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Notes to Accounts of Asian Granito India Ltd.
Mar 31, 2025
a) Investment In Equity Instrument of Associate
During the year, Company has made further investment of ''125.00 Lakhs (Previous year - ''125.00 Lakhs) in
the Nepovit Ceramic Pvt Ltd against which 2,00,000 shares of 100 Nepalese''s rupees each has been issued.
b) Investment In Equity Instrument of Subsidiaries
1 During the year, the Company has made capital contribution of ''99.76 Lakhs in the newly Incorporated LLP namely AGL Stones LLP on 04 June, 2024 with entitling 50.90% share of Profit and losses and carrying 50% voting rights.
2 During the year, the Company has made investment of 29,99,700 TBH in wholly owned subsidiary company namely Harmony Surfaced Thailand Limited incorporated on 18 June, 2024 in Thailand and against that 29,997 equity shares of 100 TBH each has been issued.
3 During the year, the Company has made investment of 5,00,000 GBP in wholly owned subsidiary company namely Klyn AGL Limited incorporated on 16 May, 2024 in UK and against that 5,00,000 equity shares of 1 GBP each has been issued.
4 During the previous year, the Company has incorporated Wholly owned subsidiary namely Affil Ceramics Limited, Adicon Ceramics Limited, Crystal Vitrified Limited and Ivanta Ceramic Limited on 23 March, 2023, 24 March, 2023, 23 March, 2023 and 23 March, 2023 respectively having its paid-up equity share capital of 10,000 equity shares of ''10 each.
5 During the previous year, the Company has made investment of 1,000 USD in wholly owned subsidiary company namely AGL Surfaces INC. incorporated on 18 August, 2022 in USA and against that 100 equity shares of 10 USD each has been issued.
6 During the previous year, the Company has made investment of 3,00,000 AED in wholly owned subsidiary company namely Harmony Surfaces Marbles TR LLC S P incorporated on 11 May, 2023 in Sharjah and against that 100 equity shares of 3,000 AED each has been issued.
c) Investment In Debentures of Subsidiaries
1 During the previous year, the Company has made investment of ''18,83727 Lakhs in wholly owned subsidiary company namely Future Ceramic Private Limited and against that 18,83,72,750 number of debentures of 0% compulsorily convertible debenture of ''10 each within 10 year tenor has been issued.
2 During the previous year, the Company has made investment of ''6,025.53 Lakhs in wholly owned subsidiary company namely AGL Sanitaryware Private Limited and against that 6,02,55,280 number of debentures of 0% compulsorily convertible debenture of ''10 each within 10 year tenor has been issued.
(a) On 04 February, 2022 the Board of Directors of the Company had approved the Offer and Issuance of equity shares of the Company (the "Equity Shares") for an amount upto ''42,21746 Lakhs by way of a rights issue to the eligible equity shareholders of the Company as on the record date, i.e. 12 April, 2022, in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, subject to such approvals, as may be required under the applicable laws ("Rights Issue"). Further, the Board constituted Rights Issue Committee, which has been authorised to decide the pricing of the issue, ratio, record date, appointment of monitoring agency and other things as may be required in accordance with the applicable laws.
The Rights Issue Committee on account of above constitution and powers given by the Board approved the issue of 6,99,93,682 equity shares of face value of ''10 each (the "Rights Issue Shares") at a price of ''63/- per Rights Equity Shares (including premium of ''53/- per Rights Equity Share) in the ratio of 37:30, i.e. 37 Rights Equity Shares for every 30 existing Equity Shares held by the eligible equity shareholders as on the record date,
i.e. 12 April, 2022. The issue was oversubscribed and the Company received bids for 8,88,24,321 number of Rights Equity shares. On 16 May, 2022, the Rights Issue Committee of the Board of Directors of the Company approved the allotment of 6,99,93,682 equity shares of face value ''10/- each to the eligible equity shareholders as fully paid up.
The expenses related to rights issue will be adjusted with the security premium account, and there is no rights issue related expenses debited to profit and loss account.
13.2 Terms/Rights attached to Equity Shares
The Company has one class of shares referred to as Equity shares having face value of ''10/- per share.
(a) Equity Shares
In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive any of the residual assets of the Company, after distribution of all preferential amounts and Preference shares. The distribution will be in proportion to the number of Equity shares held by the Shareholders. Each holder of Equity shares is entitled to one vote per share.
(b) Dividend
The Company has not declared any dividend for the financial year ended 31 March, 2025.
14.1 Nature and purpose of other reserves:
(a) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
(b) General Reserve
General Reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes.
(c) Retained Earnings
The amount of retained earning includes the component of other comprehensive income, which cannot be distributed by the Company as dividends to its equity shareholders. Balance amount is available for distribution to equity share holders.
(d) Capital Reserve
The capital reserve is created through forfeiture of shares warrants, shares, revaluation of existing assets, the redemption of preference shares and accumulated capital surplus not available for distribution of dividend.
(e) Preferential Share Warrants
After receiving in principal approval from the Stock Exchanges and from Shareholders, the Company has offered 2,03,00,000 "Fully Convertible Warrants" at price of ''48.15/- each (at a face value of ''10/- each and Premium of ''38.15/- Per Convertible Warrant) to the Promoter, Promoter Group and Non-Promoter category in one or more tranches for the below objective:
i. To fund capital requirements for future growth of the Company;
ii. To meet long term and short term working capital requirement of the Company and its subsidiaries;
iii. To repay debt of the Company and its Subsidiary Companies; and
iv. To meet General Corporate Purpose.
14.2 Dividend:
The Company has not declared any dividend for the financial year ended 31 March, 2025.
a) Term Loan ''1,850.00 Lakhs (Previous Year ''Nil) are secured by way of Movable Fixed Assets - Exclusive charge on all equipment set up for 8 MW solar panel, Immovable Fixed Assets - Exclusive charge on land on which solar panel will be installed by way of negative lien or Extension on existing factory land and building for solar term loan to be done if mortgage is not created on Solar land within 120 days of first disbursement. Also Term Loan is secured with Personal Guarantee of Directors and property owners of Solar land.
Term loan from bank carries interest rate 8.70% p.a. and are repayable over a tenor of 84 months with moratorium of 12 months and 72 monthly repayments.
b) Working capital loans of ''10,481.34 Lakhs (Previous Year ''5,225.50 Lakhs) are secured by way of hypothecation over current assets including raw materials, stock in process, finished goods, receivable and other current assets of vitrified/wall/marble division (Dalpur unit) and Ceramic division (Idar unit) of the Company.
c) The sanction facilities have been secured by the personal guarantees of directors of the Company more specifically spelt out in related Sanction Letter from the Banks.
d) Vehicle loans of ''153.11 Lakhs (Previous Year ''255.02 Lakhs) are secured by hypothecation of vehicles in favour of Bank. Each Vehicle loans consist of 60 equal monthly installments from the date of disbursement.
(e) Borrowings secured against current assets
Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.
(f) The working capital facilities have been availed interest rate at 8.00% to 8.50% (Previous Year 8.10% to 9.89%) from April''2024 to March''2025.
Pursuant to the latest amendments in the Finance (No. 2) Act 2024, long term capital gain tax rate was changed from 20% plus surcharge and cess (with indexation) to 12.5% plus surcharge and cess (without indexation). In accordance with the said amendments, the deferred tax asset has been reduced as a cumulative one-time impact while computing the profit after tax for the year ended 31 March, 2025. It is to be noted that only a provision is being made in the books of accounts to record the Deferred Tax in line with the applicable accounting standards and recently enacted tax rate change.
b) Measurement of fair values:
(i) Investments in Associate, Joint Venture and Subsidiaries:
Investments in Associate, Joint Venture and Subsidiaries have been accounted at cost. Since these are scoped out of Ind AS 109 for the purposes of measurement, the same have been disclosed at cost in the tables above.
(ii) Financial Instrument measured at Amortised Cost:
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are reasonable approximation of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
(iii) Levels 1, 2 and 3
Level 1 : It includes Investment in equity shares and mutual fund that has a quoted price and which are actively traded on the stock exchanges. It is been valued using the closing price as at the reporting period on the stock exchanges.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
(iv) There have been no transfers between Level 1 and Level 2 during the years.
32 Corporate Social Responsibility Expenditure
As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company. The funds are utilised on the activities which are specified in Schedule VII of the Companies Act, 2013. The utilisation is done by way of contribution towards various activities.
The Company''s financial liabilities comprise mainly of borrowings, trade, other payables and financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company monitors the risk as per risk management policy. Further The Audit Committee has additional oversight in the area of financial risks and controls.
The following disclosures summarize the Company''s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the Company comprises two types of risks: interest rate risk and currency risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and loans.
Within the various methodologies to analyze and manage risk, Company has implemented a system based on "sensitivity analysis" on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:
- a parallel shift of 100-basis points of the interest rate yield curves in major currencies.
- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all currencies by 5%
The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit and loss may differ materially from these estimates due to actual developments in the global financial markets.
The analyses exclude the impact of movements in market variables on the carrying values of gratuity, pension and other post-retirement obligations and provisions.
The following assumption has been made in calculating the sensitivity analysis:
The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March, 2025 and 31 March, 2024.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company seeks to mitigate such risk by maintaining an adequate proportion of floating and fixed interest rate borrowings. As at 31 March, 2025, approximately 16.10% of the
Company''s borrowings and other financial liabilities are at fixed rate (31 March, 2024 : 26.44%). Summary of financial assets and financial liabilities has been provided below:
Interest rate sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. The following table demonstrates the sensitivity of floating rate financial instruments to a reasonably possible change in interest rates. The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business in foreign currencies (primarily USD, EUR, GBP and AED). Consequently, the Company has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company manages its foreign currency risk by following policies approved by board as per established risk management policy. The carrying amounts of the Company''s foreign currency denominated monetary items are as follows:
Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR, GBP and AED rates to the functional currency of respective entity, with all other variables held constant. The Company''s exposure to foreign currency changes for all other currencies is not material. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.
(b) Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables and other financial assets including deposits with banks. Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management.
Other financial assets
This comprises mainly of deposits with banks and other intercompany receivables. Credit risk arising from these financial assets is limited.
Trade receivables
Customer credit risk is managed by each business unit subject to the Company''s established policy and procedures. Trade receivables are non-interest bearing and generally have a credit period not exceeding 90 days. Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.
The Company has used practical expedient by computing the expected credit loss allowance for doubtful trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking estimates. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates used in the provision matrix. In calculating expected credit loss, the Company has also considered credit information for its customers to estimate the probability of default in future.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties.
(c) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing from both banks and financial institutions at an optimised cost.
The table below analysis non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed under the ageing buckets are the contractual undiscounted cash flows and includes contractual interest payments.
For the purpose of the Company''s capital management, capital includes paid-up equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as level of dividends to equity share holders.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using Debt-Equity ratio, which is net debt divided by total equity. The Company''s policy is to keep the net debt to equity ratio below 2. The Company includes within net debt, interest bearing loans and borrowings, less cash and short-term deposits.
In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March, 2025 and 31 March, 2024.
a) Defined contribution plans:
The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary.
b) Defined benefit plan:
The Company has defined benefit gratuity plan for its employees. The employee who has completed five years or more of service is entitled to gratuity on termination of his employment at 15 days last drawn salary for each completed year of service. The scheme is funded. The present value of obligation in respect of gratuity is determined based on actuarial valuation using the Project Unit Credit Method as prescribed by Ind AS - 19. Gratuity has been recognised in the financial statement as per details given below:
Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting year on government bonds. If the return on plan asset is below this rate, it will create plan deficit.
Interest risk:
A fall in the discount rate which is linked to the Government Security Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
Longevity risk:
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
|
38 Contingent Liabilities and Commitments I. Contingent liabilities |
(C in Lakhs) |
||
|
Particulars |
As at 31 March, 2025 |
As at 31 March, 2024 |
|
|
(a) |
Claims against the Company not acknowledged as debts comprise of |
||
|
i) In respect of Pending Income Tax Demands |
8,235.78 |
1,431.30 |
|
|
ii) In respect of Pending Sales Tax / Goods and Service Tax Demands |
2,138.51 |
3,821.47 |
|
|
iii) In respect of Pending Excise Duty claim by DGCEI |
2,042.89 |
2,042.89 |
|
|
iv) In respect of Pending Consumer/Legal Cases |
40.73 |
54.07 |
|
|
(b) |
Bank guarantees for Performance, Earnest Money & Security Deposits |
1,054.47 |
1,091.61 |
|
(c) |
Corporate Guarantee Given on behalf of subsidiaries |
5,800.00 |
7,200.00 |
|
Total |
19,312.38 |
15,641.34 |
|
|
II. Commitments |
(C in Lakhs) |
||
|
Particulars |
As at 31 March, |
2025 |
As at 31 March, 2024 |
|
Letter of Credit Opened with Banks |
93.73 |
90.47 |
|
|
Total |
93.73 |
90.47 |
The above matters are currently being considered by the tax authorities with various forums and the Company expects the judgement will be in its favour and has therefore, not recognised the provision in relation to these claims. Future cash outflow in respect of above will be determined only on receipt of judgement & decision pending with tax authorities with various forums. The potential undiscounted amount of total payments for taxes that the Company may be required to make if there was an adverse decision related to these disputed demands of regulators as of the date reporting period ends are as stated above.
A. Operating lease commitments - Company as lessee
The Company''s lease asset classes primarily consist of leases for Office & Other Building. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.
B. Operating lease commitments - Company as lessor
The Company has given various premises under operating lease or leave and license Agreements. These are generally cancellable, having a term of 11 months.
The Company''s has two principal operating segment 1. Tiles & Others 2. Marble & Quartz, which are its reportable segments. These segments offer different products and services, and are managed separately because they require different technology and production processes.
The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".
44 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain sections of the Code came into effect on 03 May, 2023. However, the final rules/interpretation have not yet been issued. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.
45 The Income Tax department had carried out a search operation at Company''s business premises on 26 May, 2022. The company had made necessary disclosure to the stock exchanges in this regard on 31 May, 2022, in accordance with regulation 30 of the SEBI (LODR) regulation, 2015 (as amended). As on the date of issuance of these financial statements, the Company has received various notices from the Income Tax Department against which the Company has filed suitable responses. Further, the Company had also received various order against which the Company has preferred an appeal. The Management believes that there is no material impact of the assessment order on the Company''s financial position as of 31 March, 2025, and its performance for the year ended
on that date, as presented in these standalone financial statements. However, due to the nature of complexity of the matter, the final outcome remains uncertain, making it currently impossible for the management to determine the potential impact, if any, on the results related to this issue. The statutory auditors have issued as Emphasis of Matter in their audit report of the Standalone financial statements for the year ended 31 March, 2025, highlighting this matter.
46 In the opinion of Board of Directors
(a) Current assets, non-current loans and advances are realizable in the ordinary course of business, at the value at which they are stated.
(b) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.
47 Balance of Trade receivables, Trade payables, loans and advances are subject to confirmation from the respective parties.
50 The Board at its meeting dated 12 August, 2023 has approved the Scheme of Arrangement ("Schemel") for Demerger, Slump Sale as well as Amalgamation between Asian Granito India Limited, Affil Vitrified Private Limited, Ivanta Ceramics Industries Private Limited, Crystal Ceramic Industries Limited, Affil Ceramics Limited, Ivanta Ceramic Limited, Crystal Vitrified Limited, Amazoone Ceramics Limited and AGL Industries Limited and their respective shareholders and Creditors under Section 230 to 232 and other applicable provisions of the Companies Act, 2013.
The Company has received NOC from the both the stock exchanges for the said Schemel and it is also approved by shareholders and creditors at their respective court conveyed meetings. Currently, the Company is awaiting the approval from the Hon''ble National Company Law Tribunal, Ahmedabad Bench ("NCLT") as the matter is reserved for order by NCLT vide its order dated 17 April, 2025.
51 The Board at its meeting dated 12 August, 2023 has approved the Scheme of Arrangement ("Scheme2") for Demerger between Asian Granito India Limited, Adicon Ceramica Tiles Private Limited and Adicon Ceramics Limited and their respective shareholders and Creditors under Section 230 to 232 and other applicable provisions of the Companies Act, 2013.
The Company has received NOC from the both the stock exchanges for the said Scheme2. After the said approval, the Company has filled Company Application with the Hon''ble National Company Law Tribunal, Ahmedabad Bench ("NCLT") and awaiting further direction from NCLT.
52 Other Statutory Information
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. 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
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vi) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or surveyor any other relevant provisions of the Income Tax Act, 1961).
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. 01 April, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements.
54 Events occurring after the Balance Sheet Date
The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. There are no subsequent events to be recognized or reported that are not already disclosed.
55 The figures pertaining to previous periods have been regrouped and restated wherever necessary, to make them comparable.
Mar 31, 2024
a) Investment In Equity Instrument of Associate
1 During the year company has entered into Joint Venture Agreement ("JVA") with various individuals of Nepal and incorporated an Joint Venture Company ("JVC") namely Nepovit Ceramic Pvt Ltd on 10 October, 2023 to set up wall tiles manufacturing unit in Nepal for which the Company has made initial investment of Rs. 125 lakhs against which 2,00,000 shares of 100 Nepalese rupees each has been issued.
b) Investment In Equity Instrument of Subsidiaries
1 The Company has incorporated Wholly owned subsidiary namely Affil Ceramics Limited, Adicon Ceramics Limited, Crystal Vitrified Limited and Ivanta Ceramic Limited on 23 March, 2023, 24 March, 2023, 23 March, 2023 and 23 March, 2023 respectively having its paid-up equity share capital of 10,000 equity shares of '' 10 each.
2 During the year Company has made investment of 1000 USD in wholly owned subsidiary company namely AGL Surfaces INC. incorporated on 18 August, 2022 in USA and against that 100 equity shares of 10 USD each has been issued.
3 During the year Company has made investment of 300000 AED in wholly owned subsidiary company namely Harmony Surfaces Marbles TR LLC S P incorporated on 11 May, 2023 in Sharjah and against that 100 equity shares of 3000 AED each has been issued.
c) Investment In Debtentures of Subsidiaries.
1 During the year Company has made investment of '' 18837.27 lakhs in wholly owned subsidiary company namely Future Ceramic Private Limited and against that 18,83,72,750 number of debentures of 0% compulsorily convertible debenture of '' 10 each within 10 year tenor has been issued.
2 During the year Company has made investment of '' 6025.53 lakhs in wholly owned subsidiary company namely AGL Sanitaryware Private Limited and against that 6,02,55,280 number of debentures of 0% compulsorily convertible debenture of '' 10 each within 10 year tenor has been issued.
(a) On 04 February, 2022 the Board of Directors of the Company had approved the Offer and Issuance of equity shares of the Company (the "Equity Shares") for an amount upto '' 422.17 Crore by way of a rights issue to the eligible equity shareholders of the Company as on the record date, i.e. 12 April, 2022, in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, subject to such approvals, as may be required under the applicable laws ("Rights Issue"). Further, the Board constituted Rights Issue Committee, which has been authorised to decide the pricing of the issue, ratio, record date, appointment of monitoring agency and other things as may be required in accordance with the applicable laws.
The Rights Issue Committee on account of above constitution and powers given by the Board approved the issue of 6,99,93,682 equity shares of face value of ''10 each (the "Rights Issue Shares") at a price of '' 63/- per Rights Equity Shares (including premium of '' 53/- per Rights Equity Share) in the ratio of 37:30, i.e. 37 Rights Equity Shares for every 30 existing Equity Shares held by the eligible equity shareholders as on the record date, i.e. 12 April, 2022. The issue was
oversubscribed and the Company received bids for 8,88,24,321 number of Rights Equity shares. On 16 May, 2022, the Rights Issue Committee of the Board of Directors of the Company approved the allotment of 6,99,93,682 equity shares of face value '' 10/- each to the eligible equity shareholders as fully paid up.
The expenses related to rights issue will be adjusted with the security premium account, and there is no rights issue related expenses debited to profit and loss account of the current year.
(b) Utilisation of Proceeds from Rights Issue
12.2 Terms/Rights attached to Equity shares
The Company has one class of shares referred to as Equity shares having face value of '' 10.
(a) Equity Shares
In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive any of the residual assets of the Company, after distribution of all preferential amounts and Preference shares. The distribution will be in proportion to the number of Equity shares held by the Shareholders. Each holder of Equity shares is entitled to one vote per share.
(b) Dividend
The Company has not declared any dividend for the financial year ended 31 March, 2024.
13.1Nature and purpose of other reserves:
(a) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
(b) General Reserve
General Reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes.
(c) Retained Earnings
The amount of retained earning includes the component of other comprehensive income, which cannot be distributed by the Company as dividends to its equity shareholders. Balance amount is available for distribution to equity share holders.
(d) Capital Reserve
The capital reserve is created through forfeiture of shares warrants, shares, revaluation of existing assets, the redemption of preference shares and accumulated capital surplus not available for distribution of dividend.
(e) Preferential Share Warrants
After receiving In-principle approval from the Stock Exchanges and from Shareholders, the Company has allotted 2,03,00,000 "Fully Convertible Warrants" at price of '' 48.15 each (at a face value of '' 10 each and Premium of '' 38.15 Per Convertible Warrant) to the Promoter, Promoter Group and Non-Promoter category in one or more tranches for the below objective:
i. To fund capital requirements for future growth of the Company;
ii. To meet long term and short term working capital requirement of the Company and its subsidiaries;
iii. To repay debt of the Company and its Subsidiary Companies; and
iv. To meet General Corporate Purpose.
The 25% of '' 48.15 i.e. '' 12.03 per convertible warrant ('' 12.03 * 2,0,00,000 convertible warrants) amounting to '' 2,443.61 Lakhs have been received during the current financial year and remaining 75% balance amounting to '' 7,330.84 Lakhs will be received within 18 months from the date of allotment. Amount received had been used for the purpose mentioned above.
The Company has not declared any dividend for the financial year ended 31 March, 2024.
a) Working capital loans of '' 5225.50 (Previous Year '' 6637.69) Lakhs are secured by way of hypothecation over current assets including raw materials, stock in process, finished goods, receivable and other current assets of vitrified/wall/marble division (Dalpur unit) and Ceramic division (Idar unit) of the Company.
b) The sanction facilities have been secured by the personal guarantees of directors of the Company more specifically spelt out in related Sanction Letter from the Banks.
c) Vehicle loans of '' 255.02 (Previous Year '' 203.99) Lakhs are secured by hypothecation of vehicles in favour of Bank. Each Vehicle loans consist of 60 equal monthly installments from the date of disbursement.
d) Borrowings secured against current assets
Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.
(e) The working capital facilities have been availed @8.10% to 9.89% from April 2023 to March 2024.
b) Measurement of fair values:
(i) Investments in Associate, Joint Venture and Subsidiaries:
I nvestments in Associate, Joint Venture and Subsidiaries have been accounted at cost. Since these are scoped out of Ind AS 109 for the purposes of measurement, the same have been disclosed at cost in the tables above.
(ii) Financial Instrument measured at Amortised Cost:
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are reasonable approximation of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
(iii) Levels 1, 2 and 3
Level 1: It includes Investment in equity shares and mutual fund that has a quoted price and which are actively traded on the stock exchanges. It is been valued using the closing price as at the reporting period on the stock exchanges.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
(iv) There have been no transfers between Level 1 and Level 2 during the years.
The Company''s financial liabilities comprise mainly of borrowings, trade, other payables and financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company monitors the risk as per risk management policy. Further the Audit Committee has additional oversight in the area of financial risks and controls.
The following disclosures summarize the Company''s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the Company comprises two types of risks: interest rate risk and currency risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and loans.
Within the various methodologies to analyze and manage risk, Company has implemented a system based on "sensitivity analysis" on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:
- a parallel shift of 100-basis points of the interest rate yield curves in major currencies.
- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all currencies by 5%
The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit and loss may differ materially from these estimates due to actual developments in the global financial markets.
The analyses exclude the impact of movements in market variables on the carrying values of gratuity, pension and other postretirement obligations and provisions.
The following assumption has been made in calculating the sensitivity analysis:
The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March, 2024 and 31 March, 2023.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company seeks to mitigate such risk by maintaining an adequate proportion of floating and fixed interest rate borrowings. As at 31 March, 2024, approximately 26.44% of the Company''s borrowings and other financial liabilities are at fixed rate (31 March, 2023 : 20.47% ). Summary of financial assets and financial liabilities has been provided below:
Interest rate sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. The following table demonstrates the sensitivity of floating rate financial instruments to a reasonably possible change in interest rates. The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business in foreign currencies (primarily USD, EUR, GBP and AED). Consequently, the Company has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company manages its foreign currency risk by following policies approved by board as per established risk management policy. The carrying amounts of the Company''s foreign currency denominated monetary items are as follows:
Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR, GBP and AED rates to the functional currency of respective entity, with all other variables held constant. The Company''s exposure to foreign currency changes for all other currencies is not material. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables and other financial assets including deposits with banks. Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management.
Other financial assets
This comprises mainly of deposits with banks and other intercompany receivables. Credit risk arising from these financial assets is limited.
Trade receivables
Customer credit risk is managed by each business unit subject to the Company''s established policy and procedures. Trade receivables are non-interest bearing and generally have a credit period not exceeding 90 days. Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.
The Company has used practical expedient by computing the expected credit loss allowance for doubtful trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking estimates. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates used in the provision matrix. In calculating expected credit loss, the Company has also considered credit information for its customers to estimate the probability of default in future.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties.
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing from both banks and financial institutions at an optimised cost.
The table below analysis non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed under the ageing buckets are the contractual undiscounted cash flows and includes contractual interest payments.
For the purpose of the Company''s capital management, capital includes paid-up equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as level of dividends to equity share holders.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using Debt-Equity ratio, which is net debt divided by total equity. The Company''s policy is to keep the net debt to equity ratio below 2. The Company includes within net debt, interest bearing loans and borrowings, less cash and short-term deposits.
In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March, 2024 and 31 March, 2023.
36 Employee Benefits a) Defined contribution plans:
The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary.
The Company has defined benefit gratuity plan for its employees. The employee who has completed five years or more of service is entitled to gratuity on termination of his employment at 15 days last drawn salary for each completed year of service. The scheme is funded. The present value of obligation in respect of gratuity is determined based on actuarial valuation using the Project Unit Credit Method as prescribed by Ind AS - 19. Gratuity has been recognised in the financial statement as per details given below:
Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting year on government bonds. If the return on plan asset is below this rate, it will create plan deficit.
Interest risk:
A fall in the discount rate which is linked to the Government Security Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
Longevity risk:
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at 31 March, 2024 and 31 March, 2023.
Note 1: Discount rate is determined by reference to market yields at the balance sheet date on Government bonds, where the currency and terms of the Government bonds are consistent with the currency and estimated terms for the benefit obligation.
Note 2: The estimate of future salary increases taken into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
|
38 I. |
Contingent Liabilities and Commitments Contingent liabilities |
('' in Lakhs) |
||||
|
Particulars |
Year ended 31 March, 2024 |
Year ended 31 March, 2023 |
||||
|
(a) Claims against the Company not acknowledged as debts |
||||||
|
comprise of |
||||||
|
i) In respect of Pending Income Tax Demands |
1,431.30 |
1,693.10 |
||||
|
ii) In respect of Pending Sales Tax Demands |
3,821.47 |
3,666.40 |
||||
|
iii) In respect of Pending Excise Duty claim by DGCEI |
2,042.89 |
2,043.18 |
||||
|
iv) In respect of Pending Consumer/Legal Cases |
54.07 |
46.09 |
||||
|
(b) Bank guarantees for Performance, Earnest Money & Security Deposits |
1,091.61 |
1,584.20 |
||||
|
(c) Corporate Guarantee Given on behalf of subsidiaries |
7,200.00 |
15,303.72 |
||||
|
Total |
15,641.34 |
24,336.69 |
||||
|
II. |
Commitments |
|||||
|
('' in Lakhs) |
||||||
|
Particulars |
Year ended |
Year ended |
||||
|
31 March, 2024 |
31 March, 2023 |
|||||
|
Letter of Credit Opened with Banks |
90.47 |
60.86 |
||||
|
Total |
90.47 |
60.86 |
||||
The above matters are currently being considered by the tax authorities with various forums and the Company expects the judgement will be in its favour and has therefore, not recognised the provision in relation to these claims. Future cash outflow in respect of above will be determined only on receipt of judgement & decision pending with tax authorities with various forums. The potential undiscounted amount of total payments for taxes that the Company may be required to make if there was an adverse decision related to these disputed demands of regulators as of the date reporting period ends are as stated above.
40 The Company has not received full information from vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act); disclosure relating to amount unpaid at year end together with interest paid/payable have been given based on the information so far available with the Company/identified by the Company management:
41 LeasesA. Operating lease commitments - Company as leases
The Company''s lease asset classes primarily consist of leases for Office & Other Building. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.
B. Operating lease commitments - Company as lessor
The Company has given various premises under operating lease or leave and license Agreements. These are generally cancellable, having a term between 11 months and 3 years and have no specific obligation for renewal.
The Company''s has two principal operating segment 1. Tiles and others 2. Marble & Quartz, which are its reportable segments. These segments offer different products and services, and are managed separately because they require different technology and production processes.
The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".
44 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
45 The Income Tax department had carried out a search operation at Company''s business premises on 26 May, 2022. The company had made necessary disclosure to the stock exchanges in this regard on 31 May, 2022, in accordance with regulation 30 of the SEBI (LODR) regulation, 2015 (as amended). As on the date of issuance of these financial statements, the company has received various notices from the Income Tax Department against which the company has filed suitable responses. Further, the Company had also received an order for Assessment Year 2022-23 against which the Company has preferred an appeal. The Management believes that there is no material impact of the assessment order on the Company''s financial position as of 31 March, 2024, as presented in these standalone financial statements. However, due to the nature of complexity of the matter, the final outcome remains uncertain, making it currently impossible for the management to determine the potential impact, if any, on the results related to this issue. The statutory auditors have issued as Emphasis of Matter in their audit report of the Standalone financial statements for the year ended 31 March, 2024, highlighting this matter.
46 In the opinion of Board of Directors
(a) Current assets, non-current loans and advances are realizable in the ordinary course of business, at the value at which they are stated.
(b) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.
47 Balance of Trade receivables, Trade payables, loans and advances are subject to confirmation from the respective parties.
48 Relationship with Struck off Companies
Details of transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 are as follow:
50 Other Statutory Information
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. 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
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vi) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or surveyor any other relevant provisions of the Income Tax Act, 1961).
(vii) There is no Scheme of Arrangement approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act 2013.
51 The figures pertaining to previous periods have been regrouped and restated wherever necessary, to make them comparable.
Mar 31, 2023
l) Provision & Contingencies:
The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated.
I f the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
m) Employee Benefits:
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified as shortterm employee benefits and they are recognized in
the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.
Post-Employment Benefits:
I. Defined Contribution plans:
Defined contribution plans are employee provident fund, employee state insurance scheme and Government administered pension fund scheme for all applicable employees.
Recognition and measurement of defined contribution plans:
The Company recognizes contribution payable to a defined contribution plan as an expense in the Statement of Profit and Loss when the employees render services to the Company during the reporting period. If the contributions payable for services received from employees before the reporting date exceeds the contributions already paid, the deficit payable is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the reporting date, the excess is recognized as an asset to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund.
II. Defined Benefit plans:
The Company operates a defined benefit gratuity plan for employees.
Recognition and measurement of Defined Benefit plans:
The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. The defined benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the fair value of plan assets, if applicable. Any defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognized representing the present value of available refunds and reductions in future contributions to the plan.
All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability / (asset) are recognized in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability / (asset) comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net defined benefit liability/asset), are recognized in Other Comprehensive Income. Such remeasurements are not reclassified to the Statement of Profit and Loss in the subsequent periods.
The Company presents the above liability/(asset) as current and non-current in the Balance Sheet as per actuarial valuation by the independent actuary; however, the entire liability towards gratuity is considered as current as the Company will contribute this amount to the gratuity fund within the next twelve months.
Other Long-Term Employee Benefits:
Entitlements to annual leave and sick leave are recognised when they accrue to employees. Sick leave can only be availed or encashed subject to a restriction on the maximum number of accumulation of leave. The company determines the liability for such accumulated leave using the projected accrued benefit method with actuarial valuations being carried out at each Balance Sheet date.
n) Lease Accounting:
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Company as a Lessee
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset. The Company uses significant
judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the lease term and useful life of the underlying asset. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. Further, refer note no. 41, for effect of transition to Ind AS 116, classification of leases and other disclosures relating to leases.
Company as a Lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
o) Segment Reporting:
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.
p) Earnings per share:
Basic earnings per share is computed by dividing the net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and dilutive potential equity shares during the year.
q) Cash Flow Statement:
Cash Flow are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.
r) Cash and cash equivalents:
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, deposit accounts and term deposits accounts with original maturity of three months or less as at balance sheet date, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash on hand, deposit accounts and term deposits as defined above and investment in liquid funds for short term purpose.
s) Events after reporting date:
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.
Notes:
a) Subsidiaries
1 The Company has incorporated Wholly owned subsidiary namely Affil Ceramics Limited, Adicon Ceramics Limited, Crystal Vitrified Limited and Ivanta Ceramic Limited on 23 March, 2023, 24 March, 2023, 23 March, 2023 and 23 March, 2023 respectively having its paid-up equity share capital of 10,000 equity shares of '' 10 each.
2 AGL Global Trade Private Limited, One of the Wholly owned subsidiary company of the company has applied for Striking off on 20 February, 2023. The Company has written off the Invesment of '' 1 Lakhs in the AGL Global Trade Private Limited in current financial year.
(a) On 04 February, 2022 the Board of Directors of the Company had approved the Offer and Issuance of equity shares of the Company (the "Equity Shares") for an amount upto '' 422.17 Crores by way of a rights issue to the eligible equity shareholders of the Company as on the record date, i.e. 12 April, 2022, in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, subject to such approvals, as may be required under the applicable laws ("Rights Issue"). Further, the Board constituted Rights Issue Committee, which has been authorised to decide the pricing of the issue, ratio, record date, appointment of monitoring agency and other things as may be required in accordance with the applicable laws.
The Rights Issue Committee on account of above constitution and powers given by the Board approved the issue of 6,99,93,682 equity shares of face value of '' 10 each (the "Rights Issue Shares") at a price of '' 63/- per Rights Equity Shares (including premium of '' 53/- per Rights Equity Share) in the ratio of 37:30, i.e. 37 Rights Equity Shares for every 30 existing Equity Shares held by the eligible equity shareholders as on the record date, i.e. 12 April, 2022. The issue was oversubscribed and the Company received bids for 8,88,24,321 number of Rights Equity shares. On 16 May, 2022, the Rights Issue Committee of the Board of Directors of the Company approved the allotment of 6,99,93,682 equity shares of face value '' 10/- each to the eligible equity shareholders as fully paid up.
The expenses related to rights issue will be adjusted with the security premium account, and there is no rights issue related expenses debited to profit and loss account of the current quarter.
(b) During the financial year 2021-22, the Company has allotted 2,33,000 equity shares (Instrument value of '' 180/-) of face value of '' 10/- each and premium of '' 170/- each on conversion of convertible warrants issued on preferential basis. (Refer Note 13.1).
During the financial year 2021-22, the Company has issue of 2,24,64,188 equity shares of face value of '' 10 each (the "Rights Issue Shares") at a price of '' 100 per Rights Equity Shares (including premium of '' 90 per Rights Equity Share) in the ratio of 19:29, i.e. 19 Rights Equity Shares for every 29 existing Equity Shares held by the eligible equity shareholders as on the record date, i.e. 09 September, 2021. The issue was oversubscribed and the Company received bids for 2,58,86,126 number of Rights Equity shares. On 16 October, 2021, the Board of Directors of the Company approved the allotment of 2,24,64,188 equity shares of face value '' 10/- each to the eligible equity shareholders as fully paid up. There was no deviation in use of proceeds from the objects stated in the Offer document for Right Issue.
12.2 Terms/Rights attached to Equity shares
The Company has one class of shares referred to as Equity shares having face value of '' 10.
(a) Equity Shares
In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive any of the residual assets of the Company, after distribution of all preferential amounts and Preference shares. The distribution will be in proportion to the number of Equity shares held by the Shareholders. Each holder of Equity shares is entitled to one vote per share.
(b) Dividend
The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board is subject to the approval of the Shareholders in the ensuing Annual General Meeting.
13.1 Nature and purpose of other reserves:
(a) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
(b) General Reserve
General Reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes.
(c) Retained Earnings
The amount of retained earning includes the component of other comprehensive income, which cannot be distributed by the Company as dividends to its equity shareholders. Balance amount is available for distribution to equity share holders.
(d) Capital Reserve
The capital reserve is created through forfeiture of shares warrants, shares, revaluation of existing assets, the redemption of preference shares and accumulated capital surplus not available for distribution of dividend.
(e) Preferential Share Warrants
During the Financial Year 2021-22 the Company has allotted 2,33,000 equity shares (Instrument value of '' 180/-) of face value of '' 10/- each and premium of '' 170/- each. In Promoter category 1,33,000 equity shares and in Nonpromoter category 1,00,000 equity shares are allotted on conversion of convertible warrants issued on preferential basis. The Paid-up Equity capital of the Company has increased from '' 3405.44 Lakhs to '' 3428.74 Lakhs and resultant security premium of '' 396.10 Lakhs has been credited into security premium account and shown in the "Reserve and Surplus" in "Other Equity". The proceeds of the preferential issue were utilised for the objectives as stated. The Company has received total 42,00,000 Fully Convertible Warrants out of 47,00,000 Fully Convertible Warrants. Hence 5,00,000 Preferential Share Warrants are forfeited at '' 45 per convertible warrant (25% of '' 180/-) amounting '' 225.00 Lakhs which are shown in "Capital Reserve".
13.2 Dividend:
The Board of Directors at its meeting held on 24 May, 2023 have recommended a payment of final dividend of '' NIL (P.Y. '' 0.70) per equity share of the face value of '' 10 each for the financial year ended 31 March, 2023.
Notes:
a) SBLC of '' NIL (Previous Year '' 403.85 Lakhs) are secured by way of First and Exclusive charge on Hypothecation of the entire Plant & Machinery (Bought through capex LC).
b) Working capital loans of '' 6,637.69 (Previous Year '' NIL) Lakhs are secured by way of hypothecation over current assets including raw materials, stock in process, finished goods, receivable and other current assets of vitrified/wall/marble division (Dalpur unit) and Ceramic division (Idar unit) of the Company.
c) The sanction facilities have been secured by the personal guarantees of directors of the Company more specifically spelt out in related Sanction Letter from the Banks.
d) Vehicle loans of '' 203.99 (Previous Year '' 131.21) Lakhs are secured by hypothecation of vehicles in favour of Bank. Each Vehicle loans consist of 60 equated monthly installments from the date of disbursement.
(e) Borrowings secured against current assets
Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.
(f) The working capital facilities have been availed @7.95% to 9.01% from April 2022 to March 2023.
b) Measurement of fair values:
(i) Investments in Associate, Joint Venture and Subsidiaries:
Investments in Associate, Joint Venture and Subsidiaries have been accounted at cost. Since these are scoped out of Ind AS 109 for the purposes of measurement, the same have been disclosed at cost in the tables above.
(ii) Financial Instrument measured at Amortised Cost:
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are reasonable approximation of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
(iii) Levels 1, 2 and 3
Level 1: It includes Investment in equity shares and mutual fund that has a quoted price and which are actively traded on the stock exchanges. It is been valued using the closing price as at the reporting period on the stock exchanges.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
34 Financial Risk Management
The Company''s financial liabilities comprise mainly of borrowings, trade, other payables and financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company monitors the risk as per risk management policy. Further The Audit Committee has additional oversight in the area of financial risks and controls.
The following disclosures summarize the Company''s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the Company comprises two types of risks: interest rate risk and currency risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and loans.
Within the various methodologies to analyze and manage risk, Company has implemented a system based on "sensitivity analysis" on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:
- a parallel shift of 100-basis points of the interest rate yield curves in major currencies.
- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all currencies by 5%
The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit and loss may differ materially from these estimates due to actual developments in the global financial markets.
The analyses exclude the impact of movements in market variables on the carrying values of gratuity, pension and other postretirement obligations and provisions.
The following assumption has been made in calculating the sensitivity analysis:
The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March, 2023 and 31 March, 2022.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company seeks to mitigate such risk by maintaining an adequate proportion of floating and fixed interest rate borrowings. As at 31 March, 2023, approximately 89.62% of the Company''s borrowings and other financial liabilities are at fixed rate (31 March, 2022 : 74.82%). Summary of financial assets and financial liabilities has been provided below:
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business in foreign currencies (primarily USD, EUR and GBP). Consequently, the Company has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company manages its foreign currency risk by following policies approved by board as per established risk management policy. The carrying amounts of the Company''s foreign currency denominated monetary items are as follows:
(b) Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables and other financial assets including deposits with banks. Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management.
Other financial assets
This comprises mainly of deposits with banks and other intercompany receivables. Credit risk arising from these financial assets is Limited
Trade receivables
Customer credit risk is managed by each business unit subject to the Company''s established policy and procedures. Trade receivables are non-interest bearing and generally have a credit period not exceeding 90 days. Concentrations of credit risk with respect to trade receivables are Limited, due to the customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.
The Company has used practical expedient by computing the expected credit loss allowance for doubtful trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking estimates. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates used in the provision matrix. In calculating expected credit loss, the Company has also considered credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID-19.
(c) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing from both banks and financial institutions at an optimised cost.
The table below analysis non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed under the ageing buckets are the contractual undiscounted cash flows and includes contractual interest payments.
35 Capital management
For the purpose of the Company''s capital management, capital includes paid-up equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as level of dividends to equity share holders.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
I n order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March, 2023 and 31 March, 2022.
36. Employee Benefits a) Defined contribution plans:
The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary.
b) Defined benefit plan:
The Company has defined benefit gratuity plan for its employees. The employee who has completed five years or more of service is entitled to gratuity on termination of his employment at 15 days last drawn salary for each completed year of service. The scheme is funded. The present value of obligation in respect of gratuity is determined based on actuarial valuation using the Project Unit Credit Method as prescribed by Ind AS - 19. Gratuity has been recognised in the financial statement as per details given below:
Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting year on government bonds. If the return on plan asset is below this rate, it will create plan deficit.
Interest risk:
A fall in the discount rate which is linked to the Government Security Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
Longevity risk:
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at 31 March, 2023 and 31 March, 2022.
41 Leases
A. Operating lease commitments - Company as lessee
The Company''s lease asset classes primarily consist of leases for Office & Other Building. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.
44 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
45 Income Tax
The Income Tax department had carried out a search operation at Company''s business premises on 26 May, 2022. The Company had extended full co-operation to the income tax officials during the search and provided all the information sought by them. The company had made necessary disclosure to the stock exchanges in this regard on 31 May, 2022, in accordance with regulation 30 of the SEBI (LODR) regulation, 2015 (as amended). As on the date of issuance of these financial statements, the company has not received any communication for any demand from the income tax department.
49 Other Statutory Information
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company do not have any transactions with companies struck off.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. 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
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or surveyor any other relevant provisions of the Income Tax Act, 1961).
50 The figures pertaining to previous periods have been regrouped and restated wherever necessary, to make them comparable.
As per our report of even date attached For and on behalf of the Board of Directors
For R R S & Associates Kamleshkumar B. Patel Mukeshbhai J. Patel
Chartered Accountants Chairman and Managing Director Managing Director
ICAI Firm Reg. No.- 118336W DIN: 00229700 DIN: 00406744
Rajesh Shah CA Mehul Shah Dr. Dhruti Trivedi
Partner Chief Financial Officer Company Secretary
Membership No.- 034549 Membership No.- 107359 Membership No.- A31842
Place: Ahmedabad Place: Ahmedabad
Date: 24 May, 2023 Date: 24 May, 2023
Mar 31, 2021
The Company has classified freehold land located at Nandan Vatrika as Investment Property. There are no amounts pertaining to these investment properties recognised in the statement of profit and Loss, since company does not receive any rental Income and does not incur any depreciation or other operating expenses.
The Company does not have any contractual obligation to purchase, construct or develop for maintenance or enhancement of investment property.
The Company has no restrictions on the realisability of it''s investment property.
Fair Value of investment property:
1 The Company has entered in to Joint Venture cum Shareholders Agreement with Paramshree Granito Private Limited, where by the Company was holding 51% of Shares in Camrola Quartz Limited vide agreement dated January 15, 2018. The Board of the Company has approved the termination of Joint Venture cum Shareholders Agreement in its meeting held on February 13, 2020. Accordingly, the Joint Venture cum Shareholders Agreement was terminated and sale of shares Agreement was done by the Company on March 18, 2020 and the transfer of shares also took place on March 18, 2020.
2 The Company has incorporated Wholly owned subsidiary named AGL Global Trade Private Limited for trading business on March 17, 2020. The Company has subscribed its equity share capital of 10,000 equity shares of
10 each on August 25, 2020 amounting to 1.00 Lakh.
The Company had entered into Joint Venture Agreement with Panariagroup Industrie Ceramiche S.p.A. vide JV Agreement dated February 17, 2012. The said JV agreement was terminated by the Company vide Termination Agreement dated May 24, 2019. Consequently the Company has sold equity shares of JV company viz., Panariagroup India Industrie Ceramiche Private Limited (Formerly known as AGL Panaria Private Limited) during the quarter ending on June 30, 2019.
13.1 Nature and purpose of other reserves:
(a) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
(b) General Reserve
General Reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes.
(c) Retained Earnings
The amount of retained earning includes the component of other comprehensive income, which cannot be distributed by the Company as dividends to its equity shareholders. Balance amount is available for distribution to equity share holders.
(d) Preferential Share Warrants
After receiving in principal approval from the Stock Exchanges and from Shareholders, the Company has offered 47,00,000 "Fully Convertible Warrants" at price of 180/- each (at a face value of 10/- each and Premium of 170/- Per Convertible Warrant) in one or more tranches for the below objective:
i) To fund long term capital requirements for future growth of the Company;
ii) To meet working capital requirement and reducing debts; and
iii) To meet General Corporate Purpose.
During the year ended on March 31,2021, the Company has allotted 39,67,000 equity shares (Instrument value of 180/-) of face value of 10/- each and premium of 170/- each. In Promoter category 23,67,000 equity shares and in Non-promoter category 16,00,000 equity shares are allotted on conversion of convertible warrants issued on preferential basis. The Paid-up Equity capital of the Company has increased from 3,008.74 Lakhs to 3,405.44 Lakhs and resultant security premium of 6,743.90 Lakhs has been credited into security premium account and shown in the "Reserve and Surplus" in "Other Equity". The proceeds of the preferential issue were utilised for the objectives as stated.
The Board of Directors at its meeting held on May 31, 2021 have recommended a payment of final dividend of 0.50 (P.Y. 0.70) per equity share of the face value of 10/- each for the financial year ended March 31,2021.
a) Term Loan 1,151.35 Lakhs are secured by way of First Pari Passu charge over entire fixed assets (movable & immovable), plant & machinery of the Company, including Factory Land & Buildings bearing Survey Number : 160, 147-A & 162 (Dalpur), 16 (Jawanpura) & 204/1 (Vanku), situated at Dalpur, Jawanpura & vanku , 30000, (Semi Urban), Admeasuring Total Area : 256725.
b) SBLC of 393.52 Lakhs are secured by way of First and Exclusive charge on Hypothecation of the entire Plant & Machinery (Bought through capex LC).
c) Working capital loans of 8,822.33 Lakhs are secured by way of hypothecation over current assets including raw materials, stock in process, finished goods, stores and spares, receivable and other current assets of vitrified/wall/ marble division (Dalpur unit) and Ceramic division (Idar unit) of the Company.
d) The sanction facilities have been secured by the personal guarantees of directors of the Company more specifically spelt out in related Sanction Letter from the Banks.
e) Vehicle loans of 90.06 Lakhs are secured by hypothecation of vehicles in favour of Bank. Each Vehicle loans consist of 60 equated monthly installments from the date of disbursement.
(ii) Financial Instrument measured at Amortised Cost:
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are reasonable approximation of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
(iii) Levels 1, 2 and 3
Level 1 : It includes Investment in equity shares and mutual fund that has a quoted price and which are actively traded on the stock exchanges. It is been valued using the closing price as at the reporting period on the stock exchanges.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
(iv) There have been no transfers between Level 1 and Level 2 during the years.
The Company''s financial liabilities comprise mainly of borrowings, trade, other payables and financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company monitors the risk as per risk management policy. Further The Audit Committee has additional oversight in the area of financial risks and controls.
The following disclosures summarize the Company''s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the Company comprises two types of risks: interest rate risk and currency risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and loans.
Within the various methodologies to analyze and manage risk, Company has implemented a system based on "sensitivity analysis" on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:
- a parallel shift of 100-basis points of the interest rate yield curves in major currencies.
- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all currencies by 5%
The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit and loss may differ materially from these estimates due to actual developments in the global financial markets.
The analyses exclude the impact of movements in market variables on the carrying values of gratuity, pension and other post-retirement obligations and provisions.
The following assumption has been made in calculating the sensitivity analysis:
The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2021 and March 31, 2020.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company seeks to mitigate such risk by maintaining an adequate proportion of floating and fixed interest rate borrowings. As at March 31, 2021, approximately 12.50% of the Company''s borrowings and other financial liabilities are at fixed rate (March 31,2020 : 7.72%). Summary of financial assets and financial liabilities has been provided below:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business in foreign currencies (primarily USD and EUR). Consequently, the Company has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company manages its foreign currency risk by following policies approved by board as per established risk management policy. The carrying amounts of the Company''s foreign currency denominated monetary items are as follows:
The following tables demonstrate the sensitivity to a reasonably possible change in USD and EUR rates to the functional currency of respective entity, with all other variables held constant. The Company''s exposure to foreign currency changes for all other currencies is not material. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables and other financial assets including deposits with banks. Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management.
This comprises mainly of deposits with banks and other intercompany receivables. Credit risk arising from these financial assets is limited.
Customer credit risk is managed by each business unit subject to the Company''s established policy and procedures. Trade receivables are non-interest bearing and generally have a credit period not exceeding 90 days. Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.
The Company has used practical expedient by computing the expected credit loss allowance for doubtful trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking estimates. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates used in the provision matrix. In calculating expected credit loss, the Company has also considered credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID-19.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties.
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing from both banks and financial institutions at an optimised cost.
For the purpose of the Company''s capital management, capital includes paid-up equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as level of dividends to equity share holders.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using Debt-Equity ratio, which is net debt divided by total equity. The Company''s policy is to keep the net debt to equity ratio below 2. The Company includes within net debt, interest bearing loans and borrowings, less cash and short-term deposits.
In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2021 and March 31,2020.
a) Defined contribution plans:
The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary.
The Company has defined benefit gratuity plan for its employees. The employee who has completed five years or more of service is entitled to gratuity on termination of his employment at 15 days last drawn salary for each completed year of service. The scheme is funded. The present value of obligation in respect of gratuity is determined based on actuarial valuation using the Project Unit Credit Method as prescribed by Ind AS - 19. Gratuity has been recognised in the financial statement as per details given below:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting year on government bonds. If the return on plan asset is below this rate, it will create plan deficit.
A fall in the discount rate which is linked to the Government Security Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
Longevity risk:
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
A. Operating lease commitments - Company as lessee
The Company''s lease asset classes primarily consist of leases for Office & Other Building. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.
44 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
45 COVID-19 is the infectious disease caused by the most recently discovered coronavirus, SARS-CoV-2. In March 2020, the WHO declared COVID-19 a pandemic. The Company has adopted measures to curb the spread of infection in order to protect the health of the employees and ensure business continuity with minimal disruption.
In assessing the recoverability of receivables and other financial assets, the Company has considered internal and external information upto the date of approval of these standalone financial statements. The impact of the global health pandemic may be different from that of estimated as at the date of approval of these standalone financial statements and the Company will continue to closely monitor any material changes to future economic conditions.
46 In the opinion of Board of Directors
(a) Current assets, non-current loans and advances are realizable in the ordinary course of business, at the value at which they are stated.
(b) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.
47 Balance of Trade receivables, Trade payables, loans and advances are subject to confirmation from the respective parties.
48 The figures pertaining to previous periods have been regrouped and restated wherever necessary, to make them comparable.
Mar 31, 2018
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
30 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE
As per Section 135 of the Companies Act, 2013, the Company has spent required amount of Rs. 55.25 Lakhs (2016-17: Rs. 45.75 lakhs) during the current financial year. The details of amount spent are as under:
|
(Rs. in Lakhs) |
||
|
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
|
Education, Healthcare, Orphanage, Animal welfare and Food |
- |
45.75 |
|
Education |
55.25 |
- |
|
Total |
55.25 |
45.75 |
31 EARNINGS PER SHARE
|
|
(Rs. in Lakhs) |
||
|
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
|
|
Basic & Diluted Earning Per Share (EPS) |
|||
|
(a) Profit attributable to equity shareholders of the Company |
(Rs. in Lakhs) |
3,298.18 |
3,169.89 |
|
(b) Weighted average number of equity shares |
(in Nos.) |
3,00,87,446 |
3,00,87,446 |
|
(c) Earning per Share (Basic and Diluted) |
Rs |
10.96 |
10.54 |
|
(d) Face value per Share |
Rs |
10.00 |
10.00 |
32 FINANCIAL RISK MANAGEMENT:
The Company''s financial liabilities comprise mainly of borrowings, trade, other payables and financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company monitors the risk as per risk management policy. Further The Audit Committee has additional oversight in the area of financial risks and controls.
The following disclosures summarize the Company''s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and loans.
Within the various methodologies to analyze and manage risk, Company has implemented a system based on "sensitivity analysis" on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:
a parallel shift of 100-basis points of the interest rate yield curves in major currencies.
a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all currencies by 5%
10% increase/decrease in equity prices of all investments traded in an active market, which are classified as financial asset measured at FVTPL.
The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit and loss may differ materially from these estimates due to actual developments in the global financial markets.
The analyses exclude the impact of movements in market variables on the carrying values of gratuity, pension and other post-retirement obligations and provisions.
The following assumption has been made in calculating the sensitivity analysis:
The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018, March 31, 2017 and April 1, 2016.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company seeks to mitigate such risk by maintaining an adequate proportion of floating and fixed interest rate borrowings. As at March 31, 2018, approximately 9.77% of the Company''s borrowings and other financial liabilities are at fixed rate (March 31, 2017 : 9.09% and April 1, 2016: 8.85%). Summary of financial assets and financial liabilities has been provided below:
Exposure to interest rate risk
The interest rate profile of the Company''s interest - bearing financial instrument as reported to management is as follows:
|
(Rs in Lakhs) |
|||
|
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 1, 2016 |
|
Fixed-rate instruments |
|||
|
Financial Assets |
2,211.26 |
2,574.95 |
2,047.31 |
|
Financial Liabilities |
1,616.19 |
1,471.32 |
1,609.46 |
|
Variable-rate instruments |
|||
|
Financial Assets |
- |
- |
- |
|
Financial Liabilities |
14,929.52 |
14,706.78 |
16,573.02 |
Interest rate sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. The following table demonstrates the sensitivity of floating rate financial instruments to a reasonably possible change in interest rates. The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.
Impact on Profit / (loss) after tax
|
(Rs in Lakhs) |
||
|
Particulars |
Year ended March 31,2018 |
Year ended March 31, 2017 |
|
Increase in 100 basis points |
(96.17) |
|
|
Decrease in 100 basis points |
97.63 |
96.17 |
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business in foreign currencies (primarily USD and EUR). Consequently, the Company has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company manages its foreign currency risk by following policies approved by board as per established risk management policy. The carrying amounts of the Company''s foreign currency denominated monetary items are as follows:
Exposure to Currency Risk:-
The summary quantitative data about the Company''s exposure to currency risk (based on notional amounts) is as follows:
|
|
(Amount in Lacs) |
|||||
|
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 1, 2016 |
|||
|
USD |
EUR |
USD |
EUR |
USD |
EUR |
|
|
Financial Assets |
||||||
|
Trade receivables |
39,56,739 |
- |
28,01,940 |
- |
14,86,725 |
- |
|
Other Non-financial Assets |
- |
- |
- |
- |
4,43,998 |
- |
|
Total (A) |
39,56,739 |
- |
28,01,940 |
- |
19,30,723 |
- |
|
Financial Liabilities |
||||||
|
Trade payables |
3,90,617 |
7,37,864 |
14,81,325 |
8,25,940 |
- |
4,34,884 |
|
Borrowings |
16,04,700 |
- |
6,85,217 |
2,31,345 |
3,24,598 |
2,31,345 |
|
Other Financial Liabilities |
- |
52,070 |
- |
31,776 |
- |
29,240 |
|
Total (B) |
19,95,317 |
7,89,934 |
21,66,542 |
10,89,061 |
3,24,598 |
6,95,469 |
|
Net exposure to foreign currency (A-B) |
19,61,422 |
(7,89,934) |
6,35,398 |
(10,89,061) |
16,06,125 |
(6,95,469) |
The following significant exchange rates have been applied during the year.
|
Average rate |
Year-end spot rate |
||||
|
Particulars |
Year Ended March 31, 2018 |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 1, 2016 |
|
|
USD 1 |
64.94 |
65.47 |
65.04 |
64.85 |
66.10 |
|
EUR 1 |
74.85 |
72.06 |
80.62 |
69.07 |
75.06 |
Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD and EUR rates to the functional currency of respective entity, with all other variables held constant. The Company''s exposure to foreign currency changes for all other currencies is not material. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.
|
(Rs in Lakhs) |
||||||
|
USD |
EUR |
|||||
|
Particulars |
Change in exchange rate |
Profit / (loss) before tax |
Equity (net of tax) |
Change in exchange rate |
Profit / (loss) before tax |
Equity (net of tax) |
|
March 31, 2018 |
||||||
|
Strengthening |
5% |
63.69 |
41.65 |
5% |
(29.56) |
(19.33) |
|
Weakening |
(63.69) |
(41.65) |
29.56 |
19.33 |
||
|
March 31, 2017 |
||||||
|
Strengthening |
5% |
20.80 |
13.60 |
5% |
(39.24) |
(25.66) |
|
Weakening |
(20.80) |
(13.60) |
39.24 |
25.66 |
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables and other financial assets including deposits with banks. Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management.
Other financial assets
This comprises mainly of deposits with banks and other intercompany receivables. Credit risk arising from these financial assets is limited.
Trade receivables
Customer credit risk is managed by each business unit subject to the Company''s established policy and procedures. Trade receivables are non-interest bearing and generally have a credit period not exceeding 90 days. Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.
Reconciliation of loss allowance provision - Trade receivables
|
Particulars |
As at March 31, 2018 |
(Rs in Lakhs) As at March 31, 2017 |
|
Loss allowance as at beginning of the year |
514.93 |
514.93 |
|
Changes in Loss allowance |
- |
- |
|
Loss allowances as at end of the year |
514.93 |
514.93 |
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties.
(c) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing from both banks and financial institutions at an optimised cost.
The table below analysis non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed under the ageing buckets are the contractual undiscounted cash flows and includes contractual interest payments.
|
(Rs in Lakhs) |
||||
|
Particulars |
Carrying amount |
Less than 12 months |
More than 12 months |
Total |
|
As at March 31, 2018 |
||||
|
Financial Liabilities |
||||
|
Borrowings |
15,108.14 |
13,136.58 |
1,971.56 |
15,108.14 |
|
Trade Payables |
25,329.72 |
25,329.72 |
- |
25,329.72 |
|
Other Financial Liabilities |
2,179.71 |
2,179.71 |
- |
2,179.71 |
|
Total |
42,617.57 |
40,646.01 |
1,971.56 |
42,617.57 |
|
(Rs. in Lakhs) |
||||
|
Particulars |
Carrying amount |
Less than 12 months |
More than 12 months |
Total |
|
As at March 31, 2017 |
||||
|
Financial Liabilities |
||||
|
Borrowings |
14,832.00 |
13,467.85 |
1,364.15 |
14,832.00 |
|
Trade Payables |
22,601.45 |
22,601.45 |
- |
22,601.45 |
|
Other Financial Liabilities |
1,794.44 |
1,794.44 |
- |
1,794.44 |
|
Total |
39,227.89 |
37,863.74 |
1,364.15 |
39,227.89 |
|
As at April 1, 2016 |
||||
|
Financial Liabilities |
||||
|
Borrowings |
16,726.17 |
14,773.06 |
1,953.11 |
16,726.17 |
|
Trade Payables |
15,000.55 |
15,000.55 |
- |
15,000.55 |
|
Other Financial Liabilities |
1,852.84 |
1,852.30 |
- |
1,852.30 |
|
Total |
33,579.56 |
31,625.91 |
1,953.11 |
33,579.02 |
33 CAPITAL MANAGEMENT:
For the purpose of the Company''s capital management, capital includes paid-up equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as level of dividends to equity share holders.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using Debt-Equity ratio, which is net debt divided by total equity. The Company''s policy is to keep the net debt to equity ratio below 2. The Company includes within net debt, interest bearing loans and borrowings, less cash and short-term deposits.
|
(Rs. in Lakhs) |
|||
|
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
Year ended April 1, 2016 |
|
Interest-bearing loans and borrowings (Note 14) |
15,519.71 |
15,398.16 |
17,526.85 |
|
Less: cash and cash equivalents (Note 10) |
(1,771.03) |
(1,443.92) |
(1,282.63) |
|
Adjusted net debt |
13,748.68 |
13,954.24 |
16,244.22 |
|
Equity share capital (Note 12) |
3,008.74 |
3,008.74 |
2,258.25 |
|
Other equity (Note 13) |
34,778.69 |
31,778.70 |
29,567.02 |
|
Total equity |
37,787.43 |
34,787.44 |
31,825.28 |
|
Adjusted net debt to total equity ratio |
0.36 |
0.40 |
0.51 |
In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018, March 31, 2017 and April 1, 2016.
34 EMPLOYEE BENEFITS
(a) Defined contribution plans:
The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary.
Details of amount recognized as expenses during the year:
|
(Rs. in Lakhs) |
||
|
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
|
Contribution to Provident Fund |
235.11 |
203.53 |
|
Total |
235.11 |
203.53 |
(b) Defined benefit plan:
The Company has defined benefit gratuity plan for its employees. The employee who has completed five years or more of service is entitled to gratuity on termination of his employment at 15 days last drawn salary for each completed year of service. The scheme is funded. The present value of obligation in respect of gratuity is determined based on actuarial valuation using the Project Unit Credit Method as prescribed by Ind AS -19. Gratuity has been recognised in the financial statement as per details given below:
Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting year on government bonds. If the return on plan asset is below this rate, it will create plan deficit.
Interest risk:
A fall in the discount rate which is linked to the Government Security Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
Longevity risk:
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at March 31, 2018.
(i) Reconciliation in present value of defined benefit obligation:
|
(Rs. in Lakhs) |
||
|
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
|
Defined benefit obligations as at beginning of the year |
250.92 |
199.80 |
|
Current service cost |
61.16 |
41.74 |
|
Past service cost |
7.70 |
- |
|
Interest cost |
18.87 |
16.74 |
|
Actuarial (Gains)/Losses |
8.44 |
32.09 |
|
Benefits paid |
(44.71) |
(39.45) |
|
Defined benefit obligations as at end of the year 302.38 |
250.92 |
|
(ii) Reconciliation change in fair value of plan assets:
|
(Rs in Lakhs) |
||
|
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
|
Fair Value of Plan Assets at the beginning of the year |
178.55 |
169.73 |
|
Interest Income |
13.43 |
14.22 |
|
Contribution by Employer |
25.00 |
42.19 |
|
Benefits paid from the fund |
(44.72) |
(39.44) |
|
Return on Plan Assets, Excluding Interest Income |
(4.31) |
(8.15) |
|
Fair Value of Plan Assets at the end of the year |
167.95 |
178.55 |
(iii) Amount recognised in balance sheet
|
(Rs in Lakhs) |
||
|
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
|
PVO at the end of year |
302.38 |
250.92 |
|
Fair value of planned assets at the end of year |
(167.95) |
(178.55) |
|
Net Liability recognised in the balance sheet |
134.43 |
72.37 |
(iv) Amount recognised in Statement of Profit and Loss:
|
(Rs in Lakhs) |
||
|
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
|
Current service cost |
61.16 |
41.74 |
|
Interest cost |
5.44 |
2.52 |
|
Past service cost |
7.70 |
- |
|
Expense recognised |
74.30 |
44.26 |
(v) Amount recognised in Other Comprehensive Income:
|
(Rs. in Lakhs) |
||
|
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
|
Total Actuarial (Gains)/ Losses |
12.74 |
40.75 |
(vi) Principal assumptions used in determining defined benefit obligations for the Company
|
(Rs. in Lakhs) |
||
|
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
|
Discount rate (Per Annum) |
7.88% |
7.52% |
|
Salary escalation rate (Per Annum) |
6.00% |
4.00% |
|
Mortality Rate [as % of Indian Assured Lives Mortality (IALM) (2006-08) Ultimate] |
IALM (2006-08) Rates |
|
|
Normal Retirement Age (In Years) |
58 |
58 |
|
Average Future Service (In Years) |
12 |
18 |
Note 1: Discount rate is determined by reference to market yields at the balance sheet date on Government bonds, where the currency and terms of the Government bonds are consistent with the currency and estimated terms for the benefit obligation.
Note 2: The estimate of future salary increases taken into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
Additional Disclosure Items
(vii) Category of Assets
|
(Rs. in Lakhs) |
||
|
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
|
Insurance Fund |
167.95 |
178.55 |
(viii) Expected Cash flow of Maturity Profile for following years of Defined Benefit Obligations:
|
(Rs. in Lakhs) |
||
|
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
|
Upto 1 Year |
26.22 |
12.95 |
|
Between 2 to 5 Year |
101.22 |
48.82 |
|
Between 6 to 10 Year |
126.89 |
80.17 |
|
Beyond 10 Years |
422.07 |
553.70 |
(ix) Sensitivity analysis
|
(Rs. in Lakhs) |
||
|
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
|
Under Base Scenario |
||
|
Salary Escalation - Up by 1 % |
26.62 |
30.35 |
|
Salary Escalation - Down by 1 % |
(23.47) |
(26.11) |
|
Withdrawal Rates - Up by 1 % |
6.31 |
8.55 |
|
Withdrawal Rates - Down by 1 % |
(7.31) |
(9.89) |
|
Discount Rates - Up by 0.50 % |
(22.48) |
(25.31) |
|
Discount Rates - Down by 0.50 % |
25.86 |
29.90 |
Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at balance sheet date:
|
(Rs. in Lakhs) |
||||
|
Total employee benefit liabilities |
Note |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 1, 2016 |
|
Provisions |
19 |
134.43 |
72.37 |
31.62 |
35 RELATED PARTY DISCLOSURES:
As per the Ind AS - 24 Related Party Disclosures, the related parties of the Company are as follows
(a) Name of the related parties and nature of relationships : (i) Subsidiaries
Subsidiaries of Asian Granito India Limited
AGL Industries Limited
Trodo Ceramics Private Limited (Formerly M/s. Kediya Ceramics)
Amazoone Ceramics Limited
Camrola Quartz Limited
Subsidiary of AGL Industries Limited
Powergrace Industries Limited
Subsidiary of Trodo Ceramics Pvt Limited
Crystal Ceramic Industries Private Limited
(ii) Associate:
Astron Paper and Board Mills Limited
(iii) Joint Venture
AGL Panaria Private Limited
|
(iv) |
Key managerial personnel |
|
|
Kamleshbhai Bhagubhai Patel |
Bhogibhai Bhikhabhai Patel |
|
|
Mukeshbhai Jivabhai Patel |
Kanubhai Bhikhabhai Patel |
|
|
Sureshbhai Jivabhai Patel |
Bhaveshbhai Vinodbhai Patel |
|
|
Kalidasbhai Jivabhai Patel |
Renuka A Upadhyay |
|
|
(v) |
Relative of Directors and Promoters |
|
|
Hinaben Kamleshbhai Patel |
Zalakben Hirenbhai Patel |
|
|
Bhagubhai Punjabhai Patel |
Parulben Kanubhai Patel |
|
|
Hiraben Bhagubhai Patel |
Sureshbhai Bhikhabhai Patel |
|
|
Rajviben Kuldeepbhai Patel |
Asmitaben Bhaveshbhai Patel |
|
|
Kuldeepbhai Rameshbhai Patel |
Vinodbhai Lalabhai Patel |
|
|
Bhanuben Mukeshbhai Patel |
Vipulbhai Vinodbhai Patel |
|
|
Dhuliben Jivabhai Patel |
Alpaben Jagdishbhai Patel |
|
|
Shaunakbhai Mukeshbhai Patel |
Bhaveshbhai Bhogibhai Patel |
|
|
Shaliniben Shaunakbhai Patel |
Rameshbhai Bhikhabhai Patel |
|
|
Chhayaben Sureshbhai Patel |
Ankitaben Kalidasbhai Patel |
|
|
Hirenbhai Sureshbhai Patel |
Dimpalben Bhogibhai Patel |
Mar 31, 2017
1.1 Term Loan Rs.851.53 Lacs are secured by way of First Pari Passu charge over the movable & immovable properties of the Company situated at Block No.160, 147A paiki, 162 at village Dalpur, Taluka-Prantij, Disct: Sabarkantha, Gujarat, over the movable assets including Plant & Machineries situated at Survery No.16 (paiki) Village: Jawanpura, Tal: Idar, Dist: Sabarkantha, Gujarat and over the One Wind Mill No.V-20 at survey No.204/1, Paiki, Village Vanku, Tal.Abdasa, Dist: Kutch, Gujarat AND Second Pari passu charge over entire current Assets situated at Block No.160, 147A paiki, 162 at village Dalpur, Taluka-Prantij, Disct: Sabarkantha, Gujarat and over entire current assets situated at Survery No.16 (paiki) Village: Jawanpura, Tal: Idar, Dist: Sabarkantha, Gujarat.
1.2 Term Loan Buyers Credit of Rs.235.29 Lacs are secured by way of exclusive charge over imported machinery of Quartz Plant.
1.3 Vehicle loans are secured by hypothecation of vehicles in favour of Bank.
2.1 The Net Increase during the year in the deferred tax liability Rs.143.89 Lacs (P.Y. Rs.240.30 Lacs Increase) has been debited to the Statement of Profit & Loss Account.
3.1 Working capital loans are secured by hypothecation of present and future stock of Raw Materials,Stock in Process, Semi-finished goods, stores and spares and Book debts, receivables And second Pari Passu charge over entire movable assets and Immovable Properties of the Company situated at Block No. 160, 1 47A paiki, 162 at village Dalpur, Taluka-Prantij, Disct:Sabarkantha, Gujarat (Vitrified/Wall /Marble Division) And Survey No.16 (paiki) , Village : Jawanpura, Taluka: Idar, District: Sabarkantha, Gujarat (Ceramic Division).
4.1 The Company has not received full information from vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED ACT); hence, disclosure relating to amount unpaid at year end together with interest paid/ payable have not been given based on the information so far available with the Company/identified by the Company management.
5. The quantity of inventories is based upon physical verification by the management and the valuation is also based on details of cost and realizable value (wherever applicable) considering the quality & other relevant factors ascertained by management. The quantities of inventories, Sales, and purchases are taken on the basis of details worked out from the bills and the stock records maintained by the Company (wherever applicable).
6. In the opinion of the Board of Directors,
(1) Current Assets, Loans & Advances are realizable in the ordinary course of business, at the value at which they are stated.
(2) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary. In sample sale, Only Excise Duty payable on sample sale value is charged as expenses considering no commercial value of samples.
7. Balance of Sundry creditors, debtors, debit/credit balance of loans and advances are subject to confirmation from the respective parties.
8. Figures of the previous year have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.
9. The Board of Directors has recommended dividend of Rs.1.30/- per equity share of face value of Rs.10/- each for the financial year ended on 31st March, 2017 subject to the approval of shareholders in the ensuing Annual general Meeting.
10. The Company has not received full information from vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 (MEMED Act); disclosure relating to amount unpaid at year end together with interest paid/payable have been given based on the information so far available with the Company/indentified by the Company management.
11. Accounting for taxes of Income :-
The Company has adopted Accounting Standard AS-22 âAccounting for Taxes on Incomeâ, issued by The Institute of Chartered Accountants of India. The Company has net deferred tax liability as follows.
12. Earnings Per Share (EPS) :-
i) The amount used as numerator in calculating basic and diluted earnings per share is the profit after depreciation and taxes i.e. Rs.27,96,17,924/-
ii) The number of ordinary shares used as the denominator in calculating the basic earnings per share is 3,00,87,446 i.e. weighted number of equity shares as on the date of balance sheet 31st March, 2017. Diluted earnings per share is arrived by taking weighted number of equity shares outstanding as on the date of balance sheet i.e. 3,00,87,446
13. Borrowing Cost :-
Based on the guiding principle given in Accounting standard on âBorrowing Costâ (AS-16) issued by the ICAI, the Company has capitalized â Nil/-, (P.Y. â Nil/-) during the year to the Fixed Assets
14. During the year the Company has taken short term unsecured Loan Rs.30.09 Crore for working capital requirement against domestic receivable from Axis Bank Limited. Instead of showing the same under the Balance sheet head current liabilities in short term borrowing. The Company has deducted the same amount from trade receivable in current assets.
15. As per section 135 of the Companies Act,2013, Schedule VII and Companies (Corporate Social Responsibility Policy) Rules, 2014,
16. Segment Reporting :- (AS-17)
Based on the guiding principle given in Accounting standard on âSegment Reportingâ (AS-17) issued by the ICAI, the Companyâs primary business is manufacturing of Tiles, the tiles business of the Company incorporate product groups i.e. Ceramic Tiles which mainly have similar risk and returns, accordingly there are no separate segment,
The operation of the Company is in India and all Assets and Liabilities are located in India. And analysis of the Sales by Geographical market is given below.
17. Related Party Disclosures under :
In accordance with the Accounting Standards (AS-18) on Related party Disclosures, During the year the Company entered into transaction with the related parties. Those transactions along with related balances as at 31st March, 2017 and for the year then ended are presented in the following.
18. Information Under Section 186(4) of the Companies Act.2013
A Loans Given
There are no loans besides those shown in note no. 43
B. Investment
There is no investment besides those shown in note no. 43
C Guarantee Given
Guarantee given to subsidiary companies shown in note no. 43 (Purpose of Business Support)
19. Disclosure on Specified Bank Notes (SBNs)
During the year, the Company had specified bank notes or other denomination note as defined in MCA notification G.S.R. 308(E) dated 31st March, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016, the denomination wise SBNs and other notes as per the notification is given Below
* For the purpose of this clause, the term âSpecified bank Notesâ shall have the same meaning provided in the notification of Government of India, in the Ministry of Finance, Department of Econonmic Affairs number S.O. 3407(E), dated 8th November, 2016.
20. Contingent Liabilities :-
In view of the Accounting Standard issued by ICAI âProvisions and Contingent Liabilitiesâ (AS-29), following contingent liabilities have been identified which have not been provided for in the books of accounts.
The Company has filed appeal before The Joint Commissioner of Commercial Tax - Appeals for demand of Sales Tax of Rs.45.08 lacs and Rs.19.63 lacs for the financial year 2003-04 & 2004-05 respectively. The Dispute is regarding set off against the purchase of fuel not allowed by the Sales tax Department. However, Gujarat High Court has given the decision in favour of M/s Ami pigment Ltd and hence the Company has filed appeal on the basis of this decision
The Company has also filed first appeal before The Joint Commissioner of Commercial Tax-Indor against demand of CST for Rs.176.37 Lacs for the financial year 2014-15 for pending âCâ forms
The Company has received demand notice from The Assistant Commissioner of Commercial Tax for Rs.134.32 Lacs under The Tamilnadu Value Added Tax Act,2006. And Rs.0.88 Lacs under the CST Act.
The Company has received demand regarding Professional tax of Rs.15.96 Lacs
Disputed Income Tax Liability of Rs.2746.20 Lacs for various Asst. Years for which department has preferred appeals at higher levels. Out of these, Liabilities to the extent of Rs.192.74 Lacs have remained pending after CIT (Appeals) order effect. The Company has already paid Rs.192.74 Lacs towards remaining disputed liabilities and there is no disputed amount remains unpaid. Company has preferred an appeal before Gujarat High court.
Disputed Income tax Liability of Rs.336.68 Lacs for A.Y2006-07 Re-Assessment for which Company has preferred an appeal before the Income Tax Appellate Tribunal - Ahmedabad Benches
Disputed Income tax Liability of Rs.19.40 Lacs of A.Y. 2010-11 for which the Company has preferred an appeal before the Income Tax Appellate Tribunal - Ahmedabad Benches
Disputed Income tax Liability of Rs.27.66 Lacs of A.Y. 2011-12 for which the Department has preferred an appeal before the Income Tax Appellate Tribunal - Ahmedabad Benches.
Disputed Income tax Liability of Rs.10.14 Lacs of A.Y. 2012-13 for which the Company has preferred an appeal before the Income Tax Appellate Tribunal - Ahmedabad Benches.
Disputed Income tax Liability of Rs.32.18 Lacs of A.Y. 2013-14 for which the Department has preferred an appeal before the Income Tax Appellate Tribunal - Ahmedabad Benches.
Mar 31, 2016
1 Term Loan Rs. 13.55 Crore are secured by way of First Pari Passu charge over the movable & immovable properties of the Company situated at Block No.160, 147A paiki, 162 at village Dalpur, Taluka-Prantij, Disct: Sabarkantha, Gujarat, over the movable assets including Plant & Machineries situated at Survery No.16 (paiki) Village: Jawanpura, Tal: Idar, Dist: Sabarkantha, Gujarat and over the One Wind Mill No.V-20 at survey No.204/1, Paiki, Village Vanku, Tal.Abdasa, Dist: Kutch, Gujarat AND Second Pari passu charge over entire current Assets situated at Block No.160, 147A paiki, 162 at village Dalpur, Taluka-Prantij, Disct: Sabarkantha, Gujarat and over entire current assets situated at Survery No.16 (paiki) Village: Jawanpura, Tal: Idar, Dist: Sabarkantha, Gujarat.
2 Term Loan Rs. 3.48 Crore are secured by way of First Charge by way of Hyp. In favour of Punjab National Bank of the plant m/c, equipments, tools, spares, accessories and all other assets which have been or proposed to be acuired under the project/scheme. Exclusive charge on the mortgage of the factory land and building of the company at Plot no. 766/A/1.766/a/2 and 767 admeasuring about 20133.00 Sq.m. Mouje ; Radhu, tal:Kheda. Dist ; Kheda together with the building and other structures rejections and god owns.
3 Vehicle loans are secured by hypothecation of vehicles in favour of Bank.
4 Working capital loans are secured by hypothecation of present and future stock of Raw Materials,Stock in Process, Semi-finished goods, stores and spares and Book debts, receivables And second Pari Passu charge over entire movable assets and Immovable Properties of the Company situated at Block No.160, 147A paiki, 162 at village Dalpur, Taluka-Prantij, Disct:Sabarkantha, Gujarat (Vitrified/Wall /Marble Division) And Survey No.16 (paiki), Village : Jawanpura, Taluka: Idar, District: Sabarkantha, Gujarat (Ceramic Division).
5 Working capital loans from Punjab National Bank First Charge by way of hypothecation on entire current assets (present and future) of the company including stocks of Raw Materials, Stock in Process, finished goods, Consumables, stores and spares and receivables etc. of the Company situated at Plot no. 766/A/1.766/a/2 and 767Mouje ; Radhu, tal:Kheda. Dist ; Kheda.
6. Scheme of Amalgamation of Artistique Ceramics Pvt. Ltd (The Transferor Company) with Asian Granito India Limited (The Transferee Company):
A) Pursuant to the Shareholders'' approval at the Court convened meeting of the Transferee Company held on 18-03-2016 and the sanction of the Hon. High Court of Gujarat to the Scheme of Amalgamation vide its order dated 16-06-2016, the entire business and the Whole of the undertaking of the Transferor Company whose principal business was to manufacture of ceramic glaze tiles were transferred to and vested in the Transferee Company as a going concern, pursuant to the provisions of Sections 391 to 394 and other applicable provisions of the Act with effect from the Appointed Date viz. 1st July,2015 in accordance with the scheme so sanctioned. The Scheme has become effective from 2nd July,2016 accordingly was given effect to in the Accounts.
Further upon the Scheme and as consideration of the Scheme, The Transferee Company without any further application, act, instrument or deed, has to issue and allot to each Equity shares, credited as fully paid up, to the extent indicated below, to the Equity Shareholders of Transferor Company, and whose name appear in the register of members of the Transferor Company on the Record Date.
"157 (One Hundred and Fifty Seven) Equity Shares of face value of Rs.10/- at par each fully paid-up of Transferee Company for every 100 (One Hundred) Equity Shares of face value of Rs.10/- each fully paid-up held in Transferor Company"
B) The Transferee Company has account for amalgamation in accordance with the ''Pooling of Interest Method of Accounting'' laid down by Accounting Standard 14 (Accounting For Amalgamation). Accordingly w.e.f Appointed Date 1st July,2015, all the Assets and Liabilities, including reserves of Transferor Company is recorded in the books of the Transferee Company at their existing carrying values and in the same form. Intercompany balances if any has been cancelled. The difference between the share capital of the Transferor Company and Face value of new equity shares issued in the scheme to the shareholders of Transferor company is adjusted in Reserves of the Transferee Company. As a result effect of Rs.1046.44 Lacs is added in reserves of the Transferee company Certified copy of the amalgamation order dated 16th June.2016 received on 2nd July, 2016 hence pending allotment of these shares, as refers here in above under [ A ] has been reflected under "Share suspense Account". So EPS is calculated considering share suspense account on weighted average basis.
7. During the year, Expenditure incurred of Rs. 3,79,79,409/- (P.Y.Rs. Nil) towards Brand Promotion & Exhibition Exp of new products are deferred as the benefit out of it is expected to occur in future year also.
8. The quantity of inventories is based upon physical verification by the management and the valuation is also based on details of cost and realizable value (wherever applicable) considering the quality & other relevant factors ascertained by management. The quantities of inventories, Sales, and purchases are taken on the basis of details worked out from the bills and the stock records maintained by the company (wherever applicable).
9. In the opinion of the Board of Directors,
(1) Current Assets, Loans & Advances are realizable in the ordinary course of business, at the value at which they are stated.
(2) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.
10. In sample sale, Only Excise, EDU and HEDU payable on sample sale value is charged as expenses considering no commercial value of samples.
11. Balance of Sundry creditors, debtors, debit/credit balance of loans and advances are subject to confirmation from the respective parties.
12. Figures of the previous year have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.
13. Earnings Per Share :- (AS-20)
i) The amount used as numerator in calculating basic and diluted earnings per share is the profit after depreciation and taxes i.e. Rs. 18,93,21,276/-
ii) The number of ordinary shares used as the denominator in calculating the basic earnings per share is 2,82,11,220 i.e. weighted number of equity shares as on the date of balance sheet 31St March, 2016. Diluted earnings per share is arrived by taking weighted number of equity shares outstanding as on the date of balance sheet i.e. 2,82,11,220 /rs jn Lacs)
14. Borrowing Cost :- (AS-16)
Based on the guiding principle given in Accounting standard on "Borrowing Cost" (AS-16) issued by the ICAI, the Company has capitalized Rs. Nil/-, (P.Y. Rs. Nil/-) during the year to the Fixed Assets
15. Related Party Disclosures under :- (AS-18)
During the year the company entered into transaction with the related parties. Those transactions along with related balances as at 31st March, 2016 and for the year then ended are presented in the following.
Subsidiaries :-
AGL Industries Limited Amazon Ceramics Limited
Kediya Ceramics Crystal Ceramic Industries P Ltd
Joint Venture :-
AGL Panaria Pvt. Limited -Associates : -
Astron Paper & Board Mill Ltd. Affil Vitrified Pvt. Ltd Key Management Personnel :-
Kamleshbhai Bhagubhai Patel Kanubhai Bhikhabhai Patel
Mukeshbhai Jivabhai Patel Bhaveshbhai Vinodbhai Patel
Sureshbhai Jivabhai Patel Bhogibhai Bhikhabhai Patel
Relatives of Key Management Personnel:-
Heenaben Kamleshbhai Patel Hiren Sureshbhai Patel
Bhagubhai Punjabhai Patel Sureshbhai Bhikhabhai Patel
Hiraben Bhaguben Patel Asmitaben Bhaveshbhai Patel
Saunak Mukeshbhai patel Vipulbhai Vinodbhai Patel
Bhanuben Mukeshbhai Patel Vinodbhai Lalabhai Patel
Dhuliben Jivabhai Patel Rameshbhai Bhikhabhai Patel
Chhayaben Sureshbhai Patel -
16. During the year the company has taken short term unsecured Loan Rs. 37.03 Crore for working capital requirement against domestic receivable from Axis Bank. Instead of showing the same under the Balance sheet head current liabilities in short term borrowing. The company has deducted the same amount from trade receivable in current assets.
17. Contingent Liabilities :- (AS-29)
In view of the Accounting Standard issued by ICAI "Provisions and Contingent Liabilities" (AS-29), following contingent liabilities have been identified which have not been provided for in the books of accounts. ids n i_acs)
The company has filed appeal before The Joint Commissioner of Commercial Tax - Appeals for demand of Sales Tax of Rs. 45.07 Lacs and Rs. 19.63 Lacs for the financial year 2003-04 & 2004-05 respectively. The Dispute is regarding set off against the purchase of fuel not allowed by the Sales tax Department. However, Gujarat High Court has given the decision in favour of M/s Ami pigment Ltd and hence the company has filed appeal on the basis of this decision
The company has also filed an appeal before The Deputy Commissioner of Commercial Tax-Appeals-III, Gandhinagar against demand of VAT for Rs. 49.28 Lacs raised in provisional assessment made by The Asst. Commissioner of Commercial Tax Enforcement Division, wing-III, Gandhinagar for the financial year 2007-08 on account of issue of input VAT credit reduction method on OGS Branch Transfer and Sample Sales.
The company has also filed first appeal before The Joint Commissioner of Commercial Tax-Appeals-I, Ahmadabad against demand of CST for Rs.109.20 Lacs raised in the regular assessment made by The Deputy Commissioner of Commercial Tax, Circle-7, Gandhinagar for the financial year 2010-11 for pending "C" forms
Disputed Income Tax Liability of Rs. 2746.20 Lacs for various Asst. Years for which department has preferred appeals at higher levels. Out of these, Liabilities to the extent of Rs. 192.74 Lacs have remained pending after CIT (Appeals) order effect. The Company has already paid Rs. 192.74 Lacs towards remaining disputed liabilities and there is no disputed amount remains unpaid. Company has preferred an appeal before Gujarat High court.
Disputed Income tax Liability of Rs. 336.68 Lacs for A.Y.2006-07 Re-Assessment for which Company has preferred an appeal before the Income Tax Appellate Tribunal - Ahmadabad Benches
Disputed Income tax Liability of Rs. 19.40 Lacs of A.Y. 2010-11 for which the Company has preferred an appeal before the Income Tax Appellate Tribunal - Ahmadabad Benches
Disputed Income tax Liability of Rs. 27.66 Lacs of A.Y. 2011-12 for which the Department has preferred an appeal before the Income Tax Appellate Tribunal - Ahmadabad Benches.
Disputed Income tax Liability of Rs. 10.14 Lacs of A.Y. 2012-13 for which the company has preferred an appeal before the Income Tax Appellate Tribunal - Ahmadabad Benches.
Disputed Income tax Liability of Rs. 32.18 Lacs of A.Y. 2013-14 for which the company has preferred an appeal before the CIT (Appeal) Ahmadabad.
18. Derivative Instruments :-
The outstanding position of derivatives instruments as on 31-03-16 NIL
Mar 31, 2015
1. During the year, Expenditure incurred of Rs. Nil (P. Y.Rs.3,66,90,351)
towards Advertisement, Brand Promotion & Exhibition Exp of new products
are deferred as the benefit out of it is expected to occur in future
year also.
2. The quantity of inventories is based upon physical verification by
the management and the valuation is also based on details of cost and
realizable value (wherever applicable) considering the quality & other
relevant factors ascertained by management. The quantities of
inventories, Sales, and purchases are taken on the basis of details
worked out from the bills and the stock records maintained by the
Company (wherever applicable).
3. In the opinion of the Board of Directors,
(1) Current Assets, Loans & Advances are realizable in the ordinary
course of business, at the value at which they are stated.
(2) The provision for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
4. In sample sale, Only Excise, EDU and HEDU payable on sample sale
value is charged as expenses considering no commercial value of
samples.
5. Balance of Sundry creditors, debtors, debit/credit balance of
loans and advances are subject to confirmation from the respective
parties.
6. Figures of the previous year have been regrouped/rearranged
wherever necessary to make them comparable with the current year
figures.
7. We have verified the vouchers and documentary evidences wherever
made available. Where no documentary evidences were available we relied
on the authentication given by the management.
8. Earnings Per Share :- (AS-20)
i) The amount used as numerator in calculating basic and diluted
earnings per share is the profit after depreciation and taxes i.e.Rs.
1446.75/- Lac
ii) The number of ordinary shares used as the denominator in
calculating the basic earnings per share is 2,25,82,541 i.e. weighted
number of equity shares as on the
9. Borrowing Cost:- (AS-16)
Based on the guiding principle given in Accounting standard on
"Borrowing Cost" (AS-16) issued by the ICAI, the Company has
capitalized Rs. Nil/-, (P.Y. Rs. Nil/-) during the year to the Fixed Assets
10. Segment Reporting :- (AS-17)
Based on the guiding principle given in Accounting Standard on "Segment
Reporting" (AS-17) issued by the ICAI, the Company's primary business
is manufacturing of Tiles, the tiles business of the Company
incorporate product groups i.e. Ceramic Tiles which mainly have similar
risk and returns, accordingly there are no separately segment,
11. Related Party Disclosures under:-(AS-18)
During the year the Company entered into transaction with the related
parties. Those transactions along with related balances as at 31 st
March, 2015 and for the year then ended are presented in the following.
List of related parties with whom transaction have taken place during
the year along with nature and volume of transactions.
12. During the year the Company has taken short term unsecured Loan Rs.
20 Crore for working capital requirement against domestic receivable
from Axis Bank. Instead of showing the same under the Balance sheet
head current liabilities in short term borrowing. The Company has
deducted the same amount from trade receivable in current assets.
The Company has filed appeal before The Joint Commissioner of
Commercial Tax- Appeals for demand of Sales Tax of Rs. 45,07,857 and Rs.
19,62,743 for the financial year 2003-04 & 2004-05 respectively. The
Dispute is regarding set off against the purchase of fuel not allowed
by the Sales tax Department. However, Gujarat High Court has given the
decision in favour of M/s Ami Pigment Ltd and hence the Company has
filed appeal on the basis of this decision.
The Company has also filed an appeal before The Deputy Commissioner of
Commercial Tax-Appeals-lll, Gandhi agar against demand of VAT for Rs.
49,27,910 raised in provisional assessment made byThe Asst.
Commissioner of Commercial Tax Enforcement Division ,wing-lll, Gandhi
agar for the financial year 2007-08 on account of issue of input VAT
credit reduction method on OGS Branch Transfer and Sample Sales.
The Company has also filed first appeal before The Joint Commissioner
of Commercial Tax - Appeals against demand of CST (Net) for Rs. 48,23,126
for the financial year 2008-09 for pending " C" forms.
The Company has also filed first appeal before The Joint Commissioner
of Commercial Tax-Appeals-l, Ahmedabad against demand of CST for Rs.
8,83,893 raised in regular assessment made by The Deputy Commissioner
of Commercial Tax, Corporate Cell-1, Gandhi agar for the financial year
2009-10 for pending "C" forms
The Company has also filed first appeal before The Joint Commissioner
of Commercial Tax-Appeals-I, Ahmadabad against demand of CST for
1,24,20,314 raised in the regular assessment made by The Deputy
Commissioner of Commercial Tax, Circle-7, Gandhi agar for the financial
year 2010-11 for pending "C" forms
Disputed Income Tax Liability of Rs. 2746.20 Lacs for various Asst. Years
for which department has preferred appeals at higher levels. Out of
these, Liabilities to the extent of Rs. 192.74 Lacs have remained pending
after CIT (Appeals) order effect. The Company has already paid Rs. 192.74
Lacs towards remaining disputed liabilities and there is no disputed
amount remains unpaid. Company has preferred an appeal before Gujarat
High Court.
Disputed Income tax Liability of Rs. 336.68 Lacs for A.Y.2006-07
Re-Assessment for which the Company has preferred an appeal before the
CIT (Appeal) Ahmadabad.
Disputed Income tax Liability of Rs. 118.77 Lacs of A.Y.2010-11 for which
the Company has preferred an appeal before the CIT (Appeal) Ahmadabad.
Disputed Income tax Liability of Rs. 27.66 Lacs of A.Y.2011-12 for which
the Company has preferred an appeal before the CIT (Appeal) Ahmadabad.
Disputed Income tax Liability of Rs. 636.39 Lacs of A.Y.2012-13 for which
the Company has preferred an appeal before the CIT (Appeal) Ahmadabad.
Mar 31, 2014
TOTAL OF LONG TERM BORROWING
1 Term Loan Rs. 1816.39 lacs are secured by way of First Pari Passu
charge over the movable & immovable properties of the Company situated
at Block No.160, 147A paiki, 162 at village Dalpur, Taluka-Prantij,
Dist: Sabarkantha, Gujarat, over the movable assets including Plant &
Machineries situated at Survey No.16 (paiki) Village: Jawanpura, Tal:
Idar, Dist: Sabarkantha, Gujarat and over the One Wind Mill No.V-20 at
survey No.204/1, Paiki, Village Vanku, Tal: Abdasa, Dist: Kutch,
Gujarat AND Second Pari passu charge over entire current assets
situated at Block No.160, 147A paiki, 162 at village Dalpur,
Taluka-Prantij, Dist: Sabarkantha, Gujarat and over entire current
assets situated at Survey No.16 (paiki) Village: Jawanpura, Tal: Idar,
Dist: Sabarkantha, Gujarat.
2 Term Loan Rs. 62.74 lacs are secured by way of First Charge on all
current assets and fixed assets including movable assets of the Agro
Tech Division of the Company situated at Block No.533 at Village
Dalpur, Taluka: Prantij, Dist: Sabarkantha, Gujarat.
3 Vehicle loans are secured by hypothecation of vehicles in favour of
Bank.
TOTAL OF SHORT TERM BORROWING
1 Working capital loans are secured by hypothecation of present and
future stock of Raw Materials,Stock in Process, Semi-finished goods,
stores and spares and Book debts, receivables And second Pari Passu
charge over entire movable assets and Immovable Properties of the
Company situated at Block No.160, 147A paiki, 162 at village Dalpur,
Taluka-Prantij, Dist: Sabarkantha, Gujarat (Vitrified/Wall /Marble
Division) And Survey No.16 (paiki), Village: Jawanpura, Taluka: Idar,
Dist: Sabarkantha, Gujarat (Ceramic Division).
Bill Discounting Limit is guaranteed by Directors of the Company.
OTHER NOTES ON ACCOUNT
1. During the year, Expenditure incurred of Rs. 3,66,90,351 (P.Y.Rs.
Nil) towards Advertisement, Brand Promotion & Exhibition Expenses of
new products are deferred as the benefit out of it is expected to occur
in future year also.
2. The quantity of inventories is based upon physical verification by
the management and the valuation is also based on details of cost and
realizable value (wherever applicable) considering the quality & other
relevant factors ascertained by management. The quantities of
inventories, Sales, and purchases are taken on the basis of details
worked out from the bills and the stock records maintained by the
Company (wherever applicable).
3. In the opinion of the Board of Directors,
(1) Current Assets, Loans & Advances are realizable in the ordinary
course of business, at the value at which they are stated.
(2) The provision for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
4. In sample sale, Only Excise, EDU and HEDU payable on sample sale
value is charged as expenses considering no commercial value of
samples.
5. Balance of Sundry creditors, debtors, debit/credit balance of loans
and advances are subject to confirmation from the respective parties.
6. Figures of the previous year have been regrouped / rearranged
wherever necessary to make them comparable with the current year
figures.
7. We have verified the vouchers and documentary evidences wherever
made available. Where no documentary evidences were available we relied
on the authentication given by the management.
8. Segment Reporting :- (AS-17)
Based on the guiding principle given in Accounting standard on *Segment
Reporting (AS-17) issued by the ICAI, the Company''s primary business
is manufacturing of Tiles, the tiles business of the Company
incorporate product groups i.e. Ceramic Tiles which mainly have similar
risk and returns, accordingly there are no separately segment,
9. Related Party Disclosures under :- (AS-18)
During the year the Company entered into transaction with the related
parties. Those transactions along with related balances as at March 31,
2014 and for the year then ended are presented in the following.
List of related parties with whom transaction have taken place during
the year along with nature and volume of transactions.
10. Contingent Liabilities :- (AS-29)
In view of the Accounting Standard issued by ICAI *Provisions and
Contingent Liabilities (AS-29), following contingent liabilities
have been identified which have not been
provided for in the books of accounts. (Rs. in Lacs)
Sr No Particular Amount
1 Bank Guarantee 1994.29
2 Custom Duty which may arise if
obligation for exports is not fulfilled
against import of capital goods under EPCG. 970.85
3 Claims against the Company / Disputed
Liabilities not acknowledged as Debts
i) Sales Tax demands against which Company
has preferred appeal. 210.88
ii) Excise Duty claim by DGCEI-Ahmedabad 2043.18
iii) Income tax 3010.62
iv) Consumer / Legal Cases 40.62
v) Letters of Credit opened with Bank 1493.44
The Company has filed appeal before The Joint Commissioner of
Commercial Tax - Appeals for demand of Sales Tax of Rs. 5,07,857 and
Rs.19,62,743 for the financial year 2003-04 & 2004-05 respectively. The
Dispute is regarding set off against the purchase of fuel not allowed
by the Sales tax Department. However, Gujarat High Court has given the
decision in favour of M/s Ami Pigment Ltd and hence the Company has
filed appeal on the basis of this decision
The Company has filed first appeal before The Deputy Commissioner of
Commercial Tax-Appeals-III, Gandhinagar against demand of CST (Net) for
Rs. 2,68,730 for the financial year 2006-07 for pending *CÂ forms
The Company has also filed an appeal before The Deputy Commissioner of
Commercial Tax-Appeals-III, Gandhinagar against demand of VAT for Rs.
9,27,910 raised in provisional assessment made by The Asst.
Commissioner of Commercial Tax Enforcement Division, wing-III,
Gandhinagar for the financial year 2007-08 on account of issue of in
put VAT credit reduction method on OGS Branch Transfer and Sample
Sales.
The Company has also filed first appeal before The Joint Commissioner
of Commercial Tax - Appeals against demand of CST (Net) for 55,83,126
for the financial year 2008- 09 for pending *CÂ forms.
The Company has also filed first appeal before The Joint Commissioner
of Commercial Tax-Appeals-I, Ahmedabad against demand of CST for
Rs.11,83,893 raised in regular assessment made by The Deputy
Commissioner of Commercial Tax, Corporate Cell-1, Gandhinagar for the
financial year 2009-10 for pending *C* forms
The Company has also filed an appeal before The Deputy Commissioner of
Commercial Tax-Appeals-III, Gandhinagar against demand of VAT / CST for
Rs. 26,53,636 raised in provisional assessment made by The Asst.
Commissioner of Commercial Tax Enforcement Division, wing-III,
Gandhinagar for the period from Apr-11 to Jul-11 (financial year
2011-12) on account of issue of in put VAT credit reduction method on
OGS Branch Transfer and Sample Sales and OGS Sales.
Disputed Income Tax Liability of Rs. 2746.20 lacs for various Asst.
Years for which department has preferred appeals at higher levels. Out
of these, Liabilities to the extent of Rs. 192.74 lacs have remained
pending after CIT (Appeals) order effect. The Company has already paid
Rs. 192.74 lacs towards remaining disputed liabilities and there is no
disputed amount remains unpaid. Company has preferred an appeal before
Tribunal Ahmedabad.
Disputed Income tax Liability of Rs. 336.68 lacs for A.Y. 2006-07
Re-Assessment for which the Company has preferred an appeal before the
CIT (Appeal) Ahmedabad. Disputed Income tax Liability of Rs. 92.82
lacs of A.Y. 2010-11 for which the Company has preferred an appeal
before the CIT (Appeal) Ahmedabad.
Disputed Income tax Liability of Rs. 27.66 lacs of A.Y. 2011-12 for
which the Company has preferred an appeal before the CIT (Appeal)
Ahmedabad.
Mar 31, 2013
1. During the year, Expenditure incurred of Rs. NIL (P.Y Rs. 33,
33,333/-) towards Exhibition of new products are deferred.
2. The quantity of inventories is based upon physical verification by
the management and the valuation is also based on details of cost and
realizable value (wherever applicable) considering the quality & other
relevant factors ascertained by management. The quantities of
inventories, Sales, and purchases are taken on the basis of details
worked out from the bills and the stock records maintained by the
company (wherever applicable).
3. In the opinion of the Board of Directors,
(1) Current Assets, Loans & Advances are realizable in the ordinary
course of business, at the value at which they are stated.
(2) The provision for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
4. In sample sale only Excise and EDU payable on sample sale value is
charged as expenses considering no commercial value of samples.
5. Balance of Sundry creditors, debtors, debit/credit balance of
loans and advances are subject to confirmation from the respective
parties.
6. Figures of the previous year have been regrouped / rearranged
wherever necessary to make them comparable with the current year
figures.
7. We have verified the vouchers and documentary evidences wherever
made available. Where no documentary evidences were available we relied
on the authentication given by the management.
8. Value of Export calculated at F.O.B. valued: Rs. 2337.47 Lacs
(P.Y. Rs. 1417.60 Lacs)
9. Earning Per Share :- (AS-20)
i) The amount used as numerator in calculating basic and diluted
earning per share is the profit after depreciation and
taxes i.e. Rs. 17,10,84,702.67/- ii) The number of ordinary shares used
as the denominator in calculating the basic earning per share is
2,21,15,458 i.e. weighted number of equity shares as on the date of
balance sheet 31st March, 2013. Diluted earning per share is arrived by
taking weighted number of equity shares outstanding as on the date of
balance sheet i.e. 2,21,15,458
10. Borrowing Cost :- (AS-16)
Based on the guiding principle given in Accounting standard on
"Borrowing Cost" (AS-16) issued by the ICAI, the Company has
capitalized Rs. Nil/-, (P.Y. Rs. Nil /-) during the year to the Fixed
Assets.
11. Segment Reporting :- (AS-17)
Based on the guiding principle given in Accounting standard on "Segment
Reporting" (AS-17) issued by the ICAI, the Company''s primary business
is manufacturing of Tiles, the tiles business of the company
incorporate product groups i.e. Ceramic Tiles which mainly have
similar risk and returns, accordingly there are no separately segment,
12. Contingent Liabilities :- (AS-29)
In view of the Accounting Standard issued by ICAI "Provisions and
Contingent Liabilities" (AS-29), following contingent liabilities have
been identified which have not been provided for in the books of
accounts.
The company has filed appeal before The Joint Commissioner of
Commercial Tax  Appeals for demand of Sales Tax of Rs. 45,07,857 and
Rs. 19,62,743 for the financial year 2003-04 & 2004-05 respectively.
The Dispute is regarding set off against the purchase of fuel not
allowed by the Sales tax Department. However, Gujarat High Court has
given the decision in favour of M/s Ami pigment Ltd and hence the
company has filed appeal on the basis of this decision
The company has filed first appeal before The Deputy Commissioner of
Commercial TaxÂAppeals-III, Gandhinagar against demand of CST (Net) for
Rs. 2,68,730 for the financial year 2006-07 for pending " C" forms
The company has also filed first appeal before The Joint Commissioner
of Commercial Tax  Appeals against demand of CST (Net) for Rs.
55,83,126 for the financial year 2008-09 for pending " C" forms.
The company has also filed an appeal before The Deputy Commissioner of
Commercial TaxÂAppeals-III, Gandhinagar against demand of VAT for Rs.
49,27,910 raised in provisional assessment made by The Asst.
Commissioner of Commercial Tax Enforcement Division ,wing-III,
Gandhinagar for the financial year 2007-08 on account of issue of in
put VAT credit reduction method on OGS Branch Transfer and Sample
Sales.
The company has also filed an appeal before The Deputy Commissioner of
Commercial TaxÂAppeals-III, Gandhinagar against demand of VAT for Rs.
53,79,049 raised in provisional assessment made by The Asst.
Commissioner of Commercial Tax Enforcement Division ,wing-III,
Gandhinagar for the financial year 2009-10 on account of issue of in
put VAT credit reduction method on OGS Branch Transfer and Sample
Sales.
The company has also filed an appeal before The Deputy Commissioner of
Commercial TaxÂAppeals-III, Gandhinagar against demand of VAT / CST for
Rs. 60,51,080 raised in provisional assessment made by The Asst.
Commissioner of Commercial Tax Enforcement Division ,wing-III,
Gandhinagar for the financial year 2010-11 on account of issue of in
put VAT credit reduction method on OGS Branch Transfer and Sample Sales
and OGS Sales.
The company has also filed an appeal before The Deputy Commissioner of
Commercial TaxÂAppeals-III, Gandhinagar against demand of VAT / CST for
Rs. 26,53,636 raised in provisional assessment made by The Asst.
Commissioner of Commercial Tax Enforcement Division ,wing-III,
Gandhinagar for the period from Apr-11 to Jul-11 (financial year
2011-12 ) on account of issue of in put VAT credit reduction method on
OGS Branch Transfer and Sample Sales and OGS Sales.
Excise duty show cause notice from DGCEI-Ahmedabad against the company
and the company has filed a reply to show cause notice but the matter
is yet pending with the department and till no order is being received.
Disputed Income Tax Liability of Rs. 2746.20 lacs for various Asst.
Years for which department has preferred appeals at higher levels. Out
of these, liabilities to the extent of Rs. .192.74 lacs have remained
pending after CIT (Appeals) order effect. The Company has already paid
Rs. 192.74 lacs towards remaining disputed liabilities and there is no
disputed amount remains unpaid.
Disputed Income tax liability of Rs. 133.05 lacs of A.Y. 2009-10 for
which CIT (Appeals) have already in favour of assesses but department
has preferred appeals at higher levels
Disputed Income tax Liability of Rs. 118.77 lacs of A.Y.2010-11 for
which the company has preferred an appeal before the CIT (Appeal)
Ahmedabad.
Mar 31, 2012
(1.1) 1,40,61,291 Shares out of the issued, subscribed and paid up
share capital were allotted as Bonus Shares in the last five years by
capitalisation of Reserves.
(1.2) The Company has not issued any shares during the year.
(1.3) The details of shareholders holding more than 5% shares :
(2.1) Rs 240.24 Crore are secured by way of First Mortgage / Charge on
the immovable properties of the company situated at Block No.: 160,147A
paiki, 162 at Village Dalpur, Taluka-Prantij, Dist: Sabarkantha,
Gujarat together with Building and other structure, erection and
godowns, fixtures and fittings standing theron and by way of
hypothecation on entire current assets and movable assets of the
company.
(2.2) Rs 11.75 Crore are secured by way of first pari passu mortgage /
charge our land and buildings, plants and machineries, fixd assets of
the company situated at Block No: 160,147A paiki, 162 at Village
Dalpur, Taluka-Prantij, Dist: Sabarkantha, Gujarat and exclusive First
charge over entire Current Assets of the company.
(2.3) Rs 3.50 C rore are secured by way of First Charge on the current
Assets and Fixed Assets of the Agro tech Division of the company
situated at Block No: 533, at village dalpur, Taluka Prantij, Dist:
Sabarkantha by way of Hypho.
(2.4) Rs 3.33 Crore are secured by way of equitable mortgage on freehold
Non Agriculture Land bearing survey No.16/paiki 23472 sq.mtrs. At
Jawanpura, Tal Idar including Plant & Machinery situated thereon.
(3.1) Working Capital loans are secured by hypothecation of present and
future stock of raw materials, stock-in process, finished goods, stores
& spares book debts, receivables, etc.
(3.2) Other Loans & Advances from Banks include WCDL and Foreign
Currency Loan guaranteed by Directors of the Company.
(3.3) There has been no defaults in repayment of any of the loans or
interest thereon as at the end of the year.
OTHER NOTES ON ACCOUNTS
4. During the year, Expenditure incurred of Rs 33,33,333/- (P.Y. Rs
33,52,409/-) towards Exhibition of new products are deferred.
5. The quantity of inventories is based upon physical verification by
the management and the valuation is also based on details of cost and
realizable value (wherever applicable) considering the quality & other
relevant factors ascertained by management. The quantities of
inventories, sales, and purchases are taken on the basis of details
worked out from the bills and the stock records maintained by the
company (wherever applicable).
6. In the opinion of the Board of Directors,
(1) Current Assets, Loans & Advances are realizable in the ordinary
course of business, at the value at which they are stated.
(2) The provision for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
7. In sample sale only excise and EDU payable on sample sale value is
charged as expenses considering no commercial value of samples.
8. Balance of Sundry creditors, debtors, debit/credit balance of
loans and advances are subject to confirmation from the respective
parties.
9. Figures of the previous year have been regrouped / rearranged
wherever necessary to make them comparable with the current year
figures.
The details of amounts outstanding to Micro, Small and Medium
Enterprises under the Micro, Small and Medium Enterprises Development
Act, 2006 are as per available information with the Company.
10. We have verified the vouchers and documentary evidences wherever
made available. Where no documentary evidences were available we relied
on the authentication given by the management.
11. Value of Export calculated at F.O.B. valued: Rs 1417.60 Lacs /-
12. Earning per Share : (AS-20)
i) The amount used as numerator in calculating basic and diluted
earning per share is the profit after depreciation and taxes i.e. Rs
18,05,38,579.15/-
13. Borrowing Cost:
Based on the guiding principle given in Accounting standard on
"Borrowing Cost" (AS-16) issued by the ICAI, the Company has
capitalized Rs Nil/- P.Y. (Rs 1 2, 86,921/-) during the year to the Fixed
Assets.
14. Segment Reporting : (AS-17)
Based on the guiding principle given in Accounting standard on "Segment
Reporting" (AS-17) issued by the ICAI, the Company's primary business
is manufacturing of Tiles, the tiles business of the company
incorporate product groups i.e. Ceramic Tiles which mainly have similar
risk and returns, accordingly there are no separately segment,
The operation of the Company is in India and all Assets and Liabilities
are located in India. And analysis of the sales by Geographical market
is given below.
15. Related Party Disclosures under : (AS-18]
During the year the company entered into transaction with the related
parties. Those transactions along with related balances as at 31st
March, 2012 and for the year then ended are presented in the following.
List of related parties with whom transaction have taken place during
the year along with nature and volume of transactions.
16. Contingent Liabilities : (AS-29]
In view of the Accounting Standard issued by ICAI "Provisions and
Contingent Liabilities" (AS-29), following contingent liabilities have
been identified which have not been provided for in the books of
accounts.
Sr. Amount.
No. Particulars (Rs In Lacs)
1 Bank Guarantee 1277.18
2 Custom Duty which may arise if obligation for
exports is not fulfilled against import of
capital goods under EPCG. 3410.41
3 Claims against the Company / Disputed Liabilities
not acknowledged as Debts
Sales Tax demands against which Company has
preferred appeal. 10709.51
Excise Duty claim by DGCEI-Ahmedabad 2043.18
Income tax 2879.26
Consumer Cases 9.56
4 Letters of Credit opened with Bank 1015.26 The company has filed
appeal with Joint Commercial Tax commissioner Appeals for sales tax of
Rs 45,07,857 and Rs 19,62,743 of the year 2003-04 and 2004-05
respectively. The dispute is regarding set off against the purchase of
fuel not allowed by the Sales Tax Department; however Gujarat High
Court has given the decision in favour of M/s Ameepigment Ltd and hence
the Company has filed appeal on the basis of this decision.
Further the company has filed appeal with First Appellate Authority for
VAT/CST of Rs 55,57,590/- for the year 2006-07 relating to the Input Vat
Credit receivable and pending "C" and "F" form.
The company has also filed second appeal before Honorable Gujarat Value
Added Tribunal against first appeal orders for the F.Y.2006-07 &
F.Y.2007-08 passed under Gujarat Value Added Tax,2003 and the Central
Sales Tax Act, 1956 for vat of Rs 4,54,31,883/- & Rs 5,59,12,849/-
respectively and for CST of Rs 59,24,51,588/- & Rs 36,51,26,441/-
respectively. The hearing of these matters are going on and presently
the Honourable Gujarat Value added Tax Tribunal, Ahmedabad has directed
to the Sales Tax Department not to take coercive measures against
Appellant till 31st August, 2012
Disputed Income Tax liability of Rs 2746.20 lacs for various assessment
years for which department has preferred appeals at higher levels. Out
of these, liabilities to the extent of Rs 192.74 lacs have remained
pending after CIT (Appeals) order effect. The Company has already paid
Rs 192.74 lacs towards remaining disputed liabilities and there is no
disputed amount remains unpaid.
Disputed Income Tax liability of Rs 133.05 lacs of A.Y.2009-10 for which
the company has preferred an appeal before the CIT (Appeal) Ahmedabad.
The company has already paid Rs 20 lacs towards disputed liability.
Mar 31, 2011
1 Advertisement expenditure of Rs. NIL/- (P.Y.Rs.56,63,186/-) is
deferred during the year. During the year, Printing & Stationery
Expense incurred for New Catalogue & Folder printing of Rs NIL/- (P.Y.
Rs.23,53,205) and Expenditure incurred of
Rs.33,52,409/-(P.Y.Rs.56,95,151) towards Exhibition of new products are
deferred.
2 The quantity of inventories is based upon physical verification by
the management and the valuation is also based on details of cost and
realizable value (wherever applicable) considering the quality & other
relevant factors ascertained by management. The quantities of
inventories, sales, and purchases are taken on the basis of details
worked out form the bills and the stock records maintained by the
Company (wherever applicable).
3. In the opinion of the Board of Directors
a) Current Assets, Loans & Advances are realizable in the ordinary
course of business, at the value at which they are stated.
b) The provision for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
4 In sample sale only excise and EDU payable on sample sale value is
charged as expenses considering no commercial value of samples.
5 Balance of Sundry creditors, debtors, debit/credit balance of loans
and advances are subject to confirmation from the respective parties.
6 Figures of the previous year have been regrouped / rearranged
wherever necessary to make them comparable with the current year
figures.
7 We are unable to categories the dues to Small Scale Industries (SSI)
separately due to lack of information regard to the status of the
creditors for goods outstanding above 30 days as on the balance sheet
date.
8 We have verified the vouchers and documentary evidences wherever made
available. Where no documentary evidences were available we relied on
the authentication given by the management.
03. Earning per Share : (AS-20)
i. The amount used as numerator in calculating basic and diluted
earning per share is the profit after depreciation and taxes i.e.
Rs.20,09,44,093/-
4. Borrowing Cost:-
Based on the guiding principle given in Accounting standard on
"Borrowing Cost" (AS-16) issued by the ICAI, the Company has
capitalized Rs. 12,86,921/-P.Y. (Rs. 34,46,031 /-) during the year to
the Fixed Assets.
5. Segment Reporting : (AS-17)
Based on the guiding principle given in Accounting standard on "Segment
Reporting" (AS-17) issued by the ICAI, the Company's primary business
is manufacturing of Tiles, the tiles business of the Company
incorporate product groups i.e. Ceramic Tiles which mainly have
similar risk and returns, accordingly there are no separateble segment,
6. Related Party Disclosures under : (AS-18)
During the year the Company entered into transaction with the related
parties. Those transactions along with related balances as at 31st
March, 2011 and for the year then ended are presented in the following.
List of related parties with whom transaction have taken place during
the year along with nature and volume of transactions.
Associates and Subsidiaries
Subsidiaries : NIL
Relatives of Key Management Personnel
Bhogibhai B Patel Punjabhai Patel
Dhuliben Jivabhai Patel Bhagubhai Punjabhai Patel
Sureshbhai Jivabhai Patel Hiraben Bhagubhai Patel
Chhayaben Sureshbhai Patel Heenaben Kamleshbhai Patel
Bhanuben Mukeshbhai Patel Danjibhai P Ppatel
Saunak Mukeshbhai Patel
Key Management Personnel
Hasmukhbhai D. Patel Kamleshbhai B. Patel
Mukeshbhai J. Patel Rameshbhai B. Patel
7. Contingent Liabilities : (AS-29)
In view of the Accounting Standard issued by ICAI "Provisions and
Contingent Liabilities" (AS-29), following contingent liabilities have
been identified which have not been provided for in the books of
accounts.
Particulars Amount (RS.In Lacs)
a Bank Guarantee 1216.50
b Custom Duty which may arise if
obligation for exports is not
fulfilled 435.59
against import of capital goods under EPCG.
c Claims against the Company / Disputed
Liabilities not acknowledged as Debts
Sales Tax demands against which Company
has preferred appeal. 120.28
Excise Duty claim by DGCEI-Ahmedabad 2043.18
Income tax 2746.20
Consumer Cases 16.51
d Letters of Credit opened with Bank 78.16
1) The Company has filed appeal with Joint Commercial Tax commissioner
Appeals for sales tax of Rs.4507857 and Rs.1962743 of the year 2003-04
and 2004-05 respectively. The dispute is regarding set off against the
purchase of fuel not allowed by the Sales Tax Department; however
Gujarat High Court has given the decision in favour of M/s Ameepigment
Ltd and hence the Company has filed appeal on the basis of this
decision.
Further the Company has filed appeal with First Appellate Authority for
VAT/CST of Rs.55,57,590/-for the year 2006-07 relating to the Input Vat
Credit receivable and pending "C"and "F" form.
Disputed Income Tax liability of Rs.2746.20 lacs for various assessment
years for which department has preferred appeals at higher levels. Out
of these, liabilities to the extent of Rs.192.74 lacs have remained
pending after CIT (Appeals) order effect. The Company has already paid
Rs.192.74 lacs. towards remaining disputed liabilities and there is no
disputed amount remains unpaid.
Mar 31, 2010
1. Advertisement expenditure of Rs. 1,50,80,752 /- (P.Y.Rs.56,63,186/-
) is deferred during the year. During the year, Printing & Stationery
Expense incurred for New Catalogue & Folder printing of Rs23,53,205/-
(P.Y. NIL) and Expenditure incurred of Rs.56,95,151/-(P.Y.NIL) towards
Exhibition of new products are deferred.
2. The quantity of inventories is based upon physical verification by
the management and the valuation is also based on details of cost and
realizable value (wherever applicable) considering the quality & other
relevant factors ascertained by management. The quantities of
inventories, sales, and purchases are taken on the basis of details
worked out form the bills and the stock records maintained by the
company (wherever applicable).
3. In the opinion of the Board of Directors,
(1) Current Assets, Loans & Advances are realizable in the ordinary
course of business, at the value at which they are stated.
(2) The provision for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
4. In sample sale only excise and EDU payable on sample sale value is
charged as expenses considering no commercial value of samples.
5. Balance of Sundry creditors, debtors, debit/credit balance of loans
and advances are subject to confirmation from the respective parties.
6. Figures of the previous year have been regrouped / rearranged
wherever necessary to make them comparable with the current year
figures.
7. We are unable to categories the dues to Small Scale Industries
(SSI) separately due to lack of information regard to the status of the
creditors for goods outstanding above 30 days as on the balance sheet
date.
8. We have verified the vouchers and documentary evidences wherever
made available. Where no documentary evidences were available we relied
on the authentication given by the management.
9. Capital Reserve of Rs.70/- was arise due to Amalgamation is shown
under Reserves & Surplus but due to amount in Lacs it does not reflect.
10. Earning per Share : (AS-20)
i) The amount used as numerator in calculating basic and diluted
earning per share is the profit after depreciation and taxes
i.e. Rs.19,03,89,609/-
ii) The number of ordinary shares used as the denominator in
calculating the basic earning per share is 2,10,61,291 i.e. weighted
number of equity shares as on the date of balance sheet 31ST March,2010.
Diluted earning per share is arrived by taking weighted number of equity
shares outstanding as on the date of balance sheet i.e. 2,10,61,291.
04. Borrowing Cost:-
Based on the guiding principle given in Accounting standard on
"Borrowing Cost" (AS-16) issued by the ICAI, the Company has
capitalized Rs. 34,46,031/- P.Y. (Rs. 1,41,65,461 /-) during the year
to the Fixed Assets.
05. Segment Reporting : (AS-17)
Based on the guiding principle given in Accounting standard on ÃSegment
Reportingà (AS-17) issued by the ICAI, the Companys primary business
is manufacturing of Tiles, the tiles business of the company
incorporate product groups i.e. Ceramic Tiles which mainly have
similar risk and returns, accordingly there are no separateble segment,
6. Related Party Disclosures under : (AS-18)
During the year the company entered into transaction with the related
parties. Those transactions along with related balances as at 31st
March, 2010 and for the year then ended are presented in the following.
List of related parties with whom transaction have taken place during
the year along with nature and volume of transactions.
Associates and Subsidiaries
Subsidiaries : - NIL
Relatives of Key Management Personnel
Sureshbhai J.Patel Prop.of Asian Plus à Abad
Key Management Personnel
Hasmukhabhai D.Patel Kamleshbhai B.Patel
Mukeshbhai J.Patel Rameshbhai B.Patel
7. Contingent Liabilities : (AS-29)
In view of the Accounting Standard issued by ICAI ÃProvisions and
Contingent Liabilitiesà (AS-29), following contingent liabilities have
been identified which have not been provided for in the books of
accounts.
Particulars Amount (RS.In Lacs)
1 Bank Guarantee 680.76
2 Custom Duty * 199.98
3 Claims against the Company / Disputed
Liabilities not acknowledged as Debts
Sales Tax 64.71
Excise Duty claim by DGCEI-Ahmedabad 2043.18
Income tax 2746.20
4 Letters of Credit opened with Bank 860.68
1) Kerala Sales Tax of Rs. 1,00,000/- issued under the Kerala General
Sales Tax Act, 1963 by SBI.
The company has also given bank guarantee of SBI to Excise and taxation
officer, for Value Added Tax of Rs. 6,67,566/-.
The company has given Bank Guarantee to Sabarmati Gas Ltd of Rs
6,70,83,525/- for Gas supply.
The Company has given Bank Guarantee for Value Added Tax at Cochin of
Rs.75,000/- issued by Bank of Baroda. Further the Company has given
Bank Guarantee to the Joint Commissioner of Sales Tax Ahmedabad Appeal
F.Y.2005-06 of Rs.1,50,000/- issued by Bank of Baroda.
2) * The Company has saved custom duty of Rs.1,99,97,705/- on purchase
of Plant & Machinery imported in year 2009-10 under condition that
Company is under obligation to export its product worth US $
33,82,275.80 within a period of eight years from the date of licence
i.e.12.11.2009. If the said export is not made within stipulated time
period, the Company is required to pay the said saved custom duty
together with interest @ 15% P.A. Till 31st March,2018.
3) The company has file appeal with Joint Commercial Tax commissioner
Appeals for sales tax of Rs.4507857 and Rs.1962743 of the year 2003-04
and 2004-05 respectively. The dispute is regarding set off against the
purchase of fuel not allowed by the Sales Tax Department; however
Gujarat High Court has given the decision in favour of M/ S Ameepigment
Ltd and hence the Company has filed appeal on the basis of this
decision.
Disputed Income Tax liability of Rs.2746.20 lacs for various assessment
years for which department has preferred appeals at higher levels. Out
of these, liabilities to the extent of Rs.192.74 lacs have remained
pending after CIT (Appeals) order effect. The Company has already paid
Rs.130.37 lacs towards remaining disputed liabilities and disputed
amount remains unpaid is of Rs 62.37 lacs only.
8. Derivative Instruments:
The company has entered into forward contracts to offset foreign
currency risks arising from the amounts denominated in currencies other
than the India Rupee. The counter parties to such forward contracts are
banks.
Mar 31, 2009
1 Scheme of Amalgamation of Asian Tiles Limited (ATL) with Asian
Granito India Limited. (The Company):
Pursuant to the Shareholdersà approval at the Court convened meeting of
the company held on 05-08-2008 and the sanction of the Hon.High Court
of Gujarat to the Scheme of Amalgamation vide its order dated
17-09-2009 the assets and liabilities of the erstwhile ATL whose
principal business was manufacture of Ceramic Tiles, were transferred
to and vested in the Company with effect from the appointed date, viz.
1st April, 2008 in accordance with the Scheme so sanctioned. The scheme
has become effective from 01-04-2008 accordingly was given effect to in
the Accounts. Further no Equity Shares of the Company would be issued
to erstwhile ATL, as all the Equity Shares issued by erstwhile ATL were
held by the Company except few nominee seven shares held by other
shareholders on behalf of the company have been adjusted in Capital
Reserve in the Company.
The Amalgamation has been accounted for under the ÃPooling of interests
methodà as prescribed by Accounting Standard 14 (AS-14) issued by the
Institute of Chartered Accountants of India. Accordingly, the assets
and liabilities and other reserves of the erstwhile ATL as at 1st April
2008 have been taken over at their book values. As a result, reserves
of the erstwhile ATL aggregating to Rs.954.75 Lacs have been added to
the Reserves of the Company. Pursuant to the scheme, 4031261 Equity
Shares of Rs.10 each held by the Company in the erstwhile ATL have been
cancelled.
2. Details of utilization of funds received on Intial Public Offer
(IPO) :
Consequent to an Initial Public Offer in the Financial Year 2007-08,
the Company issued and allotted 70,00,000 Equity shares of Rs.10/- each
at a premium of Rs.87/- per share. The issued Share Capital was
increased by Rs.700 lac and Rs.6090 lac had been credited to the Share
Premium Account.
Out of the Initial Public Offer (IPO) proceeds of Rs.67.90 crore, a sum
of Rs.64.82 crore has been utilized till 31st March, 2008 and remaining
amount has been utilized for the General Corporate Business Purpose as
stated in Object clause in Prospectus.
3. Advertisement expenditure of Rs. 93,63,186/-(P.Y.Rs.51,87,468/- )
is deferred during the year.
4. The quantity of inventories is based upon physical verification by
the management and the valuation is also based on details of cost and
realizable value (wherever applicable) considering the quality & other
relevant factors ascertained by management. The quantities of
inventories, sales, and purchases are taken on the basis of details
worked out form the bills and the stock records maintained by the
company (wherever applicable).
5. In the opinion of the Board of Directors,
(1) Current Assets, Loans & Advances are realizable in the ordinary
course of business, at the value at which they are stated.
(2) The provision for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
6. In sample sale only excise and EDU payable on sample sale value is
charged as expenses considering no commercial value of samples.
7. On the basis of Vat Audit report for previous year, excess vat paid
was now set off during the year and accordingly shown as vat credit
adjustment.
8. Balance of Sundry creditors, debtors, debit/credit balance of loans
and advances are subject to confirmation from the respective parties.
9. Previous yearÃs figures have been reworked, reclassified, regrouped
and rearranged wherever necessary however the figures for the previous
year do not include figures for the erstwhile ATL and accordingly the
current yearÃs figures are not comparable to those of the previous
year.
10. We are unable to categories the dues to Small Scale Industries
(SSI) separately due to lack of information regard to the status of the
creditors for goods outstanding above 30 days as on the balance sheet
date.
11. We have verified the vouchers and documentary evidences wherever
made available. Where no documentary evidences were available we relied
on the authentication given by the management.
12. The un provided depreciation on SLM rates considering three shift
of earlier years amounting to Rs.2,21,24,709/- is charged during the
year by reducing the Reserve & surplus and Fixed Assets of he company
to that extent.
B. DISCLOSURES:
01. Accounting for taxes of Income: (AS-22)
(a) Deferred tax assets/liabilities charge/credit during the year been
given in Schedule E of the Balance Sheet.
(b) The Provision for current taxes has been made in the account as per
the provisions of Income Tax Act, 1961.
02. Earning per Share : (AS-20)
i) The amount used as numerator in calculating basic and diluted
earning per share is the profit after depreciation and taxes i.e. Rs.
25,01,35,993/-
03. Borrowing Cost :
Based on the guiding principle given in Accounting standard on
ÃBorrowing Costà (AS-16) issued by the ICAI, the Company has
capitalized Rs. 1,41,65,461/- P.Y. (Rs. NIL /-) during the year to the
Fixed Assets.
04. Segment Reporting : (AS-17)
Based on the guiding principle given in Accounting standard on ÃSegment
Reportingà (AS-17) issued by the ICAI, the CompanyÃs primary business
is manufacturing of Tiles, the tiles business of the company
incorporate product groups i.e. Ceramic Tiles which mainly have similar
risk and returns, accordingly there are no separateble segment,
05. Related Party Disclosures under : (AS-18)
During the year the company entered into transaction with the related
parties. Those transactions along with related balances as at 31st
March, 2009 and for the year then ended are presented in the following.
List of related parties with whom transaction have taken place during
the year along with nature and volume of transactions.
Associates and Subsidiaries
Subsidiaries : - NIL
Relatives of Key Management Personnel
Sureshbhai J.Patel Prop.of Asian Plus - A-bad
Bhogibhai B.Patel
Key Management Personnel
Hasmukhabhai D.Patel Kamleshbhai B.Patel
Mukeshbhai J.Patel Rameshbhai B.Patel
Maganlal Prajapati Mahesh Chander Julka
Shankarlal Patel Ajendrakumar Patel
06. Contingent Liabilities : (AS-29)
In view of the Accounting Standard issued by ICAI ÃProvisions and
Contingent Liabilitiesà (AS-29), following contingent liabilities have
been identified which have not been provided for in the books of
accounts.
Particulars Amount (RS.)
1 Bank Guarantee 4,51,27,566
2 Sales Tax 64,70,600
3 Letters of Credit 7,80,940
4 Excise Duty 2,93,55,003
1) Kerala Sales Tax of Rs. 1,00,000/- issued under the Kerala General
Sales Tax Act, 1963 by SBI.
2) BOB Bank Guarantee OF Rs. 17,85,000/- issued to Assistant /Deputy
Commissioner of Customs for Export obligation.
3) The company has also given bank guarantee of SBI to Excise and
taxation officer, for Value Added Tax of Rs. 6,17,566/-.
4) The company has given Bank Guarantee to Sabarmati Gas Ltd and
Gujarat State Petronet Ltd of Rs.4,00,00,000/ - and Rs.24,00,000/-
respectively for Gas supply.
5) The company has given Bank Guarantee for Value Added Tax at Cochin
of to Rs. 75,000/- issued by Bank of Baroda, Ashram Road Branch.
Further the Company has given Bank Guarantee to the Joint Commissioner
of Sales Tax Ahmedabad Appeal F.Y.2005-2006 of Rs.1,50,000/- Issued by
Bank of Baroda-Ashram Road Branch.
6) The company has file appeal with Joint Commercial Tax commissioner
Appeals for sales tax of Rs.4507857 and Rs.1962743 of the year 2003-04
and 2004-05 respectively.
7) The department has issued show cause notice of Rs. 2,93,55,003/-
from The Office of the Commissioner of Central Excise ÃAhmedabad-III
Regarding availment of Cenvat Credit on Allumina Grinding Ball
considering it as capital goods item.
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