Nityas Gems & Jewellery Ltd Directors Report

<dhhead>Board’s Report</dhhead>

To,

The Members,

Nityas Gems and Jewellery Private Limited

Your directors have pleasure in presenting their Second Annual Report on the business and operations of the company together with Audited Financial Statements for the financial year ended 31st March, 2024.

1. FINANCIAL HIGHLIGHTS:

Amount (in Lacs)

Particulars	Standalone		Consolidated
	2023-24	2022-23	2023-24	2022-23
Revenue from Operations	5365.89	1166.82	5365.89	1166.82
Other Income	0.00	0.00	0.00	0.00
Profit/(Loss) before Depreciation and Tax	527.77	48.92	527.56	48.92
Less: Depreciation	31.09	13.70	31.09	13.70
Profit/(Loss) before tax	496.68	35.22	496.47	35.22
Less: Provision for Income Tax	85.74	6.08	85.74	6.08
Less/(Add): Deferred tax Liability / (Assets)	(0.38)	0.40	(0.37)	0.40
Profit/(Loss) after tax	411.32	28.74	411.10	28.74
Add: Balance B/F from the previous year	28.74	0.00	28.74	0.00
Balance Profit/ (Loss) C/F to the next year	440.06	28.74	439.84	28.74

 

2. PERFORMANCE REVIEW, OPERATION AND PROSPECTS:

During the year under review, On Standalone basis, the company has recorded turnover of Rs. 5365.89 Lacs against the previous year turnover of Rs. 1166.82 Lacs and net profit of Rs. 411.32 Lacs against last year net profit of Rs. 28.74 Lacs.

During the year under review, On Consolidated basis, the company recorded has turnover of Rs. 5365.89 Lacs against the previous year turnover of Rs. 1166.82 Lacs and net profit of Rs. 411.10 Lacs against last year net profit of Rs. 28.74 Lacs.

The Company has achieved excellent growth both in terms of top line as well as bottom line due to buoyant economy and hard efforts put in by the management and entire work force and it is well on the way to further growth. The company has good order position on hand and with aggressive marketing strategy, it will further strengthen. Your company is also making continuous efforts to improve the quality of products to sustain and grow in the competitive market.

3. DIVIDEND:

During the year under review, the company has earned net profit. However, to strengthen long term financial position of company, your directors decided to retain the profit and hence do not recommend any dividend for the year.

4. TRANSFER TO RESERVES:

The company has not transferred any amount to General Reserve during the financial year.

5. BOARD MEETINGS:

The Board of Directors comprised of Mr. Rajnikant Chanchad and Mr. Nileshbhai Panchani. The Board of Directors of the company met 05 times during the year on 30.06.2023, 05.09.2023, 09.11.2023, 23.01.2024 and 11.03.2024.

6. CHANGES IN DIRECTORS & KEY MANAGERIAL PERSONNEL:

During the year under review, there was no change in the directorship of the company.

7. DIRECTORS’ RESPONSIBILITY STATEMENT:

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013 the directors of the company confirm that:

(a) In the preparation of the Annual Accounts for the financial year ended on 31st March, 2024, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at 31st March, 2024 and of the profit and loss account of the company for that period.

(c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

(d) The directors have prepared the Annual accounts on a ‘going concern basis’ and

(e) The directors have devised proper systems to ensure compliance with the provisions of all the applicable laws and that such systems were adequate and operating effectively.

8. STATUTORY AUDITORS:

The company’s Auditor, M/s. Sheladiya & Jyani, Chartered Accountants (FRN: 134430W) was appointed for a period of 5 years from the conclusion of 01st AGM till the 06th AGM.

9. AUDITOR’S REMARK:

The observations made in the Auditor’s Report are as hereunder.

Instance of accounting software for maintaining books of accounts for which the feature of recording audit trail (edit log) facility was not operated throughout the year for all relevant transactions recorded in software.

Director explanation on reservation made by auditors of company is as hereunder:

Due to Deficiency of software systems, our management is taking steps to update the software.

10. MAINTENANCE OF COST RECORD:

The Central Government has not prescribed maintenance of Cost Records under sub-section (1) of section 148 of the Companies Act, 2013.

11. DETAILS OF SUBSIDIARY COMPANIES, JOINT VENTURE AND ASSOCIATE COMPANIES:

The company has 1 subsidiary company for the financial year ended 31st March, 2024. The details of such companies as per Form AOC-1 (Annexure-I) is annexed with audited financial statement.

12. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS U/S 186:

The company has made investments as stated Note No 9 of the Audited Financial Statements. (Please refer the note).

13. RELATED PARTY TRANSACTIONS:

All the transactions entered into with the Related Parties as defined under the Companies Act, 2013 during the financial year were in the ordinary course of business and on arm’s length basis. There were Material Related Party Transactions during the year and details of such transaction are also given in Notes of Audited Financial Statement. Disclosure in Form AOC-2 is attached with this report (Annexure-II). All the Related Party Transactions are placed before the Board of Directors for review and approval. Omnibus approval was obtained on a quarterly basis for transactions which are of repetitive nature.

14. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUT GO:

A. CONSERVATION OF ENERGY:

The Company continues its efforts to improve methods of energy conservation and utilization. The Companys energy requirement is not large and the power consumption is in conformity with the industry norm.

B. TECHNOLOGY ABSORPTION:

The company has installed indigenous technology provided and developed locally. The Company is well equipped and self-sufficient in the matter of technology of manufacturing. The technology is being modernized and improved along with production without incurring additional expenses on research.

C. FOREIGN EXCHANGE EARNINGS & OUT GO:

Total foreign exchange earnings is Rs. 45,74,230/- (Previous year Rs. 18,48,390/-.

Total foreign exchange out go is Rs. Nil.

15. RISK MANAGEMENT POLICY:

An effective Risk Management Framework is put in place in the Company in order to analyze, control or mitigate risk. The framework provides an integrated approach for managing the risks in various aspects of the business.

16. INTERNAL FINANCIAL CONTROLS:

The company has developed and maintained adequate measures for internal financial control

for the year.

17. SHARE CAPITAL:

During the period under review, there was no change in the capital structure of the company.

18. PUBLIC DEPOSITS:

The details relating to the deposits covered under Chapter V of the Act are as under:

(a) Accepted during the year:

Your company has not accepted any deposits within the meaning of Section 2(31) read with Section 73 of the Companies Act, 2013 and as such no amount of principal or interest was outstanding as on the date of the Balance Sheet.

(b) Remained unpaid or unclaimed as at the end of the year: None

(c) whether there has been any default in repayment of deposits or payment of interest thereon during the year: None

(d) The details of deposits which are not in compliance with the requirements of Chapter V of the Act: None

19. DISCLOSURE OF UNSECURED LOAN UNDER RULE 2(l)(C)(Vm) OF THE COMPANIES (ACCEPTANCE OF DEPOSITS) RULES, 2014:

The Company has received Unsecured Loan from Directors and their relatives as stated in Note No. 03 of Audited Financial Statements of the company. (Please refer the same)

20. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR

COURTS: .

No significant and material order has been issued by any regulator/court/other authority which impacts the going concern status and company’s operation in future.

21. MATERIAL CHANGES:

There have been no material changes in the company from the end of the financial year till the date of this report.

22. PARTICULARS OF EMPLOYEES:

The Company does not have any employee drawing salaiy as stipulated under provisions of rule 5(2) of chapter XIII, the companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

23. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013:

The Company has duly complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of woman at Workplace (Prevention Prohibition and redressal) Act, 2013 and the company has in place an Anti-sexual Harassment policy in line with the requirement of the Act. The following is the summary of the complaints received and disposed off during the financial year:

a) No. of complaints received: NIL.

b) No. of complaints disposed off: NIL.

24. ACKNOWLEDGEMENT:

The Directors express their gratitude to the company’s stakeholders and employees of the company. They also take the opportunity to thank the Company’s valued customers, suppliers and the shareholders who have extended their support to the company.