Banaras beads Limited has forfeited 38,700 partly paid-up equity shares belonging to 387 shareholders who failed to meet payment obligations despite multiple reminders. The forfeiture was approved by the Board of Directors in their meeting held on January 29, 2026.

Share Forfeiture Details

The company had issued a Second Final Reminder cum Forfeiture Notice dated December 1, 2025, giving shareholders until December 25, 2025, to pay their outstanding allotment and call money including premium amounts. Despite this final notice, 387 shareholders failed to make the required payments.

Notice Process and Timeline

The forfeiture process followed a structured timeline with multiple notices issued to shareholders:

• First Final Reminder cum Forfeiture Notice: July 10, 2025
• Second Final Reminder cum Forfeiture Notice: December 1, 2025
• Payment Deadline: December 25, 2025
• Board Forfeiture Decision: January 29, 2026
• Forfeiture Notice to Shareholders: February 2, 2026

The company has now sent formal forfeiture notices by registered post to all affected shareholders, informing them that their shares have been forfeited along with any amounts already paid.

Legal and Regulatory Compliance

The forfeiture was conducted in accordance with The Companies Act, 2013, and the company's Articles of Association. Banaras Beads Limited has informed both BSE Limited and National Stock Exchange of India about the forfeiture under Regulation 30 of SEBI LODR Regulations.

The company has cancelled all forfeited shares and warned that it will not be responsible for any transactions involving these shares. According to the forfeiture terms, all interest, claims, and demands against the company in respect of the forfeited shares have been extinguished.

Company Background

Banaras Beads Limited is an export house recognized by the Government of India and an ISO certified company. Established in 1940, the company manufactures and exports various types of beads, fashion jewelry, and accessories. The company is headquartered in Varanasi and has been listed on Indian stock exchanges.

Banaras Beads Limited announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating resilient performance amid challenging market conditions. The Varanasi-based manufacturer and exporter of beads, handicrafts, and fashion jewelry reported improved quarterly profitability despite facing headwinds in its key US market.

Quarterly Financial Performance

The company delivered strong quarterly results with net profit rising 15.88% year-on-year. Revenue from operations also showed robust growth, increasing by over one-third compared to the same quarter in the previous year.

Nine-Month Performance Analysis

While quarterly results showed positive momentum, the nine-month performance reflected market challenges. Revenue from operations for the nine months ended December 31, 2025, declined to Rs 1897.86 lakh from Rs 2436.61 lakh in the corresponding period of the previous year, representing a 22.11% decrease.

Operational Highlights

The company's cost management initiatives showed positive results during the quarter. Cost of materials consumed decreased to Rs 266.01 lakh from Rs 232.07 lakh, while employee benefit expenses increased to Rs 153.92 lakh from Rs 126.44 lakh in Q3FY25. Finance costs rose to Rs 29.66 lakh compared to Rs 17.85 lakh in the previous year quarter.

Market Challenges and Outlook

Banaras Beads Limited highlighted specific challenges in its key export market. The company noted that US-based buyers have held orders due to increased tariffs imposed by the US Government. However, management emphasized that no orders have been cancelled by these buyers, and negotiations with US-based customers are ongoing.

Corporate Governance and Compliance

The financial results were reviewed by the audit committee and approved by the board of directors in a meeting held on January 29, 2026. The company's statutory auditors, G D Dubey & Associates, conducted a limited review of the results without any qualifications or adverse remarks. During the quarter, four complaints were received from shareholders, SEBI, and others, with no complaints remaining unresolved as of December 31, 2025.

Business Operations

The company operates as a recognized export house by the Government of India, specializing in manufacturing and exporting glass beads, handicrafts, and related items. All business activities fall under one segment, with main commercial operations based in Varanasi. The company maintains ISO certification and serves both domestic and international markets through its established distribution network.