1) In the opinion of the Board,''the current assets, loans and advances
 are approximately of the value stated if realized in the ordinary
 course of business. The provisions for all known liabilities are
 adequate.
 
 2) Contingent Liabilities not provided for:
 
 a.  Documentary bills submitted to banks for discounting / advances
 amounting to Rs. 2,14,15,599/- (P.Y.  Rs. 1,71,47,765/-)
 
 b.  Liabilities against labour cases filed against the Company is
 meager and therefore, not ascertainable.
 
 c.  Income tax cases and appeals against the demand and dispute of Rs.
 NIL (P.Y. Rs. 752.55 lacs) are going on with various Income Tax
 Authorities. Out of above Rs. NIL (P.Y. Rs. 530.41 lacs) is paid by way
 of Tax Deducted at Sources, Advance Tax and/or Regular Assessment Tax.
 
 d.  Custom Duty appeals against demand of Rs.64.24 lacs on various
 imports are going on with Custom Authorities-.
 
 3) Share Capital:
 
 Share Capital includes:
 
 a) 18,00,000 equity shares of Rs. 10/- each fully paid up issued as
 Bonus Equity Shares by capitalization of the General Reserve.
 
 b) 35,50,000 equity shares of Rs. 10/- each fully paid up issued as
 Bonus Equity Shares by capitalization of the Share Premium; and
 
 c) 52,00,000 equity shares of Rs. 10/- each fully paid up issued on
 preferential basis during the year 2000-01 at premium of Rs. 20/- per
 share.
 
 d) 19,00,000 equity shares of Rs. 10/- each fully paid up issued on
 preferential basis during the year 2004-2005 at a premium of Rs. 70/-
 per share.
 
 e) 8,50,000 equity shares of Rs. 10/- each fully paid up allotted
 during the year 2005-06 on conversion of Fully Convertible Debentures
 into equity shares.
 
 f) 1,00,000 equity shares of Rs. 10/- each fully paid up allotted
 during the year 2005-06 on conversion of Share Warrants into equity
 shares.
 
 g) 5,00,000 equity shares of Rs. 10/- each fully paid up were issued
 during the year 2008-09 at a premium of Rs. 30/- per share as a
 purchase consideration for aquisjtion of Mimansa Jerwellery Private
 Ltd. as its 100% subsidiary.
 
 4) Interest paid is net of interest received/accrued but not due of Rs.
 21,83,362 (P.Y. Rs. 21,94,987/-) on margin money kept with banks. Tax
 deducted at source Rs.2,18,337/-(P.Y. Rs. 2,19,499/-)
 
 5) Sundry Debtors are net of Exchange Bill Re-Discount (EBRD) of Rs.
 2,14,15,599/- (P.Y. Rs. 1,71,47,765/-)
 
 6) Balances of sundry debtors, sundry creditors and loans and advances
 are subject to confirmation, reconciliation and consequential
 adjustment, if any.
 
 7) The Company has sent letters to suppliers to confirm that whether
 they are covered under Micro, Small and Medium Enterprises Act, 2006 as
 well as they have filed required memorandum with the prescribed
 authorities. No confirmation has received till the date of finalization
 of the Balance Sheet and the same has been relied upon by the auditors.
 Hence disclosures, if any, relating to amounts unpaid as at the year
 end together with the interest paid / payable as required under the
 said Act has not been given.
 
 8) The Company does not possess information as to which of its
 suppliers are Ancillary Industrial Undertakings / Small Scale
 Industrial Undertaking holding permanent registration certificate
 issued by the Directorate of Industries of a state or Union Territory:
 
 a) The liability, if any, of interest which would be payable under the
 interest on delayed payments to Small Scale & Ancillary Industrial
 Undertaking Act, 1933 cannot be ascertained. However the company has
 not received any claim in respect of interest.
 
 b) The outstanding to Small Scale Industrial Undertaking cannot be
 ascertained
 
 c) The name of Small Scale Industrial Undertaking to whom the Company
 owes a sum exceeding Rs. 1 lacs which is outstanding for more than 30
 days cannot be ascertained.
 
 11) EMPLOYEE BENEFITS
 
 The Company has during the year adopted Accounting Standard 15(revised
 2005) Employee Benefits. The Company has classified various employee
 benefits as under:
 
 (A) Defined contribution plans
 
 a.  Provident fund
 
 b.  State defined contribution plans
 
 - Employers'' Contribution to Employees'' State Insurance
 
 Employers'' Contribution to Maharashtra Labour Welfare Fund
 
 The provident fund and the employees state insurance are operated by
 the Regional Provident Fund Commissioner and Maharashtra Labour Welfare
 Fund is operated by Commissioner of Maharashtra Labour Welfare Board.
 Under the schemes, the Company is required to contribute a specified
 percentage of payroll cost to the retirement benefit schemes to fund
 the benefits. These funds are recognized by the Income tax authorities.
 
 12) Segment Reporting:
 
 The Company is in the business of manufacturing and export of gem
 studded jewellery. In view of the management, and based on the internal
 reporting format, the Company''s primary and only format for reporting
 segment information is geographical segment, that are based on the
 location of customers,
 
 13) Related Party Disclosures:
 
 1.  List of Related Parties with whom transactions have taken place
 during the year:
 
 a) Key Management Personnel:
 
 Surendra Kumar Sethi - Chairman and Joint Managing Director
 
 Varij Sethi - Managing Director
 
 Vivek Tharaney - Whole Time Director (Production)
 
 b) Relative of Key Management Personnel:
 
 Rajkumari Sethi - Mother of S. K. Sethi
 
 Jyoti Sethi - Wife of Varij Sethi
 
 Ritu Sethi - Daughter of S. K. Sethi
 
 Virendra Kumar Sethi - Brother of S. K. Sethi
 
 Nalin Sethi - Brother of S. K. Sethi
 
 Priya Tharaney - Mother of Vivek Tharaney
 
 Kala Shah - Mother In Law of Varij Sethi
 
 c) Subsidiaries: d) Promoter: Soft Touch Jewellers LLC .
 
 S B & T Holding Limited S.B. & T. Gems Import Inc.  S B & T (U.K)
 Limited S B & T Designs Limited Mimansa Jewellery (P) Ltd.
 
 e) Others:
 
 Sethi Mercantile Private Limited Company in which directors are
 interested FNZ Jewels (P) Ltd.  Company in which directors are
 interested Arup Builders Developers (P) Ltd.  Company in which
 directors are interested Swel Jewels Firm in which relative of
 directors are partners
 
 17) Directors have recommended full & final dividend @ 1% on
 1,68,50,000 Equity Shares aggregating to Rs.  16,85,000/- for the
 Financial Year 2010 - 11, which is in accordance of rules of Companies
 (Declaration of Dividend Out of Reserves) Rules, 1975.
 
 18) Schedule of information and particulars as required by the
 paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act,
 1956-as certified by the Directors and annexed to the Profit and Loss
 Account for the year ended 31st March, 2011 (Figures in the brackets
 indicate previous year figures)
 
 19) Figures of the previous year have been regrouped, rearranged and
 recast and shown to the nearest rupee to make them comparable with
 figures of the previous year.