CONTENTS

Declaration

Acknowledgement

 COMPANY PROFILE
o COMPANY INFORMATION
o HISTORY OF THE ORGANISATION
o ABOUT BBL
o WHY BBL
o DIRECTOR INFORMATION
o AWARDS
o SOCIAL ACTIVITIES
 INDUSTRY PROFILE
o ABOUT DE LEMON
o FUTURE INNOVATIONS
o TYPES OF BEADS USED IN BEADING
o BBL POLICY
o OPPORTUNITIES AND THREATS
o GST SLAB OF DIFFERENT PRODUCTS
o SUPPLIERS OF BANARAS BEADS
o BUYERS OF BANARAS BEADS
o EXPORT SALES
 ANALYSIS OF DATA
o FINANCIAL RESULTS
o BALANCE SHEET
o STATEMENT OF PROFIT AND LOSS
o STATEMENT IN CHANGE OF EQUITY
o STATEMENT OF CASH FLOW
o DETAILS OF TRANSACTIONS
 PROJECT REPORT ON INVENTORY MANAGEMENT
o INTRODUCTION
o DEFINING INVENTORY
o CONCEPT OF INVENTORY MANAGEMRNT
o OBJECTIVES OF INVENTORY MANAGEMENT
o TYPES OF INVENTORIES
o REASONS OR MOTIVES OF HOLDING INVENTORIES
o COMPONENTS OF INVENTORY COST
o INVENTORY CLASSIFICATION
 RESEARCH METHODOLOGY
o OBJECTIVE OF THE STUDY
o SCOPE OF THE STUDY
o LIMITATIONS OF THE STUDY
o SIGNIFICANCE OF THE STUDY
 CONCLUSION AND SUGGESTION
o CONCLUSION
o SUGGESTIONS
o OVERALL OPINION
 Questionnaire
 Bibliography
 DECLARATION

I hereby declare that the report entitled “Inventory Management of Banaras Beads” is the
produce of my sincere effort.

This Summer training report is being submitted by me alone, at “Shepa Varanasi” for the
MBA Course, and the report has not been submitted to any other educational institutions
or for any other purposes what so ever.

DATE:
PLACE: Varanasi ALISHA VISHWAKARMA
 ACKNOWLEDGEMENT

“Perseverance inspiration and motivation have always played a key role in success of any
venture.” I hereby express my deep sense of gratitude to all the personalities involved
directly and indirectly in my project work.

I would like to express my deepest sense of gratitude to Mr. JAY SINGH ( Chief finance Officer) for
giving me this opportunity to undergo Summer Training at BANARAS BEADS LIMITED .I would also
like to extend my heartfelt gratitude to him for his constant encouragement and valuable insight
,guidance and facilities at all phases of the project.

I would also like to acknowledge the support and guidance of MR. VINAY SINGH (finance officer)
,BANARAS BEADS LTD. Without his help and encouragement it would have been practically
impossible to complete this project.

I would like to thank Dr. K.P Pandey (Director) Dr. Rajiv Ranjan (Principle), Mr. Atul kumar
Pandey (HOD MBA Dept) ICST Varanasi and all other faculty members for their help.

Last but not least I am thankful to entire summer placement Team who helped us in getting my
Summer placement at BANARAS BEADS LTD.

ALISHA VISHWAKARMA

M.B.A. III SEM

ROLL. NO. 1710770002

 COMPANY PROFILE

1.1 COMPANY INFORMATION

Head Office: A-1, Industrial Estate, Varanasi - 221106

Showroom: A-1, Industrial Estate, Varanasi - 221106

Year Established: 1940

Nature of Business: Manufacturer & Exporter of Glass beads Imitation Jewellery, Rosaries
&Tasbee, All Types of Handicrafts, Carpets &Druggets etc.
Name of Holding Co.: Banaras Beads Limited Head Office:
18,000 sq. ft.

Ware House: 18,000 sq. ft.

Employment: 400 ~ 500

Email : info@banarasbead.com
Website : www.banarasbead.com

Registrars

Mas Services Ltd. T-34, 2nd Floor,

Oklha Industrial Area,

Phase - II New Delhi - 110020

Delhi

Tel: 011-26387281, 26387282, 26387283

Fax: 011-26387384

Email:info@masserv.com
Website:http://www.masserv.com
 HISTORY OF THE ORGANISATION

Banaras Beads was incorporated as a private limited company in April 1980, the company went
public in October 1994. Promoted by Ajit Kumar Gupta and Raj Kumar Gupta, it commenced
operations by manufacturing glass beads and imitation jewellery and later diversified into woolen
products in Varanasi, Uttar Pradesh. The company also diversified into handicrafts, silk and silk
fabrics, fashion accessories, garments, etc. It has modernised its computer facilities to set up a
state–of–the–art computer–aided designing system.

The company has been in this line for over five decades and has been exporting for over two
decades (since 1970) to 2000 clients in about fifty countries. It has received a number of awards for
excellence in exports. In August 1994, it was recognized by the government as a Trading House. It is
the largest exporter of glass beads in India, having a market share of over 80% of India's exports.

The company came out with a public issue in February 1995 to finance the expansion of its facilities
for glass beads, imitation jewellery and woolen products. It has also created manufacturing facilities
for gold and silver studded jewellery. The project was completed in 1995 at a cost of Rs 35.6 crore.
The company has decided to enter into joint ventures in the US and Canada. It is setting up a
manufacturing unit for glass related items as a part of diversification and expansion of its current
manufacturing activities.
 ABOUT BANARAS BEADS
Banaras Beads Limited is a publicly owned company involved in manufacturing & marketing of glass
beads. In last ten years, the company has grown every year & today is one of the biggest in the
trade. The young work force with its creative input & focused work is a great asset and is a prime
reason for consistent growth of company. By nature, Banaras Beads Limited is born leader.

The company's head office is located at Varanasi, India headed by Mr. Ashok Kumar Gupta,
Chairman & Managing Director. The promoter of company well versed in business intricacies of
beads industry.

Actively engaged right from order procurement to quality of production and dispatch the company
has in bred system and competence to handle challenging assignments. The company is located in
holy environs of Varanasi city, India. The company is well-equipped with state of the art automatic
machines. Banaras beads Limited had recently installed quality software, which links all their
departments & helps in working on critical dates and follow ups.The company's manufacturing
process & its qualitycontrol measures are in full compliance of society norms & standards. We are
specialize in manufacturing fashion Jewellery, metal &bonependants, all types of Jeweler and its
related accessories, leather & cotton cords, metal chains etc.
 WHY BBL

PRODUCT:

Banaras Beads carries large variety and specialized product range. We have the best collection of
beads, where we carry more than 3000 shapes, 100 colours and 2000 different varieties and designs
made by different methods and artefacts which make up our entire product range.

QUALITY:

Our main emphasis is on the quality of the product rather than quantity product which makes us
different from our competitors. PROFESSIONAL APPROACH as our company deals in handicraft items
which mainly is an unorganised sector but our company's professional approach towards its
customers as well as production & quality inspection makes our strength in our field.

RE-ENGINEERING PRODUCT:

We believe in changing, in creating, in innovating and dynamism our product which makes our
company's strength to reinstate us with the fashion industry and customer's demand and to fulfill
the desire up to their entire satisfaction.
 DIRECTOR INFORMATION

SHRI ASHOK KUMAR GUPTA

(CHAIRMAN & MANAGING DIRECTOR)

SHRI SIDDHARTH GUPTA

(CEO & MANAGING DIRECTOR)

SHRI ASHOK KUMAR KAPOOR

(INDEPENDENTAND NON EXECUTIVE DIRECTOR)

SHRI PRAVEEN SINGH

(INDEPENDENT AND NON EXECUTIVE DIRECTOR)

SHRI TANMAY DEVA

(INDEPENDENT AND NON EXECUTIVE DIRECTOR)

SHALINI CHANDRA

(INDEPENDENT AND NON EXECUTIVE DIRECTOR)

Shri Ashok Kumar Gupta

Chairman & Managing Director
Mr. Siddharth Gupta
CEO & MD
Mr. Ashok Kumar Kapoor
Mr. Praveen Singh
Mr. Tanmay Deva
Independent and Non Executive Director
Mr. R.K. Singh
Company Secretary
 Mr. Jai Singh
Manager (Accounts)
Mr. Shadab Ahmad
Graphics & Web Designer
Mr. Raj Kumar Srivastava
Dy. Manager Marketing
Mr. H.S. Sha
Mr. Rajesh Chaubey
Manager (Export)
Mr. Umesh Mishra
E.D.P. Manager
Mr. Prashant Tiwari
Dy. Manager Commercial
Mr. AdarshMullick
Mr. Mohit Gupta
Assistant Manager
 AWARDS
Since its inception, the Banaras Beads Limited has won many prestigious awards and
distinctions for its high achievements in the field of exports. It has been recognized by the
government of India as a “trading house of the country” in the true sense. Some of the
main awards & distinctions received by the BBL are-

• President of India award for excellence in exports in July 1977.

• Chemical & Allied for export promotion council award-19 occasions.

• CAPEXIL top export award in SSI section – 2 occasions.

• U.P. government‟s awards for excellence in exports -5 occasions.

• IMM-Data Marketing Man Award-1980.

• Federation of Small Scale Industries Award.

• Indian Silk Export Promotion Council Award

• Top Export Award Trophy 1993-1994 from CAPEXIL.

• Export certificate from handicrafts export promotion council.

 SOCIAL ACTIVITIES
BBL is also discharging several responsibilities, the two important social contributions are-

• Through Ram GulamKanhaiya Lal Charitable Trust, the group is contributing in a

small way to the welfare of the community. The trust is engaged in a number of
social activities for the upliftment of the needy. A vocational training center for
women is being run by the trust at Arya Mahila College at Varanasi, for imparting
technical and vocational training.

• The trust is also running a hospital on Naturopathy in the holy town of

Rishikesh on the banks of river Ganges. This hospital has proved to be a
boon for the people of Rishikesh and those of adjourning areas. Many pilgrims
enjoy benefits from this hospital.

From the above factual information, it is clear that BBL is the pride of Varanasi. In fact, it
the only industry in the private section in Varanasi which has earned so much distinction
on account of great entrepreneurial spirit demonstrated by Late Kanhaiya Lal Gupta and
his son Shri Ashok Kumar Gupta who is presently the main force behind all development
activity.

Banaras Beads Limited had recently installed quality software, which links all their departments &
helps in working on critical dates and follow ups. The company's manufacturing process & its quality
control measures are in full compliance of society.
 INDUSTRY PROFILE
ABOUT DE LEMON

Leading beaded jewellery company Banaras Beads

Limited (BBL) launched its first Fashion jewellery Showroom“DE-LEMON” in Delhi NCR (Great India
Place, Noida). Pantaloons Femina Miss India World 2008 Parvathy Omanakuttaninaugurated the
new showroom in Great India Place and try out the stylish new designs.

De Lemon a unit of BBL is set to offer consumers stylish designs, a wide and unique range in beaded
jewellery and Do It Yourself bead kits. They are specialist in fashion jewellery for kids, teenagers &
adults with a USP to sell fashion jewellery at affordable price & introducing unique innovative idea
called „Do it yourself‟.

Its unique concept in which consumers can pick the beads and design their own piece of jewellery
and showroom would also help out in the designs. They also take special orders to make accessories
like beaded curtains, home cushions, beaded jacket for home furniture etc.

With a theme „Jewellery for All’, De Lemon has a wide variety of jewellery like necklace sets,
bracelets, rings, anklets, earrings, belts, bags, etc. and also have few varieties of home furnishings.
The showroom retail a wide range of beaded and glass jewellery in sync with latest trends and
fashion. Customers can choose from exquisite in-house designs that come with a quality guarantee
for the complete jewellery shopping experience.

A wide range of beaded jewellery is displayed in De-Lemon, which is priced from Rs.9 to Rs.999.
Other then large variety of glass and beads jewellery they also have other beaded accessories like
belts, bags, coasters, bells. Curtains cushion covers etc starts from Rs.199 to Rs.999. The showroom
also houses its own special corner called “Do it yourself Kits” for those fashion lovers who wants to
make their own choice of jewellery.

In indigenous market company is doing business under the Tiade name and style De-Lemon unit of
Banaras Beads Ltd. through Retail Counters, Shop, Stores, Franchise and others under arrangement /
agreement with various parties and Retail Stores like Sahara Mall, Odyssey, Big Bazar, Pantaloon, V-
mart, Salasar ( Mayagitanjali) etc.

De Lemon Jewellery also set the standards for the new selections by conducting private surveys with
their existing customers. Key essentials that were addressed for the collection included quality,
reliability, usability and pricing. De Lemon promises to further expand this category more in the
months to come.
 FUTURE INNOVATIONS

Since China has picked up much share in the market due to their unbelievable low pricing patterns.
Thus not only competition has increased but also the Company is forced to reduce the price under
pressure. The fluctuation in rate of foreign currency will also affect our business and profit. The
management is aware about this situation and has taken appropriate steps to meet the threats and
making extensive efforts on quality control, cost reducing and widen its marketing network.

Soon BBL will be conducting jewelry making competitions amongst school children in the Delhi NCR
region. They will all be given a bead kit and the ones that come up with the most creative designs
will be given prizes.” They will also be using their enormous collection of colored beads to teach
nursery children about colors.

Their future plans also include using beads to make colorful corporate gifts such as paper weights.

The latest styles and colors were not the only focus for the creation of this new category But BBL
believes in doing small things in order to stand apart.
 TYPES OF BEADS USED IN BEADING

METALIC BEADS :

CRYSTAL BEADS:
GLASS BEADS:

SEMI PRECIOUS BEADS:

 WOODEN BEADS:

BUGGLE BEADS:
CERAMIC BEADS:

FACETED BEADS:
1. LAMP WORK BEADS:

ROUNDEL BEADS:
 BBL POLICY:

"Quality means fitness for the intended purpose in all aspects of the company's activities.
it is the company's policy to manufacture and export goods which comply with the
customer's needs and the designer's specifications. The company will strive to meet the
needs of its customers through a continuous process of quality improvement."

"The quality system is designed to ensure the maintenance of the product quality
standards through the evaluation, inspection and verification of processes at all stages of
manufacturing."

Some of the process which are called as Luster Polishing, Drum Polishing, Cleaning of
Beads mechanically, making of Press Beads, Chatom‟s, Faceted Beads, Table Cut Beads
etc. has been innovated by BBL.

"Compliance with the provisions and objectives of the manual are mandatory for all
employee of the company. All employees are responsible for quality improvement.
Education and training are vital to the quality improvement process."
 OPPORTUNITIES AND THREATS
The 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 has built it‟s credibility and reputationininternational
market by providing better quality‟s Glass beads and fashion jewelry on competitive price and
within committed period.

In Indigenous market company is doing business under the Trade name and style De-Lemon unit of
Banaras Beads Ltd. Through retail counters, shop, stores, Franchise and under
arrangement/agreement with various parties. But expected results not received from indigenous
market. The company forced to close various counters/stores due to ongoing losses.

There are opportunities for doing more business in this line. But the china has picked up much share
in the market due to their unbelievable low pricing patterns. Thus not only competition has
increased but also the company is forced to reduce the price under pressure and to offers to sell its
products at unremunerated prices. The fluctuation in rate of foreign currency will also affect our
business and profit.

The management has taken appropriate steps to meet the threats and making extensive efforts on
control, cost reducing and widen its marketing network.
 GST SLAB OF DIFFERENT PRODUCTS

GST Rates of Different Products

SL.NO. NAME OF ITEMS GST RATE % FOCUS PRODUCT

DESCRIPTION

1 FINISHED GLASS BEADS 5% FINISHED GLASS BEADS LOOSE

LOOSE

2 BRASS BEADS 18% H’CRAFTED ARTISTIC BRASS

BEADS

3 COPPER BEADS 18% COPPER WORKED ARTICLES

H’CRAFTED ARTISTIC COPPER
BEADS

4 ALLUMINIUM BEADS 18% H’CRAFTED ARTISTIC

ALUMINIUM BEADS

5 COTTON WAX CORD 12% COTTON WAX CORD

6 WOODEN BEADS/EBONY 12% OTHER ORNAMENTS OF

WOODEN BEADS

7 LEATHER CORD 18% OTHER ARTICLES OF LEATHER

COMPOSITION
8 PLASTIC/BLISTER TRAY & 18% ARTICLES OF OFFICE OR
PLASTIC BEADS SCHOOL SUPPLY

9 WOODEN CARPETS 12% HAND KNOTTED WOOLEN

CARPETS

10 WOOLEN DRUGGETS 12% HAND MADE WOODEN

DRUGETS

11 ARTICLES M/O IRON 18% IRON

12 HANKERCHIEFS M/O SILK 18% HANKERCHIEFS M/O SILK

13 OTHER ORNAMENTS OF 12% OTHER ORNAMENTS OF

WOODEN STICK WOODEN STICK

14 SILK THREAD 5% SILK THREAD

15 NEEDLES 12% NEEDLES

16 HEMP CORDO(CORDAGE) 12% HEMP CORDO(CORDAGE)

17 GLASS JEWELLERY 5% GLASS JEWELLERY

18 BRASS JEWELLERY 3% BRASS JEWELLERY

19 ALLUMINIUM JEWELLERY 3% ALLUMINIUM JEWELLERY

20 IRON JEWELLERY 3% IRON JEWELLERY

21 HEMATITE CASTED 3% H’CRAFTED ARTISTIC

HEMATITE CASTED METAL
 METAL BEADS BEADS

22 FLIRES M/O STEELS WITH 18% PLIERS M/O STEELS WITH

PLASTIC QUOTED PLASTIC QUOTED HANDLE
HANDLE

23 AXES M/O IRON WITH 0% AXES M/O IRON WITH

WOODEN HANDLE WOODEN HANDLE

24 TASSEL M/O SILK 5% TASSEL M/O SILK

25 SILVER BEADS 3% SILVER FILLIGREE WORK

26 ELASTIC 18% ELASTIC(RUBBER THREAD)

27 GLASS RODS 18% GLASS RODS

28 ACRLIC CHARMS 18% ACRLIC CHARMS BEADS

29 PAPER BOARD 12% PAPER BOARD BOX

BOX/CARD/HEADER

30 POLY BAGS 18% POLY BAGS

31 RUBBER BAND 5% RUBBER BAND

32 OTHER ARTICLES OF 18% OTHER ARTICLES OF

GLASS(BOTTLE) GLASS(BOTTLE)

33 FEVI QUICK 18% FEVI QUICK

34 VICOSE RAYAN 18% VICOSE RAYAN

35 GOLD 18% GOLD STONE(AVENTURINE

STONE(AVENTURINE GLASS)
GLASS)

OTHER HAND MANUFACTURED ARTICLES ITEMS

DECORATED

36 COTTON WOVEN BALL 12% COTTON WOVEN BALL

37 FELT ITEMS 12% FELT ITEMS

38 LAC BEADS 12% LAC BEADS

39 RESIN BEADS 12% RESIN BEADS

40 COCO SHELL 12% COCO SHELL BEADS/PENDENT

BEADS/PENDENT

41 CERAMIC BEADS 12% CERAMIC BEADS

42 SOAP STONE 12% SOAP STONE BEADS/PENDENT

BEADS/PENDENT

43 CLAY BEADS 12% CLAY BEADS

44 BONE BEADS 12% H’CRAFTED ARTISTIC BONE

BEADS

45 HORN BEADS 12% H’CRAFTED ARTISTIC HORN

 BEADS

46 MOP ITEMS 12% H’CRAFTED ARTISTIC MOP

ITEMS

47 SEA SHELL BEADS 12% H’CRAFTED ARTISTIC SEA

SHELL BEADS

48 AGATE BEADS 3% H’CRAFTED ARTISTIC AGATE

BEADS
 SUPPLIERS OF BANARAS BEADS

 Saraswati Graphic(GEN), Kanpur

 Mongli Overseas(GEN), New Delhi
 Shyam Polythene Works(GEN), Varanasi
 Mehta Technologies(GEN), New Delhi
 Gaurav Gems(GEN), Jaipur
 Beads N Beads(GEN), Sambhal
 M.A Mansuri(GEN), Gujrat
 Kamala Press Pvt. Ltd(GEN), Varanasi
 Ajay Sales Corporation Varanasi
 Raju Glass Beads(GEN), Hathras
 Sanjeev Glass Beads(GEN), Hathras
 Admajik(GEN), Varanasi
 Radhika Packaging Industry, Varanasi
 Suhag KanchUdyog(GEN), Firozabad
 Rumanchal Sales House(GEN), New Delhi
 J & J Gems(GEN), Gujrat
 Shimla Exports, Jaipur
 U.P Packaging Industry(GEN), Varanasi
 Hiva Beads Decoration(GEN), Firozabad
 SudarshanUdyog, Varanasi
 Six Flags Management Services Pvt. Ltd., Varanasi
 Banke Bihari Packager, Kanpur
 Shah Alam(GEN), Sambhal
 JeetmullJalchandLall, Varanasi
 Chedan Lal, Varanasi
 Mahalaxmi Enterprise (GEN), New Delhi
 Prakriti Kumar Saroj, Jaunpur
 Rite Concept Jewels Pvt. Ltd.(Provi), Jaipur
 Jewel India(GEN), Jaipur
  Newin Corporation, Varanasi
 Amit Industries, Varanasi
 Dholariya Merchant Import And Export, Rajkot
 Beena Packagers(GEN), Varanasi
 Yamin Glass Beads, Hathras
 Ital Chains, Noida
 BM Polymers(GEN), Chandauli
 Bhushra Brother’s Handicraft, Sambhal
 M.S Enterprises, Ghaziabad
 Hasmi Exports(GEN), Kanpur
 Ashoka Handicraft(GEN), Varanasi
 M.S Handigraph, Kanpur
 Prem Ji Jewellers(GEN), Varanasi
 Vipul Brass Industries, Jamnagar
 Shamin Ahmad (GEN), Varanasi
 Rinku Devi(GEN), Varanasi
 Kumar Chemicals, Firozabad
 Nishant Beads(GEN), (GEN), Varanasi
Printografik(GEN), Mumbai
 BUYERS OF BANARAS BEADS
 ACPL Products Pvt. Ltd, Noida
 MD. Kadir Egg & Glass Beads Merchant(Local), Assam
 Tistabene retails LLP, Rajasthan
 Rajendra Kumar(Local), Varanasi
 Jagdamba Glass Beads, Hathras
 Asha Agrawal(Local), Varanasi
 Apex Overseas Pvt. Ltd, New Delhi
 Banaras Beads Ltd. New Delhi
 P.D International, Jaipur
 Tara Projects, New Delhi
 Shobhnath Seth(Local), Varanasi
 Ajay Shrivastava (Local), Varanasi
 Raju Glass Beads, Hathras
 Mr. Balwant Singh(Local), Varanasi
 Kashis Travels, kutch
 Geeta Traders , Punjab
 Akash Art Jewellers , Surat
 MamtaDwivedi(Local), Varanasi
 Inner Wheel District , Varanasi
 Maruti Sales , Gujarat
 Moti Palace , New Delhi
 TATA Projects ,New Delhi
 MS Jyoti Ji , Varanasi
 Mc Arthur Krishna (Local), Varanasi
 M. A Mansuri (General) , Gujarat
 EXPORT SALES

 M/S Halcraft , USA

 M/S Multicraft Imports , Canada
 OSIROCK ,Columbia
 Amina Collection Co. ltd. , Yokohama , Japan
 Glasser Quality Beads , Amesterdam ,Netherland
 Cousin Corporation Of America, USA
 Farouk Satar , Port Louis , Mauritius
 Lien Tai Trading Co. ltd. , Hongkong
 S. C Pamil S.R.L , Romania
 R. LabanauskinesImone, Luthania
 Queen C C ltd. , Osaka ,Japan
 Raj Ushanga , Nairobi , Kenya
 Hobby Lobby Inc. Warehouse , USA
 M/S EWC , LLC , Washington DC ,USA
 Carrie Elspeth , UK
 M/S Stoff&Stil ,Hernig, Denmark
 PROMIN ltd , Ukraine
 Sochi S.R.L , Argentina
 Skylinks Global Son BHD , Ivory Coast
 Bijou Brigitte , hamburg, Germany
 Playbox , Almhult , sweden
 Antiga Casa Sala , Spain
 La Valle Des. Perleg, France
 Lamrite West , Strong ville ,USA
 Plush Appeal , LLC , USA
 ANALYSIS OF DATA

FINANCIAL RESULTS

2016-2017 2015-2016

(Rs. In lacs) (Rs. In lacs)

Revenue From Operations 2732.46 2474.28
Net Profit Before Taxation 281.06 625.82
Net Profit After Taxation 166.89 431.54
Balance Of Profit & Loss Account B/F 1166.99 950.98
APPROPRIATIONS:
Transfer to General Reserve 15.00 15.00
Dividend Payable(@ 1.0 per share) 66.36 165.91
Previous Year @Rs. 2.5 per share
Tax on Dividend 13.51 33.98
Taxes of Earlier Years 22.82 0.64
Balance of Profit & Loss Account C/F 1216.19 1166.99

OPERATION:
During the year turnover of your Company slightly increased in the comparsion of previous
year.

DIVIDENDS:
Based on the Company’s performance during the year 2016-17, the Board of Directors
decided to recommend dividend of Rs. 1/- (i.e. 10%) per share amounting to Rs. 7987201
(inclusive of tax of Rs. 1350979). The dividend payout is subject to approval of members at
the ensuing Annual General Meeting.

TRANSFER TO RESERVES:
 The Board of the Directors has proposed to transfer to Rs. 15 Lakhs to the General
Reserve out of the amount available for appropriations and an amount of Rs.
49.20 Lakhs is proposed to be retained in the Profit and Loss Account after
provision of proposed dividend and taxes there on and taxes of earlier year.

SETTLEMENTS OF MANAGEMENT DISPUTES:

As already reported that the Special Leave Petition vide no. 25165-25166/2007 filed by
Shri Ajit Kumar Gupta and others against Hon’ble CLB order in the matter of C.P. No.
14/99 is still pending before Hon’ble Supreme Court for appropriate order. However one
of the Respondent Mr. Prashant Gupta had filed an application before Hon’ble Supreme
Court against Respondent No. 1(Company) Respondent No. 2(Mr. Ashok Kumar Gupta)
to transfer of all due dividend for F.Y. 2014-15 and 2015-16 to him. The matter was
heard by Hon’ble Court on 08.05.2017 and Hon’ble Court directed to make payment of
accrued dividend to Mr. Prashant Gupta and also stated to take this SLP on number of
hearing . As a matter of facts the company had paid said dividend to Mr. Prashant Gupta
by demand draft during the F.Y 2014-15 and 2016-17 but due to mismatch/closing of
bank account by Mr. Prashant Gupta the same were not encased. The Company is in
process to comply order of Hon’ble Supreme Court.
 BALANCE SHEET
Balance Sheet as at 31st March, 2018

(Amount in Rs.)

Particulars As at 31st
Note As at31st
No March' March' As at 1st
2018 2017 April' 2016

ASSETS

Non-current assets

(a) Property, plant and

equipment 2 112560272 126052811 137777751

(b) Capital work-in-progress 88370130

(c ) Other intangible assets 41337 41337 41337

(d) Financial assets

(i) Investments 3 31211740 31909954 36661499

(e) Deferred tax assets (net) 4 0 1521971 2538768

(f) Other non-current assets 5 1049767 1046767 13940205

Branch Balance 0

Current assets

(a) Inventories 6 140650835 113195895 142499862

(b) Financial assets

 (i) Trade receivables 7 7886749 7155577 13422515

(ii) Cash and cash

equivalents 8 8980691 23451515 2802225

(iii) Other Bank Balance 9 79139623 103315529 102493969

(iv) Loans 10 3028266 54927771 29104548

(v) Other Advances 11 5760716 11531912 17312965

(c) Current Tax Assets (Net) 12 8745037 2546684 11728757

(d) Other current assets 13 998323 1173415 1192299

TOTAL - ASSETS 488423486 477871138 511516700

EQUITY AND LIABILITIES

Equity

(a) Equity Share capital 14 66138720 66138220 66137720

(b) Other equity 15 375988811 370117877 356415854

LIABILITIES

Non-current liabilities

(a) Deferred tax Liabilities

(Net) 16 681964 0 0

Current liabilities

(a) Financial liabilities

(i) Borrowings 17 19030200 10960554 50902880

(ii) Trade Payable 18 3353740 8184766 9558556

19 7090140 8670873 11476232

(iii)Other financial
liabilities

(b) Other current liabilities 20 14742611 9803333 10289029

(c )Provisions 21 1397300 3995515 6736429

TOTAL - EQUITY AND

LIABILITIES 488423486 477871138 511516700

Accounting policies & Notes on

Accounts 1 to 48

For and on behalf of the Board

of Directors

(Siddharth (Ashok Kumar

Gupta) Kapoor)

In terms of our report of even CEO & Managing Director

dated attached Independent Director

For G D Dubey & Associates

(Praveen
Chartered Accountants Anand Singh) (R.K. Singh)

Independent Company
Director Secretary

(G.D. Dubey)
Partner

VARANASI;31.05.2018

(Jai Singh)

Chief Finance Officer

 STATEMENT OF PROFIT AND LOSS
Statement of Profit and Loss for the year ended 31st March, 2018

(Amount in
Rs.)

Particulars

Note No2017-182016-17

Revenue from operations 22 237792221 273246314

Other Income 23 9584410 13194797

Total Income 247376631 286441111

Expenses:

Cost of materials consumed 24 168628415 105163325

Changes in inventories of finished goods, work-

in-progress and Stock-in-Trade 25 -45914975 39565347

Manufacturing Expenses 26 20002881 21768694

Employee benefit Expense 27 34128708 35675203

Financial Costs 28 756105 1537410

Depreciation and amortization expense 2 18393996 21042823

Other Expenses 29 28199231 33582610

Total Expenses 224194361 258335412

 Profit before exceptional items and tax 23182270 28105699

Exceptional Items 0 0

Profit before tax 23182270 28105699

Tax expense:

Current tax 7150000 10400000

Deferred tax 2203935 1016797

Profit for the year 13828335 16688902

Earning per equity shareof face value of Rs. 10

each :

Basic & Diluted 2.08 2.51

3
4

In terms of our report of even dated

attached

For and on behalf of the Board of

Directors

For G D Dubey & Associates

(Ashok Kumar
Chartered Accountants (Siddharth Gupta) Kapoor)
 CEO & Managing Director
Independent Director

(G.D. Dubey)

Partner

(Praveen
VARANASI;31.05.2018 Anand Singh ) (R.K. Singh)

Company
Independent Director Secretary

5
6 (Jai Singh)
7 Chief Finance Officer
 STATEMENT IN CHANGE OF EQUITY

Statement of Change in Equity for the year ending 31.03.2018

A. Equity Share Capital No of Amount in Rs.

Shares
Unpaid
Issued/Subscribed Call Net

As at 01.04.2016 6636222 66362220 224500 66137720

Change in Equity Share

Capital 0 0 -500 500

As at 31.03.2017 6636222 66362220 224000 66138220

Change in Equity Share

Capital 0 0 -500 500

As at 31.03.2018 6636222 66362220 223500 66138720

B. Other EQUITY

Particulars Reserves & Surplus Total

Securities Retained General

premium earnings Reserve
reserve

Balance as at 01.04.2016 223159800 117406054 15850000 356415854

Profit for the year 16688902 16688902

Transfer from/to General

-1500000 1500000 0
reserve/ retained earning
during the year

Transactions with owners

in their capacity as
owners:

Unpaid Call received 1800 1800

Dividend Distribution Tax 706625 706625

Tax of Earlier Year 2282054 2282054

Balance as at 31.03.2017 223161600 129606277 17350000 370117877

Profit for the year 13828335 13828335

Transactions with owners

in their capacity as
owners:

Unpaid Call received 49000 49000

Dividends paid 6636222 6636222

Dividend Distribution Tax 1350979 1350979

Tax of Earlier Year 19200 19200

Balance as at 31.03.2018 223210600 135428211 17350000 375988811

 STATEMENT OF CASH FLOW
Statement of Cash Flow For the
Year Ended 31st March, 2018
Amount(Rs.)

Current Year Previous Year

(A) Cash Flow from Operating

Activities

Net Profit Before Tax and

Extraordinary Items 23182270 28105699

Adjustment For :-

Depreciation 18393996 21042823

Profit/Loss on Sale of Fixed

Assets 0 (26938)

Profit/(Loss) on Sale of
Investment (116950) (766787)

Interest/Dividend/ Rent (8725442) (11000426)

Other Non Cash

Income/Exp. 0 9551604 0 9248672

32733874 37354371

Adjustment For :-

Trade & Other receivables 51142049 7031476

Inventories (27454941) 29303967

Trade Payable (1615356) 22071753 (4083047) 32252396

54805626 69606767
Cash Generated From
 Operations

Interest Paid 729681 683778

Direct Taxes (11201299) (10471618) (15423705) (14739927)

(10471618) (14739927)

Cash Flow Before

Extraordinary Items 44334008 54866840

Extraordinary Items 0 0 0 0

Net Cash From Operating

Activities(A) 44334008 54866840

(B) Cash Flow From Investing

Activities :

Purchase of Fixed Assets (93271587) (9345945)

Sale of Fixed Assets 0 55000

Purchase of Investments (130241) (8307932)

Sale of Investments 945405 13826265

Increase in other non

current assets (3000) 0

Interest Received 7283869 9824915

Rent Received 591000 302250

Dividend Received 850574 873261

Net Cash used in investing

activities (B) (83733981) (83733981) 7227814 7227814

(C) Cash Flow From Financing

Activities :

Amount Received against

Calls in Arrear 49500 2300

Proceeds from Short term

borrowings 8069646 (39942326)

Dividend & Interest Paid (7365903) (683778)

Net Cash used in financing 753243 (40623804)

activities (C ) 753243 (40623804)

TOTAL (A+B+C) (38646730) 21470850

Net Increase/Decrease in Cash &

cash Equivalents (38646730) 21470850

Cash & cash Equivalents As at

01.04.2017 126767044 105296194

Cash & cash Equivalents As at

31.03.2018 88120314 126767044

Notes:

1. Statement of cash flows has been prepared under the indirect method as set out in the
Ind AS-7 "Statement of Cash Flows" as specified in the Companies (Indian Accounting
standards) Rules'2015.

2. Cash & cash equivalents includes in the statement of cash flows comprise
the followings:

(a) Cash & cash equivalents disclosed under

current assets (Note 8) 8980691 23451515

(b) Other bank balances disclosed under current

assets (Note 9) 79139623 103315529
 88120314 126767044

3. Previous year figures have been regrouped/ reclassified where ever applicable.

31.03.2018 31.03.2017 01.04.2016

NON CURRENT
INVESTMENTS 3

Investment in Equity
Instruments

(a) Quoted Investments 243310 941524 113069

(b) Others 30968430 30968430 36548430

31211740 31909954 36661499

DETAIL OF NON-CURRENT INVESTMENTS

No.of Face
Particulars
shares Value 31.03.2018 31.03.2017 01.04.2016

In Equity Shares -
UnQuoted

BBL Beads Ltd 87500 10.00 875000 875000 875000

Banaras Bead
Business Pvt. Ltd. 50000 100.00 30000000 30000000 35580000

9343 10.00 93430 93430 93430

India Exposition Mart
Ltd.

(I) In Equity Shares -

Quoted

Pertech Computers
Ltd. 600 10.00 36000 36000 36000

Elbee Services Ltd. 100 10.00 14000 14000 14000

Kabson Industries
Ltd. 1300 10.00 13000 13000 13000

Bholanath
International Ltd. 300 10.00 6020 6020 6020

Ideal Carpets Ltd. 300 10.00 2252 2252 2252

M.P.Telelink Ltd. 500 10.00 5000 5000 5000

Rungta Irrigation Ltd. 600 10.00 36797 36797 36797

GHCL Ltd. (Previous

Year 2000 shares) 0 0.00 0 570696 0

ICICI Bank Ltd

(Previous Year 1000
shares) 0 0.00 0 257759 0

Benaras Hotels Ltd 100 100.00 130241 0 0

Total 31211740 31909954 36661499

Aggregate Cost of
Quoted Investment-

( Rs 243310, Previous
 Year 941524)

(Market value Rs 201793

Previous Year Rs
896433)

Aggregate Cost of Un-

Quoted Investment-

( Rs 30968430, Previous
Year Rs.30968430)

DEFERRED TAX ASSETS 4

Related to Fixed Assets 0 1521971 2538768

0 1521971 2538768

OTHER NON-CURRENT ASSETS 5

Other Advances
12901438
Unsecured Security Deposits,
considered goods 1049767 1046767 1038767

1049767 1046767 13940205

INVENTORIES 6

(As Taken , Valued as per policy

stated in point K of Note-1 of
Accounting policies and Certified
by the Management,)

Raw Material 31176895 52149948 40880969

Finished Goods 101391843 55476868 95042215

Packing Material 5940010 3309068 3927655

Stores & Spares 2142087 2260010 2649023

Total 140650835 113195895 142499862

TRADE RECEIVABLES 7

Unsecured, Considered good by

the management 7886749 7155577 13422515

Total 7886749 7155577 13422515

CASH & CASH EQUIVALENTS 8

Balance with Banks 8230531 23009663 1628438

Cash in Hand (As certified by the
management) 750160 441852 1173787

Total 8980691 23451515 2802225

Other Bank Balances 9

Fixed Deposit with Bank 75021850 97890672 96002777

Earmarked Balance With Bank (

For Unclaimed Dividend) 4117773 5424857 6491192

Total 79139623 103315529 102493969

LOANS 10

Unsecured, Considered Good by

the Management

Loan to Related Parties 0 10868144 0

Loan to Others 3028266 44059627 29104548

3028266 54927771 29104548

OTHER ADVANCES 11

Unsecured, Considered Good by

the Management
(Recoverable in Cash or in Kind
or value to be received)

Advance to Suppliers & Other 1723515 2261719 6519265

Export Incentive Receivables 2442846 7675838 9230672

Unsecured, Considered
Doubtful by the Management

Advance to Suppliers & Other

(Doubtful) 1594355 1594355 1563028

Total 5760716 11531912 17312965

CURRENT TAX ASSETS 12

Advance Payment for Taxes

(Net) 8745037 2546684 11728757

8745037 2546684 11728757

OTHER CURRENT ASSETS 13

Prepaid Expenses 989452 1164977 1153540

Postage Imprest 8871 8438 38759

998323 1173415 1192299

SHARE CAPITAL 14

AUTHORISED SHARE CAPITAL

1,20,00,000 Equity Share of Rs.

10/- Each 120000000 120000000 120000000

ISSUED, SUBSCRIBED & PAID

UP SHARE CAPITAL

6636222 Equity Shares of Rs.

10/- Each Fully paid -up 66362220 66362220 66362220

Less: Unpaid Calls 223500 224000 224500

Total 66138720 66138220 66137720

31.03.2018 31.03.2017 01.04.2016

Shareholders holding more than

5% shares No.(%) No.(%) No.(%)

863402 1363402 1363402

Ashok Kumar Gupta (13.01) (20.54) (20.54)

544920 ( 544920 544920

Ashok Kumar Gupta (HUF) 8.21) (8.21) (8.21)

739830 739830 739830

Rekha Gupta (11.15) (11.15) (11.15)

Ram GulamKanhaiya Lal 1072000 1072000 1072000

Charitable Trust (16.15) (16.15) (16.15)
Prashant Gupta/Ashok Kumar 472540 ( 472540 472540
Gupta( Joint Holders) 7.12) (7.12) (7.12)

350110 350110
Vaishali Gupta 0.00 (5.28) (5.28)

350110 (
Shivani Gupta 5.28) 0 0

701000( 201000( 201000 (

Siddharth Gupta 10.56) 3.03) 3.03)

OTHER EQUITY 15

A. GENERAL RESERVE

Opening Balance. 17350000 15850000 14350000

Transferred During the Year 0 1500000 1500000

Sub Total 17350000 17350000 15850000

B. Securities Premium Reserve 224765500 224765500 224765500

Less : Unpaid Calls 1554900 1603900 1605700

Sub Total 223210600 223161600 223159800

C. SURPLUS OF PROFIT & LOSS

Balance as per Last Account 129606277 117406054 117406054

Net Profit After Tax 13828335 16688902

Less: Transferred to General

reserve 0 1500000

Dividend Paid 6636222 0

 Tax on Dividend Paid 1350979 706625

Taxes of Earlier Years 19200 2282054

Sub Total 135428211 129606277 117406054

Total 375988811 370117877 356415854

DEFFERED TAX LIABILITIES

Related to Fixed Assets 16 681964 0 0

Total 681964 0 0

Borrowings 17

Secured Loans from Bank-

Repayable on demand

a)Yes Bank Packing Credit

Foreign Currency Loan 19030200 10960554 30797000

(Secured against Fixed Deposits

of the Bank)

b) Yes Bank Over Draft a/c 20105880

(Secured against Fixed Deposits

of the Bank)

Total 19030200 10960554 50902880

TRADE PAYABLE 18
Trade Payable 3353740 8184766 9558556

Total 3353740 8184766 9558556

OTHER FINANCIAL LIABILITIES 19

Other Liabilities 2972367 3246015 4985040

Unclaimed Dividend 4117773 5424858 6491192

Total 7090140 8670873 11476232

OTHER CURRENT LIABILITIES 20

Advance from Customers 14742611 9803333 10289029

14742611 9803333 10289029

PROVISIONS 21

Provisions for Income Tax (Net) 0 2455340 5778052

Provisions for Gratuity 1397300 1540175 958377

Total 1397300 3995515 6736429

2017-18 2016-17

REVENUE FROM OPERATIONS 22

SALES OF PRODUCTS

Export Sales 118913516 197495016

Domestic Sales 109415777 59431964

 Sub Total 228329293 256926980

OTHER OPERATING REVENUE

Focus /VKUY License Transfer 4301123 8557345

Export Incentive & Other

Benefits 1548071 4137625

Exchange Rate
Difference/Forward Contract
Income 3613734 3624364

Sub Total 9462928 16319334

Total 237792221 273246314

OTHER INCOME 23

Interest Income 7283869 9824915

Dividend 850574 873261

Net Gain on Sale of Investment 116950 766787

Profit on sale of fixed Assets 0 26938

Rent 591000 302250

Sundry balance W/Back 267275 0

0 1308976
Interest on Refund of Income
Tax

Misc. Other Income 474743 91670

Total 9584410 13194797

COST OF MATERIAL CONSUMED 24

OPENING STOCK

Raw Material 52149948 40880969

Stores & Consumables 2260010 2649023

Packing Material 3309068 3927655

Sub Total 57719026 47457647

PURCHASES

Raw Material 12477798 17897884

Semi-Finished Goods 128434331 83904647

Packing Material 6437613 7508736

Stores & Consumables 2818639 6113438

Sub Total 150168381 115424705

CLOSING STOCK

Raw Material 31176895 52149948

Stores & Consumables 2142087 2260010

Packing Materials 5940010 3309068

 Sub Total 39258992 57719026

Cost of Material Consumed 168628415 105163325

CHANGES IN INVENTORIES OF
FINISHED GOODS, WORK-IN-
PROGRESS AND STOCK-IN-
TRADE 25

OPENING STOCK

Finished / Semi Finished Goods 51502911 91515558

Export Merchadise in Transit 3973957 3526657

Sub Total 55476868 95042215

CLOSING STOCK

Finished / Semi Finished Goods 101391843 51502911

Export Merchandise in Transit 0 3973957

Sub Total 101391843 55476868

(Increase)/Decrease -45914975 39565347

MANUFACTURING EXPENSES 26

Bead & Handicraft

Manufacturing & Finishing
Expenses 13183681 13905884

Power & Fuel 4394541 5662512

Freight, Custom Duty & Clearing
Exp. 2424659 2200298

Sub Total 20002881 21768694

EMPLOYEE BENEFIT EXPENSE 27

Salaries & Wages 25141328 26908915

Bonus to Employees 3291724 2184792

Provident Fund & ESI 3498065 3416709

EDLI, Training and Gratuity 1846109 2442288

Staff Welfare Expenses 351482 722499

Total 34128708 35675203

FINANCIAL COST 28

Interest paid to bank 729681 683779

Bank Charges 26424 853631

Total 756105 1537410

OTHER EXPENSES 29

EXPORT & SELLING EXPENSES

Foreign Traveling Expenses 7801101 8465684

Export / Local Freight &
Shipping Expenses 7237793 9358488

Trade Fair exp 2334929 1813448

Local Traveling Expenses 1039710 1060285

Sub Total 18413533 20697905

REPAIR & MAINTENANCE

Building 637290 1149253

Machinery 932307 1761637

Vehicle & Others 1237363 2208332

Sub Total 2806960 5119222

ADMINISTRATIVE
EXPENSES

Insurance 946449 1370742

License & Fees 352085 172519

Membership & Subscription 40668 62148

Communication Charges 506650 522685

Conveyance Charges 30451 33973

Printing & Stationery 468073 538423

Professional & Legal

Expenses 1102098 918111
Share Listing, Depository &
Registrar Exp. 625490 752388

Vehicle Running &

Maintenance 631535 732416

Sundry Balances Written

Off 0 1294661

Director Sitting Fees 57000 46000

Postage exp. 215875 183426

Expenses on Corporate
SocialResponsibility 851000 0

Others 1026364 957462

Payment to Auditor

As Auditor 75000 86250

For Tax/VAT Audit Fees 20000 23000

For Income Tax Related

Services Fees 0 29880

For Certification / Quarterly

Review Fees 30000 41400

Sub Total 6978738 7765483

Total 28199231 33582610

Disclosure related to Provisions, Contingent Liabilities/Assetspursuant 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)

(iii) Contingent Liabilities for Taxes and Duties :

Nature of Amount in Remarks

Liability Lacs Rs.

Income Tax 1.47 Appeal filed with Commissioner

for A.Y. appeals has been disposed off on
2015-16 15.05.2018 and major disallowance
has been deleted and the company is
not having liabilities to pay. For part
of disallowance, the company has
decided to file an appeal with ITAT to
get further refund.

Income Tax 37.64 Demand is raised due to apparent

for A.Y. calculation mistake in demand
2014-15 calculation by the department.
Application for rectification of error
has been filed and is pending.

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).
 DETAILS OF TRANSACTIONS

Sl Name Natur Nature of 31.03.2018 31.03.20117 01.04.

. e of Transaction 2016
N Relati
Transa Outsta Transa Outsta Outsta
o on
ction nding ction nding nding

1 Key
Managerial
Personnel

Ashok Direct
Kumar or Remunerati
Gupta 0
(Execu on 24000 0 12000
0
tive) 00 00

Siddharth Direct Remunerati

Gupta or on 16665 16665
0 0 0
(Execu including 60 60
tive) P.F.

Shalini Direct Remunerati

Chandra or on 67200 67200
0 0 0
(Execu including 0 0
tive) P.F.

Ramesh Comp Remunerati

Kumar Singh any on 79488 73522
0 0 0
Secret including 0 4
ary P.F.

Jai Singh Chief Remunerati 49368 0 45024 0 0

 Financ on 0 0
e including
Officer P.F.

2 Independent
Directors

Ashok Indepe
Kumar ndent
Sitting Fees 19000 0 17000 0 0
Kapoor Directo
r

Praveen Indepe
Singh ndent
Sitting Fees 19000 0 12000 0 0
Directo
r

Tanmay Indepe
Deva ndent
Sitting Fees 19000 0 17000 0 0
Directo
r

3 Banaras Share 12368 89586

Sales 0 0 0
Beads holder 03 00
Exports Ltd
76608 30875
Purchase 0 0 0
8 00

Interest 11408
0 79812 0 0
received 2

Loan 10868
0 0 0 0
realised 144
 Advance 10000
0 0 0 0
transaction 0

Sales of 56265
0 0 0 0
Share 00

Temporary 16000 10868

0 0 0
Loan 000 144

4 Banaras Direct 89808 64880

Sales 0 0 0
Glass Beads or and 16 20
Limited shareh
73011 92537
older Purchase 0 0 0
84 28

5 Mathur Truste Expenses 38970 0 44317 0 0

Vaishya Jan e
CSR 85100
Kalyan trust 0 0
expenses 0

6 BBL Beads Direct Share 0 0 87500 87500

0
Limited or and Purchase 0 0
shareh
Rent 0 0 45000 45000
older
Security 0 0

7 Mangalam Direct 0 0
Hospitality or and
0 0 0
India Limited shareh
older

8 R.K. Impex Direct 0

0 0 0 0
Pvt Limited or

9 Nandi Export Direct 0

0 0 0 0
Pvt. Ltd or

1 Banaras Direct 0 0 0 0 0
 0 Beads or and
Business P. shareh
Ltd older

1 Taurus Direct 0 0 0 0
1 Construction or 0
Pvt. Ltd.

1 Omini Direct 0 0 0 0
2 Marketing or and
0
Pvt. Ltd. shareh
older

1 Industrial Direct
3 Auto or and 15120
Expenses 0 43369 0 0
Mobiles & shareh 0
Fuels Ltd. older

1 Sanwaria Direct
4 Trade-Link or
Pvt. Ltd.

1 Ram Mana
5 GulamKanha ging
iya Lal Truste 0 0 0 0 0
Charitable e/Trus
trust tee

1 Kala Prakash 44394

Donation 0 0 0 0
6 Society 8

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.
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.

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

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.

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, As at 31st March, As at 1st April,

2018 2017 2016

Borrowing 19030200 10960554 50902880

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-à-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.

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.

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

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

Details related to investment in quoted equity share.

Name of 31.03.2018 31.03.2017

Company
No. of Face Cost Market No. of Face Cost Market
shares value value shares value value

Pertech 600 10.00 36000 36000 600 10.00 36000 36000

Computers Ltd.

Elbee Services 100 10.00 14000 14000 100 10.00 14000 14000
Ltd.

Kabson Industries 1300 10.00 13000 6721 1300 10.00 13000 6071
Ltd.

Bholanath 300 10.00 6020 6020 300 10.00 6020 6020

 International Ltd.

Ideal Carpets Ltd. 300 10.00 2252 2252 300 10.00 2252 2252

M.P.Telelink Ltd. 500 10.00 5000 5000 500 10.00 5000 5000

Rungta Irrigation 600 10.00 36797 16800 600 10.00 36797 18090
Ltd.

GHCL Ltd. 0 2000 10.00 570696 531900

ICICI Bank Ltd 0 1000 2.00 257759 277100

Benaras Hotels 100 100.00 130241 115000 0 0

Ltd

Total 243310 201793 Total 941524 896433

* 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.

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).

Disclosure related to Income Tax pursuant to Ind As 12:

Major components of tax expenses/income as shown in Statement of Profit and Loss is as below:-

a. Income Tax Expenses

31.03.2018 31.03.2017

Current tax on profits for the year 7150000 10400000

Deferred Tax 2203935 1016797

Income tax expenses recognised in

profit & loss statement 9353935 11416797

a. Reconciliation of Tax expenses and the Accounting profit multiplied by

Indian tax rate:
Profit before tax 23182270 28105699

Corporate tax rate 27.55% 31.96%

Tax on Accounting profit 6387295 8982834

(i) Tax on income exempt from tax

(A) Dividend income 234354 279102

(ii) Tax on expenses not tax deductible:

(A) CSR expenses 234472 0

(B) Donation (50%) 61159 799

 (iii) Tax Effect of Depreciation excess
claimed in books 699800 1658356

Tax Expense (Net) 7148372 10362888

Tax Expense Rounded off & recognised

during the year 7150000 10400000

b. Reconciliation of deferred tax ( assets)/liabilities:

(Rs. )

Sl. Particulars 2017-18 2016-17

No.

(a) Opening balance as at April 1 (1521971) (2538768)

(b) Tax (Income)/expense during the

period recognized in:

(i) Statement of Profit and Loss 2203935 1016797

in Profit or Loss section
(ii) Statement of Profit and Loss 0 0
under OCI section
(iii) Retained earning 0 0

Closing balance as at March 31 681964 (1521971)

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.
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.

2017-2018 2016-2017

Net Profit attributable to shareholders (Rs.) : 13828335

16688902

Weighted average numbers of equity shares : 6636222

6636222

Basic earnings per share of Rs. 10/- each (Rs.) : 2.08

2.51

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.

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.

d. Effect of Ind AS adoption on Balance Sheet as at April 1, 2016.

Particulars I-GAAP Ind AS Ind AS

 Adjustments

ASSETS

Non-current assets

(a) Property, plant and 0

equipment 137777751 137777751

(b) Capital work-in-

progress

(c ) Other intangible
assets 41337 41337

(d) Financial assets

(i) Investments 36661499 36661499

(e) Deferred tax assets

(net) 2538768 2538768

(f) Other non-current 1038767

assets 12901438 13940205

Branch Balance

Current assets

(a) Inventories 142499862 142499862

(b) Financial assets

(i) Trade receivables 13422515 13422515

(ii) Cash and cash -38759

equivalents 2840984 2802225

102493969 102493969
(iii) Other Bank
Balance

(iv) Loans 29104548 29104548

(v) Other Advances 17312965 17312965

(c) Current Tax Assets -13321948

(Net) 25050705 11728757

(d) Other current -1000008

assets 2192307 1192299

TOTAL - -13321948
ASSETS 524838648 511516700

EQUITY AND
LIABILITIES

Equity

(a) Equity Share capital 66137720 66137720

(b) Other equity 355709229 706625 356415854

LIABILITIES

Non-current liabilities

(a) Deferred tax

Liabilities (Net) 0 0

Current liabilities

(a) Financial liabilities

(i) Borrowings 50902880 50902880

(ii) Trade Payable 9558556 9558556

11476232 11476232
(iii)Other financial
liabilities

(b) Other current -12434609

liabilities 22723638 10289029

(c )Provisions 19806625 -13070196 6736429

TOTAL - EQUITY AND -13321948

IABILITIES 524838648 511516700

e. Effect of Ind AS adoption on Balance Sheet as at March 31, 2017

Particulars I-GAAP Ind AS Ind AS

Adjustments

ASSETS

Non-current assets

(a) Property, plant and

equipment 126052811 126052811

(b) Capital work-in-

progress

(c ) Other intangible
assets 41337 41337

(d) Financial assets

(i) Investments 31909954 31909954

(e) Deferred tax assets

(net) 1521971 1521971

0 1046767 1046767
(f) Other non-current
assets

Branch Balance

Current assets

(a) Inventories 113195895 113195895

(b) Financial assets

(i) Trade receivables 7155577 7155577

(ii) Cash and cash -8438

equivalents 23459953 23451515

(iii) Other Bank

Balance 103315529 103315529

(iv) Loans 54927771 54927771

(v) Other Advances 11531912 11531912

(c) Current Tax Assets -7944660

(Net) 10491345 2546684

(d) Other current assets 2511744 -1038329 1173415

TOTAL - -7944660
ASSETS 485815798 477871138

EQUITY AND LIABILITIES

Equity

(a) Equity Share capital 66138220 66138220

(b) Other equity 362130676 7987201 370117877

LIABILITIES
 Non-current liabilities

(a) Deferred tax

Liabilities (Net) 0 0

Current liabilities

(a) Financial liabilities

(i) Borrowings 10960554 10960554

(ii) Trade Payable 8184766 8184766

(iii)Other financial -1540175

liabilities 10211048 8670873

(b) Other current

liabilities 9803333 9803333

(c )Provisions 18387201 -14391686 3995515

TOTAL - EQUITY -7944660

ANDLIABILITIES 485815798 477871138

f. Reconciliation between Financial Results as previously reported under

previous GAAP and IND AS for the year 2016-17-

(Rs. In lacs).

Net Profit under previous

GAAP 166.89

Net Profit under IND AS 166.89

g. Reconciliation of Equity as previously reported under

previous GAAP and IND AS (Rs. In lacs)
Particulars
 31.03.2017 01.04.2016

i) Equity

Equity as per previous

GAAP 661.38 661.38

Equity as per IND AS 661.38 661.38

i) Other Equity

Other Equity as per

previous GAAP 3621.31 3557.09

Proposed Dividend and

related distribution Tax 79.87 7.07

Other Equity as per IND AS 3701.18 3564.16

Total Equity and Other Equity as

per IND AS 4362.56 4225.54

h. 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.

Remuneration to Directors and Key Managerial Personnel :

Current Year (Rs.) Previous Year (Rs.)

A. Chairman & Managing Director (Ashok Kumar Gupta)

Salaries 2400000 1200000

 Contribution to Provident Fund 0 0

B CEO & Managing Director (Siddharth Gupta)

Salaries 1488000 1488000

Contribution to Provident Fund 178560
178560

C. Executive Director (Shalini Chandra)

Salaries 600000 600000

Contribution to Provident Fund 72000
72000

D. Chief Finance Officer (Jai Singh)

Salaries 444000 402000

Contribution to Provident Fund 49680
48240

E. Company secretary (R.K. Singh)

Salaries & Allowances 720000 666200

Contribution to Provident Fund 74880
69024

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.

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.
 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.
 PROJECT REPORT ON INVENTORY MANAGEMENT
INTRODUCTION

Inventory management is a discipline primarily about specifying the shape and placement of stocked

goods. It is required at different locations within a facility or within many locations of a supply

network to precede the regular and planned course of production and stock of materials.

The concept of inventory, stock or work-in-process has been extended from manufacturing systems

to service businesses and projects, by generalizing the definition to be "all work within the process

of production- all work that is or has occurred prior to the completion of production." In the context

of a manufacturing production system, inventory refers to all work that has occurred – raw

materials, partially finished products, finished products prior to sale and departure from the

manufacturing system. In the context of services, inventory refers to all work done prior to sale,

including partially process information.

 DEFINING INVENTORY

Inventory is an idle stock of physical goods that contain economic value, and are held in various
forms by an organization in its custody awaiting packing, processing, transformation, use or sale in a
future point of time.

Any organization which is into production, trading, sale and service of a product will necessarily hold
stock of various physical resources to aid in future consumption and sale. While inventory is a
necessary evil of any such business, it may be noted that the organizations hold inventories for
various reasons, which include speculative purposes, functional purposes, physical necessities etc.

From the above definition the following points stand out with reference to inventory:

 All organizations engaged in production or sale of products hold inventory in one form or
other.
 Inventory can be in complete state or incomplete state.
 Inventory is held to facilitate future consumption, sale or further processing/value addition.
 All inventoried resources have economic value and can be considered as assets of the
organization.
 CONCEPT OF INVENTORY MANAGEMENT

Inventory management and supply chain management are the backbone of any business operations.
With the development of technology and availability of process driven software applications,
inventory management has undergone revolutionary changes. In the last decade or so we have seen
adaptation of enhanced customer service concept on the part of the manufacturers agreeing to
manage and hold inventories at their customers end and thereby effect Just In Time deliveries.
Though this concept is the same in essence different industries have named the models differently.
Manufacturing companies like computer manufacturing or mobile phone manufacturers call the
model by name VMI - Vendor Managed Industry while Automobile industry uses the term JIT - Just
In Time where as apparel industry calls such a model by name - ECR - Efficient consumer response.
The basic underlying model of inventory management remains the same.
 OBJECTIVES OF INVENTORY MANAGEMENT

The following of inventory management are mentioned below:

1. To regular supply of material: there should be a continuous availability of materials in the factory

of finished goods for trade. The main objective of inventory management is to maintain required so

that production and sales process run smoothly.

2. To minimization of over stocking: if a company keeps inventory without proper analysis, there

will be a chance of overstocking, which will increase the cost of carting the inventories or under

stocking of inventories that create problem in smooth operation of a business. So one of the main

objectives of the inventory management is to minimize the risk caused due to under and over

stocking of inventory.

3. To reduce material losses: inventory management aims to reduce or remove the losses and

misappropriation of materials. This is done by maintaining the proper stock of materials with utmost

care.

4. To maintain systematic record of inventory: management needs different information regarding

inventories for planning and decision-making. A systematic record of inventory helps provide such

information to the management. It also assists to evaluate the current inventory management

policy.

5. To minimize the costs: the proper maintenance of the in formation regarding inventories helps to

make decision like whether to take discounts or not discount or not, the size of order to be placed,

when to order etc. the total costs associated with inventory may be minimized by analyzing the lot

size to be acquired, the offer of discount on various lot size and the timing of order.
 TYPES OF INVENTORIES

Following are the important types of inventory:

1. Raw material: raw material is a very important and inevitable factor of production. It includes

physical commodities used to manufacture the final product.

2. Work-in-progress: work in progress inventories are semi-manufactured products, the products

that need more work before they are converted to finished products for sales. In other words, goods

partially worked on but not fully completed are called work in progress.

3. Finished goods: inventories of finished products are the stock of goods which are ready for sales.

Stock of finished goods is required for smooth marketing operations of the products.
 REASONS OR MOTIVE OF HOLDING INVENTORIES

The main reason or motive of holding inventory is to supply the required quantity of inventory to

different departments as needed so that production/ sales process does not get hampered. The

motives or reasons of holding inventory are:

1. Transaction motive: the manufacturing concerns need inventories of raw material and work in

progress so as to maintain regular production activities. Similar, the trading organization needs the

inventories of finished goods for supplying the goods and services to the customers' regularly. In this

way, holding of inventory helps to have regular transactions.

2. Precautionary motive: due to different reasons, like shortage of inventory with the supplier, weak

relation with the supplier, disturbances in transportation, delay in inventory supply etc. might take

place. It is also an important objective of holding the inventory to take precaution from the above.

3. Speculative motive: generally the price of inventories rise, so the companies may keep additional

amount of inventory to get benefit by selling the surplus inventory at higher price that purchase

price. It crates risk when the of inventory falls.

 COMPONENTS OF INVENTORY COSTS
Inventory costs are basically categorized into three headings:

1. Ordering Cost
2. Carrying Cost
3. Shortage or stock out Cost & Cost of Replenishment
a. Cost of Loss, pilferage, shrinkage and obsolescence etc.
b. Cost of Logistics
c. Sales Discounts, Volume discounts and other related costs.

1. Ordering Cost

Cost of procurement and inbound logistics costs form a part of Ordering Cost. Ordering Cost is
dependant and varies based on two factors - The cost of ordering excess and the Cost of
ordering too less.

Both these factors move in opposite directions to each other. Ordering excess quantity will
result in carrying cost of inventory. Where as ordering less will result in increase of
replenishment cost and ordering costs.

These two above costs together are called Total Stocking Cost. If you plot the order quantity
vs the TSC, you will see the graph declining gradually until a certain point after which with
every increase in quantity the TSC will proportionately show an increase.

This functional analysis and cost implications form the basis of determining the Inventory
Procurement decision by answering the two basic fundamental questions - How Much to
Order and When to Order. How much to order is determined by arriving at the Economic
Order Quantity or EOQ.

2. Carrying Cost

Inventory storage and maintenance involves various types of costs namely:

 Inventory Storage Cost

 Cost of Capital
 Inventory carrying involves Inventory storage and management either using in house facilities
or external warehouses owned and managed by third party vendors. In both cases, inventory
management and process involves extensive use of Building, Material Handling Equipments, IT
Software applications and Hardware Equipments coupled managed by Operations and
Management Staff resources.

c. Inventory Storage Cost

Inventory storage costs typically include Cost of Building Rental and facility
maintenance and related costs. Cost of Material Handling Equipments, IT Hardware and
applications, including cost of purchase, depreciation or rental or lease as the case may
be. Further costs include operational costs, consumables, communication costs and
utilities, besides the cost of human resources employed in operations as well as
management.

d. Cost of Capital

Includes the costs of investments, interest on working capital, taxes on inventory paid,
insurance costs and other costs associate with legal liabilities.

The inventory storage costs as well as cost of capital isdependant upon and varies with
the decision of the management to manage inventory in house or through outsourced
vendors and third party service providers.

Current times, the trend is increasingly in favor of outsourcing the inventory management to third
party service provides. For one thing the organizations find that managing inventory operations
requires certain core competencies, which may not be inline with their business competencies. They
would rather outsource to a supplier who has the required competency than build them in house.

Secondly in case of large-scale warehouse operations, the scale of investments may be too huge in
terms of cost of building and material handling equipments etc. Besides the project may span over a
longer period of several years, thus blocking capital of the company, which can be utilized into more
important areas such as R & D, Expansion etc. than by staying invested into the project.
 INVENTORY CLASSIFICATION

1. ABC Analysis: ABC analysis is a business term used to define an inventory categorization
technique often used in materials management. It is also known as ‘Selective Inventory
Control. ’ABC analysis provides a mechanism for identifying items which will have a
significant impact on overall inventory cost whilst also providing a mechanism for
identifying different categories of stock that will require different management and
controls .When carrying out an ABC analysis, inventory items are valued (item cost
multiplied by quantity issued/consumed in period) with the results then ranked. The
results are then grouped typically into three bands. These bands are called ABC codes.
2. HML Classification: The High, medium and Low (HML) classification follows the same
procedure as is adopted in ABC classification. Only difference is that in HML, the classification
unit value is the criterion and not the annual consumption value. The items of inventory
should be listed in the descending order of unit value and it is up to the management to fix
limits for three categories. The HML analysis is useful for keeping control over consumption at
departmental levels, for deciding the frequency of physical verification, and for controlling
purchases. Procurement department is more concerned with prices of materials so this
analysis helps them to take them the decisions such as, who will procure what based on the
hierarchy and price of material.

3. VED Classification: While in ABC, classification inventories are classified on the basis of their
consumption value and in HML analysis the unit value is the basis, criticality of inventories is
the basis for vital, essential and desirable categorization. The VED analysis is done to
determine the criticality of an item and its effect on production and other services. It is
specially used for classification of spare parts.

4. SDE Classification: The SDE analysis is based upon the availability of items and is very useful in the
context of scarcity of supply. In this analysis, items, generally imported, and those which are in short
supply. It refers to difficult items which are available indigenously but are difficult items to procure.
Items which have to come from distant places or for which reliable suppliers are difficult to come by
fall into category. It also refers to items which are easy to acquire and which are available in the local
markets.The SDE classification, based on problems faced in procurement, is vital to the lead time
analysis and in deciding on purchasing strategies.
 5. FSN Classification: FSN stands for fast moving, slow moving and non-moving. Here,
classification is based on the pattern of issues from stores and is useful in controlling
obsolescence. To carry out an FSN analysis, the date of receipt or the last date of issue,
whichever is later, is taken to determine the number of months, which have lapsed since the last
transaction. The items are usually grouped in periods of 12 months.FSN analysis is helpful in
identifying active items which need to be reviewed regularly and surplus items which have to be
examined further. Non-moving items may be examined further and their disposal can be
considered.

6. SOS Analysis: ‘S’ stands for Seasonal items and ‘OS’ stands for off-seasonal items. It may be
advantageous to buy seasonal items at low prices and keep inventory or buy at high price during
off seasons. Based on the fluctuation in prices and availability, suitable decision has to be taken
regarding how much to purchase and at what prices.

7. XYZ Analysis: XYZ analysis is calculated by dividing an item's current stock value by the total
stock value of the stores. The items are first sorted on descending order of their current stock
value. The values are then accumulated till values reach say 60% of the total stock value. These
items are grouped as 'X'. Similarly, other items are grouped as 'Y' and 'Z' items based on their
accumulated value reaching another 30% & 10% respectively. The XYZ analysis gives an
immediate view of which items are expensive to hold.
8. GOLF Analysis: This stands for Government, Open market, Local or Foreign source of supply.
For many items imports are canalized through government agencies such as State Trading
Corporations, Mineral and Metals Trading Corporations, Indian Drugs and Pharmaceuticals
etc. For such items, the buying firms cannot apply any
inventory control techniques and have to accept the
quota allotted by the Government. ‘Open market’
categories are those who form bulk of suppliers and
procurement is rather easy. ‘L’ category includes those local suppliers from whom items can be
purchased off the – shell on cash purchase basis. ‘F’ category indicates foreign suppliers. Since an
elaborate import procedure is involved, it is better to buy imported items in bigger lots usually
covering the annual requirements.

9. Economic Order Quantity: Economic order quantity is the level of inventory that minimizes the
total inventory holding costs and ordering costs. It is one of the oldest classical production
scheduling models. The framework used to determine this order quantity is also known as Wilson
EOQ Model or Wilson Formula. The model was developed by F. W. Harris in 1913. But still
R.H.Wilson, a consultant who applied it extensively, is given credit for his early in-depth analysis of
the model.
 RESEARCH METHODOLOGY

The data has been gathered through interaction and discussions with the executives working in
the division. Some important information has been gathered through couple of unstructured
interviews of
executive. Annual reports and other magazines published by the company are used for collecting
the
required information.

OBJECTIVE OF THE STUDY

 To study about the ordering levels for the important components of inventory.
 To understand and measure economic order quantity for the selected raw material
items.
 To analyze its inventory management methods with the help of ABC analysis, VED
analysis etc.
 To evaluate the inventory management practices of BANARAS BEADS LIMITED.
 To offer suitable suggestions for the improvement of inventory management
practices.
 STUDY OF THE PROJECT

Inventory management is a simple concept-don’t have too much stock and don’t have too little.
Since there can be a substantial costs involved in staying above and below the optimal range, careful
inventory management can make a huge difference in the right balance can be quite a complex and
time consuming task without the right technology. Inventory management is very important for
“BANARAS BEADS LTD”. It enables the business to meet or exceed expectations of the customers by
making the products readily available/
The scope of the study includes the ABC Analysis of Raw Materials, work in progress and finished
goods for four financial years. This study provides insight to the management of high value items
and also brings attention of management towards movement of ‘A’ class items over period of 4
years.

LIMITATIONS OF THE STUDY

 Detail study about all the material was not possible because of time limit.

 Some of the information was kept confidential by the stories department.

 Study was confined only to the selected components in the stores department.
 SIGNIFICANCE OF THE STUDY

The findings of the study will provide well–researched information, which can be useful to
researchers for academic purposes in the area of inventory management. To the stores and
Procurement department staff, the study hopes to provide them with useful information like the
recommended techniques of inventory control so as to meet their customer‟s and organization‟s
needs. To the firm‟s management, the recommendations of the study may enable them to design
inventory management policies to improve the smooth running of the firm, thereby satisfying
customers and generally minimizing costs.
 CONCLUSION AND SUGGESTIONS

CONCLUSION

• Despite the difficult conditions in the market the company continued to be on the growth path, both
in terms of volume and revenue.

• In the year 2012-13 working capital decreased because of increased the expenses as manufacturing
expenses as manufacturing expenses and increase the price of raw material as increased in inflation
rate.

• Current Assets are more than current liabilities indicate the company used long term funds for short
term requirement, where long term funds are most costly than short term funds.

• Positive working capital indicates that company has the ability of payments of short term liabilities.

SUGGESTION:

• The company has to steps to counter the raising input cost and domestic competition through cost
reduction, rationalization of products and distribution channels, judicious inventory management
and research and development.

• As China has become a part of world Trade Organisation, which can hamper the indian beads
market, the company has to leverage a strong brand in the international market.

• Company should raise funds through short term sources for short term requirement of funds, which
comparitevely economical as compare to long term funds.
 OVERALL OPINION

It has maintain the number one position in beads in India as well as second in Asia,
which shows the better position in beads market. Company has accepted conservative
financial policy, good availability of credibility among customers and suppliers and it has
good liquidity position and sufficient funds to repayment of li abilities.

“I wish the growth and bright future of the company in the area of Beads”
 QUESTIONNAIRE
Internal Control Questionnaire

Remark
Question Yes No N/A s

A university should establish policies to ensure proper

accounting, reporting, and safeguarding over inventory.
Inventory records need to be maintained to record
purchases and issues from stock. Perpetual inventory
records are updated immediately and represent the
quantity on hand, unit cost, and total cost. Periodic
inventory systems record the beginning balance and are
updated at the end of each fiscal year as determined by a
physical inventory.

1. Are policies and procedures current, in writing,

and properly approved?

2. Are these policies and procedures clearly

stated and systematically communicated?
3. Do these policies and procedures support internal control?

4. *Are receiving, issuing, accounting and storing

responsibilities properly segregated?

5. *Has management taken the appropriate steps to

safeguard goods against risk of loss by theft (e.g.,
goods kept in locked buildings, rooms, or cages, access
to which is granted only to authorized personnel)?

6. Are inventory records reconciled (and differences

explained) to Advantage reports on a regular basis?
(Current inventory is adjusted at year-end by fiscal
year-end physical counts.)

7. *Do departments compare quantities received

against receiving reports, etc.?

8. *Is material released from storerooms only on the

basis of requisitions which are approved by a
responsible official of the department?

9. *Is adequate provision made for obsolete and

inactive items in inventories?
 Remark
Question Yes No N/A s

10. *Does management monitor and approve the

write-offs of obsolete and inactive inventories?

11. Where details are kept as to value, are they

reconciled to general ledger controls at reasonable
intervals (at least annually)?

12. *Are all classes of inventory items physically counted

annually (triennially if there are perpetual records)?

13. *Do procedures for physical counts provide for:

a. Adequate written instructions?

b. Adequate supervision?
c. Clearly marking damaged and obsolete inventory?

d. Use of pre-numbered tags which are accounted for?

e. The counting of the items and access to the

tags only by employees who are not
responsible for custody of the particular
items?

f. The rechecking of counts and descriptions

(dual counts) where perpetual records are not
maintained and where variations from the
perpetual records are significant?

g. Careful investigation of significant overages and shortages?

h. Prompt adjustment of records for inventory

discrepancies after approval by a responsible
official other than stores personnel?
i. Recording counts on permanent inventory count sheets?

j. The signing and dating of inventory count

sheets by the person supervising the count?

k. Properly accounting for goods that are consigned in and out?

 Remark
Question Yes No N/A s

14. *Does management review the reconciliation

of physical inventory counts to the inventory
records?

15. Are adequate provisions made for cut-off of receipts and issues?

16. If applicable, are issuing and billing procedures

designed and correlated so as to ensure the billing
of all items?

17. Is there physical segregation and proper accounting

control of merchandise on hand that is not property
of the entity?

18. Is adequate insurance coverage provided?

Questions 19, 20, 21, 22, 23, and 24 apply only to
Perpetual Inventory Systems)

19. Are detailed perpetual inventory records periodically

reviewed for slow-moving items?

20. Is a perpetual inventory system (including quantities

and value) in use as to all major classes of inventory?

21. Are perpetual inventory records updated promptly?

22. Are the postings to the perpetual inventory

records made promptly from:

a. Pre-numbered, signed receiving reports?

 b. Issue requisitions?

23. Are additions to perpetual inventory records

referenced to supporting invoices to insure easy
verification of the records?

24. Are inventories taken without prior reference to

quantities on perpetual records?

25. *Are discrepancies between physical counts and

perpetual records investigated and resolved?
 Remark
Question Yes No N/A s

26. Does internal control appear

adequate for the inventory
system overall?

Other remarks concerning the evaluation of internal control for

inventories:

* Question was designed to help identify risk

factors that could result in errors, fraud,
irregularities and/or illegal acts. When the question
is answered “NO”, the risk factor identified should
be considered when analyzing the department’s
operations, and the completed questionnaire
should be forwarded to Financial Controls.
 BIBLIOGRAPHY

ANNUAL REPORT ,Banaras Beads limited-32nd-33nd

www.banarasbeads .com

www.google.com

M.Y. Khan” Financial Management”