Banaras Beads Ltd Management Discussions.

The statements made in this Management Discussion and Analysis Report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from such expectation whether express or implied. Several factors that could make significant impact on the companys operations include global and supply conditions, input availability and prices, changes in Government regulations, foreign policy, foreign currency, tax laws, economic developments within the country and other factors mainly Covid-19 Pandemic, if continued globally.

INDUSTRIAL STRUCTURE AND DEVELOPMENT:

Your company is an Export House recognized by Government of India, Ministry of Commerce & Industries and main business of handicrafts like Glass Beads, Necklaces, Imitation Jewellary in indigenous and Export market. The company exports its products in U.S.A., U.K., France, Germany, Japan, and other countries with various reputed customers.

OPPORTUNITIES & THREATS:

The companys product is fashionable items which are being made by hand/small machines and take times in production. The products of the company appreciated in International market. But due to Covid-19 Pandemic impact and change of fashion in sort period directly affect demand of products in market. The fluctuation in foreign currency price also affected the profit of the Company. The management has taken appropriate steps to meet the threats and making extensive efforts on quality control, cost reduction and widen its marketing network. SEGMENT:

The Companys main business is Manufacturing and export of Handicraft items like Glass Beads; Neckleces, Imitation Jewellary etc.. All those items form just one Segment. As the company has its commercial activity mainly at Varanasi, hence separate geographical segment wise reporting is not required.

FINANCIAL / OPERATIONAL PERFORMANCE:

2019-2020 2018-2019
(Rs. in lacs) (Rs. in lacs)
Revenue from Operations 2578.06 1731.17
Net Profit Before Taxation 323.26 158.97
Net Profit after taxation 234.16 115.51
Balance of Profit & Loss Account B/F 1469.30 1354.28
APPROPRIATIONS:
Transfer to General Reserve 0.00 0.00
Dividend Paid 0.00 0.00
Tax on Dividend 0.00 0.00
Taxes of earlier Years 4.49 0.49
Balance of Profit & Loss Account C/F 1698.97 1469.31

OUTLOOK:

The Company is developing new items/products and getting order on the basis of same and in coming years demand of company products will be increased in international and indigenous market. The Trade war with Chines products will also support us in International Market. During the year company has participated in Foreign Trade Fairs mainly held in Hong Kong and Germany and other countries.

RISK_&_CONCERNS:

The main business of your Company is Export business, continuous Globally Covid-19 Pandemic impact may affect business of the Company. Any further change in duty drawback, DEPB, Exchange Rate, custom duty on import and Government policies would have a direct effect on the profitability of the Company. The management of your Company is hopeful on offsetting any adverse impact by better management abilities.

INTERNAL CONTROL SYSTEMS AND ITS ADEQUACY:

The Company has developed adequate Internal Control Systems, commensurate to its size and business, which are aimed at achieving efficiency in operations, effective monitoring and optimum utilisation of resources. The Company has appointed Internal auditors to conduct the Internal Audit work. The reports of the Internal Auditors are periodically reviewed by the Audit Committee. The Company has been accredited with ISO 9001:2015 and follows the prescribed parameters.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year turnover of your Company increased by 49% at Rs. 2578 lacs as compared to Rs. 1731 lacs in the corresponding period of the previous year and Profit after Tax up by 103% at Rs. 234 lacs as compared to Rs. 115 lacs in the corresponding period of the previous year.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Labour relations have been cordial with management without interruption of manufacturing activities. The total number of permanent employees of the company is 258 as on March 31, 2020 and out of which women employees are 118.

DISCLOSURES BY SENIOR MANAGEMENT PERSONNEL (I.E) ONE LEVEL BELOW THE BOARD INCLUDING ALL FUNCTIONAL HEADS:

None of the Senior Management personnel has Financial and Commercial transaction with the Company, where they have personal interest that would have a potential conflict with the interest of the Company at large.

ACCOUNTING STANDARDS.

The financial statements of the company (Banaras Beads Limited) are prepared in compliance with the Companies Act, 2013 and in accordance with Indian Accounting Standards (Ind. AS). The balance sheet as at March 31, 2020, statement of profit and loss for the year ended March 31, 2020, statement of change in equity and the cash flow statement for the year ended March 31, 2020 read with statements annexed thereto are more relevant for understanding the performance of the company.

Place : VARANASI Date : 25.06.2020

For BANARAS BEADS LTD.

(Ashok Kumar Gupta) Chairman & Managing Director