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 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. Compliance and effect of new pronouncements are as under:-
1. In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f.
April 1, 2025. The Company has reviewed the amendment and based on its evaluation has determined that it does not have any
significant impact in its financial statements.
2. In August 2025, MCA notified the following amendments to:-
1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to
classification of liabilities as current or non-current and non-current liabilities with covenants. In the context of
classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least 12
months after the reporting date and instead resquires that the said right should exist on the reporting date and have
substance. The amendment also introduces guidance on classification of liabilities with covenants. The Company has
no impact of these amendments in its classification criteria of current and non-current liabilities.
2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April 1,
2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier
finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the range of
payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may cause
concentration of liquidity risk. The Company has reviewed the amendment and based on its evaluation has
determined that it does not have any significant impact in its financial statements.
3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The Company has
reviewed the amendment and based on its evaluation has determined that the rule does not apply to the company.
(Refer point M).
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.
35. Expenditure on Corporate Social Responsibilltv(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 Lessor.
37. Disclosure related to Non-Current Assets held for Sale pursuant to Ind As 105:
The company does not have 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.
The company has also availed the financing facility from Bank in foreign currency, the fluctuation in foreign currency exchange rate
may have potential impact on the statement of Profit and Loss and Balance Sheet (Refer note 31).
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, 2026 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. 297.05 lacs was shown as investment in limited liability partnership as
on 31.03.2025 which was inclusive of share in profit of the firm. The effect of share of profit/(loss) of Rs.(0.06) lacs of F. Y.
2024-25 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 31.03.2026 is Rs.296.99 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 31.03.2026 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. 1601.39 lacs (Rs. 646.50 lacs, 506.36 lacs,
226.06 lacs, 222.47 lacs from 4 customers) [previous year Rs. 2022.53 lacs (Rs. 628.63 lacs, 583.54 lacs, 442.30 lacs and 368.06 lacs
from 4 customers)].
41. Disclosure related to Employees Benefit pursuant to Ind As 19 and New Labour Laws:
(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.
(iii) 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. 53.80 lacs (previous year Rs. 53.28 lacs) is shown by the Company as gratuity liability as on
reporting date.
(iv) The Government of India notified the four Labour Codes consolidating 29 existing labour laws. The Ministry of Labour &
Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in
regulations. The Company has considered and assessed the impact of the changes, consistent with the Labour Codes, draft
rules, FAQs. The management is of the view that there will not be any significant and material impact due to these changes on
its Statement of Profit and Loss. The Company continues to monitor the finalisation of Central / State Rules and clarifications
from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of
such developments as and when required.
49. Rs.15.18 Lakhs (previous year Rs. 15.18 Lakhs) paid to suppliers as advance has been shown as doubtful assets. No provision against
the outstanding is made as in the opinion of the management, amount will be recovered in full.
50. a) 2.057 Hectare land of the company situated at Village Kama Dandi and Bairawan, near Tandia, Varanasi have been acquired by
Varanasi Development Authorities in Transport Nagar Scheme and the company has challenged the Acquisition order before
Hon’ble Allahabad High Court and Status Quo has been ordered by the Hon’ble High Court. The company is still in possession of
the land.
b) The company has given advance to M/s Olive Realcon Private Limited of Rs 1365.00 lacs upto 31.03.2026 (Rs.1218.40 lacs upto
31.03.2025) for booking of premises bearing unit no. 27E of Trump Towers, Sector 65, Gurgoan, Hariyana. The company has made
full payment to the seller and disclosed as Advance for Property, Plant and Equipment (Refer note 6). Since, execution of deed is
pending for transfer of ownership, the amount is disclosed as advance.
51. PENDING PETITION WITH NCLT/OTHERS:
a) The Special Leave Petition vide no. 25165-25166/2007 had been disposed of by Hon’ble Supreme Court on 11.04.2018. The
company had already complied and executed all the direction given by Hon’ble Company law Board in its order dated 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 has 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 1st 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 Execution Petition 424/2018 last time was listed on 07.5.2026 for final
hearing but matter was not taken up and adjourned to 11th June, 2026 for final hearing. Thus, after final order of Hon’ble Supreme
Court, the Management does not reasonably expect that the Execution Petition, when ultimately concluded and determined, will
have any 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
appeal is decided in favour of company and amount deposited is refundable. The amount is disclosed with Claim of GST/VAT
under Current Assets.
c) The company has filed Writ C No. 29573 of 2025 before Hon’ble High Court of Judicature at Allahabad against order dt.
30.06.2025 passed by Regional Director (Northan Region) Ministry of Corporate Affairs New Delhi. The RD had imposed penalty
of Rs. 6 lacs (Rs. 5 lacs on company and Rs 1 lac on KMP) against delay in compliance of Section 90 of the Companies Act
2013. The Hon’ble High Court Judicature Allahabad has passed an interim order on 28.08.2025 and stayed the operation of the
order appealed. The said appeal is still pending for appropriate order before the Hon’ble High Court. The management is of view to
get relief, hence no provision in books of account is made against this.
53. 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.
54. 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.
55. 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.
56. 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.
57. None of the Charges or Satisfaction are yet to be registered with Registrar of Companies beyond the statutory period.
58. 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.
60. No Scheme of Arrangements has been approved by the Competent Authority in terms of section 230 to 237 of the Companies
Act’2013.
61. The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
62. 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.
63. DIVIDEND DECLARED BY THE COMPANY:
The company has not declared any Interim Dividend during financial year 2025-26 (Previous Year- Rs. 2.25 per equity share). No
final dividend has been proposed for financial year 2025-26 (Interim dividend paid during 2024-25 is declared as final dividend for
financial year 2024-25).
64. 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.
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 as on 31.03.2025 of Share Capital was to Rs 2.20 lacs and of Security Premium Account was Rs. 11.77 lacs.
The calls in arrears is outstanding since long. The management has decided in its board meeting dated 29.01.2026 to forfeit 38700
partly paid shares. Disclosure related to share forfeiture is as below:-
b) Amount of share premium as on 31.03.2025 was Rs. 2235.89 lacs (Rs. 2247.66 lacs - Rs. 11.77 lacs calls in arrears). Out of
calls in arrears of Rs. 11.77 lacs, Rs. 1.51 lacs was received during financial year 2025-26. Thus, the balance in share premium
account is Rs. 2237.40 as on 31.03.2026 and no calls in arrears exit in this account as on 31.03.2026 as a result of forfeiture of
shares. (Refer note 16 and 17).
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-1/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/
MIRSD_RTAMB/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 find below details registered with RTA
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