Note : 1 SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2016

1.1 Basis of Preparation of Financial Statements :

The accounts are brpared 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 brparation 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 debrciation 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 Debrciation & Amortisation :

Debrciation is provided based in useful life of the assets as brscribed in schedule II in the Companies Act,2013. However in the opinion of management the useful life of machinery is expected for 8 years. Accordingly debrciation 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 brvailing 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 brvailing 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 brmium 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. 5165.82 Lacs

ii) Sales outside India rebrsents sales made to customers located outside India Rs. 150.80 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 recognised only to the extent there is reasonable certainty that can be realized in future. Net deferred taxliability is arrived at after setting off deferred tax assets.

NOTE : 2 The company have deposited a sum of Rs. 5.60 Lacs with Bombay High Court towards the recovery suit pending against the company. The Company have provided a sum of Rs. 2.75 Lacs in the account & balance amount of Rs. 2.84 Lacs is kept as deposit with Honourable High Court. This is pending since year 1993.

NOTE : 3 DISCLOSURE SPECIFIED BY THE MSMED ACT

The Company has not received any intimation from Suppliers regarding their status under Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure ,if any, relating to amounts unpaid as at year end together with interest paid /payable as required under the said Act have not been given.

NOTE : 4 The figures of brvious year have been regrouped/rearranged wherever considered necessary.

As per our report of even date attached

For J. D. ZATAKIA & CO.

Chartered accountants

Firm Reg. No.111777W

For and on behalf of Board of Directors

sd/- J. D. ZATAKIA

Proprietor

Membership No. 17669

Ramesh H. Gehani Chairman DIN NO.: 00062969

Ajay R. Gehani Managing Director DIN NO. : 00062989

Deepika A. Gehani Director,C.F.O. DIN NO. : 00974033

Place : Mumbai

Date : 27/05/2016