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
ii) The Accounts are prepared under historical cost convention, as a
going concern and generally in accordance with applicable Accounting
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 :
Intangible Assets are stated at cost of acquistion less accumulated
Computer Software is amortized over a period of Five Years in equal
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
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
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
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
e) Exchange difference is adjusted against sales / purchases etc.,
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
h) Purchases are accounted for net of Modvat credit.
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/-.