Auditor Report of Banaras Beads Ltd.

Mar 31, 2025

We have audited the accompanying standalone financial statements of Banaras Beads Limited (“the Company”), which comprise the
Standalone Balance Sheet as at March 31, 2025, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the
Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the Standalone
Financial statements, including a summary of the significant accounting policies and other explanatory information (herein after referred to as
“ standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements
give the information required by the Companies Act’2013 (“the Act”) in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2025, and its profit
(including other comprehensive income), the changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Companies Act, 2013 and the Rules made there under, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion on the Standalone Financial Statement.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standal one financial
statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The Key Audit Matters	How our audit addressed the Key Audit Matters
Revenue recognition of Duty Credit Scripts
Remission on Duties & Taxes on Export Products (RODTEP), Duty Credit Incentive Script Schemes receivable at the end of accounting year is accounted on estimated realizable value. (refer point D of Note 1 of the Standalone Financial Statement)	Our Audit procedures include the following substantive procedures- • Duty Credit Incentive Script and RODTEP under various export incentive schemes received during the year are verified from the Realised Value of Export, prescribed rate of script by the Government related to the product exported and value mentioned on the Script. • The recognition of revenue of Duty Credit Incentive Script and RODTEP on value of Export not realized at year end is verified from the FOB value of export, prescribed rate of script by the Government related to the product and last realizable rate of transferred script during the year. • Reduction in Script and RODEP value due to actual realization of export is adjusted in revenue when actual script etc is received. Difference between provision and actual transfer value is adjusted in revenue at the time of transfer. • Value of Scripts etc. consumed in payments of custom duty against imports made are verified from documents of import and scripts. • Entries for scripts etc transferred during the year are accounted for on actual realised value and verified from invoice and other relevant documents.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (‘the
Act’) with respect to the preparation of these standalone financial statements that give a true and fair view of the State of Affairs, Profit/Loss
and other comprehensive income, changes in equity and cash flow of the Company in accordance with the Accounting Principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting record in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting
policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.

In preparing the stand-alone financial statements, management and board of directors are responsible for assessing the company’s ability to
continue as going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intend to liquidate the company or to cease operations, or has no realistic alternative but to do so.

The board of directors is also responsible for overseeing the company’s financial reporting process.

Auditor’s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ou r opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls with reference to Financial Statements in place and the operating effectiveness of such
controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting in preparation of Standalone financial
statement and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cas t
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the
standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of
the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.

Other Information

The Company’s Management and Board of Directors are responsible for the other information. The other information comprises the
information included in the company’s annual report, but does not include the standalone financial statements and our auditor’s report thereon.
The company’s annual report is expected to be made available to us after the date of this auditor’s report.

Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance
conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it
becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2020 (the Order”) issued by the Central Government in terms of Section 143(11)
of the Act, we give in “ Annexure A” a statement of the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. A) As required by Section 143 (3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books except as reported in 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules 2014.

c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the
Standalone Statement of Change in Equity and Standalone Statement of Cash Flow dealt with by the Report are in agreement
with the books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under
Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31st March, 2025 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2025 from being appointed as a director in terms of Section
164 (2) of the Act.

f) The modifications relating to the maintenance of Accounts and other matters connected therewith are as stated in the
paragraph 2A(b) above on reporting under section 143(3b) of the Act and paragraph 2B(f) below on reporting under Rule
11(g) of the Companies (Audit and Auditors) Rules 2014.

g) With Respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such
controls, refer to our separate report in Annexure-B.

B) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

a. The Company has disclosed the impact of pending litigations as on 31^st March’2025 on its financial position in note number 50
& 51 in its financial Statement.

b. The Company has made provision as required under the applicable law or accounting standards, for the material foreseeable
losses, if any, on long terms contracts including derivative contracts.

c. There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Company during the year
ended 31 March 2025.

d. i) The management has represented that, to the best of its knowledge and belief, 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.

ii) The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company
from any persons or entities, including foreign entities (Funding Parties”), 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 (“Ultimate
Beneficiaries”) by or on behalf of the Funding Party or

• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our
notice that has caused us to believe that the representations under sub-clause (d) (i) and (d) (ii) contain any material mis¬
statement.

e. The interim dividend declared or paid during the year by the Company is in compliance with section 123 of the Act.

f. With respect to the reporting under Rule 11(g) of the Companies (Audit and Auditor’s) Rules, 2014, based on our examination
which includes test checks, except for the instances mentioned below, the company has used accounting softwares for
maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the respective software :

i) The Company has used Tally Prime accounting software for maintaining books of accounts having audit trail (edit log)
facility. Other supporting software do not have such facility.

ii) The features of recording the audit trail (edit log) facility was enabled in the Tally software throughout the period under
reporting.

Further for the periods where audit trail (edit log) facility was enabled and operated throughout the year for the accounting
software, we did not come across any instances of the audit trail features being tampered with.

C. With respect to the matter to be included in the Auditor’s Report under section 197(16), in our opinion and according to the
information and explanation given to us, the remuneration paid by the company to its directors during the current year is in
accordance with the provisions of the section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid
down under section 197 of the Act. The ministry of corporate affairs has not prescribed other details under section 197(16) which
are required to be commented upon by us.

For- G D Dubey & Associates
Chartered Accountants
(Firm Registration No- 009836C)

(G.D. Dubey)

Partner

M. No. 076804
Varanasi; 29.05.2025
ICAI UDIN : 25076804BMGNFH9390

---

Mar 31, 2024

BANARAS BEADS LIMITED

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Banaras Beads Limited (“the Company”), which comprise the Standalone Balance Sheet as at March 31, 2024, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the Standalone Financial statements, including a summary of the significant accounting policies and other explanatory information (herein after referred to as “ standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act’2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2024, and its profit (including other comprehensive income), the changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Standalone Financial Statement.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The Key Audit Matters How our audit addressed the Key Audit Matters
Revenue recognition of Dut1	y Credit Scripts
Merchandise Export India Scheme(MEIS),Remission on Duties & Taxes on Export Products (RODEP), Duty Credit Incentive Script Schemes receivable at the end of accounting year is accounted on estimated realizable value. (refer point D of Note 1 of the Standalone Financial Statement)	Our Audit procedures include the following substantive procedures- • Duty Credit Incentive Script, MEIS and RODEP under various export incentive schemes received during the year are verified from the Realised Value of Export, prescribed rate of script by the Government related to the product exported and value mentioned on the Script. • The recognition of revenue of Duty Credit Incentive Script, MEIS and RODEP on value of Export not realized at year end is verified from the FOB value of export, prescribed rate of script by the Government related to the product and last realizable rate of transferred script during the year. • Reduction in Script, MEIS and RODEP value due to actual realization of export is adjusted in revenue when actual script etc is received. Difference between provision and actual transfer value is adjusted in revenue at the time of transfer. • Value of Scripts etc. consumed in payments of custom duty against imports made are verified from documents of import and scripts. • Entries for scripts etc transferred during the year are accounted for on actual realised value and verified from invoice and other relevant documents.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (‘the Act’) with respect to the preparation of these standalone financial statements that give a true and fair view of the State of Affairs, Profit/Loss and other comprehensive income, changes in equity and cash flow of the Company in accordance with the Accounting Principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting record in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the stand alone financial statements, management and board of directors are responsible for assessing the company’s ability to continue as going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intend to liquidate the company or to cease operations, or has no realistic alternative but to do so.

The board of directors is also responsible for overseeing the company’s financial reporting process.

Auditor’s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to Financial Statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting in preparation of Standalone financial statement and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Information

The Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the company’s annual report, but does not include the standalone financial statements and our auditor’s report thereon. The company’s annual report is expected to be made available to us after the date of this auditor’s report.

Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2020 (the Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “ Annexure A” a statement of the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. A) As required by Section 143 (3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books except as reported in 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules 2014.

c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Change in Equity and Standalone Statement of Cash Flow dealt with by the Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31st March, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.

f) The modifications relating to the maintenance of Accounts and other matters connected therewith are as stated in the paragraph 2A(b) above on reporting under section 143(3b) of the Act and paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules 2014.

g) With Respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls, refer to our separate report in Annexure-B.

B) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

a. The Company has disclosed the impact of pending litigations as on 31^st March’2024 on its financial position in note number 50 & 51 in its financial Statement.

b. The Company has made provision as required under the applicable law or accounting standards, for the material foreseeable losses, if any, on long terms contracts including derivative contracts.

c. There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Company during the year ended 31 March 2024.

d. i) The management has represented that, to the best of its knowledge and belief, 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.

ii) The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (Funding Parties”), 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 (“Ultimate Beneficiaries”) by or on behalf of the Funding Party or

• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (d) (i) and (d) (ii) contain any material misstatement.

e. The interim dividend declared or paid during the year by the Company is in compliance with section 123 of the Act.

f. With respect to the reporting under Rule 11(g) of the Companies (Audit and Auditor’s) Rules, 2014, based on our examination which includes test checks, except for the instances mentioned below, the company has used accounting softwares for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software :

i) The Company has used Tally Prime accounting software for maintaining books of accounts having audit trail (edit log) facility. Other supporting software do not have such facility.

ii) The features of recording the audit trail (edit log) facility was not enabled in the Tally software for the period 1^st

April’2023 to 5^th June’2023.

Further for the periods where audit trail(edit log) facility was enabled and operated throughout the year for the accounting software, we did not come across any instances of the audit trail features being tampered with.

C. With respect to the matter to be included in the Auditor’s Report under section 197(16), in our opinion and according to the information and explanation given to us, the remuneration paid by the company to its directors during the current year is in accordance with the provisions of the section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under section 197 of the Act. The ministry of corporate affairs has not prescribed other details under section 197(16) which are required to be commented upon by us.

For- G D Dubey & Associates Chartered Accountants (Firm Registration No- 009836C)

(G.D. Dubey)

Partner

M. No. 076804 Varanasi; 28.05.2024 ICAI UDIN : 24076804BKBIDH6102

---

Mar 31, 2018

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Banaras Beads Ltd (“the Company”), which comprise the Balance Sheet as at March 31, 2018,the Statement of Profit and Loss (Including Other Comprehensive Income) the Statement of Cash Flows and the statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.(herein after referred to as “ standalone Ind AS financial statements”)

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (‘the Act’) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flow and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting record in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.

In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit of the standalone Ind AS financial statement in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the Standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence obtained by us and other auditors in terms of the reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the statement of Cash Flow and Statement of Change in Equity dealt with by the Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With Respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls, refer to our separate report in Annexure-A.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in note number 46 & 47 in its financial Statement.

ii. The Company has made provision as required under the applicable law or accounting standards, for the material foreseeable losses, if any, on long terms contracts including derivative contracts.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditors Report) Order 2016 (the Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “ Annexure B” a statement of the matters specified in paragraphs 3 and 4 of the Order.

(Referred to in paragraph 1(f) under on other Legal and Regulatory Requirements’ section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under (i) of Sub- section 3 of Section 143 of the Companies Act,2013 (“the Act) of Banaras Beads Limited.

We have audited the internal financial controls over financial reporting of Banaras Beads Limited ( ‘ the Company’) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended and as at on that date.

Management’s Responsibility for Internal Financial Controls.

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (‘the Guidance Note’). These responsibilities include the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuing the orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial, as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note and the Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors’ judgment, including the assessment of the risk of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting.

Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future period are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the polices or procedures may deteriorate.

Opinion.

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.

THE ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF BANARAS BEADS LIMITED ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31^st MARCH, 2018.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.

2. As explained to us, inventories have been physically verified during the year by the management at reasonable intervals and the discrepancy noticed on physical verification of stocks as compared to book records were not material and have been properly dealt with in the books of accounts.

3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has granted unsecured loans to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, and as explained to us the terms and conditions are not prejudicial to the interest of the company and no schedule of repayment has been stipulated.

4. In our opinion and according to the information and explanation given to us, the company has complied with the provision of Section 185 and 186 of the act, with respect to the investment and loan made.

5. The Company has not accepted any deposits from the public.

6. Reporting under clause 3(v) of the order is not applicable as the Company’s business activities are not covered by the companies (Cost Records and Audit) Rules, 2014.

7. According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Goods and Service Tax, Cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31^st of March, 2018 for a period of more than six months from the date they became payable except as reported in note 30 of the Financial Statements.

8. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has taken only working capital loans from banks and has not defaulted in repayment of dues to the bank. The company does not have any borrowing from financial institution and has not issued debentures.

9. The Company has not raised moneys by way of initial public offer or future public offer (including debt instruments) or term loans and hence reporting under clause 3(ix) of the Order is not applicable.

10. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

11. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.

13. In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

14. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause 3(xiv) of the Order is not applicable to the Company.

15.In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its Directors and hence provisions of Section 192 of the Act are not applicable.

16. The Company is not required to be registered under Section 45-I of the Reserve Bank of India Act, 1934.

For- G D Dubey & Associates

Chartered Accountants

(Firm No 009836C)

(G.D. Dubey)

M. No. 076804

VARANASI;31.05.2018

---

Mar 31, 2016

TO THE SHAREHOLDERS OF BANARAS BEADS LIMITED

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of Banaras Beads Limited (''the Company''), which comprise Balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement of year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company''s Board of Directors is responsible for the matters stated in Section tBfe5pomlpanies Act, 203 ("the Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial statement and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility chides in maintenance of adequate accounting records accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies ,judgments and estimates that are assumable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under section of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 43(D) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether financial statements are free from internal misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statement procedures selected depend on the auditor''s judgment, including the assessment of the risks and misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control of the Company''s preparation of the financial statements that give a true and-fair order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal controls system over financial reporting and the operation effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as overall presentation of financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion financial statements .

OPINION

In our opinion and to the best of our information and according explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accepted in India, of the state of afraid of the Company as at 31 March 2016and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor''s Report) Order, the Order") issued by the Central Government of India in terms of -sub section (I) of section 43 of the Act, we give in the Annexure a statement on the matters specified in the paragraph and 4 Order, to the extent applicable.

2 As required by Section 143 (3) of the Act, were that:

(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary the purposes of our audit.

(b) in our opinion proper books of account as required by law have been kept they Company so far as it appears from our examination of those books ;

(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement will books of account;

(d) in our opinion, the after said standalone financial statements comply with the Accounting Standards specified under Section 33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) on the basis of the written representations received from the directors March 31^st 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March from being appointed as a director in terms of Section 64 (2) of the Act; and

(f) with respect to the other matters to be include their Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 20)4, in our opinion and to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations its financial position in its financial stateneiilti3ifer Note-31 33 & 34 to the financial statement s

ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on the-term contracts including derivative contract Act.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection F und by the Companies no amount was due to be transferred during the. year

ANNEXURE TO INDEPENDENT AUDITORS’ REPORT

THE ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF BANARAS BEADS LIMITED. ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31^st MARCH, 2016.

On the basis of such checks as we considered appropriate and according to the information and explanation given to e-voting of our audit, we repeat that:

1 (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, title deeds of immovable properties are held in the name of the Company.

2 As explained to us, inventories have been physically verified during the year by the management at reasonable intervals battle discrepancy noticed on physical verification of stocks as compared to book records were not material dealt with in the books of accounts.

3. According to the information and explanations given to us and on the basis of our examination of the books of accounts, of the company has not granted any loans, secured or unsecured, to company firms or other parties listed in the register maintained under Section 289 of the Companies Act, Consequently, the provisions of clauses iii(ii)(c) of the order are not applicable to the Company.

4. In our opinion an according to the formation an explanation given to us, the company has complied with the provision of Section B5 and B6 of the act, with respect to the investment No loan and guarantee has been given to director et c.

5. The Company has not accepted any desist from the public.

6. As explained to us by the management maintenance of cost records as specified by the Central Government of section 48 of the Companies Act are not applicable to the company,

7 (a) According to the records the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income-tax, Sales tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other story dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues 31^st March, 2016 for a period of more than six months for the date they became payable, except disputed service tax amounting to7.34. Lakhs .

(b) According to the information and explanation given to us, following amount of dues of tax and cess which have not been deposited on account of disputes :

Service Tax Appeal Pending at Commissioner Appeal 7.34 Lakhs

8. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has taken only working capital loans from banks and has not repayment of dues to the bank. The company does not have any borrowing from financial institution and has not issued debentures.

9. The Company has not raised moneys by way of initial public offer or future public offer (including debt instruments loans and hence reporting under clause 3(ix) of the Order is not applicable.

10. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or report during the year, nor have we been informed of such case by the management.

11. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approval and dated by the provisions of Section 97 read with Schedule V to the Act.

12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.

13. In our opinion and according to the information and explanted given to us the Company is in compliance with Section 177 and 138 of the Act, where applicable, for all transactions with the related parties and the details of related party transaction disclosed in the standalone financial statements as the applicable accounting standards.

14 During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convert debentures and hence reporting under clause B(xiv) of the Order is not applicable to the Company.

15. In our opinion and according to the information and explanations given to us, during the year the Company has not into non-cash transactions with its Directors or persons connected to its Directors and hence provision 92 of the Act are not applicable.

16. The Company is not required to be registered under the Reserve Bank of India Act, 1934.

For Kamal Kishore & Co.

Chartered Accountants

(Firm No 007424C)

Sd/-

Place VARAN AS I (Kamal Kishore Srivastava)

Date : 26 . 05 . 2016 Partner, M. No. 71639

---

Mar 31, 2014

We have audited the accompanying financial statements of Banaras Beads Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(i) In the case of the balance sheet, of the state of affairs of the Company as at 31st March 2014.

(ii) In the case of the statement of profit and loss, of the profit for the year ended on that date; and

(iii) In the case of the cash flow statement, of the cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

As required by section 227(3) of the Act, we report that:

- we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

- in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

- the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this report are in agreement with the books of account.

- In our opinion, the balance sheet, statement of profit and loss and cash flow statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013; and

- On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO INDEPENDENT AUDITORS'' REPORT

THE ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF BANARAS BEADS LIMITED. ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH, 2014.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

- (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, disposal of fixed asset during the year is not substantial so as to affect the going concern assumption.

- (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. The discrepancy noticed on physical verification of stocks as compared to book records to the book records were not material and have been properly dealt with in the books of accounts.

- (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f) & (g) are not applicable to the company.

- In our opinion and according to the information and explanations given to us, the internal control procedure with respect to the purchase of inventory and fixed assets and sale of goods and services need to be further improved to make it commensurate with the size of the company and the nature of its business. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

- a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) As regards transaction exceeding value of Rupees five lakhs entered into during the financial year, we are unable to comment whether the transaction were made at prevailing market prices at the relevant time, because of the specialized nature of the items involved and absence of any comparable prices.

- The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

- The company has an internal audit system commensurate with the size and nature of the company''s business but in our opinion its scope and coverage require to be further strengthened.

- We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

- (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2014 for a period of more than six months from the date they became payable.

(b) Accounting to the information and explanation given to us, no material dues of tax and cess which have not been deposited on account of disputes.

- The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

- Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has taken only working capital loans from banks and has not defaulted in repayment of dues to the bank. The company does not have any borrowing from financial institution and has not issued debentures.

- The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

- According to information and explanations given to us, the Company is trading in Shares, Mutual funds & other Investments. Proper records & timely entries have been maintained in this regard & further investments specified are held in their own name.

- According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

- Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

- Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2014, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

- Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year.

- The Company has no debentures issued and outstanding during the period under audit.

- The Company has not raised any money by public issue during the year.

- Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Kamal Kishore & Co.

Chartered Accountants

(Firm No 007424C)

Sd/-

Place: VARANASI (Kamal Kishore Srivastava)

Date : 29. 05. 2014 Partner, M. No. 71639

---

Mar 31, 2013

We have audited the accompanying financial statements of Banaras Beads Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

- in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

- in the case of the Profit and Loss Account, of the profit

- for the year ended on that date; and

- in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

As required by section 227(3) of the Act, we report that:

- we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

- in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

- the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this report are in agreement with the books of account.

- in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

- On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

THE ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF BANARAS BEADS LIMITED. ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31st MARCH, 2013.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

- (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, disposal of fixed asset during the year is not substantial so as to affect the going concern assumption.

(a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. The discrepancy noticed on physical verification of stocks as compared to book records to the book records were not material and have been properly dealt with in the books of accounts.

(a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f) & (g) are not applicable to the company.

- In our opinion and according to the information and explanations given to us, the internal control procedure with respect to the purchase of inventory and fixed assets and sale of goods and services need to be further improved to make it commensurate with the size of the company and the nature of its business. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

- a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) As regards transaction exceeding value of Rupees five lakhs entered into during the financial year, we are unable to comment whether the transaction were made at prevailing market prices at the relevant time, because of the specialized nature of the items involved and absence of any comparable prices.

- The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

- The company has an internal audit system commensurate with the size and nature of the company''s business but in our opinion its scope and coverage require to be further strengthened.

- We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

(a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2013 for a period of more than six months from the date they became payable.

(b) The disputed statutory dues aggregating Rs.43.77 lakhs that have not been deposited on account of disputed matters pending before appropriate authorities are as under:

Particulars Liability Raised by Assessing Amount not paid Forum where dispute is Officer (Rs. lakhs) (Rs. in lakhs) pending

Income Tax for A. Y. 2001-2002 15.00 15.00 CIT (Appeals), Varanas

Income Tax for A. Y 2010-2011 76.02 24.58 CIT (Appeals), Varanas

Related to Custom duty 4.19 4.19 Commisioner of Customs

The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has taken only working capital loans from banks and has not defaulted in repayment of dues to the bank. The company does not have any borrowing from financial institution and has not issued debentures.

- According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

- The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

- According to information and explanations given to us, the Company is trading in Shares, Mutual funds & other Investments. Proper records & timely entries have been maintained in this regard & further investments specified are held in their own name.

- According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

- Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

- Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 3 1st March, 2013, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

- Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year.

- The Company has no debentures issued and outstanding during the period under audit.

- The Company has not raised any money by public issue during the year.

- Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Kamal Kishore & Co.

Chartered Accountants (Firm No 007424C)

Sd/-

Place: VARANASI (Kamal Kishore Srivastava)

Date : 30. 05. 2013 Partner, M. No. 71639

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of BANARAS BEADS LIMITED, as at 31st March, 2012, the Statement of Profit & Loss and Cash Flow Statement of the company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express on opinion of these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Reports) Order, 2003 as amended, issued by the Central Government of India in term of section 227 (4A) of the Companies Act, 1956, and on the basis of checks of the books and records of the Company as we considered appropriate and the information and the explanations given to us during the course of audit, a statement on the matters specified in paragraphs 4 and 5 of the said order is annexed.

4. Further to our comments in the Annexure referred to above we report that:

(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of the audit;

(b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of these books;

(c) The Balance sheet, Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet and the Statement of Profit & Loss comply with the Accounting Standards referred to in subsection (3C) of Section 211 of the Companies Act, 1956.

(e) On the basis of written representations received from the directors as on 31st March, 2012, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said statements of accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) In case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012; and

(ii) In the case of the Statement of Profit and Loss , of the Profit of the company for the year ended on that date.

(iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH (3) OF THE AUDITOR'S REPORT OF EVEN DATE ON THE ACCOUNTS OF BANARAS BEADS LIMITED FOR THE YEAR ENDED 31st MARCH, 2012

1 (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information.

(b) As explained to us, all the fixed assets have been physically verified by the management at reasonable intervals. We are informed that no material discrepancies noticed on such verification.

(c) There was no disposal of a substantial part of fixed assets.

2. (a) As explained to us, the inventory has been physically verified by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) In our opinion and according to the information and explanation given to us, and on the basis of our examination of records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of accounts.

3. (a) According to the information and explanations given to us, the Company had not granted any unsecured loans to the parties covered in the register maintained under Section 301 of the Companies act, 1956.

(b) Since no amount is due to the company, there is no need to comment upon the rate of interest and other terms & conditions of the loans.

(c) Since no amount is due to the company, there is no need to comment upon the terms of repayment of loans.

(d) Since no amount is due to the company, there is no need to express our opinion on whether there is any amount overdue above Rupees one Lakh and whether reasonable steps needs to be taken for recovery of principal and interest.

(e) The Company has taken following unsecured loans from parties covered in the register maintained under section 301 of the Companies act, 1956

No. of parties 1 Amount Involved 103.25 Lakhs

(f) The rate of interest and other terms and conditions of loans taken by the company are prima facie not prejudicial to the interest of the company

(g) The company has repaid the loan.

4. On the basis of our evaluation of internal control systems and according to the information and explanations given to us, we are of the opinion that internal control systems with respect to the purchase of inventory and fixed assets and sale of goods and services need to be further improved to make it commensurate with the size of the company and nature of its business.

5. In respect of the transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956,

(a) Based on audit procedures applied by us, the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that needed to be entered into the register maintained under Section 301 have been so entered.

(b) As regards transactions exceeding value of Rupees five lakhs entered into during the financial year, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time, because of the specialized nature of the items involved and absence of any comparable prices.

6. The Company has not accepted any deposits from the public within the meaning of section 58A of the Companies Act, 1956 and the Rules framed there under.

7. The Company has an internal audit system commensurate with the size and nature of the Company's business but in our opinion its scope and coverage requires to be further strengthened.

8. Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956. Therefore, the provisions of clause (viii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

9. (a) In our opinion and according to the information and explanations given to us, the Company has been generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, Employees' State Insurance, Income Tax, Sales Tax ( Trade Tax, VAT), Wealth tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues, where applicable with the appropriate authorities. Further the Central Government has till date not prescribed the amount of Cash payable under Section 441A of the Companies Act. We are not in a position to comment upon the regularity or otherwise of the company in depositing the same.

(b) According to the information and explanations given to us there are no cases of non-deposit with the appropriate authorities of un disputed dues of sales tax/service tax/customs duty/ wealth tax/ excise duty/ Cess.

10. The company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year. Accordingly, paragraph 4 (x) of the Order is not applicable.

11. In our opinion and according to the information and explanations given to us, the Company has taken only Working Capital Loans from bank repayable on demand and have not defaulted in repayment of dues to the bank. The company does not have any borrowing from financial institutions and has not issued debentures.

12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. provisions of clause (xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14. The company has maintained proper records for the transactions and contracts for dealing in or trading in shares, securities, debentures, or other investments and timely updation has been made in the records. All the investments have been held by the company in its own name.

15. As per information available to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

16. The Company has not taken any term loan from any financial institutions.

17. According to the records examined by us and according to information and explanations given to us, on an overall basis, no funds raised on short term basis have been used for long term investment.

18. The Company has not made during the year any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. There are no debentures issued and outstanding during the year and hence the question of creating securities in respect thereof does not arise.

20. The Company has not raised any monies by way of public issue during the year.

21. To the best of our knowledge and belief and according to the information and explanation given to us no fraud on or by the Company has been noticed or Reported during the financial year.

For Kamal Kishore & Co.

Chartered Accountants

(Firm No 007424C)

Place: Varanasi (Kamal Kishore Srivastava)

Date : 30. 05. 2012 Partner, M. No. 71639

---

Mar 31, 2011

1. We have audited the attached Balance Sheet of BANARAS BEADS LIMITED, as at 31st March, 2011, the Profit & Loss Account and Cash Flow Statement of the company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express on opinion of these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Reports) Order, 2003 as amended, issued by the Central Government of India in term of section 227 (4A) of the Companies Act, 1956, and on the basis of checks of the books and records of the Company as we considered appropriate and the information and the explanations given to us during the course of audit, a statement on the matters specified in paragraphs 4 and 5 of the said order is annexed.

4. Further to our comments in the Annexure referred to above we report that:

(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of the audit;

(b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of these books;

(c) The Balance sheet, Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet and the Profit & Loss Account comply with the Accounting Standards referred to in subsection (3C) of Section 211 of the Companies Act, 1956.

(e) On the basis of written representations received from the directors as on 31st March, 2011, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March 2011 from being appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said statements of accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) In case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011; and

(ii) In the case of the Profit and Loss Account, of the Profit of the company for the year ended on that date.

(iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

ANNEXURE TO AUDITORS' REPORT

ANNEXURE REFERRED TO IN PARAGRAPH (3) OF THE AUDITOR'S REPORT OF EVEN DATE ON THE ACCOUNTS OF BANARAS BEADS LIMITED FOR THE YEAR ENDED 31st MARCH, 2011

1 (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) All the fixed assets have been physically verified by the management at reasonable intervals. We are informed that discrepancies noticed on such verification will be dealt with in the books of accounts as and when records are updated.

(c) There was no disposal of a substantial part of fixed assets.

2. (a) As explained to us, the inventory has been physically verified by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) In our opinion and according to the information and explanation given to us, and on the basis of out examination of records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of accounts.

3. (a) According to the information and explanations given to us, the Company had not granted any unsecured loans to the parties covered in the register maintained under Section 301 of me Companies act, 1956.

(b) Since no amount is due to the company, there is no need to comment upon the rate of interest and other terms & conditions of the loans.

(c) Since no amount is due to the company, there is no need to comment upon the terms of repayment of loans.

(d) Since no amount is due to the company, there is no need to express our opinion on whether there is any amount overdue above Rupees one Lakh and whether reasonable steps needs to be taken for recovery of principal and interest.

(e) The Company has not taken loans, secured or unsecured from parties covered in the register maintained under section 301 of the Companies act, 1956, hence sub clause (e), (f )and (g) of clause 4 (iii) of the Orders are not applicable.

4. On the basis of our evaluation of internal control systems and according to the information and explanations given to us, we are of the opinion that internal control systems with respect to the purchase of inventory and fixed assets and sale of goods and services need to be further improved to make it commensurate with the size of the company and nature of its business.

5. In respect of the transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956,

(a) Based on audit procedures applied by us, the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that needed to be entered into the register maintained under Section 301 have been so entered.

(b) As regards transactions exceeding value of Rupees five lakhs entered into during the financial year, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time, because of the specialized nature of the items involved and absence of any comparable prices.

6. The Company has not accepted any deposits from the public within the meaning of section 58A of the Companies Act, 1956 and the Rules framed there under.

7. The Company has an internal audit system commensurate with the size and nature of the Company's business but in our opinion its scope and coverage requires to be further strengthened.

8. Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956. Therefore, the provisions of clause (viii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

9. (a) In our opinion and according to the information and explanations given to us, the Company has been generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, Employees' State Insurance, Income Tax, Sales Tax (Trade Tax, VAT), Wealth tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues, where applicable with the appropriate authorities. Further the Central Government has till date not prescribed the amount of Cash payable under Section 441A of the Companies Act. We are not in a position to comment upon the regularity or otherwise of the company in depositing the same.

(b) According to the information and explanations given to us there are no cases of non-deposit with the appropriate authorities of un disputed dues of sales tax/service tax/customs duty/ wealth tax/ excise duty/ Cess.

10. The company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year. Accordingly, paragraph 4 (x) of the Order is not applicable.

11. In our opinion and according to the information and explanations given to us, the Company has taken only Working Capital Loans from bank repayable on demand and have not defaulted in repayment of dues to the bank. The company does not have any borrowing from financial institutions and has not issued debentures.

12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The provisions of any statute applicable to chit fund/ nidhi/ mutual benefit fund/ societies are not applicable to Company, therefore, the provisions of clause (xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14. The company has maintained proper records for the transactions and contracts for dealing in or trading in shares, securities, debentures, or other investments and timely updation has been made in the records. All the investments have been held by the company in its own name.

15. As per information available to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

16. The Company has not taken any term loan from any financial institutions.

17. According to the records examined by us and according to information and explanations given to us, on an overall basis, no funds raised on short term basis have been used for long term investment.

18. The Company has not made during the year any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

1.9. There are no debentures issued and outstanding during the year and hence the question of creating securities in respect thereof does not arise.

20. The Company has not raised any monies by way of public issue during the year.

21. To the best of our knowledge and belief and according to the information and explanation given to us no fraud on or by the Company has been noticed or Reported during the financial year.

For Kamal Kishore & Co. Chartered Accountants (Firm No 007424C)

(Kamal Kishore Srivastava) Partner M. No. 71639)

Place: Varanasi. Date : 01. 07. 2011

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of BANARAS BEADS LIMITED, as at 31st March, 2010, the Profit & Loss Account and Cash Flow Statement of the company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express on opinion of these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Reports) Order, 2003 as amended, issued by the Central Government of India in term of section 227 (4A) of the Companies Act, 1956, and on die basis of checks of the books and records of the Company as we considered appropriate and the information and the explanations given to us during the course of audit, a statement on the matters specified in paragraphs 4 and 5 of the said order is annexed.

4. Further to our comments in the Annexure referred to above we report that:

(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of the audit;

(b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of these books;

(c) The Balance sheet, Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet and the Profit & Loss Account comply with the Accounting Standards referred to in subsection (3C) of Section 211 of me Companies Act, 1956.

(e) On the basis of written representations received from the directors as on 31st March, 2010, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March 2010 from being appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said statements of accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) In case of the Balance Sheet, of me state of affairs of the Company as at 31" March, 2010; and

(ii) In the case of the Profit and Loss Account, of the Profit of the company for die year ended on that date.

(iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on mat date.

ANNEXURE TO AUDITORS REPORT

ANNEXURE REFERRED TO IN PARAGRAPH (3) OF THE AUDITORS REPORT OF EVEN DATE ON THE ACCOUNTS OF KANAKAS BEADS LIMITED FOR THE YEAR ENDED 31st MARCH, 2010

1 (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) All the fixed assets have been physically verified by the management at reasonable intervals. We are informed that discrepancies noticed on such verification will be dealt with in the books of accounts as and when records are updated.

(c) There was no disposal of a substantial part of fixed assets.

2. (a) As explained to us, the inventory has been physically verified by die management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) In our opinion and according to the information and explanation given to us, and on the basts of our examination of records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of accounts.

3. (a) According to the information and explanations given to us, the Company had not granted any unsecured loans to the parties covered in

the register maintained under Section 301 of the Companies act, 1956.

(b) Since no amount is due to the company, there is no need to comment upon the rate of interest and other terms & conditions of the loans.

(c) Since no amount is due to the company, there is no need to comment upon the terms of repayment of loans.

(d) Since no amount is due to the company, there is no need to express our opinion on whether there is any amount overdue above Rupees one Lakh and whether reasonable steps needs to be taken for recovery of principal and interest.

(e) The Company has not taken loans, secured or unsecured from parties covered in the register maintained under section 301 of the Companies act, 1956, hence sub clause (e), (f )and (g) of clause 4 (iii) of the Orders are not applicable.

4. On the basis of our evaluation of interna! control systems and according to the information and explanations given to us, we are of the opinion that internal control systems with respect to the purchase of inventory and fixed assets and sale of goods and services need to be further improved to make it commensurate with the size of the company and nature of its business.

5. In respect of the transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956,

(a) based on audit procedures applied by us, the best of our knowledge and belief and according to the information and explanations given to

us, we are of the opinion that the transactions that needed to be entered into the register maintained under Section 301 have been so entered.

(b) as regards transactions exceeding value of Rupees five lakhs entered into during the financial year, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time, because of the specialized nature of the items

involved and absence of any comparable prices.

6. The Company has not accepted any deposits from the public within the meaning of section 58A of the Companies Act, 1956 and the Rules framed there under.

7. The Company has an internal audit system commensurate with the size and nature of the Companys business but in our opinion its scope and coverage requires to be further strengthened.

8. Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956. Therefore, the provisions of clause (viii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

9. (a) In our opinion and according to the information and explanations given to us, the Company has been generally regular in depositing

undisputed statutory dues including provident fund, investor education and protection fund. Employees State Insurance, Income Tax, Sales Tax ( Trade Tax, VAT), Wealth tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues, where applicable with the appropriate authorities. Further the Central Government has till date not prescribed the amount of Cash payable under Section 441A of the Companies Act. We are not in a position to comment upon the regularity or otherwise of the company in depositing the same.

(b) According to me information and explanations given to us there are no cases of non-deposit with the appropriate authorities of un disputed dues of sales tax/service tax/customs duty/ wealth tax/ excise duty/ cess.

10. The company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in

the immediately preceding financial year. Accordingly, paragraph 4 (x) of the Order is not applicable.

11. In our opinion and according to the information and explanations given to us, the Company has taken only Working Capital Loans from bank repayable on demand and have not defaulted in repayment of dues to the bank. The company does not have any borrowing from financial institutions and has not issued debentures.

12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The provisions of any statute applicable to chit fund/ nidhi/ mutual benefit fund/ societies are not applicable to Company, therefore, die provisions of clause (xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

14. The company has maintained proper records for the transactions and contracts for dealing in or trading in shares, securities, debentures, or other investments and timely updation has been made in the records. All the investments have been held by the company in its own name.

15. As per information available to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

16. The Company has not taken any term loan from any financial institutions.

17. According to the records examined by us and according to information and explanations given to us, on an overall basis, no funds raised on short term basis have been used for long term investment.

18. The Company has not made during the year any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. There are no debentures issued and outstanding during the year and hence the question of creating securities in respect thereof does not arise.

20. The Company has not raised any monies by way of public issue during the year.

21. To the best of our knowledge and belief and according to the information and explanation given to us no fraud on or by the Company has been noticed or Reported during the financial year.



For Kamal Kishore & Co.

Chartered Accountants

(Firm No 007424C)

Place: Varanasi. (Kamal Kishore Srivastava)

Date: 08.07. 2010 Partner

M. No. 71639

---

Mar 31, 2001

We have audited the attached Balance Sheet of Banaras Beads Limited, as at March, 31st 2001 and also the profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statement based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, an audit also includes assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

1. As required by the Manufacturing and other Companies (AuditorsvReport) Order, 1998 issued by the Central Government in terms of Sec. 227(4A) of the Companies Act, 1956. we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

2. Further to our comments in the Annexure referred to above, we report that:

a) We have obtained all the information and explanations which to the best our knowledge and belief were necessary for the purpose of audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

c) The Balance Sheet and Profit and Loss Account deals with by this report are in agreement with the books of account (in view of i) and ii) given in clause 2b above.

d) In our opinion, the Profit and Loss Account and Balance Sheet deals with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis written representations received from the directors as on 31st March, 2001, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2001, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f) Subject to point Explained in item No. 1 2.3,4,5,6,7,9,11 & 18 of Notes of Accounts : In our opinion and to the best of our knowledge and according to the explanations given to us, the said accounts read together with other notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :-

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2001 ; and

ii) in the case of the Profit and Loss Account, of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT BANARAS BEADS LTD.

Statement referred to in paragraph (!) of our report of even date on the Accounts for the year ended 31st March, 2001.

1. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. As per the information and explanations given to us, the Company has a system of physical verification of all its fixed assets at reasonable intervals. Most of the fixed assets have been physically verified by the management during the year. In our opinion, the frequency of verification of fixed assets by the management is reasonable having regard to the size of the Company and the nature of its business. As explained to us, no material discrepancies were noticed on such verification.

2. None of the fixed assets have been revalued during the year.

3. The stocks of finished goods, stores, spare parts and raw materials lying at its location have been physically verified by the Management at reasonable intervals. The stock is possession of third parties have been verified by the management at reasonable intervals.

4. The procedures for physical verification of stocks followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

5. The discrepancies noticed on verification between the physical stock and the book records were not materials and the same have been properly dealt with in the books of account.

6. On the basis of our examination of Stock records, we are of the opinion that the valuation of stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

7. The Company has not taken any loan from Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 or from the Companies under the same management as defined under Sec. 370(1B) of the Companies Act, 1956. In terms of sub-section (6) of Section 370 of the Companies Act, 1956, provision of the Section is not applicable to a company on or after 31st October, 1998.

8. The Company has granted loans to Companies, firms or other parties listed in the register maintained under 301 of the Companies Act, 1956 and to the Companies under the same management as defined under Section 370 of the Companies Act, 1956. The Company has not charged interest on such loans. However in terms of sub-section (6) of Section 370 of the Companies Act, 1956, provision of the Section is not applicable to a company on or after 31st October, 1998.

9. In respect of loans and advances in the nature of Loans given by the Company, parties have repaid the principal amount and interest subject to some stickly accounts.

10. In our opinion and according to the information and explanations given to us, there is need for improvement for adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods.

11. In our opinion and according to the information and explanations given to us, the transaction of purchase of goods and materials and sale of goods, material and service made in purchase of contracts of arrangements entered in the register maintained under 301 of the Companies Act, 1956 and agreegating during the year to Rs. 50,000 or more in respect of each party have been made at prices which are reasonable having regard to prevailing market prices for such goods material or services or the prices at which transaction for similar goods material or services have been made with other parties.

12. As explained to us the Company has a regular procedure for the determination of unserviceable or damaged store, raw materials and finished goods adequate provision have been made in the books of account in respect of the items so determined.

13. The Company has not accepted any deposit from the public to which the provisions of Section 58A of the Companies Act, 956 and the rules made there under would apply.

14. In our opinion reasonable records have been maintained by the Company for the sale and disposal of realizable by products and scrap.

15. In our opinion the Company requires improvement in internal audit system commensurate with the size and nature of its business.

16. We are informed that maintenance of cost records has not been prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 in respect of Companys roducts.

17. According to the records of the Company, Provident Fund and Employees State Insurance dues, where applicable, have been regularly deposited during the year with the appreciate authorities.

18. According to the information and explanations given to us no personal expenses have been charged to revenue account other than those payable under Contractual obligation or in accordance with generally accepted business practices.

19. According to the information and explanations given to us there were no undisputed amount payable in respect of Income tax, Wealth tax, Sale tax, Customs duty and excise duty as at 31st March, 2001 which are outstanding for a period of more than six months from the date they become payable. Provision for Gratuity have been made looking into upto date liability.

20. The Company is not sick industrial Company within the meaning of Clause of (o) of sub- Section (1) of Section 3 of sick industrial Companies (Special provisions) Act, 1985.

21. In respect of the trading activities of the Company there were no damaged goods during the year.

For Kamal Kishore & Co. Chartered Accountants

Kamal Kishore Srivastava Partner

Place: Varanasi. Date : 10/03/2003

---

Mar 31, 2000

We have audited the attached Balance Sheet of Banaras Beads Limited, as at March, 31st 2000 and also the profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statement based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, an audit also includes assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

1. As required by the Manufacturing and other Companies (Auditors Report) Order, 1998 issued by the Central Government in terms of Sec. 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

2. Further to our comments in the Annexure referred to above, we report that:

a) We have obtained all the information and explanations which to the best our knowledge and belief were necessary for the purpose of audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

c) The Balance Sheet and Profit and Loss Account deals with by this report are in agreement with the books of account (in view of i) and ii) given in clause 2b above.

d) In our opinion, the Profit and Loss Account and Balance Sheet deals with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis written representations received from the directors as on 31st March, 2000, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2000, from being appointed as a director in terms of clause(g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f) Subject to point Explained in item No. 1,2,3, 6, 7,9 & 17 of Notes of Accounts : In our opinionand to the best of our knowledge and according to the explanations given to us, the said accounts read together with other notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :-

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March,2000; and

ii) in the case of the Profit and Loss Account, of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT BANARAS BEADS LTD, Statement referred to in paragraph (1) of our report of even date on the Accounts for the year ended 31st March, 2000.

1. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. As per the information and explanations given to us, the Company has a system of physical verification of all its fixed assets at reasonable intervals. Most of the fixed assets have been physically verified by the management during the year. In our opinion, the frequency of verification of fixed assets by the management is reasonable having regard to the size of the Company and the nature of its business. As explained to us, no material discrepancies were noticed on such verification.

2. None of the fixed assets have been revalued during the year.

3. The stocks of finished goods, stores, spare parts and raw materials lying at its location have been physically verified by the Management at reasonable intervals. The stock is possession of third parties have been verified by the management at reasonable intervals,

4. The procedures for physical verification of stocks followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

5. The discrepancies noticed on verification between the physical stock and the book records were not materials and the same have been properly dealt with in the books of account.

6. On the basis of our examination of Stock records, we are of the opinion that the valuation of stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

7. The Company has not taken any loan from Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 or from the Companies under the same management as defined under Sec. 370(1B) of the Companies Act. 1956. In terms of sub-section (6) of Section 370 of the Companies Act, 1956, provision of the Section is not applicable to a company on or after 31st October, 1998.

8. The Company has granted loans to Companies, firms or other parties listed in the register maintained under 301 of the Companies Act, 1956 and to tire Companies under the same management as defined under Section 370 of the Companies Act, 1956. The Company has not charged interest on such loans. However in terms of sub-section (6) of Section 370 of the Companies Act, 1956, provision of the Section is not applicable to a company on or after 31st October, 1998.

9. In respect of loans and advances in the nature of. Loans given by the Company, parties have repaid the principal amount and interest subject to some slickly accounts.

10. In our opinion and according to the information and explanations given to us, there is need for improvement for adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods.

11. In our opinion and according to the information and explanations given to us, the transaction of purchase of goods and materials and sale of goods, material and service made in purchase of contracts of arrangements entered in the register maintained under 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50,000 or more in respect of each party have been made at prices which are reasonable having regard to prevailing market prices for such goods material or services or the prices at which transaction for similar goods material or services have been made with other parties.

12. As explained to us the Company has a regular procedure for the determination of unserviceable or damaged store, raw materials and finished goods adequate provision have been made in the books of account in respect of the items so determined.

13. The Company has not accepted any deposit from the public to which the provisions of Section 58A of the Companies Act, 956 and the rules made there under would apply.

14. In our opinion reasonable records have been maintained by the Company for the sale and disposal of realizable by products and scrap.

15. In our opinion the Company requires improvement in internal audit system commensurate with the size and nature of its business.

16. We are informed that maintenance of cost records has not been prescribed by the Central Government under Section 209(l)(d) of the Companies Act, 1956 in respect of Companys roducts.

17. According to the records of the Company, Provident Fund and Employees State Insurance dues, where applicable, have been regularly deposited during the year with the appreciate authorities.

18. According to the information and explanations given to us no personal expenses have been charged to revenue account other than those payable under Contractual obligation or in accordance with generally accepted business practices.

19. According to the information and explanations given to us there were no undisputed amount payable in respect of Income tax, Wealth tax, Sale tax, Customs duty and excise duty as at 31st March, 2000 which are outstanding for a period of more than six months from the date they become payable. Provision for Gratuity have been made looking into upto date liability.

20. The Company is not sick industrial Company within the meaning of Clause of (o) of sub-Section (1) of Section 3 of sick industrial Companies (Special provisions) Act, 1985.

21. In respect of the trading activities of the Company there were no damaged goods during the year.

For Kamal Kishore & Co. Chartered Accountants

(Kamal Kishore Srivastava) Partner

Place: Varanasi. Date : 10/03/2003