recognized over the lease term on the same basis as rental income. Contingent rents
are recognized as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards
of ownership transfer from the Company to the lessee. Amounts due from lessees
under finance leases are recorded as receivables at the Company''s net investment
in the leases. Finance lease income is allocated to accounting periods so as to reflect
a constant periodic rate of return on the net investment outstanding in respect of the
lease.

Company as a lessee

The company applies a single recognition and measurement approach for all leases
except for short-term leases and leases of low value assets. The Company recognises
lease liabilities to make lease payments and right-of-use assets representing the right
to use the underlying assets.

7. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and
a financial liability or equity instrument of another entity.

1. Financial Assets

Initial recognition and measurement

Financial assets are recognised when the Company becomes a party to the
contractual provisions of the financial instrument and are measured initially at fair
value plus in the case of a financial asset not at fair value through profit or loss,
transaction costs that are directly attributable to the acquisition or issue of the
financial asset.

Subsequent measurement

For purpose of subsequent measurement, financial assets are classified into:

i. Financial assets measured at amortised cost;

ii. Financial assets measured at fair value through other comprehensive income
(FVTOCI);

iii. Financial assets measured at fair value through profit or loss (FVTPL).

The Company classifies its financial assets in the above mentioned categories
based on:

i. The Company''s business model for managing the financial assets, and

ii. The contractual cash flows characteristics of the financial asset.

Financial asset at amortised cost

The financial instrument is measured at the amortised cost if both the following
conditions are met:

i. The financial asset is held within a business model whose objective is to hold
assets for collecting contractual cash flows, and

ii. Contractual terms of the asset give rise on specified dates to cash flows that
are solely payments of principal and interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial assets are subsequently measured at
amortised cost using the effective interest rate (EIR) method.

Financial asset at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at fair value through other comprehensive income if
both of the following conditions are met:

1. The financial asset is held within a business model whose objective is
achieved by both collecting the contractual cash flows and selling financial
assets; and

2. The asset''s contractual cash flows represent SPPI.

Financial assets measured at fair value through profit or loss (FVTPL)

FVTPL is a residual category. Any financial asset, which does not meet the criteria
for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. In
addition, the Company may elect to designate a financial asset, which otherwise
meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a measurement or recognition
inconsistency (referred to as ‘accounting mismatch'').

De-recognition of financial assets

A financial asset is primarily de-recognised when the right to receive cash flows
from the asset have expired or the Company has transferred its right to receive
cash flows from the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL)
model for measurement and recognition of impairment loss for financial assets.
ECL is the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the Company
expects to receive. When estimating the cash flows, the Company is required to
consider -

• All contractual terms of the financial assets (including prepayment and
extension) over the expected life of the assets.

• Cash flows from the sale of collateral held or other credit enhancements that
are integral to the contractual terms.

At each reporting date, the Company assesses whether financial assets carried at
amortised cost are credit-impaired. A financial asset is ‘credit-impaired'' when one
or more events that have a detrimental impact on the estimated future cash flows
of the financial asset have occurred. The Company measures loss allowances at
an amount equal to lifetime expected credit losses.

Trade receivables

Loss allowances for trade receivables are always measured at an amount equal
to lifetime expected credit losses. The Company follows ‘simplified approach'' for
recognition of impairment loss allowance on trade receivables or contract revenue
receivables. Under the simplified approach, the Company is not required to track
changes in credit risk. Rather, it recognises impairment loss allowance based on
lifetime ECLs together with appropriate management estimates for credit loss at
each reporting date, right from its initial recognition.

The Company uses a provision matrix to determine impairment loss allowance
on the group of trade receivables. The provision matrix is based on its historically
observed default rates over the expected life of the trade receivable and is
adjusted for forward looking estimates. At every reporting date, the historical
observed default rates are updated and changes in the forward-looking estimates
are analysed.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit
losses are measured as the present value of all cash shortfalls (i.e. the difference
between the cash flows due to the Company in accordance with the contract and
the cash flows that the Company expects to receive). Loss allowances for financial
assets measured at amortised cost are deducted from the gross carrying amount
of the assets.

Other financial assets

For recognition of impairment loss on other financial assets and risk exposure, the
Company determines whether there has been a significant increase in the credit
risk since initial recognition and if credit risk has increased significantly, impairment
loss is provided.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and transaction cost that
is attributable to the acquisition of the financial liabilities is also adjusted. These
liabilities are classified as amortised cost unless at initial recognition, they are
classified as fair value through profit or loss.

Subsequent measurement

Subsequent to initial recognition, these liabilities are measured at amortised cost
using the effective interest method.

Borrowings

After initial recognition, interest-bearing loans and borrowings will be subsequently
measured at amortised cost using the Effective Interest Rate (EIR) method. Gains
and losses are recognised in statement of profit and loss when the liabilities are
derecognised as well as through the Effective interest rate amortisation process.
The EIR amortisation is included as finance costs in the Statement of Profit and
Loss.

Trade and other payables

These amounts represent liability for goods and services provided to the Company
prior to the end of financial year which are unpaid. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months after
the reporting period. They are recognized initially at fair value and subsequently
measured at amortised cost using the effective interest method.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced
by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is
treated as the de-recognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised in the
statement of profit and loss.

Compound financial instruments

Compound financial instruments are separated into liability and equity components
based on the terms of the contract. On issuance of the said instrument, the
liability component is arrived by discounting the gross sum at a market rate for
an equivalent nonconvertible instrument. This amount is classified as a financial
liability measured at amortised cost until it is extinguished on conversion or
redemption. The remainder of the proceeds is recognised as equity component of
compound financial instrument. This is recognised and included in shareholders''
equity, net of income-tax effects, and not subsequently premeasured.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported
in the balance sheet if there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

8. Foreign currency translation
Functional and presentation currency

Items included in the financial statements are measured using the currency of the
primary economic environment in which the Company operates (‘the functional
currency''). The financial statements are presented in Indian rupee (INR), which is the
Company''s functional and presentation currency.

Initial recognition

Transactions in foreign currencies are recorded on initial recognition in the functional
currency at the exchange rates prevailing on the date of the transaction.

Measurement at the balance sheet date

Foreign currency monetary items of the Company, outstanding at the balance sheet date
are restated at the year-end rates. Non-monetary items which are carried at historical
cost denominated in a foreign currency are reported using the exchange rate at the date
of the transaction. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value is determined.
Treatment of exchange difference

Exchange differences that arise on settlement of monetary items or on reporting at each
balance sheet date of the Company''s monetary items at the closing rate are recognised
as income or expenses in the period in which they arise.

9. Revenue recognition
Sale of goods

Revenue from the contracts with customers is recognised when control of the goods
is transferred to the customer at an amount that reflects the consideration to which
the company expects to be entitled in exchange for those goods. Sales, as disclosed,
are net of trade allowances, rebates, goods and service tax, and amounts collected on
behalf of third parties.

The Company considers the terms of the contract and its customary business practices
to determine the transaction price. The transaction price is the amount of consideration
to which the Company expects to be entitled in exchange for transferring promised
goods or services to a customer, excluding amounts collected on behalf of third parties
(for example, indirect taxes). In respect of contracts with customers that contain a
financing component i.e. when payment by a customer occurs significantly before
performance and the fair value of goods provided to the customer at the end of the
contract term exceeds the advance payments received, interest expense is recognized
on recognition of a contract liability over the contract period and is presented under the
head finance costs in statement of profit and loss and total transaction price including
financing component is recognized when control of the goods is transferred to the
customer.

The Company is primarily engaged in manufacturing of studded jewellery only, however
it may engage in the sale of raw materials that are primarily procured for production
purposes. These sales are made on an exception only if the offer prices or market
conditions are both favourable to the Company.

Satisfaction of performance obligations

The Company''s revenue is derived from the single performance obligation to transfer
primarily gold and diamond products under arrangements in which the transfer of control
of the products and the fulfilment of the Company''s performance obligation occur at
the same time. Revenue from the sale of goods is recognised when the company has
transferred control of the goods to the buyer and the buyer obtains the benefits from the
goods, the potential cash flows and the amount of revenue (the transaction price) can
be measured reliably, and it is probable that the Company will collect the consideration
to which it is entitled to in exchange for the goods.

When either party to a contract has performed, an entity shall present the contract in the
balance sheet as a contract asset or a contract liability, depending on the relationship
between the entity''s performance and the customer''s payment. In respect of sale of
goods at prices that are yet to be fixed at the year end, adjustments to the provisional
amount billed to the customers are recognised based on the year end closing gold rate.
Interest, Dividend and Other income

Interest income is recognised on an accrual basis using the effective interest method.
Dividend are recognised at the time the right to receive the payment is established.
Other income is recognised when no significant uncertainty as to its determination or
realisation exists.

10. Taxes on income

The income tax expense or credit for the period is the tax payable on the current
period''s taxable income based on the applicable income tax rate adjusted by changes
in deferred tax assets and liabilities attributable to temporary differences and to unused
tax losses. Tax expense for the year comprises of current tax and deferred tax.

Current Income Tax

Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities by using tax rates and the tax laws that
are enacted at the reporting date.

Current tax assets and tax liabilities are offset where the Company has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

Deferred Taxes

Deferred tax is provided on temporary difference arising between the tax bases of the
assets and liabilities and their carrying amounts for financial reporting purposes at the
reporting date at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences and unused
tax losses only if it is probable that future taxable profits will be available to utilise the
same.

Deferred tax is not recognised for all taxable temporary differences between the carrying
amount and tax bases of investments in subsidiaries, branches and associates and
interest in joint arrangements where it is probable that the differences will not reverse in
the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to
offset the same and when the balances relate to the same taxation authority.

The carrying amount of deferred tax assets is reviewed at each reporting date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to utilize all or part of the deferred tax asset. Unrecognised deferred tax assets
are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will available to utilize the deferred tax
asset.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to
the extent that it relates to items recognised in other comprehensive income or directly
in equity, in which case, the tax is also recognised in other comprehensive income or
directly in equity.

11. Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits with banks/
corporations and short term highly liquid investments (original maturity less than three
months) that are readily convertible into known amount of cash and are subject to an
insignificant risk of change in value.

12. Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the available information.

13. Post-employment, long term and short term employee benefits.

Defined contribution plans

Provident fund benefit is a defined contribution plan under which the Company pays
fixed contributions into funds established under the Employees'' Provident Funds
and Miscellaneous Provisions Act, 1952. The Company has no legal or constructive
obligations to pay further contributions after payment of the fixed contribution.

Defined benefit plans

Gratuity is a post-employment benefit defined under The Payment of Gratuity Act, 1972
and is in the nature of a defined benefit plan. The liability recognised in the financial
statements in respect of gratuity is the present value of the defined benefit obligation at
the reporting date, together with adjustments for unrecognised actuarial gains or losses
and past service costs. The defined benefit/obligation is calculated at the end of each
reporting period by an independent actuary using the projected unit credit method.
Actuarial gains and losses arising from past experience and changes in actuarial
assumptions are credited or charged to the OCI in the year in which such gains or
losses are determined.

Other long-term employee benefits

Liability in respect of compensated absences is estimated on the basis of an actuarial
valuation performed by an independent actuary using the projected unit credit method.
Actuarial gains and losses arising from past experience and changes in actuarial
assumptions are charged to the statement of profit and loss in the year in which such
gains or losses are determined.

Short-term employee benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount
paid or payable for the period during which services are rendered by the employee.

14. Operating expenses

Operating expenses are recognised in the statement of profit and loss upon utilisation
of the service or as Incurred.

15. Borrowing costs

Borrowing costs are interest and other costs incurred in connection with the borrowing
of funds. Borrowing costs directly attributable to the acquisitions, construction or
production of a qualifying asset are capitalised during the period of time that is necessary
to complete and prepare the asset for its intended use or sale. Other borrowing costs
are expensed in the period in which they are incurred and reported in finance costs.

16. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. The fair
value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the
asset or liability.

The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value measurement as a whole:

i. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets
or liabilities.

ii. Level 2 - Valuation techniques for which the lowest level input that is significant to
the fair value measurement is directly or indirectly observable.

iii. Level 3 - Valuation techniques for which the lowest level input that is significant to
the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring
basis, the Company determines whether transfers have occurred between levels in
the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks of the asset or
liability and the level of the fair value hierarchy as explained above.

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Mar 31, 2024

C. Material Accounting Policy Information

a) Current versus non-current classification and Operating cycle

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is classified as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle,

• Held primarily for the purpose of trading,

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current A liability is classified as current when:

• It is expected to be settled in normal operating cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

b) Foreign currency translation Initial recognition

Transactions in foreign currencies are recorded on initial recognition in the functional currency at the exchange rates prevailing on the date of the transaction.

Measurement at the balance sheet date

Foreign currency monetary items of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Treatment of exchange difference

Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company''s monetary items at the closing rate are recognised as income or expenses in the period in which they arise.

c) Revenue recognition Sale of goods

Revenue from the contracts with customers is recognised when control of the goods is transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods. Sales, as disclosed, are net of trade allowances, rebates, goods and service tax, and amounts collected on behalf of third parties.

The Company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, indirect taxes). In respect of contracts with customers that contain a financing component i.e. when payment by a customer occurs significantly before performance and the fair value of goods provided to the customer at the end of the contract term exceeds the advance payments received, interest expense is recognized on recognition of a contract liability over the contract period and is presented under the head finance costs in statement of profit and loss and total transaction price including financing component is recognized when control of the goods is transferred to the customer.

The Company is primarily engaged in manufacturing of studded jewellery only, however it may engage in the sale of raw materials that are primarily procured for production purposes. These sales are made on an exception only if the offer prices or market conditions are both favourable to the Company.

Satisfaction of performance obligations

The Company''s revenue is derived from the single performance obligation to transfer primarily gold and diamond products under arrangements in which the transfer of control of the products and the fulfilment of the Company''s performance obligation occur at the same time. Revenue from the sale of goods is recognised when the company has transferred control of the goods to the buyer and the buyer obtains the benefits from the goods, the potential cash flows and the amount of revenue (the transaction price) can be measured reliably, and it is probable that the Company will collect the consideration to which it is entitled to in exchange for the goods.

When either party to a contract has performed, an entity shall present the contract in the balance sheet as a contract asset or a contract liability, depending on the relationship between the entity''s performance and the customer''s payment. In respect of sale of goods at prices that are yet to be fixed at the year end, adjustments to the provisional amount billed to the customers are recognised based on the year end closing gold rate. Interest, Dividend and Other income

Interest income is recognised on an accrual basis using the effective interest method. Dividend are recognised at the time the right to receive the payment is established. Other income is recognised when no significant uncertainty as to its determination or realisation exists.

d) Property, plant and equipment

Recognition and initial measurement

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at their cost of acquisition less accumulated depreciation and impairment losses, if any. The cost comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Capital expenditure incurred on rented properties is classified as‘ Leasehold improvements'' under property, plant and equipment.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company. All other repair and maintenance costs are recognised in statement of profit and loss as incurred.

Subsequent measurement (depreciation and useful lives)

Depreciation on property, plant and equipment is provided on written-down value, computed on the basis of useful lives (as set out below) prescribed in Schedule II of the Act:

De-recognition

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognised.

e) Leases

Short-term leases and leases of low-value assets

The company applies the short-term lease recognition exemption to its short-term lease of Property, Plant and Equipment(i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain purchase option). It also applies the lease of low-value assets recognition exemption to lease that are considered of low value and is not intended for sublease. Lease payments on short term lease and lease of low value assets are recognised as expenses on a straight line basis over the lease term or another systematic basis if that basis is more representative of the pattern of the lessee''s benefit.

The Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognized on a straight- line basis or another systematic basis as per the terms of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

Company as a lessee

The company applies a single recognition and measurement approach for all leases except for short-term leases and leases of low value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

f) Impairment of non-financial assets

At each reporting date, the Company assesses whether there is any indication based on internal/external factors, 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 and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. All assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. An impairment loss is reversed if the asset''s or cash generating unit''s recoverable amount exceeds its carrying amount.

g) Financial instruments Financial Assets

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a

party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs.

Subsequent measurement

Financial instruments at amortised cost - the financial instrument is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. All the debt instruments of the Company are measured at amortised cost.

De-recognition of financial assets

A financial asset is primarily de-recognised when the right to receive cash flows from the asset have expired or the Company has transferred its right to receive cash flows from the asset.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. These liabilities are classified as amortised cost.

Subsequent measurement

Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. These liabilities include borrowings.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. Compound financial instruments

Compound financial instruments are separated into liability and equity components based on the terms of the contract. On issuance of the said instrument, the liability component is arrived by discounting the gross sum at a market rate for an equivalent non convertible instrument. This amount is classified as a financial liability measured at amortised cost until it is extinguished on conversion or redemption. The remainder of the proceeds is recognised as equity component of compound financial instrument. This is recognised and included in shareholders'' equity, net of income-tax effects, and not subsequently premeasured.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

h) Impairment of financial assets

In accordance with IndAS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company is required to consider -

• All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.

• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Trade receivables

The Company applies approach permitted by Ind AS 109, financial instruments, which requires expected lifetime losses to be recognised from initial recognition of receivables. Other financial assets

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.

i) Inventories

Raw Material: Lower of cost or net realisable value. Cost is determined on Weighted Average Cost basis

Work in progress: At cost determined on Weighted Average Cost basis up-to estimated stage of completion. Cost of work in progress and manufactured finished goods comprises direct material, cost of conversion and other costs incurred in bringing these inventories to their present location and condition.

Finished goods: Lower of cost or net realisable value. Cost is determined on Weighted Average Cost basis, includes direct material and labour expenses and appropriate proportion of manufacturing overheads based on the normal capacity for manufactured goods.

Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary to make the sale.

j) Taxes on income

Tax expense recognised in the statement of profit and loss comprises the sum of deferred tax and current tax not recognised in Other Comprehensive Income (‘OCI'') or directly in equity.

Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act 1961. Current income tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of profit and loss (either in OCI or in equity).

Deferred income-tax is calculated using the liability method. Deferred tax liabilities are generally recognised in full for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that the underlying tax loss, unused tax credits or deductible temporary difference will be utilised against future taxable income. This is assessed based on the Company''s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of profit and loss (either in OCI or in equity).

k) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits with banks/ corporations and short term highly liquid investments (original maturity less than three months) that are readily convertible into known amount of cash and are subject to an insignificant risk of change in value.

l) Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

m) Post-employment, long term and short term employee benefits.

Defined contribution plans

Provident fund benefit is a defined contribution plan under which the Company pays fixed contributions into funds established under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. The Company has no legal or constructive obligations to pay further contributions after payment of the fixed contribution.

Defined benefit plans

Gratuity is a post-employment benefit defined under The Payment of Gratuity Act, 1972 and is in the nature of a defined benefit plan. The liability recognised in the financial statements in respect of gratuity is the present value of the defined benefit obligation at the reporting date, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at the end of each reporting period by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the OCI in the year in which such gains or losses are determined.

Other long-term employee benefits

Liability in respect of compensated absences is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to the statement of profit and loss in the year in which such gains or losses are determined.

Short-term employee benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.

n) Operating expenses

Operating expenses are recognised in the statement of profit and loss upon utilisation of the service or as Incurred.

o) Borrowing costs

Borrowing costs directly attributable to the acquisitions, construction or production of a qualifying asset are capitalised during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred and reported in finance costs.

p) Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

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Mar 31, 2015

1.1 Basis of Preparation of Financial Statements :

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and income to the extent considered payable and receivable respectively, unless stated otherwise, have been accounted for on accrual basis.

1.2 Use of Estimates :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

Difference between the actual results and estimates are recognised in the period in which the result are known /materialized.

1.3 Fixed Assets :

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulates depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the fixed assets are capitalized.

1.4 Depreciation & Amortisation :

(a) Consequent to the enactment of the Companies Act, 2013 and its applicability for accounting period commencing after 1st April,2014, the Company has reviewed and revised the estimated useful lives of its fixed assets, generally in accordance provisions of schedule II of the Act, except in machinery. The company has changed the method of providing depreciation from Written Down Value to Straight Line Method. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of General Reserve amounting to Rs.14.87 Lacs.

(b) In the opinion of management the useful life of machinery is expected for 8 years. Accordingly depreciation in case of machinery is worked out and provided by assuming useful life of 8 years.

1.5 Impairment of Assets :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired.

1.6 Foreign Currency Transaction :

(a) Foreign currency transactions are accounted at the rate of exchange prevailing on the date of the transactions.

(b) At the date of balance sheet, monetary items determined in foreign currencies are converted into rupee equivalents at the exchange rate prevailing at the year end.

(c) Any gain or loss arising at the time of actual realization are credited or debited to the exchange rate difference Account.

1.7 Inventories :

i) Raw Material and trading goods are valued at lower of cost or net realisable value.

ii) Finished Goods are valued "At Cost Direct and Variable over heads".

iii) Consumable stores and spares are valued "At Cost"

1.8 Revenue Recognition :

i) Revenue from Export Sales is recognised when delivery of goods is physically given to custom authorities. Revenue from Domestic Sales is generally recognised when goods are dispatched to the customers with Sales Invoice.

ii) Refund of sales Tax/VAT is accounted in the year of receipt.

1.9 Employee Benefits :

i) Retirement benefit in the form of Provident Fund is charged to the Profit & Loss Account of the year when the contributions to the fund are made.

ii) The company has taken a policy with Life Insurance Corporation of India to cover the gratuity liability of the employees and when the premium is paid to the LIC the same is charged to Profit and Loss Account.

1.10 Borrowing Costs :

Borrowing costs that are directly attributable to the acquisition/construction of the qualifying assets are capitalized as part of the cost of the assets, up to the date of acquisition/completion of construction. All other borrowing costs are charged to revenue.

1.11 Segment Reporting :

a) Business Segment :

The Company's main business is manufacturing of Jewellery. All other activities of the company revolve around this main business. There are no separate segments within the company as defined by AS 17 (Segment Reporting) issued by The Institute of Chartered Accountants of India.

b) Geographical Segment :

The geographical segments considered for disclosures are :

i) Sales within India made to Customers located within India Rs.5320.32 Lacs.

ii) Sales outside Indiarepresents sales made to customers located outside India Rs.680.49 Lacs.

The entire activity pertaining to sales outside India is carried out from India

1.12 Accounting for Tax :

a) Current Tax is accounted on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act,1961.

b) Deferred Tax resulting from "timing differences" between accounting and taxable profit for the period is accounted by using tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty thatcan be realized in future. Net deferred tax liability is arrived at after setting off deferred tax assets.

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Mar 31, 2014

1.1 Basis of Preparation of Financial Statements :

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and income to the extent considered payable and receivable respectively, unless stated otherwise, have been accounted for on accrual basis.

1.2 Use of Estimates :

The preparation of financial statements requires estimates and assumptions to be made

that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

Difference between the actual results and estimates are recognised in the period in which the result are known /materialized.

1.3 Fixed Assets :

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulates depreciation and impairment loss, if any. All costs, including fnancing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the fixed assets are capitalized.

1.4 Depreciation & Amortisation :

Depreciation on Tangible Fixed Assets is provided on written down value method, and at the rate prescribed in schedule XIV of the Companies Act, 1956.

1.5 Impairment of Assets :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired.

1.6 Foreign Currency Transaction :

(a) Foreign currency transactions are accounted at the rate of exchange prevailing on the date of the transactions.

(b) At the date of balanace sheet, monetary items determined in foreign currencies are converted into rupee equivalents at the exchange rate prevailing at the year end.

(c) Any gain or loss arising at the time of actual realization are credited or debited to the exchange rate difference Account.

1.7 Inventories :

i) Raw Material and trading goods are valued at lower of cost or net realisable value ii) Finished Goods are valued "At Cost Direct and Variable over heads". iii) Consumable stores and spares are valued "At Cost"

1.8 Revenue Recognition :

i) Revenue from Export Sales is recognised when delivery of goods is physically given to custom authorities. Revenue from Domestic Sales is generally recognised when goods are dispatched to the customers with Sales Invoice.

ii) Refund of sales Tax/VAT is accounted in the year of receipt.

1.9 Employee benefits :

i) Retirement benefit in the form of Provident Fund is charged to the profit & Loss Account of the year when the contributions to the fund are made.

ii) The company has taken a policy with Life Insurance Corporation of India to cover the gratuity liability of the employees and when the premium is paid to the LIC the same is charged to profit and Loss Account.

1.10 Borrowing Costs :

Borrowing costs that are directly attributable to the acquisition/construction of the qualifying assets are capitalized as part of the cost of the assets, up to the date of acquisition/completion of construction. All other borrowing costs are charged to revenue.

1.11 Segment Reporting :

a) Business Segment :

The Company''s main business is manufacturing of Jewellery. All other activities of the company revolve around this main business. There are no separate segments within the company as Defined by AS 17 (Segment Reporting) issued by The Institute of Chartered Accountants of India.

b) Geographical Segment :

The geographical segments considered for disclosures are :

i) Sales within India made to Customers located within India Rs.3786.81Lacs

ii) Sales outside India represents sales made to customers located outside India Rs.219.23 Lacs The entire activity pertaining to sales outside India is carried out from India

1.12 Accounting for Tax :

a) Current Tax is accounted on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act,1961.

b) Deferred Tax resulting from "timing differences" between accounting and taxable profit for the period is accounted by using tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that can be realized in future. Net deferred tax liability is arrived at after setting off deferred tax assets.

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Mar 31, 2013

1.1 Basis of Preparation of Financial Statements :

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and income to the extent considered payable and receivable re- spectively, unless stated otherwise, have been accounted for on accrual basis.

1.2 Use of Estimates :

The preparation of financial statements requires estimates and assumptions to be made that the affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

Difference between the actual results and estimates are recognised in the period in which the result are known /materialized.

1.3 Fixed Assets :

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulates depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the fixed assets are capitalized.

1.4 Depreciation & Amortisation :

Depreciation on Tangible Fixed Assets is provided on written down value method, and at the rate prescribed in schedule XIV of the Companies Act, 1956.

1.5 Impairment of Assets :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired.

1.6 Foreign Currency Transaction :

(a) Foreign currency transactions are accounted at the rate of exchange prevailing on the date of the transactions.

(b) Any gain or loss arising at the time of actual realization are credited or debited to the exchange rate difference Account.

1.7 Inventories : i) Raw Material and trading goods are valued at lower of cost or net realisable value. ii) Finished Goods are valued "At Cost Direct and Variable over heads". iii) Consumable stores and spares are valued "At Cost"

1.8 Revenue Recognition :

i) Revenue from Export Sales is recognised when delivery of goods is physically given to custom authorities. Revenue from Domestic Sales is generally recognised when goods are dispatched to the customers with Sales Invoice.

ii) Refund of sales Tax/VAT is accounted in the year of receipt.

1.9 Employee Benefits :

i) Retirement benefit in the form of Provident Fund is charged to the Profit & Loss Account of the year when the contributions to the fund are made.

ii) The company has taken a policy with Life Insurance Corporation of India to cover the gratuity liability of the employees and when the premium is paid to the LIC the same is charged to Profit and Loss Account.

iii) Liability for encashment of leave is recognised and charged to profit and loss account in the year in which it is encashed and paid to the employees.

1.10Borrowing Costs :

Borrowing costs that are directly attributable to the acquisition/construction of the qualify- ing assets are capitalized as part of the cost of the assets, up to the date of acquisition/ completion of construction. All other borrowing costs are charged to revenue.

1.11Segment Reporting :

a) Business Segment :

The Company''s main business is manufacturing of Jewellery. All other activities of the company revolve around this main business. There are no separate segments within the company as defined by AS 17 (Segment Reporting) issued by The Institute of Chartered Accountants of India.

b) Geographical Segment : The geographical segments considered for disclosures are : i) Sales within India made to Customers located within India Rs.33,74,42,488/- ii) Sales outside India represents sales made to customers located outside India

Rs.42,17,273/- The entire activity pertaining to sales outside India is carried out from India 1.12 Accounting for Tax :

a) Current Tax is accounted on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act,1961.

b) Deferred Tax resulting from "timing differences" between accounting and taxable profit for the period is accounted by using tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that can be realized in future. Net deferred tax liability is arrived at after setting off deferred tax assets.

1.13Gratuity :

The Company is in the process of working and obtaining gratuity liability certificate from LIC as required under AS 15. On determining the said liability, provision shall be made in the account of following year by adjustment from General Reserve or charge to Profit & Loss Account.

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Mar 31, 2012

1.1 Basis of Preparation of Financial Statements :

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and income to the extent considered payable and receivable respectively, unless stated otherwise, have been accounted for on accrual basis.

During the year ended March 31st 2012,the revised schedule VI notified under the Companies Act,1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

1.2 Use of Estimates :

The preparation of financial statements requires estimates and assumptions to be made that the affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the result are known /materialized.

1.3 Fixed Assets :

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulates depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the fixed assets are capitalized.

1.4 Depreciation & Amortization :

Depreciation on Tangible Fixed Assets is provided on written down value method, and at the rate prescribed in schedule XIV of the Companies Act, 1956.

1.5 Impairment of Assets :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired.

1.6 Foreign Currency Transaction :

(a) Foreign currency transactions are accounted at the rate of exchange prevailing on the date of the transactions.

(b) Any gain or loss arising at the time of actual realization are credited or debited to the exchange rate difference Account.

1.7 Inventories :

i) Raw Material and trading goods are valued at lower of cost or net realizable value.

ii) Finished Goods are valued "At Cost Direct and Variable over heads".

iii) Consumable stores and spares are valued "At Cost"

1.8 Revenue Recognition :

i) Revenue from Export Sales is recognized when delivery of goods is physically given to custom authorities. Revenue from Domestic Sales is generally recognized when goods are dispatched to the customers with Sales Invoice.

ii) Refund of sales Tax/VAT is accounted in the year of receipt.

1.9 Employee Benefits :

i) Retirement benefit in the form of Provident Fund is charged to the Profit & Loss Account of the year when the contributions to the fund are made.

ii) The company has taken a policy with Life Insurance Corporation of India to cover the gratuity liability of the employees and when the premium is paid to the LIC the same is charged to Profit and Loss Account.

iii) Liability for encashment of leave is recognized and charged to profit and loss account in the year in which it is encased and paid to the employees.

1.10 Borrowing Costs :

Borrowing costs that are directly attributable to the acquisition/construction of the qualifying assets are capitalized as part of the cost of the assets, up to the date of acquisition/completion of construction. All other borrowing costs are charged to revenue.

1.11 Segment Reporting :

a) Business Segment :

The Company's main business is manufacturing of Jewellery. All other activities of the company revolve around this main business. There are no separate segments within the company as defined by AS 17 (Segment Reporting) issued by The Institute of Chartered Accountants of India.

b) Geographical Segment :

The geographical segments considered for disclosures are :

i) Sales within India made to Customers located within India Rs.25.04/- Lacs

ii) Sales outside India represents sales made to customers located outside India Rs.185.80/- Lacs

The entire activity pertaining to sales outside India is carried out from India

1.12 Accounting for Tax :

a) Current Tax is accounted on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act,1961.

b) Deferred Tax resulting from "timing differences" between accounting and taxable profit for the period is accounted by using tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that can be realized in future. Net deferred tax liability is arrived at after setting off deferred tax assets.

1.13 Gratuity :

The Company is in the process of working and obtaining gratuity liability certificate from LIC as required under AS 15. On determining the said liability, provision shall be made in the account of following year by adjustment from General Reserve or charge to Profit & Loss Account.

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Mar 31, 2011

(a) System of Accounting :

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and income to the extent considered payable and receivable respectively, unless stated otherwise, have been accounted for on accrual basis.

(b) Fixed Assets :

Fixed Assets stated at cost of acquisition or construction. (Including expenses incurred before commencement of production). They are stated at historical cost less accumulated depreciation.

(c) Depreciation :

Depreciation on Fixed Assets is provided on written down value method, and at the rate prescribed in schedule XIV of the Companies Act, 1956.

(d) Inventories :

(i) Raw Material and trading goods are valued at lower of cost or net realisable value. (ii) Finished Goods are valued "At Cost Direct and Variable over heads". (iii) Consumable stores and spares are valued "At Cost"

(e) Revenue Recognition :

(i) Revenue from Export Sales is recognised when delivery of goods is physically given to custom authorities. Revenue from Domestic Sales is generally recognised when goods are despatched to the customers with Sales Invoice.

(ii) Refund of sales Tax/VAT is accounted in the year of receipt.

(f) Foreign Currency Transaction :

(a) Foreign curreny transactions are accounted at the rate of exchange prevailing on the date of the transactions.

(b) Any gain or loss arising at the time of actual realisation are credited or debited to the exchange rate difference Account.

(g) Employee Benefits :

(i) Retirement benefit in the form of Provident Fund is charged to the Profit & Loss Account of the year when the contributions to the fund are made.

(ii) The company has taken a policy with Life Insurance Corporation of India to cover the gratuity liability of the employees and when the premium is paid to the LIC the same is charged to Profit and Loss Account.

(iii) Liability for encashment of leave is recognised and charged to profit and loss account in the year in which it is encashed and paid to the employees.

(h) Borrwing Cost :

Borrowing costs that are directly attributable to the acquisition/construction of the qualifying assets are capitalised as part of the cost of the assets, upto the date of acquisition/completion of construction. All other borrowing costs are charged to revenue.

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Mar 31, 2010

(a) System of Accounting :

The accounts are prepared under the historical cost convention and on the basis of going concern.

All expenses and income to the extent considered payable and receivable respectively, unless stated otherwise, have been accounted for on accrual basis.

(b) Fixed Assets :

Fixed Assets stated at cost of acquisition or construction. (Including expenses incurred before commencement of production). They are stated at historical cost less accumulated depreciation.

(c) Depreciation :

Depreciation on Fixed Assets is provided on written down value method, and at the rate prescribed in schedule XIV of the Companies Act, 1956.

(d) Inventories :

(i) Raw Material and trading goods are valued at lower of cost or net realisable value. (ii) Finished Goods are valued "At Cost + Direct and Variable over heads”. (iii) Consumable stores and spares are valued "At Cost”

(e) Revenue Recognition :

(i) Revenue from Export Sales is recognised when delivery of goods is physically given to custom authorities. Revenue from Domestic Sales is generally recognised when goods are despatched to the customers with Sales Invoice.

(ii) Refund of sales Tax/VAT is accounted in the year of receipt.

(f) Foreign Currency Transaction :

(a) Foreign curreny transactions are accounted at the rate of exchange prevailing on the date of the transactions.

(b) Any gain or loss arising at the time of actual realisation are credited or debited to the exchange rate difference Account.

(g) Employee Benefits :

(i) Retirement benefit in the form of Provident Fund is charged to the Profit & Loss Account of the year when the contributions to the fund are made.

(ii) The company has taken a policy with Life Insurance Corporation of India to cover the gratuity liability of the employees and when the premium is paid to the LIC the same is charged to Profit and Loss Account.

(iii) Liability for encashment of leave is recognised and charged to profit and loss account in the year in which it is encashed and paid to the employees.

(h) Borrwing Cost :

Borrowing costs that are directly attributable to the acquisition/construction of the qualifying assets are capitalised as part of the cost of the assets, upto the date of acquisition/completion of construction. All other borrowing costs are charged to revenue.