The last day of the Hindu year of Vikram era is celebrated as Diwali or festival of lights all over the state by unsurpassable gaiety. According to Purana Lord Vishnu had rescued on this day goddess Lakshmi from the hold of king Bali. It is also believed that on this day Lord Rama returned to Ayodhya after his conquest over Ravan and the people of Ayodhya celebrated the return of Lord Rama by illumination of their houses. With sathia (swastik) and rangoli (making of attractive designs by powdered colour) marks every courtyard with rows and rows of earthen lamps lighting up environs give special touch of festivity to the atmosphere. Merchants worship goddess Lakshami and books of accounts. At night youngsters resort to pyrotechnics by firing crackers of various types, some ornamental and some causing great cracking sounds. The next day or Kartik Sud 1, the first day of Hindu calendar is celebrated as New Year's day with great solemnity. After an early bath and obeisance to the household deity, people visit temples for darshan and then go to pay respect to elders. Thereafter begins the day of exchanging of "salmubark"-Happy New Year greetings, visitings friends and relatives, and savouring delicacies prepared specially for the occasion.

In Vaishnava temples annakuta or a collection of all possible varieties of food preparations is offered to Gods and people gather to have darshan. In rural areas of Saurashtra the New Year Day is known as jar patola meaning day of greetings. Villagers worship their cows and decorate them, painting their hoofs and horns with vermilion or turmeric and serve them with boiled grain. Diwali celebrations are not restricted upto New Year's Day but spills over for three more days, in order of sequence by Bhaibij, Trij, Chauth and Labh Pancham, the last being an auspicious day for commencing any new work. Businessman start their new financial year on this day by some token transactions. The day is called Jnan Panchmi by the Jains and celebrated by worshipping their libraries and attempting to gain more knowledge.