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 31st 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.
|