O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
• Provisions are recognized when the company has a present obligation as a result of past event and a reliable estimate of
amount of obligation can be made.
• Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts in case
of a present obligation arising from past events when it is not probable that an outflow of resources will be required to
settle the obligation and no reliable estimate is possible.
• Contingent assets are disclosed when an inflow of economic benefits is probable.
Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.
P. STATEMENT OF CASH FLOWS:
Statement of cash Flow is prepared as prescribed in Schedule III of the Companies Act’2013 and Ind AS 7 segregating the cash flows
into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method by adjusting
the net profit for prescribed items.
Q. FIRST TIME ADOPTION OF IND AS:
The company has already adopted Ind AS w.e.f. financial year 2017-18.
R. RECENT PRONOUNCEMENTS :
Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1,
2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any
significant impact in its financial statements.
S. The accounting policies have been consistently followed and there has been no significant change in such policies during the year except
for changes made for statutory compliance.
(i) The title Deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly
executed in favour of the lessee) are held in the name of the Company. Land and building remaining vacant and given on rent is not
disclosed separately as the portion given on lease is not material.
(ii) None of the Property Plant and Equipment’s are revalued.
DISCLOSURE OF CAPITAL WORK IN PROGRESS :
35. Expenditure on Corporate Social Responsibility(CSR):
No amount is expended in CSR during the year (previous year - Nil) as the company is not required to expend any amount under section
135 of the Companies Act 2013 read with Rules made there under.
36. Disclosure related to Lease pursuant to Ind As 116:
Ministry of Corporate Affairs (MCA) through Companies (Indian Accounting Standards) Amendment Rule 2019 and Companies (Indian
Accounting Standards). Second Amendment Rules, has notified Ind As 116 Leases which replaces the exiting lease standards, Ind As 17
Lease, and other interpretations. Ind As 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases
for both lessees and lessors.
As Lessor:-
i) The Company has given certain portion of premises under operating Lease or Leave and License Agreement. The Company retain
substantially all risks and benefits of ownership of the Leased Assets and hence, classified as Operating Lease. Lease Income on
such operating Lease is recognized in profit or loss under the head Rent in note number 26 under Other Income. Lease Rent is
recognized as per lease agreement.
ii) The company does not own any property for the purpose of letting it out and thus no property is disclosed as Investment property.
The company has given only its part of premises (which cannot be separated as Investment property) situated at Plot No. 26,27 and
28 at Kama Dandi, Kaswar Sarkari, Varanasi, Uttar Pradesh on Long Term lease during previous financial year. Details of “Rent”
is as below:-
iii) Since the Lessee has option to terminate the lease at any point giving three months’ notice without giving any reason, other
disclosures are not applicable.
iv) The lessee, in case of Long Term Lease has given Rs. 50.94 lacs as adjustable security deposit to be adjusted at the end of lease
period which is disclosed as Non Current Liability in Note No. 19 of the Balance Sheet.
v) Rs.15.74 Lakhs is expended on registration of lease which is amortised on SLM basis for the period of lease. The unamortized
amount is disclosed in note no.6 of Balance Sheet as Unamortised Expenses to the extent not written off or adjusted. Amortised
amount is disclosed in Note No. 2.
As Lessee :
The company has acquired Leasehold Land from Industry Department of Uttar Pradesh Government through transfer for which Rs. 29843
is paid for premium and capitalized. No amount is payable to the Lessor.
37. Disclosure related to Non-Current Assets held for Sale pursuant to Ind As 105:
The company is not having any non-current asset for the purpose of sale and hence no disclosure is required.
38. Disclosure related to Financial Instruments:
The company recognized financial assets and financial liabilities when it becomes a party to the contractual provisions of the instruments.
All financial assets and liabilities are initially measured at transaction price. Transaction cost that are directly attributable to the acquisition
or issue of financial assets and financial liability, which are not at fair value through profit or loss, are added to the fair value on initial
recognition. Regular way purchase and sale of financial assets are accounted for at trade date and valued as on balance sheet date at its fair
market value quoted at stock exchange in case the quoted value is lower than the cost of acquisition.
i) Foreign exchange rate risk:
In general, the company is a net receiver of foreign currency. Accordingly, changes in exchange rates, and in particular a strengthening
of the Indian Rupee, will negatively affect the Company’s net sales and gross margins as expressed in Indian Rupee. There is a risk that
the Company may have to adjust local currency product pricing due to competitive pressures when there have been significant volatility
in foreign currency exchange rates.
ii) Interest rate risk:
The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt. The Company’s
outstanding debt is in local currency as well as foreign currency is on floating rate.
Since the borrowings are small in comparison to total investments and interest expenditure is very small in comparison to total
expenditure, the company does not foresee any material risk due to change in interest rate in future.
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:
iii) Liquidity risk management:
The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through
an adequate amount of committed credit lines. Given the need to fund diverse businesses, the Company maintains flexibility in funding
by maintaining availability under committed credit lines to meet obligations when due. Management regularly monitors the position of
cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt
financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.
iv) Credit risk management:
The Company’s customer profile includes large number of Foreign Customers and some indigenous Customers. Hence the company is
having vast customer base thus Company’s customer credit risk is low. General payment terms include mobilisation advance and part is
on credit to be realiasable within 12 months. The Company has a detailed review mechanism of overdue customer receivables at various
levels within organisation to ensure proper attention and focus for realisation.
v) No material amount of financial assets or liabilities are written off during the period.
vi) The contractual maturities of significant financial assets and liabilities outstanding as at 31st March, 2025 is one year except reported
otherwise elsewhere.
vii) Detail of non current investments-
a. Details related to investment in long terms quoted equity shares are given in Note 3. All the investments are stated in the Financial
Statement at cost. Market value of shares are taken at last available rate on Stock Exchange as on reporting date.
b. Rs. 300.00 lacs was invested by the company in the shares of M/s Banaras Bead Business Private Limited. which was converted to
LLP during the financial year 2018-19. Rs. 301.56 lacs was shown as investment in limited liability partnership as on 31.03.2024
which was inclusive of share in profit of the firm. The effect of share of profit/(loss) of Rs.(4.52) lacs of F. Y. 2023-24 is made in
current financial year as the audited financial statements of LLP is received after the finalization of financial statements of the
company and the amount of investment as on 31.03.2025 is Rs.297.05 lacs. The effect of the Profit/Loss of the current financial
year of LLP is not made in absence of receipt of audited financial statement of LLP till finalization of the accounts of the company.
viii) Details of current investments:
a. Investment in mutual fund: Investment in mutual fund as on reporting date of current financial year is shown at its cost inclusive of
re invested dividend. The value as on 31.03.2025 is Nil. (Previous year - Nil ).
b. Investment in quoted equity shares : Quoted equity shares purchased with the object to sale within the operating cycle are classified
under this group. The Current Investments in quoted equity shares are shown at lower of cost or realizable value as quoted in Stock
Exchange as on reporting date and reduction in realizable value amounting Rs. Nil (Previous Year-Rs. Nil ) is debited to the
Statement of Profit & Loss under the head other expenses.
39. Disclosure related to Operating Segment pursuant to Ind AS 108:
The company main business is manufacturing and export of Handicrafts items like Glass and other Beads, Necklaces, Imitation Jewelry
etc. All those items form just one segment. All other revenues are not significant to be considered as separate segments. As the company
has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not done. The company has
received more than 10% of its revenue from customers amounting to Rs. 2022.53 lacs (Rs. 628.63 lacs, 583.54 lacs, 442.30 lacs and
368.06 lacs from 4 customers) [previous year Rs. 1929.54 lacs (Rs. 393.85 lacs, 450.60 lacs, 357.65 lacs and 727.44 lacs from 4
customers)].
41. Disclosure related to Employees Benefit pursuant to Ind As 19:
(i) Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia scheme,
performance-linked reward falling due wholly within twelve month of rendering services are recognized in the period in
which the employee renders the related services.
(ii) Company's contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual
basis.
(ii) Liability for gratuity in respect of employees is covered under the Group Gratuity Policy taken by the company from Life
Insurance Corporation of India. The premium payable under the Policy, is charged to Profit & Loss Account. The short fall in
the Fund amounting to Rs. 53.28 lacs (previous year Rs. 50.39 lacs) is shown by the Company as gratuity liability as on
reporting date.
51. PENDING PETITION WITH NCLT/OTHERS:
a) The Special Leave Petition vide no. 25165-25166/2007 filed by Shri Ajit Kumar Gupta and others against Hon’ble CLB order dt.
04.07.2007 and 03.08.2007 in the matter of C.P. No. 14/99, CP No. 14/111/1999, 15/111/1999 and 1/111/2001 had been disposed off
by Hon’ble Supreme Court on 11.04.2018. The company had already complied and executed above order of Hon’ble CLB by
05.09.2007 and nothing is pending to be complied by the company and accordingly disclosed in Annual Report made thereafter.
However, Mr. Raj Kumar Gupta, ex-director of the company, who had not challenged CLB orders now filed an Execution Petition
No. 424/2018 before Hon’ble NCLT to get property of the company situated at Expo Mart, Greater NOIDA , which was neither part
of CLB Petition No. 14/1999 nor mentioned in the list of properties to be transferred to 1 st Petitioner (Mr. Raj Kumar Gupta group)
in CLB final order dt. 04.07.2007 and modified order dt. 03.08.2007. Mr. Raj Kumar Gupta Ex-director of the company had already
made an application to get this property before Hon’ble Supreme Court in SLP No. 935 -936/2010 and Hon’ble Supreme Court
finally dismissed the SLP with all pending applications. The present Execution Petition 424/2018 filed by Mr. Raj Kumar Gupta
before Hon’ble NCLT Allahabad is pending and next date fixed on 17.07.2025. The Management does not reasonable expect that
the Execution Petition, when ultimately concluded and determined, will have a material and adverse effect on the Company’s results
of operations or financial condition.
b) Refund of U.P. VAT was granted by the department and refunded which was subsequently withdrawn by the department. Refund
given by the department has been returned with interest and the company has preferred an appeal with higher authorities. The
management is of view to get relief from the higher authorities and to get refund back, hence the amount recoverable amounting to
Rs. 20.35 lacs have been shown as good.
c) The company has filed an appeal before Regional Director, MCA, New Delhi against the adjudicating Order of Registrar of the
Companies, Uttar Pradesh under Section 454 of the Companies Act 2013 read with Rule 3 of the Companies (Adjudication of
Penalties) Rules 2014 for Rs. 5.00 lacs against company and Rs. 1.00 lacs against KMP for delay in filing of BEN-2 with MCA.
The said appeal is still pending for appropriate order. The management is of view to get relief from the appellate authorities, hence
no provision in books of account is made against this.
52. No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Property
Transactions (Prohibition) Act’1988) and the rules made there under. Similarly, the company is not having any transaction not recorded
in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act’1961.
53. The company has been sanctioned working capital limit from bank on the basis of security of current assets. No quarterly returns or
statements are filed by the company to the bank as the clause of submission of Stock Statement/Drawing Power Calculation is not
stipulated by bank.
54. The company is not declared willful defaulter during the year by any bank or financial Institution or other lender in accordance with the
guidelines issued by the Reserve Bank of India.
55. The Company is not having any transaction during the year with the companies struck off under section 248 of the companies Act’2013
or section 560 of the Companies Act’1956.
56. None of the Charges or Satisfaction are yet to be registered with Registrar of Companies beyond the statutory period.
57. The Company is not having any layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number
of Layers) Rules’2017.
59. No Scheme of Arrangements has been approved by the Competent Authority in terms of section 230 to 237 of the Companies Act’2013.
60. The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
61. UTILISATION OF BORROWED FUND AND SHARE PREMIUM
A) No funds have been advanced or loaned or invested (either from the borrowed funds or share premium or any other source or kind
of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the intermediary shall directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or provide any guarantee, security or
the like to or on behalf of the Ultimate Beneficiaries.
B) No funds have been received by the Company from any persons or entities, including foreign entities (Funding Party) with the
understanding, whether recorded in writing or otherwise, that the company shall directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
62. DIVIDEND DECLARED BY THE COMPANY:
The company has declared an Interim Dividend of Rs. 2.25 per equity share for the financial year 2024-25 (Previous Year- Rs. 2.00
per equity share}. On May 29, 2025 the Board of the directors of the company have proposed this interim dividend as final dividend
in respect of financial year 2024-25, subject to the approval of shareholders at the Annual General Meeting. This proposal of dividend
will not result in further cash outflow as the interim dividend is already distributed.
63. MISCELLANEOUS NOTES ON ACCOUNTS
i) Disclosure Related to MSMED Act 2006-
a) The management has enquired from its suppliers about their status under MSMED Act through email/ by post. The classification of
Trade Payables under Note 21 is made based on the confirmation received from the suppliers. Suppliers who confirmed about their
status as MSME unit are classified as Trade Payable -MSME. The suppliers not confirming or not communicating their status about
MSME unit are categorised as Trade Payable- Others.
b) The following disclosure is made as per the requirement under the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED) on the basis of confirmations sought from suppliers on registration with the specified authority under MSMED:
ii) There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of
its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of
business and experience gained.
iii) Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties
concern.
iv) In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which, if realised, in the
ordinary course of business, will not be less than the figure stated in the books of accounts.
v) The Calls in arrears of Share Capital amounting to Rs. 2,20,000 in FY- 2024-25 is outstanding since long. The calls in arrears of
Securities Premium account have decreased to Rs. 11,76,650. The change in balance is due to adjustment of dividend against the
arrear of Securities Premium account. None of these amounts relate to the directors or their relatives. The Management has decided
not to forfeit such shares for the time being.
vi) Previous year's figures have been regrouped/ rearranged/ reclassified wherever necessary to make them comparable with the figures of
the current year.
Ref. : SEBI/HO/MIRSD/MIRSD-PoD-l/P/CIR/2023/37 dated March 16, 2023
This is with reference to the Securities and Exchange Board of India (SEBI) Circular No. SEBI/HO/MIRSD/
MIRS D_RT AMB/P/CIR/2021/655 dated November 3, 2021 read with SEBI Circular No. SEBI/HO/MIRSD/
MIRSD_RTAMB/P/CIR/2021/687 dated December 14, 2021, in which SEBI has mandated all shareholders holding shares in physical form
in the Company, to furnish requisite documents/details (including of joint holders) to the Registrar and Share Transfer Agent of the Company
(RTA). Please fnd below details registered with RTA
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