Corporate Information :
 
 Shantivijay Jewels ltd is located in Special Economic Zone Mumbai
 having its showroom in Trident Hotel, Mumbai. Company is engaged in
 Manufacturing and exports of wide range of studded gold jewellery and
 Diamond and P.stones.
 
 a) System of Accounting:
 
 i) The Company follows the mercantile system of accounting and
 recognizes income and expenditure on accrual basis unless otherwise
 stated hereinafter.
 
 ii) The Accounts are prepared under historical cost convention, as a
 going concern and generally in accordance with applicable Accounting
 standards.
 
 iii) Use of Estimates
 
 The Preparation of financial statements require management to make
 certain estimates and assumptions that effect the amounts reported in
 financial statements and notes thereon. Difference in actual results &
 estimates are recognized in the period in which they materialize.
 
 b) Fixed Assets and Depreciation :
 
 i) Tangible Assets
 
 a) Fixed Assets are stated at their cost of acquisition less
 Deprecation. Additions to Fixed assets are net of Modvat Credit.
 Rubber moulds of small value have not been capitalized and considered
 as consumables and charged to revenue.
 
 b) Depreciation on all Fixed Assets is provided on written down value
 method at the rates and in the manner prescribed by Schedule XIV of the
 Companies Act 1956. Assets costing up to Rs 5000/- are depreciated fully
 in the year of Purchase.  Depreciation on additions / Deletions of
 Assets is provided on Pro-Rata basis.
 
 ii) Intangible Assets :
 
 Computer Software:
 
 Intangible Assets are stated at cost of acquistion less accumulated
 amortization.
 
 Computer Software is amortized over a period of Five Years in equal
 installments.
 
 c) Investments
 
 Long term Investments are valued at cost with an appropriate provision
 for permanent diminution in value.
 
 Current investments are stated at lower of the cost or quoted / fair
 value.
 
 d) Inventories
 
 a) Raw materials are valued at lower of the cost or net realizable
 value; cost is arrived at on FIFO basis. Cost includes costs incurred
 in bringing them to their present location.
 
 b) Stores & Consumables are valued at cost.
 
 c) Loose Tools are valued at cost.
 
 d) Finished goods are valued at lower of the cost or net realizable
 value. Cost of finished goods is determined by taking material, labour
 and appropriate factory overheads.
 
 e) Inventory of spares / tools, Rubber Moulds is not valued and is
 charged to revenue.
 
 e) Sales / Revenue Recognition.
 
 Sales are net of tax adjusted for gain / loss on export realization,
 year end restatement and corresponding forward exchange contracts.
 Company recognizes sales at the point of dispatch / delivery of the
 goods to the customer. Interest/rental income is recognized on time
 proportionate basis.
 
 f) Foreign Currency Transaction
 
 a) Transactions denominated in Foreign Currencies are normally recorded
 at the exchange rate prescribed by customs at the time of transaction.
 
 b) Monetary items denominated in foreign currencies at the year-end are
 restated at the yearend rates. In case of forward exchange contracts,
 the difference between the yearend rate and rate on the date of
 contract is recognized as exchange difference and premium or discount
 on forward exchange contracts is recognized over the life of the
 contract.
 
 c) Non-monetary foreign currency items are carried at cost.
 
 d) Any income or expense on account of exchange difference either on
 settlement or on translation is recognized in the profit and loss
 account.
 
 e) Exchange difference is adjusted against sales / purchases etc.,
 wherever applicable.
 
 f) Exchange difference on acquisition of fixed assets is adjusted to
 carrying cost of such fixed assets.
 
 g) Employee Benefits
 
 Company have opted for Group Gratuity Scheme with LIC of India;
 Company''s contribution based on a actuarial valuation by LIC is
 charged to Profit & Loss Account. Contribution to Provident / Family
 Pension Fund as percentage of salary is charged to Profit & Loss
 Account on accrual basis.
 
 Accrued leave Salary is estimated and provided on accrual basis. The
 expense is recognized at present value of amount payable to Employees.
 Total liability for Leave Salary outstanding at year end rate is Rs 3.70
 Lacs.
 
 h) Purchases are accounted for net of Modvat credit.
 
 i) Taxation
 
 Provision for current tax is made considering Rules/ benefits
 admissible under Income tax Act 1961. Deferred Tax Asset resulting from
 timing difference between book profit and taxable profit for the year
 is calculated by using tax rates & tax laws that have been enacted or
 substantially enacted at the Balance sheet date.
 
 j) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions in respect of present obligations arising out of past events
 are made in Accounts where reliable estimation can be made of the
 amount of obligation. Contingent Liabilities are not provided for and
 if material are disclosed separately by way of note. Contingent Assets
 are neither recognized nor disclosed in Financial Statement.
 
 Refer to note 2.34 for details of basic and diluted shares.
 
 The Company has only one class of shares referred to as equity shares
 having a par value of 10/-. Each holder of equity shares is entitled to
 one vote per share.
 
 The Company declares and pays dividends in Indian rupees. The dividend
 proposed by the Board of Directors is subject to the approval of the
 shareholders in the ensuing Annual General Meeting.
 
 The Board of Directors, in their meeting on 11-05-2012 proposed a
 dividend of Rs 1.50 per equity share. The proposal is subject to the
 approval of shareholders at their Annual General Meeting. The total
 dividend appropriation for the year ended 31st March, 2012 amounted to
 Rs52,33,387/- including corporate dividend tax of TT,30,387/-.