Notes to Accounts of Banaras Beads Ltd.

Mar 31, 2025

O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

• Provisions are recognized when the company has a present obligation as a result of past event and a reliable estimate of
amount of obligation can be made.

• Contingent Liabilities are generally not provided for in the Accounts and are shown by way of Notes on Accounts in case
of a present obligation arising from past events when it is not probable that an outflow of resources will be required to
settle the obligation and no reliable estimate is possible.

• Contingent assets are disclosed when an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

P. STATEMENT OF CASH FLOWS:

Statement of cash Flow is prepared as prescribed in Schedule III of the Companies Act’2013 and Ind AS 7 segregating the cash flows
into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method by adjusting
the net profit for prescribed items.

Q. FIRST TIME ADOPTION OF IND AS:

The company has already adopted Ind AS w.e.f. financial year 2017-18.

R. RECENT PRONOUNCEMENTS :

Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1,
2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any
significant impact in its financial statements.

S. The accounting policies have been consistently followed and there has been no significant change in such policies during the year except
for changes made for statutory compliance.

(i) The title Deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly
executed in favour of the lessee) are held in the name of the Company. Land and building remaining vacant and given on rent is not
disclosed separately as the portion given on lease is not material.

(ii) None of the Property Plant and Equipment’s are revalued.

DISCLOSURE OF CAPITAL WORK IN PROGRESS :

35. Expenditure on Corporate Social Responsibility(CSR):

No amount is expended in CSR during the year (previous year - Nil) as the company is not required to expend any amount under section
135 of the Companies Act 2013 read with Rules made there under.

36. Disclosure related to Lease pursuant to Ind As 116:

Ministry of Corporate Affairs (MCA) through Companies (Indian Accounting Standards) Amendment Rule 2019 and Companies (Indian
Accounting Standards). Second Amendment Rules, has notified Ind As 116 Leases which replaces the exiting lease standards, Ind As 17
Lease, and other interpretations. Ind As 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases
for both lessees and lessors.

As Lessor:-

i) The Company has given certain portion of premises under operating Lease or Leave and License Agreement. The Company retain
substantially all risks and benefits of ownership of the Leased Assets and hence, classified as Operating Lease. Lease Income on

such operating Lease is recognized in profit or loss under the head Rent in note number 26 under Other Income. Lease Rent is
recognized as per lease agreement.

ii) The company does not own any property for the purpose of letting it out and thus no property is disclosed as Investment property.
The company has given only its part of premises (which cannot be separated as Investment property) situated at Plot No. 26,27 and
28 at Kama Dandi, Kaswar Sarkari, Varanasi, Uttar Pradesh on Long Term lease during previous financial year. Details of “Rent”
is as below:-

iii) Since the Lessee has option to terminate the lease at any point giving three months’ notice without giving any reason, other
disclosures are not applicable.

iv) The lessee, in case of Long Term Lease has given Rs. 50.94 lacs as adjustable security deposit to be adjusted at the end of lease
period which is disclosed as Non Current Liability in Note No. 19 of the Balance Sheet.

v) Rs.15.74 Lakhs is expended on registration of lease which is amortised on SLM basis for the period of lease. The unamortized
amount is disclosed in note no.6 of Balance Sheet as Unamortised Expenses to the extent not written off or adjusted. Amortised
amount is disclosed in Note No. 2.

As Lessee :

The company has acquired Leasehold Land from Industry Department of Uttar Pradesh Government through transfer for which Rs. 29843
is paid for premium and capitalized. No amount is payable to the Lessor.

37. Disclosure related to Non-Current Assets held for Sale pursuant to Ind As 105:

The company is not having any non-current asset for the purpose of sale and hence no disclosure is required.

38. Disclosure related to Financial Instruments:

The company recognized financial assets and financial liabilities when it becomes a party to the contractual provisions of the instruments.
All financial assets and liabilities are initially measured at transaction price. Transaction cost that are directly attributable to the acquisition
or issue of financial assets and financial liability, which are not at fair value through profit or loss, are added to the fair value on initial
recognition. Regular way purchase and sale of financial assets are accounted for at trade date and valued as on balance sheet date at its fair
market value quoted at stock exchange in case the quoted value is lower than the cost of acquisition.

i) Foreign exchange rate risk:

In general, the company is a net receiver of foreign currency. Accordingly, changes in exchange rates, and in particular a strengthening
of the Indian Rupee, will negatively affect the Company’s net sales and gross margins as expressed in Indian Rupee. There is a risk that
the Company may have to adjust local currency product pricing due to competitive pressures when there have been significant volatility
in foreign currency exchange rates.

ii) Interest rate risk:

The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt. The Company’s
outstanding debt is in local currency as well as foreign currency is on floating rate.

Since the borrowings are small in comparison to total investments and interest expenditure is very small in comparison to total
expenditure, the company does not foresee any material risk due to change in interest rate in future.

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:

iii) Liquidity risk management:

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through
an adequate amount of committed credit lines. Given the need to fund diverse businesses, the Company maintains flexibility in funding
by maintaining availability under committed credit lines to meet obligations when due. Management regularly monitors the position of
cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt
financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

iv) Credit risk management:

The Company’s customer profile includes large number of Foreign Customers and some indigenous Customers. Hence the company is
having vast customer base thus Company’s customer credit risk is low. General payment terms include mobilisation advance and part is
on credit to be realiasable within 12 months. The Company has a detailed review mechanism of overdue customer receivables at various
levels within organisation to ensure proper attention and focus for realisation.

v) No material amount of financial assets or liabilities are written off during the period.

vi) The contractual maturities of significant financial assets and liabilities outstanding as at 31^st March, 2025 is one year except reported
otherwise elsewhere.

vii) Detail of non current investments-

a. Details related to investment in long terms quoted equity shares are given in Note 3. All the investments are stated in the Financial
Statement at cost. Market value of shares are taken at last available rate on Stock Exchange as on reporting date.

b. Rs. 300.00 lacs was invested by the company in the shares of M/s Banaras Bead Business Private Limited. which was converted to
LLP during the financial year 2018-19. Rs. 301.56 lacs was shown as investment in limited liability partnership as on 31.03.2024
which was inclusive of share in profit of the firm. The effect of share of profit/(loss) of Rs.(4.52) lacs of F. Y. 2023-24 is made in
current financial year as the audited financial statements of LLP is received after the finalization of financial statements of the
company and the amount of investment as on 31.03.2025 is Rs.297.05 lacs. The effect of the Profit/Loss of the current financial
year of LLP is not made in absence of receipt of audited financial statement of LLP till finalization of the accounts of the company.

viii) Details of current investments:

a. Investment in mutual fund: Investment in mutual fund as on reporting date of current financial year is shown at its cost inclusive of
re invested dividend. The value as on 31.03.2025 is Nil. (Previous year - Nil ).

b. Investment in quoted equity shares : Quoted equity shares purchased with the object to sale within the operating cycle are classified
under this group. The Current Investments in quoted equity shares are shown at lower of cost or realizable value as quoted in Stock
Exchange as on reporting date and reduction in realizable value amounting Rs. Nil (Previous Year-Rs. Nil ) is debited to the
Statement of Profit & Loss under the head other expenses.

39. Disclosure related to Operating Segment pursuant to Ind AS 108:

The company main business is manufacturing and export of Handicrafts items like Glass and other Beads, Necklaces, Imitation Jewelry
etc. All those items form just one segment. All other revenues are not significant to be considered as separate segments. As the company
has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not done. The company has
received more than 10% of its revenue from customers amounting to Rs. 2022.53 lacs (Rs. 628.63 lacs, 583.54 lacs, 442.30 lacs and
368.06 lacs from 4 customers) [previous year Rs. 1929.54 lacs (Rs. 393.85 lacs, 450.60 lacs, 357.65 lacs and 727.44 lacs from 4
customers)].

41. Disclosure related to Employees Benefit pursuant to Ind As 19:

(i) Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia scheme,
performance-linked reward falling due wholly within twelve month of rendering services are recognized in the period in
which the employee renders the related services.

(ii) Company''s contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual
basis.

(ii) Liability for gratuity in respect of employees is covered under the Group Gratuity Policy taken by the company from Life
Insurance Corporation of India. The premium payable under the Policy, is charged to Profit & Loss Account. The short fall in
the Fund amounting to Rs. 53.28 lacs (previous year Rs. 50.39 lacs) is shown by the Company as gratuity liability as on
reporting date.

51. PENDING PETITION WITH NCLT/OTHERS:

a) The Special Leave Petition vide no. 25165-25166/2007 filed by Shri Ajit Kumar Gupta and others against Hon’ble CLB order dt.

04.07.2007 and 03.08.2007 in the matter of C.P. No. 14/99, CP No. 14/111/1999, 15/111/1999 and 1/111/2001 had been disposed off
by Hon’ble Supreme Court on 11.04.2018. The company had already complied and executed above order of Hon’ble CLB by

05.09.2007 and nothing is pending to be complied by the company and accordingly disclosed in Annual Report made thereafter.
However, Mr. Raj Kumar Gupta, ex-director of the company, who had not challenged CLB orders now filed an Execution Petition
No. 424/2018 before Hon’ble NCLT to get property of the company situated at Expo Mart, Greater NOIDA , which was neither part
of CLB Petition No. 14/1999 nor mentioned in the list of properties to be transferred to 1 ^st Petitioner (Mr. Raj Kumar Gupta group)
in CLB final order dt. 04.07.2007 and modified order dt. 03.08.2007. Mr. Raj Kumar Gupta Ex-director of the company had already
made an application to get this property before Hon’ble Supreme Court in SLP No. 935 -936/2010 and Hon’ble Supreme Court
finally dismissed the SLP with all pending applications. The present Execution Petition 424/2018 filed by Mr. Raj Kumar Gupta
before Hon’ble NCLT Allahabad is pending and next date fixed on 17.07.2025. The Management does not reasonable expect that
the Execution Petition, when ultimately concluded and determined, will have a material and adverse effect on the Company’s results
of operations or financial condition.

b) Refund of U.P. VAT was granted by the department and refunded which was subsequently withdrawn by the department. Refund
given by the department has been returned with interest and the company has preferred an appeal with higher authorities. The
management is of view to get relief from the higher authorities and to get refund back, hence the amount recoverable amounting to
Rs. 20.35 lacs have been shown as good.

c) The company has filed an appeal before Regional Director, MCA, New Delhi against the adjudicating Order of Registrar of the
Companies, Uttar Pradesh under Section 454 of the Companies Act 2013 read with Rule 3 of the Companies (Adjudication of
Penalties) Rules 2014 for Rs. 5.00 lacs against company and Rs. 1.00 lacs against KMP for delay in filing of BEN-2 with MCA.
The said appeal is still pending for appropriate order. The management is of view to get relief from the appellate authorities, hence
no provision in books of account is made against this.

52. No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Property
Transactions (Prohibition) Act’1988) and the rules made there under. Similarly, the company is not having any transaction not recorded
in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act’1961.

53. The company has been sanctioned working capital limit from bank on the basis of security of current assets. No quarterly returns or
statements are filed by the company to the bank as the clause of submission of Stock Statement/Drawing Power Calculation is not
stipulated by bank.

54. The company is not declared willful defaulter during the year by any bank or financial Institution or other lender in accordance with the
guidelines issued by the Reserve Bank of India.

55. The Company is not having any transaction during the year with the companies struck off under section 248 of the companies Act’2013
or section 560 of the Companies Act’1956.

56. None of the Charges or Satisfaction are yet to be registered with Registrar of Companies beyond the statutory period.

57. The Company is not having any layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number
of Layers) Rules’2017.

59. No Scheme of Arrangements has been approved by the Competent Authority in terms of section 230 to 237 of the Companies Act’2013.

60. The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

61. UTILISATION OF BORROWED FUND AND SHARE PREMIUM

A) No funds have been advanced or loaned or invested (either from the borrowed funds or share premium or any other source or kind
of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the intermediary shall directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or provide any guarantee, security or
the like to or on behalf of the Ultimate Beneficiaries.

B) No funds have been received by the Company from any persons or entities, including foreign entities (Funding Party) with the
understanding, whether recorded in writing or otherwise, that the company shall directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

62. DIVIDEND DECLARED BY THE COMPANY:

The company has declared an Interim Dividend of Rs. 2.25 per equity share for the financial year 2024-25 (Previous Year- Rs. 2.00
per equity share}. On May 29, 2025 the Board of the directors of the company have proposed this interim dividend as final dividend
in respect of financial year 2024-25, subject to the approval of shareholders at the Annual General Meeting. This proposal of dividend
will not result in further cash outflow as the interim dividend is already distributed.

63. MISCELLANEOUS NOTES ON ACCOUNTS

i) Disclosure Related to MSMED Act 2006-

a) The management has enquired from its suppliers about their status under MSMED Act through email/ by post. The classification of
Trade Payables under Note 21 is made based on the confirmation received from the suppliers. Suppliers who confirmed about their
status as MSME unit are classified as Trade Payable -MSME. The suppliers not confirming or not communicating their status about
MSME unit are categorised as Trade Payable- Others.

b) The following disclosure is made as per the requirement under the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED) on the basis of confirmations sought from suppliers on registration with the specified authority under MSMED:

ii) There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of
its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of
business and experience gained.

iii) Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties
concern.

iv) In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which, if realised, in the
ordinary course of business, will not be less than the figure stated in the books of accounts.

v) The Calls in arrears of Share Capital amounting to Rs. 2,20,000 in FY- 2024-25 is outstanding since long. The calls in arrears of
Securities Premium account have decreased to Rs. 11,76,650. The change in balance is due to adjustment of dividend against the
arrear of Securities Premium account. None of these amounts relate to the directors or their relatives. The Management has decided
not to forfeit such shares for the time being.

vi) Previous year''s figures have been regrouped/ rearranged/ reclassified wherever necessary to make them comparable with the figures of
the current year.

Ref. : SEBI/HO/MIRSD/MIRSD-PoD-l/P/CIR/2023/37 dated March 16, 2023

This is with reference to the Securities and Exchange Board of India (SEBI) Circular No. SEBI/HO/MIRSD/
MIRS D_RT AMB/P/CIR/2021/655 dated November 3, 2021 read with SEBI Circular No. SEBI/HO/MIRSD/

MIRSD_RTAMB/P/CIR/2021/687 dated December 14, 2021, in which SEBI has mandated all shareholders holding shares in physical form
in the Company, to furnish requisite documents/details (including of joint holders) to the Registrar and Share Transfer Agent of the Company
(RTA). Please fnd below details registered with RTA

---

Mar 31, 2024

35. Expenditure on Corporate Social Responsibility(CSR):

No amount is expended in CSR during the year (previous year - Nil) as the company is not required to expend any amount under section 135 of the Companies Act 2013 read with Rules made there under.

36. Disclosure related to Lease pursuant to Ind As 116:

Ministry of Corporate Affairs (MCA) through Companies (Indian Accounting Standards) Amendment Rule 2019 and Companies (Indian Accounting Standards). Second Amendment Rules, has notified Ind As 116 Leases which replaces the exiting lease standards, Ind As 17 Lease, and other interpretations. Ind As 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.

As Lessor:-

i) The Company has given certain portion of premises under operating Lease or Leave and License Agreement. The Company retain substantially all risks and benefits of ownership of the Leased Assets and hence, classified as Operating Lease. Lease Income on such operating Lease is recognized in profit or loss under the head Rent in note number 26 under Other Income. Lease Rent is recognized as per lease agreement.

iii) Since the Lessee has option to terminate the lease at any point giving three months notice without giving any reason, other disclosures are not applicable.

iv) The lessee, in case of Long Term Lease has given Rs. 50.94 lacs as adjustable security deposit to be adjusted at the end of lease period which is disclosed as Non Current Liability in Note No. 19 of the Balance Sheet.

v) Rs.15.74 Lakhs is expended on registration of lease which is amortised on SLM basis for the period of lease. The unamortized amount is disclosed in note no.6 of Balance Sheet as Unamortised Expenses to the extent not written off or adjusted. Amortised amount is disclosed in Note No. 2.

As Lessee :

The company has acquired Leasehold Land from Industry Department of Uttar Pradesh Government through transfer for which Rs. 29843 is paid for premium and capitalized. No amount is payable to the Lessor.

37. Disclosure related to Non Current Assets held for Sale pursuant to Ind As 105:

The company is not having any non current asset for the purpose of sale and hence no disclosure is required.

38. Disclosure related to Financial Instruments:

The company recognized financial assets and financial liabilities when it becomes a party to the contractual provisions of the instruments. All financial assets and liabilities are initially measured at transaction price. Transaction cost that are directly attributable to the acquisition or issue of financial assets and financial liability, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date and valued as on balance sheet date at its fair market value quoted at stock exchange in case the quoted value is lower than the cost of acquisition.

i) Foreign exchange rate risk:

In general, the company is a net receiver of foreign currency. Accordingly, changes in exchange rates, and in particular a strengthening of the Indian Rupee, will negatively affect the Company’s net sales and gross margins as expressed in Indian Rupee. There is a risk that the Company may have to adjust local currency product pricing due to competitive pressures when there have been significant volatility in foreign currency exchange rates.

ii) Interest rate risk:

The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt. The Company’s outstanding debt is in local currency as well as foreign currency is on floating rate.

Since the borrowings are small in comparison to total investments and interest expenditure is very small in comparison to total expenditure, the company does not foresee any material risk due to change in interest rate in future.

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:

Particulars	As at 31st March, 2024	As at 31st March, 2023
Borrowing	329.03	29.06

iii) Liquidity risk management:

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Given the need to fund diverse businesses, the Company maintains flexibility in funding by maintaining availability under committed credit lines to meet obligations when due. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

iv) Credit risk management:

The Company’s customer profile includes large number of Foreign Customers and some indigenous Customers. Hence the company is having vast customer base thus Company’s customer credit risk is low. General payment terms include mobilisation advance and part is on credit to be realiasable within 12 months. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

v) No material amount of financial assets or liabilities are written off during the period.

vi) The contractual maturities of significant financial assets and liabilities outstanding as at 31^st March, 2024 is one year except reported otherwise elsewhere.

vii) Detail of non current investments-

a. Details related to investment in long terms quoted equity shares are given in Note 3. All the investments are stated in the Financial Statement at cost. Market value of shares are taken at last available rate on Stock Exchange as on reporting date.

b. Rs. 300.00 lacs was invested by the company in the shares of M/s Banaras Bead Business Pvt. Ltd. which was converted to LLP during the financial year 2018-19. Rs. 301.33 lacs was shown as investment in limited liability partnership as on 31.03.2023 which was inclusive of share in profit of the firm. The effect of share of profit/loss of Rs. 0.24 lacs of F. Y. 2022-23 is made in current financial year as the audited financial statements of LLP are received after the finalization of financial statements of the company. The effect of the Profit/Loss of the current financial year of LLP is not made in absence of receipt of audited financial statement of LLP till finalization of the accounts of the company.

viii) Details of current investments:

a. Investment in mutual fund: Investment in mutual fund as on reporting date of current financial year is shown at its cost inclusive of re invested dividend. The value as on 31.03.2024 is Nil. (Previous year - Nil ).

b. Investment in quoted equity shares : Quoted equity shares purchased with the object to sale within the operating cycle are classified under this group. The Current Investments in quoted equity shares are shown at lower of cost or realizable value as quoted in Stock Exchange as on reporting date and reduction in realizable value amounting Rs. Nil (Previous Year-Rs. Nil ) is debited to the Statement of Profit & Loss under the head other expenses .

39. Disclosure related to Operating Segment pursuant to Ind AS 108:

The company main business is manufacturing and export of Handicrafts items like Glass and other Beads, Necklaces, Imitation Jewelry etc. All those items form just one segment. All other revenues are not significant to be considered as separate segments. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not done. The company has received more than 10% of its revenue from customers amounting to Rs. 1929.54 lacs (Rs. 393.85 lacs, 450.60 lacs, 357.65 lacs and 727.44 lacs from 4 customers) [previous year Rs. 1877.06 lacs (Rs. 549.87 lacs, 418.97 lacs, 386.81 lacs and 521.41 lacs from 4 customers)].

Deferred tax is calculated on the difference of WDV of property, plant & equipment and intangible assets arrived after charging the depreciation as per Companies Act, 2013 and allowable under the provisions of Income Tax Act 1961 and unamortised portion of lease expenses. The expenditure/loss related to provision for gratuity and decline in market value of quoted investment/ written of investment, if any is not considered for calculation of Deferred Tax as the same is disallowed while making the provision for current tax.

41. Disclosure related to Employees Benefit pursuant to Ind As 19:

(i) Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia scheme,

performance-linked reward falling due wholly within twelve month of rendering services are recognized in the period in which the employee renders the related services.

(ii) Company''s contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis.

(ii) Liability for gratuity in respect of employees is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy, is charged to Profit & Loss Account. The short fall in the Fund amounting to Rs. 50.39 lacs (previous year Rs. 46.03 lacs) is shown by the Company as gratuity liability as on reporting date.

42. Earnings per share:

Basic and diluted earnings per share pursuant to Ind As 33 are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number by equity shares. The Company does not have any outstanding diluted potential equity shares. Consequently, the basic and diluted earnings per share remain the same.

43. Separate Financial Statements:

The company is not having any Subsidiary Company, Joint Venture Company and associates and hence no separate disclosure pursuant to Ind AS 27 is made.

47. The export sales include Goods dispatched but under shipment upto 31.3.2024 amounting to Rupees 96.33 lacs (Previous Year -Rupees 171.00 lacs). Prior to introduction of Goods & Service Tax Act, Goods under shipment was not treated as Export (Sale), but as per requirement of Goods & Service Tax Act, this change in accounting principle was made since the F.Y. 2017-18.

48. Amount of closing balance as per bank in dedicated dividend payable account has been taken as unclaimed dividend of Rs. 13.56 Lakhs (previous year Rs. 18.72 Lakhs). The amount does not include amount of demand drafts issued but not encashed by the shareholders.

49. Rs.15.18 Lakhs (previous year Rs. 15.18 Lakhs) paid to suppliers as advance has been shown as doubtful assets. No provision against the outstanding is made as in the opinion of the management, amount will be recovered in full.

50. 2.057 Hectare land of the company situated at Village Kama Dandi and Bairion, near Tandia, Varanasi have been acquired by Varanasi Development Authorities in Transport Nagar Scheme and the company has challenged the Acquision order before Hon’able Allahabad High Court and Status Quo has been ordered by the Hon’able High Court. The company is still in possession of the land.

51. PENDING PETITION WITH NCLT/OTHERS:

a) The Special Leave Petition vide no. 25165-25166/2007 filed by Shri Ajit Kumar Gupta and others against Hon’ble CLB order dt.

04.07.2007 and 03.08.2007 in the matter of C.P. No. 14/99, CP No. 14/111/1999, 15/111/1999 and 1/111/2001 had been disposed off by Hon’ble Supreme Court on 11.04.2018. The company had already complied and executed above order of Hon’ble CLB by

05.09.2007 and nothing is pending to be complied by the company and accordingly disclosed in Annual Report made thereafter. However Mr. Raj Kumar Gupta, ex-director of the company, who had not challenged CLB orders now filed an Execution Petition No. 424/2018 before Hon’ble NCLT to get property of the company situated at Expo Mart, Greater NOIDA , which was neither part of CLB Petition No. 14/1999 nor mentioned in the list of properties to be transferred to 1^st Petitioner (Mr. Raj Kumar Gupta group) in CLB final order dt. 04.07.2007 and modified order dt. 03.08.2007. Mr. Raj Kumar Gupta Ex-director of the company had already made an application to get this property before Hon’ble Supreme Court in SLP No. 935-936/2010 and Hon’ble Supreme Court finally dismissed the SLP with all pending applications. The present Execution Petition 424/2018 filed by Mr. Raj Kumar Gupta before Hon’ble NCLT Allahabad is pending and next date fixed on 18.07.2024. The Management does not reasonable expect that the Execution Petition, when ultimately concluded and determined, will have a material and adverse effect on the Company’s results of operations or financial condition.

b) Refund of U.P. VAT was granted by the department and refunded which was subsequently withdrawn by the department. Refund given by the department has been returned with interest and the company has preferred an appeal with higher authorities. The management is of view to get relief from the higher authorities and to get refund back, hence the amount recoverable amounting to Rs. 20.35 lacs has been shown as good.

52. No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Property Transactions (Prohibition) Act’1988) and the rules made there under. Similarly, the company is not having any transaction not recorded in the books of accounts that has been surrendedred or disclosed as income during the year in the tax assessments under the Income Tax Act’1961.

53. The company has been sanctioned working capital limit from bank on the basis of security of current assets. No quarterly returns or statements are filed by the company to the bank as the clause of submission of Stock Statement/Drawing Power Calculation is not stipulated by bank.

54. The company is not declared willful defaulter during the year by any bank or financial Institution or other lender in accordance with the guidelines issued by the Reserve Bank of India.

55. The Company is not having any transaction during the year with the companies struck off under section 248 of the companies Act’2013 of section 560 of the Companies Act’1956.

56. None of the Charges or Satisfaction are yet to be registered with Registrar of Companies beyond the statutory period.

57. The Company is not having any layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number

of Layers) Rules’2017.

60. The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

61. UTILISATION OF BORROWED FUND AND SHARE PREMIUM

A) No funds have been advanced or loaned or invested (either from the borrowed funds or share premium or any other source or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

B) No funds have been received by the Company from any persons or entities, including foreign entities (Funding Party) with the understanding, whether recorded in writing or otherwise, that the company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

62. DIVIDEND DECLARED BY THE COMPANY:

The company has declared an Interim Dividend of Rs. 2.00 per equity share for the financial year 2023-24. On May 28, 2024 the Board of the directors of the company have proposed this interim dividend as final dividend in respect of financial year 2023-24, subject to the approval of shareholders at the Annual General Meeting. This proposal of dividend will not result in further cash outflow as the interim dividend is already distributed.

63. MISCELLANEOUS NOTES ON ACCOUNTS

i) Disclosure Related to MSMED Act 2006-

a) The management has enquired from its suppliers about their status under MSMED Act through email/ by post. The classification of Trade Payables under Note 21 is made based on the confirmation received from the suppliers. Suppliers who confirmed about their status as MSME unit are classified as Trade Payable -MSME. The suppliers not confirming or not communicating their status about MSME unit are categorised as Trade Payable- Others.

b) No delay in making payment to the suppliers as prescribed under MSMED Act has taken place during the year in case of the suppliers confirming their status as Micro and Small unit, hence disclosures related to delay of principal amount, interest and provision of interest on delayed payment as prescribed under MSMED Act 2006 has not been made.

ii) There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of business and experience gained.

iii) Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties concern.

iv) In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which, if realised, in the ordinary course of business, will not be less than the figure stated in the books of accounts.

v) The Calls in arrears of Share Capital amounting to Rs. 2,20,000 in FY- 2023-24 is outstanding since long. The calls in arrears of Securities Premium account has decreased to Rs. 12,75,200. The change in balance is due to adjustment of dividend against the arrear of Securities Premium account. None of these amounts relate to the directors or their relatives. The Management has decided not to forfeit such shares for the time being.

vi) Previous year''s figures have been regrouped/ rearranged/ reclassified wherever necessary to make them comparable with the figures of the current year.

Ref. : SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/37 dated March 16, 2023

This is with reference to the Securities and Exchange Board of India (SEBI) Circular No. SEBI/HO/MIRSD/ MIRSD_RT AMB/P/CIR/2021/65 5 dated November 3, 2021 read with SEBI Circular No. SEBI/HO/MIRSD/

MIRSD_RTAMB/P/CIR/2021/687 dated December 14, 2021, in which SEBI has mandated all shareholders holding shares in physical form in the Company, to furnish requisite documents/details (including of joint holders) to the Registrar and Share Transfer Agent of the Company (RTA). Please find below details registered with RTA

1. You are requested to ensure updation of above mentioned details with RTA. As per SEBI circular dated 16.03.2023, in absence of any of the above mentioned details, no request/complaint shall be processed byRTA.

2. As per the Central Board of Direct Taxes (CBDT) it is mandatory to link PAN with Aadhaar number for resident investors shall accept only valid PANs and the ones which are linked to the Aadhaar number.

3. SEBI, vide its circular dated November 03, 2021 (subsequently amended by circulars dated December 14, 2021, March 16, 2023 and November 17, 2023) mandated that the security holders (holding securities in physical form), whose folio(s) do not have PAN or Choice of Nomination or Contact Details or Mobile Number or Bank Account Details or Specimen Signature updated, shall be eligible for any payment including dividend, interest or redemption in respect of such folios, only through electronic mode with effect from April 01, 2024.

The requisite forms are available on the website of the Company and all Documents/Performa can also be Downloaded from RTA''s Website i.e., www.masserv.com under download tab.

You can submit the documents to our RTA only by any one of the following mode:

a) Through In Person Verification (IPV); where the authorized person of RTA will verify the OriginalDocuments and retain copies of IPV stamping with date and initial;

b) Through hard copies which should be self -attested and dated.

c) Through Electronic mode, provided that it is to be sent through email id of the shareholder registered withRTA and all documents should be digitally signed by shareholder.

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Mar 31, 2018

1. Disclosure related to Provisions, Contingent Liabilities/Assets pursuant to Ind AS 37:

(i) Letter of credit opened with Banks : Rs. NIL (Previous year: Rs. NIL)

(ii) Bank Guarantees outstanding : Rs. NIL (Previous Year-Rs. NIL)

2. Disclosure of Related Party Transaction pursuant to Ind AS 24:

The Company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is made. All the transactions have been made at Arm’s Length Basis (where ever applicable).

3. Expenditure on Corporate Social Responsibility:

The company paid Rs. 8.51 lacs (previous year - nil)) during the year as expense under Corporate Social Responsibility (CSR) which is shown in note-29.

4. Disclosure related to Lease pursuant to Ind As 17:

The company has not given any of its assets on Lease, hence disclosure as Lessor is not required.

The company has acquired Leasehold Land from Industry Department of Uttar Pradesh Government through transfer for which Rs. 29843 is paid for premium and capitalised. No amount is payable to the Lessor.

5. Disclosure related to Non Current Assets held for Sale pursuant to Ind As 105:

The company is not having any non current asset for the purpose of sale and hence no disclosure is required.

6. Disclosure related to Financial Instruments :

The company recognized financial assets and financial liabilities when it becomes a party to the contractual provisions of the instruments. All financial assets and liabilities are initially measured at transaction price. Transaction cost that are directly attributable to the acquisition or issue of financial assets and financial liability, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

i) Foreign exchange rate risk:

In general, the company is a net receiver of foreign currency. Accordingly, changes in exchange rates, and in particular a strengthening of the Indian Rupee, will negatively affect the Company’s net sales and gross margins as expressed in Indian Rupee. There is a risk that the Company may have to adjust local currency product pricing due to competitive pressures when there have been significant volatility in foreign currency exchange rates.

ii) Interest rate risk:

The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt. The Company’s outstanding debt in local currency is on floating rate. There is a portion of debt that is linked to international interest rate benchmarks like LIBOR. Since the borrowings are small in comparison to total investments and interest expenditure is very small in comparison to total expenditure, the company does not foresee any material risk due to change in interest rate in future.

iii) Liquidity risk management:

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Given the need to fund diverse businesses, the Company maintains flexibility in funding by maintaining availability under committed credit lines to meet obligations when due. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

iv) Credit risk management:

The Company’s customer profile includes large number of Foreign Customers and some indigenous Customers. Hence the company is having vast customer base thus Company’s customer credit risk is low. General payment terms include mobilisation advance and part is on credit to be realiasable within 12 months. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

v) No material amount of financial assets or liabilities are written off during the period.

vi) The contractual maturities of significant financial assets and liabilities outstanding as at 31^st March, 2018 is one year.

* All the investments are stated in the Financial Statement at cost.

* Market value of shares are taken at last available rate on Stock Exchange.

* In respect of stock not traded on Stock Exchanges, the cost value is taken as market value.

7. Disclosure related to Operating Segment pursuant to Ind As 108:

The company main business is manufacturing and export of Handicrafts items like Glass and other Beads, Necklaces, Imitation Jewelry etc. All those items form just one segment. All other revenues are not significant to be considered as separate segments. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not done. The company has received more than 10% of its revenue from one customer amounting to Rs. 281.48 lacs (previous year Rs. 603.72 lacs from one customer).

8. Disclosure related to Employees Benefit pursuant to Ind As 19:

(i) Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia scheme, performance-linked reward falling due to wholly within twelve month of rendering services are recognized in the period in which the employee renders the related services.

(ii) Company''s contribution to Provident Fund, Family Pension Fund, ESI etc. are charged to Profit & Loss Account on accrual basis.

(ii) Liability for gratuity in respect of employees is covered under the Group Gratuity Policy taken by the company from Life Insurance Corporation of India. The premium payable under the Policy, are charged to Profit & Loss Account. The short fall in the Fund amounting to Rs. 1397300 is provided for by the Company as gratuity liability as on reporting date.

9. Earnings per share:

Basic and diluted earnings per share pursuant to Ind As 33 are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number by equity shares. The Company does not have any outstanding diluted potential equity shares. Consequently the basic and diluted earnings per share remain the same.

10. Separate Financial Statements:

The company is not having any Subsidiary Company, Joint Venture Company and associates and hence no separate disclosure pursuant to Ind AS 27 is made.

11. Disclosure pursuant to Ind AS 101 First Time Adoption of Indian Accounting Standards :

a. For Transition to Ins AS, the company has elected to adopt as deemed cost, the carrying value of Property, Plant and Equipment (PPE) measured as per I-GAAP less accumulated depreciation on the transition date of April 1, 2016.

b. Deferred tax under Ind AS has been recognized on temporary difference between the caring amount of assets and liabilities in the Company’s Financial Statements and the corresponding tax bases used in computation of taxable profit and quantify using the tax rate and laws enacted or substantively enacted as on the balance sheet date. Under I-GAAP the deferred tax was accounted for based on timing differences impacting the Statement of Profit and Loss for the period.

c. Under Ind AS the final dividend including related tax is recognized in the period in which the obligation to pay is established on its approval, post reporting of financial statements. Under I-GAAP a provision was required to be made in the financial statements for the proposed final dividend in the period to which the liability related.

12. The export sales include Goods dispatched but under shipment upto 31.3.2018 amounting to Rs. 620847. Prior to introduction of Goods & Service Tax Act Goods under shipment was not treated as Export (Sale), but as per requirement of Goods & Service Tax Act this change in accounting principle was made. However there is no impact on profitability of the company due to this change.

13. Amount of closing balance as per bank in dedicated dividend payable account has been taken as unclaimed dividend of Rs. 4117773 (previous year Rs. 5424858). The amount does not include amount of demand drafts issued but not en cashed by the shareholders.

14. Rs.1594355 paid to suppliers as advance has been shown as doubtful assets. No provision against the outstanding is made as in the opinion of the management, amount will be recovered in full.

15. 2.51 Hectare land of the company situated at Village Kama Dandi and Bairion, near Tandia, Varanasi have been acquired by Varanasi Development Authorities in Transport Nagar Scheme and the company has challenged the Acquision order before Hon’able Allahabad High Court and Status Quo has been ordered by the Hon’able High Court. The company is still in possession of the land.

16. SETTLEMENT OF MANAGEMENT DISPUTES:

The Special Leave Petition vide no. 25165-25166/2007 filed by Shri Ajit Kumar Gupta and others against Hon’ble CLB order dt. 04.07.2007 and 03.08.2007 in the matter of C.P. No. 14/99, CP No. 14/111/1999, 15/111/1999 and 1/111/2001. The said SLP finally has been decided by Hon’ble Supreme Court on 11.04.2018. The Hon’ble Supreme Court has dismissed the appeals filed by Mr. Ajit Kumar Gupta and others group of small shareholders without any direction, the content of said order is as under –

ORDER

“We have heard learned council for the parties and perused the record. We do not find any merit in these appeals which are here by dismissed. ”

By said order of Supreme Court, the two decade old disputes between the management has finally legally resolved. There is no financial impact of said present order of Hon’ble Supreme Court to the company.

17. MISCELLANEOUS NOTES ON ACCOUNTS:

i) There are no small scale industrial undertakings ( who has informed there SME status to the company) to whom the Company owes a sum exceeding Rs. one lac which is outstanding for more than 30 days during the year.

ii) The Management has conducted physical verification of stocks at reasonable intervals and discrepancies noticed on such verification have been properly dealt with as per Ind AS -2 pertaining to valuation of inventories.

iii) There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of business and experience gained.

iv) Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties concern.

v) In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which, if realised, in the ordinary course of business, will not be less than the figure stated in the books of accounts.

vi) The Calls in arrears of Share Capital amounting to Rs.223500 and of Share Premium amounting to Rs. 1554900 are outstanding since long. None of these amounts relate to the directors or their relatives. The Management has decided not to forfeit such shares for the time being.

vii) Previous year''s figures have been regrouped/ rearranged/ reclassified wherever necessary to make them comparable with the figures of the current year.

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Mar 31, 2016

1. Earnings per share:

Basic and diluted earnings per share are calculated by diverting the net profit for the reliable to equity shareholders by the weighted average number by equity shares. The Company does not have any outstanding diluted potential equity shares. Consequence diluted earnings per share remain the same.

2. The company had participated in auction as made by Hariyan Un Development Authority (HUDA) on 07.11.2007 and was allotted hotel sit at Gurgaon in Sector Ainder auction of Rs. 3.49 Crores The company has paid total Rs.3. 49 Crores against the said allotment But after repeated request HUDA did not issue possession certificate the company is having no option and decider take refund of total amount paid to HUDA of Rs.3.49 Crore with interest without any deduction But HUDA: refunded only Rs. 11.88 Crores on 30.06. 2012 by deducting 0%. Of amount paid The Company has filed writ petition vide no 9181 of 2011 against HUDA and others for illegal deduction of 0 % and repayment of interest. The Hon’ble High Court has given the verdict in favour of the company and HUDA has refunded the amount deducted and interest amounting to Rs.476.52 Lakhs which has been shown as Extra ordinary Income in the Profit & Loss account.

3. 251 Hectare land of the company situated at Village Karna dandi and Bairnon Tadia, Varanas have been acquired by Vranas Development Authorities in Transport agar Scheme and the company has challenged the Aquarian order before Houn’able Allahabad High Court and Status has been ordered the Houn’able High Court The company is still in possession of the land.

4. Income Tax Refunds of various yeas accounting to Rs. 07.89 Lakh share due to be received from Income tax Authorities. The amount Refunds and interest due on them are being determined by the Income Tax Authorities. Accounting for interest credited will be made as and when determined by the Income T ax Department and derived by the company

5. Details of pending liability of Income Tax and Service Tax:

As on date there is no liability against assessment made by the authorities. For service T ax please refer to point to 26.

6. SETTLEMENT OF MANAGEMENT DISPUTES:

As already reported that the decade old disputes between the two Groups of Shareholders namely Raj Kumar Gupta Group: Kishor Gupta Group state resolved by order dated 04.07.2007 read with order dated 03.08.2007 passed by the Hon’ble Company Law Board in C.P. No. M/99. The directions given by the CLB vide the aforesaid two orders were implemented and communicated to the pager of Annual Report forming part of published Accounts for the F.Y-2Ql^nd onwards. However in this regard the Special Leave Petition vide no. 2565 -25166/2007filed by Shri Ajit Kumar Gupta and others is still pending before Hon’ble Supreme Court for appropriate order. The Management does not reasonably expect that {Special Leave Petition when ultimately concluded and determined, will have a material and adverse effect on the Company’s results of operations or financial condition.

7. NOTING RELATED TO DEPRECIATION

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated unfavorable individual value as specified in Schedule II. Accordingly than amortized carrying value less residual values being depreciated amortized over the revised remaining useful lives..

8. MISCELLANEOUS NOTES ON ACCOUNTS:

9. The Company’s main business is Manufacturing and export of Handicraft items like Glass Beads; Necklaces Imitation Jewellary etc. all those items form just one Segment. The sale of commitments such as carpets is less 13% of total sales. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not r required.

10. There are no small scale industrial undertakings to whom the Company owes a sum exceeding Rs. one lac which is outstanding for more than 130 days during the year

11. The Management has on ducted physical verification of stocks at reasonable intervals and description do not such verification have been properly dealt with as Accounting Standards pertaining to valuation of inventories issued by Ministry of Corporate Affairs.

12. There is an adequate internal control procedure and internal audit system ensure that with the size of the company and the nature of its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view of business and experience gained

13. Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties concern.

14. In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which course of business, will not be less than the figure stated in the books of accounts.

15. The Company has been generally regular in depositing undisputed statutory dues including provident fund, investor education fund, Employees’ State Insurance, Income T ax, Sales T ax, Wealth tax, Service T ax Customs Duty, Excise Duty, Cess and any other statutory dues, where applicable with the appropriate authorities.

16. The Calls in arrears of Share Capital amounting Rs. 224500. and of Share Premium amounting to Rs. 605700 /- are outstanding since long. None of these amounts relate to the directors or their relatives. The Management has decided not to forfeit:

17. Previous year''s figures have been regrouped! ranged/ reclassified wherever necessary to make them comparable with the figures of the current year .

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Mar 31, 2015

1. Contingent Liabilities not provided for:

(i) Letter of credit opened with Banks : Rs. NIL (Previous year: Rs. NIL)

(ii) Bank Guarantees outstanding : Rs. NIL (Previous Year -Rs. NIL)

(iii) For Managing Director Remuneration : Rs. 26.88 Lakhs

(The company has not paid any remuneration to Sri Ashok Kumar Gupta, Chairman and managing director for want of approval of Ministry of Corporate Affairs and if the approval is granted from the date of re appointment, then the company will have to pay remuneration of Rs 24.00 Lakhs and provident fund contribution amounting to 2.88 Lakhs)

(iv) Contingent Liabilities of : The company is having following Taxes and Duties contingent liability

Nature of Amount in Remarks Liability Lakhs

Service Tax 7.63 Appeal is pending with Commissioner Appeals, Allahabad against order made by Assistant commissioner, Varanasi. No provision has been made against this demand. The management has been advised that it has strong case and the demand is likely to be set aside in appeal.

Service Tax 0.99 The Department of Service Tax have filed an appeal with the Commissioner Appeals against the Review order made by the Commissioner, Allahabad. No demand has yet been raised on the company.

2. Related Party Disclosures:

The Company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is made. All the transactions have been made at Arm''s Length Basis.

3. Earning per share:

Basic and diluted earnings per share are calculated by diverting the net profit for the year attributable to equity shareholders by the weighted average number by equity shares. The Company does not have any outstanding diluted potential equity shares. Consequently the basic and diluted earnings per share remain the same.

4. The company had participated in auction as made by Hariyan Urban Development Authority (HUDA) on 07.11.2007 and was allotted hotel site at Gurgaon in Sector 10A under auction of Rs. 16.05 Crores. The company has paid total Rs. 13.49 Crores against the said allotment. But after repeated request, HUDA did not issue possession certificate, resultantly the company is having no option and decided to take refund of total amount paid to HUDA of Rs.13.49 Crore with interest without any deduction. But HUDA refunded only Rs. 11.88 Crores on 30.05.2012 by deducting 10%. Of amount paid The Company has filed writ petition vide no 9181 of 2014 against HUDA and others for illegal deduction of 10 % and nonpayment of interest. The matter is still pending. The management has been advised that it has strong case and the amount deducted is likely to be paid by HUDA, hence no provision for this doubtful receivables has been made in the accounts. Accounting for Interest Claimed will be made as and when the matter is finalised.

5. Details of pending liability of Income Tax and Service Tax:

As on date there is no liability against assessment made by the Income Tax authorities. For service Tax please refer to point no 26.

6. SETTLEMENT OF MANAGEMENT DISPUTES:

As already reported that the decade old disputes between the two Groups of Shareholders namely Raj Kumar Gupta Group and Ashok Kumar Gupta Group stands resolved by order dated 04.07.2007 read with order dated 03.08.2007 passed by the Hon''ble Company Law Board in C.P. No. 14/99. The directions given by the CLB vide the aforesaid two orders were implemented and communicated to the Shareholders as part of Annual Report forming part of published Accounts for the F.Y.2006-2007 and onwards. However in this regard the Special Leave Petition vide no. 25165-25166/2007filed by Shri Ajit Kumar Gupta and others is still pending before Hon''ble Supreme Court for appropriate order. The Management does not reasonably expect that the Special Leave Petition, when ultimately concluded and determined, will have a material and adverse effect on the Company''s results of operations or financial condition.

7. NOTING RELATED TO DEPRECIATION

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives and residual value as specified in Schedule II. Accordingly the unamortised carrying value less residual value is being depreciated / amortised over the revised remaining useful lives. The written down value of fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs.9.47 Lakhs.

8. MISCELLANEOUS NOTES ON ACCOUNTS:

1. SEGMENT:

The Company''s main business is Manufacturing and export of Handicraft items like Glass Beads; Necklaces, Imitation Jewellary etc. all those items form just one Segment. The sell of minor items such as carpets is less then 10% of total sales. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not required.

2 There are no small scale industrial undertakings to whom the Company owes a sum exceeding Rs. one lac which is outstanding for more than 30 days during the year.

3. The Management has conducted physical verification of stocks at reasonable intervals and discrepancies noticed on such verification have been properly dealt with as per Accounting Standards-2 pertaining to valuation of inventories issued by the Ministry of Corporate Affairs.

4. There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of business and experience gained.

5. Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties concern.

6. In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which, if realised, in the ordinary course of business, will not be less than the figure stated in the books of accounts.

7. 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, Wealth tax, Service Tax Customs Duty, Excise Duty, Cess and any other statutory dues, where applicable with the appropriate authorities.

8. The Calls in arrears of Share Capital amounting to Rs.227500 and of Share Premium amounting to Rs. 1760750/- are outstanding since long. None of these amounts relate to the directors or their relatives. The Management has decided not to forfeit such shares for the time being.

9. Previous year''s figures have been regrouped/ rearranged/ reclassified wherever necessary to make them comparable with the figures of the current year.

---

Mar 31, 2013

1. Contingent Liabilities not provided for:

(i) Letter of credit opened with Banks : Rs. NIL (Previous year: Rs. NIL)

(ii) Bank Guarantees outstanding : Rs. NIL (Previous Year-Rs. NIL)

(iii) Contingent Liabilities of Taxes and Duties

The company is not having any contingent liability except the appeals pending before CIT (Appeals)-Varanasi and Commisioner of Customs against various orders of Officers. Details of appeals pending are as under:

For A.Y. 2001-2002 – A demand of Rs. 15.00 lacs was raised by the Assessing Officer under section 271 (1) © of Income Tax Act''1961 vide order dated 29.01.2013 against which an appeal was filed by the company before the CIT (Appeals)-Varanasi on 28.02.2013. The appeal is still pending. No provision has been made against this demand. The management has been advised that it has strong case and the demand is likely to be set aside in appeal.

For A.Y. 2010-2011 – A demand of Rs. 76.02 lacs (MAT) was raised by the Assessing Officer under section 143(3) of Income Tax Act''1961 vide order dated 28.01.2013 against which an appeal was filed by the company before the CIT (Appeals)-Varanasi on 27.02.2013. The appeal is still pending. Amount of refund of Rs. 51.44 lacs pertaining to A.Y.1997-98 has been adjusted against the said demand by the Income Tax Department. No provision has been made against the remaining demand of Rs. 24.58 lacs. The management has been advised that it has strong case and the total demand is likely to be set aside in appeal.

Redemption fine of Rs. 4.00 lacs and penalty of Rs. 0.19 lacs has been imposed by Additional Commissioners of Customs against classification of goods exportedvide order dated 23.01.2013 against which an appeal was filed by the company before Commissioners of Customs. The appeal is still pending. No provision has been made against this demand. The management has been advised that it has strong case and the demand is likely to be set aside in appeal

2. Earning per share:

Basic and diluted earnings per share are calculated by diverting the net profit for the year attributable to equity shareholders by the weighted average number by equity shares. The Company does not have any outstanding diluted potential equity shares. Consequently the basic and diluted earnings per share remain the same.

3. The company had participated in auction as made by Hariyan Urban Development Authority (HUDA) on 07.11.2007 and was allotted hotel site at Gurgaon in Sector 10A under auction of Rs. 16.05 Crores. The company has paid total Rs. 13.49 Crores against the said allotment. But after repeated request, HUDA did not issue possession certificate, resultantly the company is having no option and decided to take refund of total amount paid to HUDA of Rs.13.49 Crore with interest without any deduction. But HUDA refunded only Rs. 11.88 Crores on 30.05.2012 by deducting 10%. Of amount paid The company has sent legal notice to HUDA against illegal deduction of 10 % and non payment of interest . The matter is still pending. The management has been advised that it has strong case and the amount deducted is likely to be paid by HUDA, hence no provision for this doubtful receivables has been made in the accounts. Accounting for Interest Claimed will be made as and when the matter is finalised.

A. MISCELLANEOUS NOTES ON ACCOUNTS:

1. SEGMENT:

The Company''s main business is Manufacturing and export of Handicraft items like Glass Beads; Necklaces, Imitation Jewellary etc. all those items form just one Segment. The sell of minor items such as carpets is less then 10% of total sales. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not required.

2 There are no small scale industrial undertakings to whom the Company owes a sum exceeding Rs. one lac which is outstanding for more than 30 days during the year.

3. The Management has conducted physical verification of stocks at reasonable intervals and discrepancies noticed on such verification have been properly dealt with as per Accounting Standards-2 pertaining to valuation of inventories issued by the Institute of Chartered Accountants of India.

4. There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of business and experience gained.

5. Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties concern.

6. In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which, if realised, in the ordinary course of business, will not be less than the figure stated in the books of accounts.

7. 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, Wealth tax, Service Tax Customs Duty, Excise Duty, Cess and any other statutory dues, where applicable with the appropriate authorities.

8. The Calls in arrears of Share Capital amounting to Rs.227500 and of Share Premium amounting to Rs. 1851750/- are outstanding since long. None of these amounts relate to the directors or their relatives. The Management has decided not to forfeit such shares for the time being.

9. Previous year''s figures have been regrouped/ rearranged/ reclassified wherever necessary to make them comparable with the figures of the current year.

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Mar 31, 2012

1. The pending appeals pertaining to Assessment Year 1996-97 and 1997-98 have been decided by the Income Tax Appellate Tribunal, Delhi Vide order dated 04.04.2008. Pursuant to such orders the company is Entitled to get refund of approximately Rs. 28.77 Lakhs including interest. The refunds are yet to be received hence not accounted for in the Accounts.

2. SEGMENT:

The Company's main business is Manufacturing and export of Handicraft items like Glass Beads; Necklaces, Imitation Jewellary etc. all those items form just one Segment. The sell of minor items such as carpets is less then 10% of total sales. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not required.

3. There are no small scale industrial undertakings to whom the Company owes a sum exceeding Rs. one lac which is outstanding for more than 30 days during the year.

4. The Management has conducted physical verification of stocks at reasonable intervals and discrepancies noticed on such verification have been properly dealt with as per Accounting Standards-2 pertaining to valuation of inventories issued by the Institute of Chartered Accountants of India.

5. There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of business and experience gained.

6. Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties concern.

7. In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which, if realised, in the ordinary course of business, will not be less than the figure stated in the books of accounts.

8. 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, Wealth tax, Service Tax Customs Duty, Excise Duty, Cess and any other statutory dues, where applicable with the appropriate authorities.

9. The Calls in arrears of Share Capital amounting to Rs.227500 and of Share Premium amounting to Rs. 2033750/- are outstanding since long. None of these amounts relate to the directors or their relatives. The Management has decided not to forfeit such shares for the time being.

10. Previous year's figures have been regrouped/ rearranged/ reclassified wherever necessary to make them comparable with the figures of the current year.

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Mar 31, 2011

1. Contingent Liabilities not provided for:

(i) Letter of credit opened with Banks : Rs. NIL (Previous year: Rs. NIL)

(ii) Bank Guarantees outstanding : Rs. NIL (Previous Year-Rs. NIL)

2. The pending appeals pertaining to Assessment Year 1996-97 and 1997-98 have been decided by the Income Tax Appellate Tribunal, Delhi vide order dated 04.04.2008. Pursuant to such orders the company is entitled to get refund of approximately Rs. 28.77 Lakhs including interest. The refunds are yet to be received hence not accounted for in the Accounts.

3. Related Party Disclosures:

The Company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is made.

5. SEGMENT:

The Company's main business is Manufacturing and export of Handicraft items like Glass Beads; Necklaces, Imitation Jewellary etc. all those items form just one Segment. The sell of minor items such as carpets is less then 10% of total sales. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not required.

7. Earning per share:

Basic and diluted earnings per share are calculated by diverting the net profit for the year attributable to equity shareholders by the weighted average number by equity shares. The Company does not have any outstanding diluted potential equity shares. Consequently the basic and diluted earnings per share remain the same.

8. There are no small scale industrial undertakings to whom the Company owes a sum exceeding Rs. one lac which is outstanding for more than 30 days during the year.

10. The Management has conducted physical verification of stocks at reasonable intervals and discrepancies noticed on such verification have been properly dealt with as per Accounting Standards-2 pertaining to valuation of inventories issued by the Institute of Chartered Accountants of India.

11. There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of business and experience gained.

12. Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties concern.

13. In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which, if realised, in the ordinary course of business, will not be less than the figure stated in the books of accounts.

14. 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, Wealth tax, Service Tax Customs Duty, Excise Duty, Cess and any other statutory dues, where applicable with the appropriate authorities.

15. The Calls in arrears of Share Capital amounting to Rs.232500 and of Share Premium amounting to Rs. 2206675/- are outstanding since long. None of these amounts relate to the directors or their relatives. The Management has decided not to forfeit such shares for the time being.

16. Previous year's figures have been regrouped/ rearranged/ reclassified wherever necessary to make them comparable with the figures of the current year.

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Mar 31, 2010

1. Contingent Liabilities not provided for:

(i) Letter of credit opened with Banks Rs. NIL (Previous year: Rs. NIL)

(ii) Bank Guarantees outstanding Rs. NIL {Previous Year-Rs. NIL)

2. The pending appeals pertaining to Assessment Year 1996-97 and 1997-98 have been decided by the Income Tax Appellate Tribunal, Delhi vide order dated 04.04.2008. Pursuant to such orders the company is entitled to get refund of approximately Rs. 28.77 Lakhs including interest. The refunds are yet to be received hence not accounted for in the Accounts.

3. Related Party Disclosures:

The Company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is made.

4. SEGMENT:

The Companys main business is Manufacturing and export of Handicraft items like Glass Beads; Necklaces, Imitation Jewellary etc. all those items form just one Segment. The sell of miner items such as carpets is less then 10% of total sales. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not required.

ii) No provision for deferred tax asset has been made in respect of un-assessed accumulated unabsorbed loss and depreciation in view of uncertainty of their allowance by the Tax Authority due to delayed submission of Accounts.

5. Earning per share:

Basic and diluted earnings per share are calculated by diverting the net profit for the year attributable to equity shareholders, by the weighted average number by equity shares. The Company does not have any outstanding diluted potential equity shares. Consequently the basic and diluted earnings per share remain the same.

6. The Management has conducted physical verification of stocks at reasonable intervals and discrepancies noticed on such verification have been properly dealt with as per Accounting Standards-2 pertaining to valuation of inventories issued by the Institute of Chartered Accountants of India.

7. There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of business and experience gained.

8. Balance of Sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties concern.

9. In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value, which, if realised, in the ordinary course of business, will not be less than the figure stated in the books of accounts.

10. 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, Wealth tax, Service Tax Customs Duty, Excise Duty, Cess and any other statutory dues, where applicable with the appropriate authorities.

11. The Calls in arrears of Share Capital amounting to Rs.232500 and of Share Premium amounting to Rs. 2206675/- are outstanding since long. None of these amounts relate to the directors or their relatives. The Management has decided not to forfeit such shares for the time being.

12. Previous years figures have been regrouped/ rearranged/ reclassified wherever necessary to make them comparable with the figures of the current year.

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Mar 31, 2000

1. Contingent Liabilities not provided for :

(i) Letter of credit opened with Bankers Rs. NIL (Previous year : Rs. NIL )

(ii) Bank Guarantees outstanding : Rs. 26,46,000 (Previous Year-Rs.25,07,500)

(iii) No provision has been made for the demands of Trade Tax aggregating to Rs. 1,24,181 as the same are disputed and appeals have been filed by the company. The Appeals are pending before the Trade Tax Tribunal. The Management has been advised that it has a strong case and the demand are likely to be set aside in appeal.

(iv) Demand of Rs. 31250 for upfront fee etc. of PICUP, is disputed hence no provision has been made.

2. Income Tax assessments have been completed upto assessment year 1998-99. The Income Tax Department has raised demands of Rs. 9835310 for A.Y. 1996-97 and Rs. 6584762 for A.Y. 1997-98, against which the Company has filed appeals before the Appellate Authorities. The appeals are still pending. No provision has been made against these demands. The Management has been advised that it has a strong case and the demands are likely to be set aside in appeal.

3. There are some disputes between the two groups of shareholders of the Company One Shri Ashok Kumar Gupta (Chairman & Managing Director) and the other represented by Shri Raj Kumar Gupta, Executive Director of the Company. The disputes primarily pertain to the management of the Company. With the consent of the parties, the disputes were referred for arbitration to Honble Justice Mr. A.N. Gupta. The Honble Arbitrator gave his Award on 01.11.98. The Award was challenged by Shri Raj Kumar Gupta in the court of District Judge Varanasi. However the application filed by Shri Raj Kumar Gupta was dismissed by the Honble District Judge and the Award was confirmed. Shri Raj Kumar Gupta has filed appeal in the High Court against the above Order, which is still pending. The Board of Directors of the Company have accepted the Award and promoted a new company and approved a Scheme of Arrangement for division of the company as per the terms of the Award. The Scheme of Arrangement has been approved by the Shareholders and the Creditors of the Company by overwhelming majority at their respective meetings duly convened and held as per the directions of the Honble Allahabad High Court. The Scheme of Arrangement is now pending for sanction before the Honble High Court.

Shri Raj Kumar Gupta and his family members have also filed a Petition alleging opresion and mismanagement against fhe Company,Shri Ashok Kumar Gupta, other directors, Companys Bankers namely State Bank of India and M/s R.P. Pandey & Co., the then Statutory Auditors. The said petition is pending before the Honble Company Law Board.

All expenses incurred in connection with the aforesaid Arbitration and for defending the Award in subsequent proceedings before the District Judge and the High Court, for defending the cases before the Company Law Board, and for incorporation of a new Company and to get the Scheme of Arrangement sanctioned by Honble High Court, etc. have been debited in the books of the Company as in the opinion of the Director, such expenses directly relate to the smooth management and operation of the Company.

4. Out of Rs. 12,32,500 shown as Share Application in "Schedule 6 : Other Current Assets", refund of Rs. 12,10,000 has been received in full from the Company, concerned in the subsequent financial year.

5. The Management has conducted physical verification of stocks at reasonable intervals and discrepancies noticed on such verification have been properly dealt with as per Accounting Standards-2 pertaining to valuation of inventories issued by the Institute of Chartered Accountants of India.

6. Against the insurance claim of Rs.69,23,815/-lodged by the Delhi Office on account of Loss of stocks in fire the Insurance Company has assessed loss of Rs.480487/- only. The balance claim has been rejected. The company has disputed the action of the Insurance Company: The matter is pending in the Court.

7. During the year Shri Raj Kumar Gupta, Executive Director and Incharge of the Delhi Units of the Company, has given loans to Reliance Precitonce Jwellers in which Shri Raj Kumar Gupta was a shareholder / director at the time when the said loans were given, without the approval of the Board of Directors.

9. The account of Shri Raj Kumar Gupta, Executive Director of the Company reflects a debit balance of Rs. 538745 as on 31.3.2000 on account of various expenses of personal nature which were paid by Delhi office and debited to his personal account as per decision of the Board of Directors.

12. There is an adequate internal control procedure and internal audit system commensurate with the size of the company and the nature of its business. The Directors have been making consistent efforts to improve such procedures and systems keeping in view the needs of business and experience gained.

13. Balance of sundry Debtors, Creditors and Loans and Advances shown in the accounts are subject to confirmation by the parties concern.

14. In the opinion of the Directors, Currents Assets, and Loans and Advances are approximately of the value which, if realised, in the ordinary course of business, will not be less than the figure stated in the books of accounts.

15. No undisputed amounts payable in respect of Income Tax, Wealth Tax, Trade Tax/Sales Tax, Customs Duty and Excise Duty were outstanding as at the last date of the Financial Year for a period more than six months from the date they became payable.

16. Previous years figures have been regrouped/rearranged/reclassified wherever necessary to make them comparable with the figures of the current year.

17. The Accounts for the year are subject to approval and adoption of Accounts for the F.Y. 1998-99 by the Shareholders of the Company. Due to the dispute among two groups of shareholders are explained in point No. 3 the accounts could not be finalised and audited. Now with the intervantion of Honble Company Law Board, accounts of all pending years have been finalised and audited and being put before the shareholders for their adoption and approval.