b) The Company has only one class of shares referred to as Equity Shares having face value of Rs. 2/- each. Each holder of equity share is entitled to one vote per share.The final Dividend proposed by the Board of Directors is subject to the approval of share holders at the Annual General Meeting and is paid in Indian Rupee.

c) The Company had revalued / fair valued its Land and Buildings situated at Mumbai. An amount of Rs. Nil (Rs. 18.59 million for previous year) and Rs. Nil million (Rs. 7.28 million for previous year) has been withdrawn from Revaluation Reserve and Amalgamation Reserve respectively.

d) The Company has continued to adopt the principles of AS - 30, "Financial Instruments: Recognition & Measurement" in respect of hedge accounting. Accordingly, in respect of derivative financial instruments which are entered into to hedge foreign currency risks of firm commitments or highly probable forecast transactions and which are effective cash flow hedges, the net notional gain on these instruments outstanding as at 31st March 2015, amounting to Rs. 18.88 Million (P.Y Nil) is reflected in the Hedging Reserve account.

Note:

a) Term Loan from Banks includes:

(i) Rs. 1,200.25 million (P.Y. 1,198.40 million ) secured by way of first charge on immovable property of one of the director, situated at NCPA Nariman point , Mumbai and residual charge over the current assets of the Company. The loan is collaterally secured by pledge of CompanyRs.s shares held by the promoters and these are further guaranteed by some of the directors in their personal capacity. It carries interest @ Libor 4.80% and is repayable over a period of 5 year

(ii) Rs. 2.62 million (P.Y. Rs. 5.75 million) is secured by hypothecation of specific vehicles.

b) Term loan from a company was secured by hypothecation of a specific vehicles.

c) Maturity of Term loan from bank is as under

d) Unsecured loans from Directors , Companies and Shareholders are payable over a period of 7 to 10 years Loan from Chairman & Managing Director and Executive Director carry interest of 8% , Inter Corporate Deposits (except for Rs. 250 million) carry interest ranging from 8% to 15.25% and Loans from Non-Executive Director, Shareholders and Inter Corporate Deposit of Rs. 250 million are interest free.

a) Working Capital loans from banks are secured as under:

(i) Primarily by hypothecation of stock in trade and book debts.

(ii) Collaterally by machinery, office equipment and furnitures & fixtures present and future, and mortgage of premises situated at Mumbai.

(iii) Further collaterally by pledge of fixed deposits and guarantee by some of the Directors in their Personal capacity.

b) Short term loan from banks are secured against Company's Fixed Deposits.

Note:

a) On the basis of information and records available with the Company, there are no outstanding dues as at 31st March 2015 to the Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

b) Amount of Trade Payables are subject to confirmation and reconciliation and for the year ended 31st March, 2015 is net of Rs. 4,801 million recoverable from the same parties to whom goods have been sold.

* There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

# Other Payables includes creditors for Revenue expenditure , Advance from Customer, Statutory liabilities etc.

a) Building includes Rs. 9.98 million being the cost of shares in Co-operative Housing Society/Company.

b) Gross Block & CWIP includes Rs. 1,351.11 million added on revaluation of Land, Building and Office Premises as at 1st April, 2010 based on reports issued by independent valuer. Refer note 2(a).

c) Pursuant to the enactment of Companies Act, 2013 the Company has applied the estimated useful of life as specified in Schedule II to the Companies Act, 2013. Accordingly the unamortisd carrying value is being depreciated/amortised over the revised/remaining useful life of assets. The written down value of Fixed Assets whose life has expired as at 1st April 2014 have been adjusted (net of tax) in the opening balance of Profit and Loss account amounting to Rs 42.52 million.

a) Includes Debts due from Director Rs. 35.04 Million and Rs. 249.41 Million from a Private Company in which directors are interested

b) Trade Receivable is subject to confirmation and reconciliation and for the year ended 31st March, 2015 is net of Rs. 4,801 million being amount payable to the same parties from whom goods were purchased.

(a) The Disclosure of employee benefit as defined in the accounting standard are given below:

Defined Contribution Plan:

The Company makes Provident Fund and Superannuation Fund contributions as defined contributions retirement benefit plans for qualifying employees. The Company's provident fund is under the management of the statutory authorities. The Company has recognised Rs. 23.53 million (Rs. 22.06 million) for Provident Fund and Rs. 1.06 million (Rs. 1.18 million ) for Superannuation contributions in Profit and Loss account. The Contributions payable to this plans by the Company are at rates specified in the rules of the scheme.

Defined Benefit Plan:

The employees Gratuity Fund scheme managed by a trust is a funded defined benefit plan. The present value of obligation is determined based on the actuarial valuation using Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

2. DERIVATIVE INSTRUMENTS

The Company, in accordance with its risk management policies and procedures, enters into derivative instruments (option contracts & forward contracts) to manage its exposure to foreign exchange rates. The counter party is generally a bank.

The Company has following outstanding derivative instruments designated as cash flow hedge as on 31st March, 2015

In addition to the above, the Company has outstanding derivative instruments aggregating to Rs. 684.98 Million (Rs. 1,235.85 Million) whose fair value showed a net loss of Rs. 4.08 Million (P.Y. loss of Rs. 66.38 Million) and which is accounted for in the Profit and Loss Account.

As of Balance Sheet date, the Company has Net foreign currency exposures that are not hedged by a derivative instrument or otherwise, amounting to Rs. 5,634.96 Million (P.Y. Rs. 3,828.72 Million)

31. a) Sale of Product for the year is Net off Exchange loss of Rs. 275.33 Million (Previous year gain of Rs. 75.12 Million)

b) F.O.B value of Exports is Rs. 15,659.47 Million (Previous year Rs. 19,909.64 Million)

3 Expenditure on Corporate Social Responsibility under section 135 of Companies Act, 2013

As per the provisions of Section 135 of Companies Act, 2013 read with Rules, Company was required to spend a sum of Rs. 9.15 million on Corporate Social Responsibility, however against the same Company has donated a sum of Rs. 3.0 Million to a trust where in Directors/Promoters are the Trustees.

4 Previous year's figures have been reclassified / regrouped wherever necessary.

5 SEGMENT INFORMATION FOR THE YEAR ENDED 31ST MARCH, 2015

As per Accounting Standard 21 on Consolidated Financial Statements and Accounting Standard 23 on Accounting for Investment in Associates in consolidated financial statements issued by Institute of Chartered Accountants of India, the Company has presented consolidated financial Statement, including subsidiaries and associates. Accordingly segment information as required under Accounting Standard 17 on Segment reporting is included under the Notes to Consolidated financial statements.

6 In the Opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business and that the provision for all known Liabilities and Depreaciation is adequate and is neither excess nor short of the amount reasonably necessary.

7 Contingent Liabilities and Capital commitments not provided for in respect of:

a) Guarantees given by the Company on behalf of Subsidiaries and Associates In respect of Advances granted by Banks 17,633.01 16,523.76

b) Disputed Income Tax Liabilities not 
provided for                                  221.95        185.31

c) Disputed Sales Tax Liabilities not 
provided for                                       -          0.38

d) Bank Guarantee executed in favor 
of Third Party                                  5.10          5.10

e) Bond executed for import of Capital 
goods                                          30.72         24.79

f) Letter of Credit against import/local 
purchase of goods                           1,192.19      1,361.98

g) Letter of Credit discounted                     -         28.95

38 RELATED PARTY TRANSACTIONS:

As per the Directors

1) Parties where control exists:

1 Shrenuj Lifestyle Limited Wholly owned subsidiary

2 Shrenuj Overseas Ltd                  Wholly owned subsidiary

3 Shrenuj DMCC                          Wholly owned subsidiary

5 Shrenuj (Mauritius) Pvt. Ltd. Wholly owned subsidiary

6 Shrenuj Jewellery (Far East) Ltd. Wholly owned subsidiary

7 Shrenuj Botswana (Pty.) Ltd Wholly owned subsidiary

8 Shrenuj South Africa (Pty) Ltd. Wholly owned subsidiary

9 Shrenuj N.V.                          Wholly owned subsidiary

10 Shrenuj GmbH                         Wholly owned subsidiary

11 Lume Group AG                        Wholly owned subsidiary

12 Astral USA, INC.                     Wholly owned subsidiary

13 Shrenuj USA, LLC                     Wholly owned subsidiary

14 Astral Jewels LLC                    Wholly owned subsidiary

15 Astral Holding INC                   Wholly owned subsidiary

17 Simon Golub & Sons INC               Wholly owned subsidiary

19 Shrenuj (Far East) Ltd.              Wholly owned subsidiary

21 Bernies International, LLC Subsidiary

22 Ithemba Diamonds (Pty) Ltd Subsidiary

23 Uxolo Diamond Cutting Works (Pty) 
Limited                                 Subsidiary

2) Associates :

1 Kiara Jewellery Pvt. Ltd.

2 Arisia Jewellery Pvt. Ltd.

3 Jomard SAS

4 SWA Trading Ltd.

5 Copem & Shrenuj

6 Trapz, LLC

7 SHL Gems & Jewellery Ltd.

8 K. K. Doshi & Co.

9 Shrenuj Investments & Finance Pvt. Ltd.

10 Prest Impex Pvt Ltd.

3) Key Management Personnel and their relatives:

1 Mr. Shreyas K. Doshi Chairman and Managing Director

2 Mr. Nihar N. Parikh            Executive Director

4 Mrs. Geeta S. Doshi            Non-Executive Director 
                                 (w.e.f 12.09.2014)

5 Mr. Kirtilal K. Doshi          Relative

6 Mrs. Suman K. Doshi            Relative

7 Mrs. Anjali P. Mehta           Relative

The Following transactions were carried out with the related parties in the ordinary course of business:

(i) Details relating to parties referred to in items 1 and 2 above:

Disclosure in respect of above.

1 Interest Received includes Received from Shrenuj DMCC Rs. 17.36 Mn.(Rs. 16.81 Mn.), Shrenuj Mauritius Pvt. Ltd. Rs. 16.66 Mn.(Rs. 15.74 Mn.).

2 Other Services Received includes Received from Shrenuj Botswana Pty Ltd. Rs. 1.89 Mn.(Rs. 20.06), Shrenuj Far East Ltd. (Intergems H.K. Ltd.) Rs.0.50 Mn. (Rs. 1.38 Mn.), Simon Golub & Sons Rs.0.52 Mn.(Rs. 1.33 Mn.), Shrenuj USA,LLC Rs. 1.76 Mn. (Rs. 0.98 Mn.),Uxolo Diamond Cutting Works Pvt. Ltd. Rs. Nil. (Rs.5.15 Mn), Kiara Jewellery Pvt. Ltd. Rs. Nil (Rs. 6.04 Mn).

3 Other Services Rendered includes paid to Simon Golub & Sons Rs. 21.87 Mn. (Rs. 0.17 Mn.), Shrenuj Far East Ltd. (Intergems H.K. Ltd.) Rs. Nil ( Rs. 0.15 Mn.), Shrenuj GMBH Rs. Nil (Rs. 0.60 Mn.),Shrenuj Botswana Pty. Ltd. Rs. Nil (Rs. 4.39 Mn.), Kiara Jewellery Pvt. Ltd. Rs. Nil (Rs. 0.39 Mn.), Prest Impex Pvt. Ltd. Rs. Nil (Rs. 1.20 Mn.).

4 Purchases includes Purchase from Shrenuj N.V. Rs. 1617.38 Mn.(Rs. 3251.76 Mn),Shrenuj DMCC Rs. 2000.07 Mn. (Rs. 3339.91 Mn.), Shrenuj Botswana Pty Ltd. Rs. 226.51 Mn. (Rs. 2211.25 Mn), Kiara Jewellery Pvt Ltd. Rs. Nil (Rs. 22.42 Mn.), K.K. Doshi & Co. Rs. Nil (Rs. 231.75 Mn.) Shrenuj Jewellery (Far East) Limited Rs. 301.53 Mn (Rs. Nil)

5 Interest Paid includes Paid to Shrenuj Investment & Finance Pvt. Ltd. Rs. 39.82 Mn.(Rs. 77.69 Mn.),Prest Impex Pvt. Ltd. Rs.18.92 Mn.(Rs.18.89 Mn.)

6 Sales includes Sale to Shrenuj USA,LLC Rs. 838.97 Mn.(Rs. 1151.55 Mn),Shrenuj DMCC Rs. 2818.09 Mn.(Rs. 3764.46 Mn.), Shrenuj N.V. Rs. 1239.50 Mn. (Rs. 3441.53 Mn.) ,Shrenuj Far East Ltd (Intergems H.K. Ltd) Rs. 621.47 Mn. (Rs. 992.91 Mn.), Shrenuj Jewellery (Far East) Ltd. Rs. 814.76 Mn (Rs. 586.04 Mn.), Kiara Jewellery Pvt Ltd Rs.Nil (Rs. 69.46 Mn.).

7 Purchase of Fixed Assets includes Purchase from Simon Golub & Sons Rs. Nil (Rs. 0.65 Mn.).

8 Sale of Fixed Assets includes Sale to Shrenuj Botswana Pty Ltd Rs. 1.15 Mn. (Rs. 0.50 Mn.), Uxolo Diamond Cutting Works (Pty) Limited Rs. 1.22 Mn. (Rs. Nil).

9 Guarantee includes Shrenuj N.V Rs. 5734.75 Mn (Rs. 5500.66 Mn), Shrenuj DMCC Rs. 4860.17 Mn.(Rs. 4272.30 Mn.), Shrenuj Far East Ltd (Intergems H K Ltd) Rs. 1724.17 Mn. (Rs. 1653.79 Mn.), Kiara Jewellery Pvt Ltd Rs. 187.41 Mn. (Rs. 179.76 Mn.), Simon Golub & Sons Rs. 1730.42 Mn. (Rs. 1659.78 Mn.)

10 Outstanding Receivable includes receivable from Shrenuj USA LLC Rs. 735.79 Mn. (Rs. 865.93 Mn),Shrenuj NV Rs. 202.85 Mn.(Rs. 1781.51 Mn.), Shrenuj DMCC Rs. 1169.08 Mn.(Rs.2507.13 Mn.), Shrenuj Far East Limited Rs. 1134.40 Mn. (Rs.432.87 Mn.), SWA Trading Co Ltd. Rs. Nil (Rs. 3.35 Mn), Kiara Jewellery Pvt Ltd Rs. Nil (Rs. 5.64 Mn.).

11 Goods sent on Consignment includes Shrenuj N.V. Rs. 20.29 Mn. (Rs. 50.63 Mn.),Shrenuj DMCC Rs. 109.90 Mn. (Rs. 110.92 Mn.), Shrenuj Far East Ltd. (Intergems H K Ltd) Rs. 10.22 Mn. (Rs. 76.99 Mn.),Shrenuj Lifestyle Ltd Rs. Nil (Rs. 188.41 Mn.).

12 Outstanding Payable includes payable to Shrenuj N.V. Rs.950.43 Mn. (Rs. 1985.83 Mn.),Shrenuj DMCC Rs.77.24 Mn. (Rs. 2017.48 Mn), Shrenuj Botswana Pty Ltd Rs. 77.59 Mn. (Rs. 1544.91 Mn.), Kiara Jewellery Pvt Ltd Rs. Nil (Rs. 8.51 Mn.), SWA Trading Ltd Rs. Nil (Rs. 3.35 Mn.), SHL Gems & Jewellery Limited Rs. Nil (Rs. 1.33 Mn.).