Notes to Accounts of Zodiac JRD MKJ Ltd.

Mar 31, 2015

1. The company did not have a whole time company secretary and hence the accounts have been signed by Chairman & two Directors.

2. Gratuity & Leave Encashment: As informed by the directors the Company accounts liability towards leave encashment on Realization/Payment basis. The company has made provision for Gratuity in compliance of AS -15

3. 4 Contingent liability not provided in respect of:

(a) Notice u/s 147 of the Income Tax Act, 1961 has been received for AY 2007-08 to AY 2011-12. Re: A.Y.2007-08, The company has filed Appeal on 16-04-2015 with the office of the Commissioner of Income Tax (Appeal-10) Mumbai for A.Y.2007-08.

(b) Re: A.Y.2008-09,2009-10,2010-11 and 2011-12 Proceedings u/s 147 of the Income Tax Act,1961 for the above stated four years have been initiated by the Income Tax Department. Documents papers etc have been submitted by the Company Assessment Orders for the same are awaited.

(c) Income Tax Assessment order has been received for A.Y : 2012-13 and demand of tax for the year has been paid by the company.

Note : Actual production includes manufactured through outside job work.

(*) PURCHASES GOLD INCLUDES IMPORT EXCHANGE DIFFERENCE IMPORT EXPENSES OF RS.3278835 (8970827) (**) PURCHASES SILVER INCLUDES IMPORT EXCHANGE DIFFERENCE IMPORT EXPENSES OF RS. 0 ( 0)

(*) Export of Polished Diamonds includes Export Exchange Difference of Rs. 296731 LOCAL SALE RS.165607788 (Rs.5050083 local sale Rs. 170084621)

(**) Export of Jewellery includes Export Exchange Difference of Rs. 526488.00 LOCAL SALE 24425709 (Rs.6635011.00 local sale Rs. 28576172)

(***) Export of Precious & Semi-Precious includes Export Exchange Difference of Rs.O (0)

Managerial Remuneration of Rs. 913999 (Previous year Rs. 818227)

The company has been advised that computation of Net Remuneration u/s 349 of the Companies Act, 1956 need not be enumerated, since no commission is paid to Directors. Fixed monthly Remuneration is paid to Directors as per schedule XII of the Companies Act, 1956.

(*) PURCHASES GOLD INCLUDES IMPORT EXCHANGE DIFFERENCE IMPORT EXPENSES OF RS.64293 (76003)

(**) PURCHASES RAW PEARL INCLUDES IMPORT EXCHANGE DIFFERENCE IMPORT EXPENSES OF RS.O (0)

(***) PURCHASES SEMI PRECIOUS INCLUDES IMPORT EXCHANGE DIFFERENCE IMPORT EXPENSES OF RS.O ( 0)

(****) PURCHASE OF POLISHED DIAMOND INCLUDES IMPORT EXCHANGE DIFFERENCE OF RS. 0 (0)

(*****) PURCHASES SILVER INCLUDES IMPORT EXCHANGE DIFFERENCE IMPORT EXPENSES OF RS. 0(0) '

Segment Accounting :

The company's operation predominantly relate to single segment namely Diamonds and is primary basis for segmental information's. Since the Company operates in a single business, Segment wise Reporting as defined in AS-17 of ICAI is not applicable.

Related Party Disclosures in accordance with AS-18 issued by ICAI:

a) Related Parties & nature of relationship with Associate Companies, Firms, Relatives of Directors

1) JRD Gems Pvt. Ltd.

2) JRD-MKJ Diamonds Pvt. Ltd.

3) International Gems Export (I) Corporation (FIRM)

4. There are no subsidiary companies to Company. The company has not obtained any economic benefits from its activities with the associate Companies/firms hence provisions of AS-21 issued by I.C.A.I, are not applicable in current year.

5. Deferred Tax :

A The Company has adopted As-22"Accounting for taxes on income" issued by the Institute of Chartered Accountants of India. B The effect of timing difference on account of: Difference between Book Depreciation & Depreciation under Income Tax Act, 1961.

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Mar 31, 2014

1. The company did not have a whole time company secretary and hence the accounts have been signed by Chairman & two Directors.

2. Gratuity & Leave Encashment : As informed by the directors the Company accounts liability towards leave encashment on Realisation/Payment basis. The company has made provision for Gratuity in compliance of AS -15

3. Contingent liability not provided in respect of :

a) Income Tax Assessment orders have been received upto A.Y : 2008-09 and refund orders have been received for these years.

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Mar 31, 2013

1. The company did not have a whole time company secretary and hence the accounts have been signed by Chairman & two Directors.

2. Gratuity & Leave Encashment : As informed by the directors the Company accounts liability towards leave encashment on Realisation/ Payment basis. The company has made provision for Gratuity in compliance of AS -15

3. Contingent liability not provided in respect of:

a) Income Tax Assessment orders have been received upto A.Y : 2008-09 and refund orders have been received for these years

4 Segment Accounting :

The company''s operation predominantly relate to single segment namely Diamonds and is primary basis for segmental informations.Since the Company operates in a single business, Segmentwise Reporting as defined in AS-17 of ICAI is not applicable.

5 There are no. subsidary companies to Company. The company has not obtained any economic benefits from its activities with the associate Companies/firms hence provisions of AS-21 issued by I.C.A.I, are not applicable in current year.

6 Deferred Tax:

A The Company has adopted As-22"Accounting for taxes on income" issued by the Institute of Chartered Accountants of India.

B The effect of timing difference on account of: Difference between Book Depreciation & Depreciation under Income Tax Act, 1961.

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Mar 31, 2012

1. The company did not have a whole time company secretary and hence the accounts have been signed by Chairman & two Directors.

2. Gratuity & Leave Encashment : As informed by the directors the Company accounts liability towards leave encashment on Realisation/ Payment basis. The company has made provision for Gratuity in compliance of AS -15

3. Contingent liability not provided in respect of:

a) Income Tax Assessment orders have been received uoto A.Y : 2008-09 and refund orders have been received for these vears

4 There are no. subsidary companies to Company. The company has not obtained any economic benefits from its activities with the associate Companies/firms hence provisions of AS-21 issued by I.C.A.I. are not applicable in current year.

5 Deferred Tax:

A The Company has adopted As-22"Accounting for taxes on income" issued by the Institute of Chartered Accountants of India.

B The effect of timing difference on account of: Difference between Book Depreciation & Depreciation under Income Tax Act, 1961.

6 Figures for previous year have been regrouped to confirm to the current year's classifications and are shown in the brackets.

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Mar 31, 2010

1. The company did not have a whole time company secretary and hence the accounts have been signed by Chairman & two Directors.

2. Gratuity & Leave Encashment : As informed by the directors the Company accounts liability towards leave encashment on Realisation/ Payment basis. The company has made provision for Gratuity in compliance of AS -15

3. Contingent liability not provided in respect of:

a) Income Tax Assessment orders have been received upto A.Y : 2007-08 and refund orders have been received for these years

4 Segment Accounting :

The companys operation predominantly relate to single segment namely Diamonds and is primary basis for segmental informations.Since the Company operates in a single business, Segmentwise Reporting as defined in AS-17 of ICAI is not applicable.

5 There are no. subsidary companies to Company. The company has not obtained any economic benefits from its activities with the associate Companies/firms hence provisions of AS-21 issued by I.C.A.I, are not applicable in current year.

6 Figures for previous year have been regrouped to confirm to the current years classifications and are shown in the brackets.