35. Expenditure on Corporate Social Responsibility(CSR):

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

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

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

As Lessor:-

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

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

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

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

As Lessee :

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

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

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

38. Disclosure related to Financial Instruments:

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

i) Foreign exchange rate risk:

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

ii) Interest rate risk:

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

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

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

iii) Liquidity risk management:

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

iv) Credit risk management:

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

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

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

vii) Detail of non current investments-

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

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

viii) Details of current investments:

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

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

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

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

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

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

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

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

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

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

42. Earnings per share:

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

43. Separate Financial Statements:

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

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

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

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

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

51. PENDING PETITION WITH NCLT/OTHERS:

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

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

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

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

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

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

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

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

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

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

of Layers) Rules’2017.

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

61. UTILISATION OF BORROWED FUND AND SHARE PREMIUM

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

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

62. DIVIDEND DECLARED BY THE COMPANY:

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

63. MISCELLANEOUS NOTES ON ACCOUNTS

i) Disclosure Related to MSMED Act 2006-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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