To The Members of SWARNSARITA GEMS LIMITED
 
 (Formerly known as Shyam Star Gems Limited)
 
 The Directors have pleasure in presenting the 20th Annual Report on
 the operations of the Company together with the Audited Accounts for
 the year ended 31st March, 2012.
 
 FINANCIAL HIGHLIGHTS
 
 Particulars                                               (Rs. In Lacs)
 
                                                 Year ended   Year ended
                                                 31.03.2012   31.03.2011
 
 Total Income                                      7233.36      1259.60
 
 Profit / (Loss) Before Depreciation & Taxes        159.72       242.56
 
 Less: Depreciation                                   7.38         8.06
 
 Profit / (Loss) Before Tax                         152.34       234.51
 
 Less: Provision for Current Tax                     29.03        35.00
 
 Less: Provision for Deferred Taxation               (3.11)       (0.05)
 
 Less: Earlier Tax                                   (6.11)         NIL
 
 Profit / (Loss) After Tax for the year             132.53       199.55
 
 Add: Balance in Reserves & Surplus                3729.13      3569.94
 
 Less: Appropriations
 
 Proposed Dividend                                   99.28        34.73
 
 Taxes of Dividend                                   16.10         5.63
 
 For dividend rounding off                            0.06          NIL
 
 Closing Balance                                   3746.22      3729.13
 
 BUSINESS OUTLOOK
 
 During the year under the review, the company has earned Profit before
 tax of 152.34 Lacs. Whereas Profit after tax was of 132.53 Lacs as
 against Profit before Tax of Rs. . 234.51 Lacs and Profit After Tax of Rs..
 199.55 Lacs for the corresponding previous year.
 
 Further, the Company was granted an ISO 9001-2008 Certificate during
 the year under review.
 
 DIVIDEND
 
 The Directors are pleased to recommend dividend @5% [i.e. Re. 0.50 per
 Equity share of Rs. 10/- each] for financial year 2011 -2012. The
 dividend will be paid to members whosed names appear in the Register of
 Members as on Book closure Date; in respect of shares held in
 dematerialised form, it will be paid to members whose names are
 furnished by National Securities Depository Limited and Central
 Depository Services (India) Limited, as beneficial owners.
 
 DIRECTORS:
 
 Mr. Ashok Surana and Mr. Sanjay Kothari, Directors of the Companies,
 retire by rotation and being eligible; offer themselves for
 re-appointment at the ensuing Annual General Meeting.
 
 Further, Mr. Rajendra Nolkha resigned as Director of the Company w.e.f.
 11th August, 2012 and Mr. Sunil Jain was appointed as an Additional
 Director of the Company w.e.f. 11th August, 2012 respectively and is
 eligible for reappointment at the forthcoming Annual General Meeting.
 
 The Board of Directors also recommended to appoint Mr. Sunil Jain as
 the Whole-time Director designated as Executive Director of the Company
 for a period of five years w.e.f. 11th August, 2012 whose period of
 office is liable to retire by rotation. Further, Mr. Sunil Jain is also
 designated as the Compliance officer of the company.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 Since your Company does not own manufacturing facility, the particulars
 relating to the conservation of energy and technology absorption as
 prescribed u/s. 217 (1 )(e) of the Companies Act, 1956 read with the
 Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988 do not apply to the Company in respect of the
 year under reference.
 
 Further, foreign exchange outgo towards purchase of goods is to the
 tune of 2,58,47,960/- and however the Company has not earned any
 foreign exchange during the year under review.
 
 PARTICULARS OF EMPLOYEES
 
 Information as per the provisions of Section 217(2A) of the Companies
 Act, 1956 read with the Companies (Particulars of Employees) Rules 1975
 duly amended by the Companies (Particulars of Employees) Rules, 2011
 for the year ended 31st March, 2012 is not applicable to the Company as
 none of the employees come within the ambit of said Rules.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the requirements of Section 217(2AA) of the Companies Act,
 1956, your Directors confirm the following:
 
 - That in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures;
 
 - That the Directors have selected such accounting policies and
 applied them consistently and made judgments and estimates that are
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company as at 31st March, 2012 and of the profit of
 the Company for the year ended on that date;
 
 - That the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act, for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities;
 
 - That the annual accounts for the year ended 31st March, 2012 has
 been prepared on a going concern basis.
 
 AUDITORS
 
 M/s. Suresh Anchaliya & Co, Chartered Accountants, the Auditors of the
 Company retires at the conclusion of this Annual General Meeting and
 being eligible offers themselves for reappointment.
 
 AUDITORS'' REPORT
 
 M/s. Suresh Anchaliya & Co., Chartered Accountants, Mumbai, the
 Statutory Auditors of your Company, submitted their reports for the
 year ended 31st March, 2012 which are self explanatory and requires no
 comments or explanation under Section 217(3) of the Companies Act,
 1956.
 
 LISTING
 
 The shares of the company are listed at the Bombay Stock Exchange
 Limited . The Company has paid the annual listing fees to the BSE for
 the year 2012-2013.
 
 CORPORATE GOVERNANCE
 
 Your Company is committed to maintain the highest standards of
 Corporate Governance. Your Directors adhere to the stipulations set out
 in the Listing Agreement with the Stock Exchanges.
 
 A report on Corporate Governance as stipulated under Clause 49 of the
 Listing Agreement with the Stock Exchange, forms part of this Annual
 Report.
 
 The Certificate from the Auditors of the Company, M/s. Suresh Anchaliya
 & Co confirming compliance of conditions of Corporate Governance as
 stipulated under the aforesaid Clause 49, is annexed to this Report.
 
 POSTAL BALLOT CONDUCTED DURING THE YEAR
 
 Based on the recommendations and findings of the Audit committee, the
 Board of Directors has conducted the postal ballot for following
 proposal, which was approved by the members by requisite majority.
 
 1 Sale of undertaking of the Company pursuant to Section 293(1 )(a) of
 the Companies Act, 1956.  
 
 
 ACKNOWLEDGEMENTS
 
 Your Directors take this opportunity to express their gratitude for the
 support and co-operation from the Outgoing Directors, Financial
 Institutions, Investors, Banks, Vendors, Members and Statutory
 Authorities. Your Directors express their deep appreciation to the
 Company''s employees at all levels for their unstinted efforts and
 valuable contributions during the year.
  
                              For and on behalf of the Board of Directors 
 
 Place: Mumbai                                           Mahendra Chordia
 
 Date :11th August,2012                      Chairman & Managing Director