Notes to Accounts of Murudeshwar Ceramics Ltd.

Mar 31, 2025

12. Provision and 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 resource embodying economic benefits will be required to settle such obligation and the amount
of such obligation can be reliably estimated. The details of contingent liabilities as on balance sheet are as under;

13. Cash and cash equivalents

Cash and cash equivalent for the purpose of balance sheet comprises of cash and banks balances.

14. Earnings per share

Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the
weighted average number of equity shares outstanding during the year. The weighted average number of shares outstanding
during the year is adjusted for events of bonus issue and share split.

Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares
considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning
of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period
presented.

15. Employee benefits

(i) Short term Employee benefits: Employee benefits such as salaries, wages, short term compensated absences, expected
cost of bonus, ex-gratia and performance - linked rewards falling due wholly within the twelve months or rendering
the service are classified as short term employee benefits and are expensed in the period in which employee renders the
related service.

(ii) Post-employment benefits

A. Defined contribution plans: The company’s superannuation scheme, the state governed provident fund scheme,
employee insurance scheme and employee pension scheme are defined contribution plans. The contribution paid/
payable under such schemes is recognized during the period in which the employee renders the related service.

B. Defined benefit plans: The present value of obligation under defined benefit plan is determined based on actuarial
valuation using the Projected Unit Credit Method.

The obligation is measured at the present value of estimated future cash flows using a discount rate based on the
market yield on government securities of a maturity period equivalent to weighted average maturity profile of
defined benefit obligations at the balance sheet date.

Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amount included in net
interest on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is
recognized in other comprehensive income and is reflected in Retained earnings and the same is not eligible to be
reclassified to profit and loss.

Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are
recognized in the Statement of Profit and loss as employee benefits expense, interest cost implicit in the defined
benefit employee cost is recognized in the Statement of Profit and Loss under finance cost.

Gains or losses on settlement on any defined benefit plan are recognized when the settlement occurs. Past service
cost is recognized as expense at the earlier of the plan amendment or curtailment and when the company recognized
related restructuring costs or termination benefits.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit
plans to recognize the obligation on a net basis.

(iii) Long term employee benefits : The obligation recognized in respect of long term benefits such as compensated absences,
long service award is measured at present value of estimated future cash flows expected to be made by company and is
recognized in similar manner as in the case of defined benefit plans as above.

Gratuity - The Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible
employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or
termination of employment, of an amount based on the respective employee’s salary and the tenure of employment with
the company. Gratuity has been paid through an approved gratuity fund managed by the LIC of India. Premium paid
thereon is accounted as expenditure. The Company has also provided for gratuity as per actuarial valuation performed
by an independent actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans
expose the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market risk

Leave Encashment - Leave encashment has been determined based on the actuarial valuation, available leave entitlement
at the end of each calendar year. The incremental amount so calculated each year is debited to Salaries and Wages - leave
encashment.

16. Investment Property:

The disclosure as per IND AS is as under -

1. Accounting policy for measurement of investment

The entity is following cost model for recognition & measurement of investment.

2. The investment property is valued and recognised at Cost, therefore no such valuation is carried out by any professional/
valuers.

17. Segment reporting policies

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker.

18. Events after the reporting date

Where events occurring after the balance sheet date provide evidence of the conditions that existed at the end of reporting
period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of
the material size of the nature are only disclosed.

19. Government Grants/Subsidy

The Company has not received subsidy of any kind from the government during the year.

20. The Company has been maintaining its books of accounts in the Odoo 16 which has feature of recording audit trail of each and
every transaction, creating an edit log of each change made in books of account along with the date when such changes were
made and ensuring that the audit trail cannot be disabled, throughout the year as required by proviso to sub rule (1) of rule 3
of The Companies (Accounts) Rules, 2014 known as the Companies (Accounts) Amendment Rules, 2021.

21. Recent Pronouncements

The Ministry of Corporate Affairs (“MCA”) notifies new standards or amendment to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, 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. April 1, 2024. The Company has reviewed the new pronouncements based on its evaluation
has determined that it does not have any significant impact in its financial statements.

22. Additional Reporting requirement as per amendment in Schedule III of the Company’s Act 2013:

1. Details of Benami Property held:

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

2. Title deeds of immovable properties not held in name of the company:

There are no immovable properties which are not held in name of the company. In case of leasehold property lease deeds
are duly executed in favour of company.

3. Valuation of Property, Plant & Equipment, intangible asset and investment property:

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets
during the current or previous year.

4. The fair value of Investment Property is based on prevailing Government prescribed value of the property which is not
based on valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules,
2017.

5. The details of Loans or Advances in the nature of loans granted to promoters, directors, KMPs and other related
parties are as below:

Reason for variance:

* Receivables/inventories outstanding for more than 6 months are not considered for Drawing Power calculation for
working capital. As a result, total value of stocks and book debts submitted to the banker is less than the value appearing
in the books of accounts.

7. Wilful Defaulter:

The Company has not been declared wilful defaulter by any bank or financial institutions or government or any
government authority.

8. Relationship with struck off Companies:

The Company has no transactions with the companies struck off under the Companies Act, 2013.

9. Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

10. Undisclosed Income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account

11. Details of crypto currency of virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

12. Utilisation of Borrowed funds and share premium:

The Company has utilised borrowed fund for the purpose as specified in the terms of sanctions.

13. Registration of charges or satisfaction with Registrar of Companies:

No charges or satisfaction are pending to be registered with Registrar of Companies except the following -
For the following loans, the satisfaction of charge is yet to be registered with RoC

15. Financial ratios are separately enclosed.

For and on behalf of By Order of the Board

K G Rao & Co., For Murudeshwar Ceramics Limited

Chartered Accountants
FRN: 010463S

Sd-

Krishnaraj K.

Partner

M. No. 217422 ^{Sd- Sd-}

Satish R Shetty Naveen R Shetty

^{place: Bengaluru} Chairman & Managing Director Director

Date: 29.05.2025 (DIN 00037526) (DIN 00058779)

---

Mar 31, 2024

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial assets, trade payables and other financial liabilities approximate the carrying amount largely due to short-term maturity of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Fair Value Hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data rely as little as possible on entity specific estimates.

Level 3: Inputs for the assets or liabilities that are not based on the observable marked data (unobservable inputs).

Measurement of fair value of financial instruments

The fair value measurement is not applicable since there were no financial assets and liabilities are measured at fair value. Financial Risk Management

The Company’s principal financial liabilities comprise borrowings, trade payables and other payables. The mam purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade & other receivables, cash & cash Equivalent, Investment, other balances with banks, loans and deposits that derive directly from its operations.

Company is exposed to following risk from the use of its financial instrument:

1. Market Risk

2. Credit Risk

3. Liquidity Risk

1. 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. The market risk comprises three types of risk: Interest rate risk, foreign currency risk and another price risk.

a) Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of market interest risk. The Company’s exposure to risk of changes in market interest rates is minimal. The company has not used any interest rate derivatives.

b) Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The company has not entered into any forward exchange contracts/derivative contracts.

c) Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded prices. The company has not invested in any traded equity instruments or bonds.

2. Credit risk

The credit risk refers to the risk that a counterparty will default on its contractual obligation resulting in financial loss to the company. Credit risk arises from financial assets such as trade receivables, other balances with banks, loans and other

receivables. The Company has adopted a policy of only dealing with the counterparties that have sufficiently high credit ratings. The exposure and credit ratings of the counterparties are continuously monitored, and aggregate value of transactions is reasonably spread amongst the counterparties. There are no cases of historical defaults and hence no provision for expected credit loss is necessary.

3. Liquidity risk

The liquidity risk is the risk that the company will encounter difficulty m raising funds to meet the commitments associated with financial instruments that are settled by delivering cash or another financial asset. The company has established liquidity risk management framework for managing its short term, medium term and long term and liquidity management requirements. The company has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

11, Borrowings and Borrowing Cost

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption valueis recognized in the income statement over the period of the borrowings using the effective interest rate method.

Borrowing costs directly attnbutable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognized m statement of profit and loss in the period in which they are incurred. f2. Provision and 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 resource embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated.

13. Cash and cash equivalents

Cash and cash equivalent for the purpose of balance sheet comprises of cash and banks balances.

14. Earnings per share

Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year. The weighted average number of shares outstanding during the year is adjusted for events of bonus issue and share split.

Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

15. Employee benefits

(i) Short term Employee benefits: Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia and performance - linked rewards falling due wholly within the twelve months or rendering the service are classified as short tenn employee benefits and are expensed in the period in which employee renders the related service.

(ii) Post-employment benefits

A. Defined contribution plans: The company’s superannuation scheme, the state governed provident fund scheme, employee insurance scheme and employee pension scheme are defined contribution plans. The contribution paid/ payable under such schemes is recognized during the period m which the employee renders the related service.

B. Defined benefit plans: The present value of obligation under defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method.

The obligation is measured at the present value of estimated future cash flows using a discount rate based on the market yield on government securities of a maturity period equivalent to weighted average maturity profile of defined benefit obligations at the balance sheet date.

Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amount included in net interest on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognized in other comprehensive income and is reflected in Retained earnings and the same is not eligible to be reclassified to profit and loss.

Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognized in the Statement of Profit and loss as employee benefits expense, interest cost implicit in the defined benefit employee cost is recognized in the Statement of Profit and Loss under finance cost.

Gains or losses on settlement on any defined benefit plan are recognized when the settlement occurs. Past service cost is recognized as expense at the earlier of the plan amendment or curtailment and when the company recognized related restructuring costs or termination benefits.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to recognize the obligation on a net basis.

(iii) Long term employee benefits : The obligation recognized in respect of long term benefits such as compensated absences, long service award is measured at present value of estimated future cash flows expected to be made by company and is recognized in similar manner as in the case of defined benefit plans as above.

Gratuity - The Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment with the company. Gratuity has been paid through an approved gratuity fund managed by the LIC of India. Premium paid thereon is accounted as expenditure. The Company has also provided for gratuity as per actuarial valuation perfonned by an independent actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market risk

Leave Encashment - Leave encashment has been determined based on the actuarial valuation, available leave entitlement at the end of each calendar year. The incremental amount so calculated each year is debited to Salaries and Wages - leave encashment.

16. Investment Property:

The disclosure as per IND AS is as under -

1. Accounting policy for measurement of investment

The entity is following cost model for recognition & measurement of investment.

2. The investment property is valued and recognised at Cost, therefore no such valuation is carried out by any professional/ valuers.

3. Amounts recognised in the Profit & Loss Account

4. The existence and amounts of restrictions on the reliability of the Investment Property or remittance of income and proceeds of disposals - Nil

5. Contractual obligation to purchase, construct or develop investment property or for repair and maintenance or enhancements - Nib

6. Asset Value and Depreciation Disclosure:

- Depreciation method used: Straight Line Method

- Useful life of Depreciation: 50 Years

- Asset Schedule

7. Fair Value of Investment Property

- Since the Investment property is valued following the cost model, no fair valuation is carried out.

17. Segment reporting policies

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

18. Events after the reporting date

Where events occurring after the balance sheet date provide evidence of the conditions that existed at the end of reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of the material size of the nature are only disclosed.

19. Government Grants/Subsidy

The Company has not received subsidy of any kind from the government during the year.

20. The Company has been maintaining its books of accounts in the Odoo 16 which has feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled, throughout the year as required by proviso to sub rule (1) of rule 3 of The Companies (Accounts) Rules, 2014 known as the Companies (Accounts) Amendment Rules, 2021.

21. Recent Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under and only when, the Group''s obligations are discharged, cancelled or have expired. Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the company

22. Additional Reporting requirement as per amendment in Schedule III of the Company’s Act 2013:

1 Details of Benami Property held:

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

2. Title deeds of immovable properties not held in name of the company:

There are no immovable properties which are not held in name of the company. In case of leasehold property lease deeds are duly executed in favour of company.

3 Valuation of Property, Plant & Equipment, intangible asset and investment property:

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during the current or previous year,

4. The fair value of Investment Property is based on prevailing Government prescribed value of the property which is not based on valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

Reason for variance:

* Receivables/inventories outstanding for mote than 6 months are not considetvd for Drawing Power calculation for working capital. As a result, total value of stocks and book debts submitted to the banker is less than the value appearing in the books of accounts.

7 Wilful Defaulter:

The Company has not been declared wilful defaulter by any bank or financial institutions or government or any government authority.

8. Relationship with struck off Companies:

The Company has no transactions with the companies struck off under the Companies Act, 2013.

9. Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

10. Undisclosed Income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account 11 Details of crypto currency of virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

12 Utilisation of Borrowed funds and share premium:

The Company has utilised borrowed fund for the purpose as specified in the terms of sanctions.

13. Registration of charges or satisfaction with Registrar of Companies:

No charges or satisfaction are pending to be registered with Registrar of Companies except the following -

The Term Loans from Banks are repayable in monthly instalments. Interest is payable On monthly basis. The Tenn Loans from HDFC Bank is secured by exclusive first charge created on immovable property and Plant and machinery at Sira Plant. The Working Capital Loans from banks namely Canara Bank, Punjab National Bank and HDFC Bank are secured by first charge created on the immovable properties, Stock and Book Debts and second charge created on movable Plant & Machinery except the exclusive charge created in favour of HDFC Bank for availing Term Loan and Assets hypothicated to concerned institutions/ Bankers against specific finance for the same. The WCTL under Gaurenteed Emergency Credit Line (GECL 2.0) and GECL 2,0 - Extended availed from consortium banks namely Canara Bank, Punjab National Bank are secured by second charge created/to be created on the immovable assets of the Company. Loans from Sundaram Finance Limited and Kotak Mahmdra Bank for specific assets are secure against hypothication of specific items of assets financed for Loan from LIC of India is against pledge of Key Man Policy. All the secured loans have been further secured by way of Personal Guarantees by two Promoter Directors of the Company to the extent applicable.

The Cash Credit and other working capital facilities from the consortium of Bankers namely, CanaraBank, Punjab National Bank and HDFC Bank are secured by way of hypotlucation of Raw Material, Stock in Process, Finished Goods, Book Debts and Goods meant for export on pan-passu basis and further secured by way of first charge on immovable assets of the company and second & subsiquent charge on the whole of the movable/Fixed Assets of the Company These borrowings are further secured by way of Personal Guarantees by two Promoter Directors of the Company to the extent applicable.

25.1a DEFINED CONTRIBUTION PLANS

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.The Company recognised Rs. 38,22,381 (Year ended 31st March, 2023 Rs. 36,48,135) for Provident Fund contributions and Rs. 19,20,551 (Year ended 31st March, 2023 Rs. 18,50,661) for Superannuation Fund contribution in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of schemes.

25 1b DEFINED BENEFIT PLANS

The Company offers the following employee benefit schemes to its employees :

l. Gratuity : The following tables sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Ceramic Tiles and Vitrified Tiles. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments. Geographical revenues are allocated based on the location of the customer. Geographic segments of the Company are Americas (including Canada and South American countries). Europe. India and Others._

---

Mar 31, 2018

Note : 1 Corporate Information :

Murudeshwar Ceramics Limited (the Company) was established during the year 1983. The Company is manufacturing Ceramic and Vitrified Tiles. The Registered Office of the Company is at 604/B, Murudeshwar Bhavan, Gokul Road, Hubli - 580 030 and the Corporate Office is at Naveen Complex, 7th Floor, 14, M.G.Road, Bengaluru - 560 001. The Company is having 2 manufacturing plants at Sira, Dist. Tumkur and Karaikal, Pondicherry. The Company started trading activities for outsourcing of Vitrified Tiles and Ceramic Tiles. The Company''s products are branded as “Naveen Ceramic Tiles” and “Naveen Diamontile”. The Company is having well established marketing network all over the country.

Note : 2 Notes on IND AS Adjustments

a) Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income'' includes re-measurement of defined benefit plans the concept of other comprehensive income did not exist under previous GAAP.

b) The Company has valued financial assets/liabilities at fair value which hitherto were accounted for at cost. Impact of fair value changes as on the date of transition, is recognized in opening reserves and changes thereafter are recognized in Statement of Profit and Loss.

c) Under Ind AS, re-measurement of net defined benefit liabilities i.e., actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of statement of profit or loss. Under the previous gAaP, this re-measurement was forming part of the profit or loss for the year.

d) Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. .

The following reconciliations provide quantifications of the effect of significant differences arising as a result of transition from Previous GAAP (IgGaP) to IND AS in accordance with IND AS 101.

(a) Balance Sheet as at 1st April, 2016 (Transition date);

(b) Other Equity as at 1st April, 2016 (Transition date);

(c) Balance Sheet as at 31st March, 2017;

(d) Other Equity as at 31st April, 2017; and

(e) Statement of Profit and Loss for the year ended 31st March, 2017; and

(f) Summary of reconciliation of movement in profit and loss on transition to IND AS for year ended March 31, 2017.

The Company has elected to use fair value of its total assets in its Opening Ind AS Balance Sheet (as at April 01 2016) as deemed cost. Accordingly, the Assets are carried at fair value of Rs.27,820.43 lakhs, Carrying amount reported under previous GAAP was Rs.27,753.99 lakhs. The difference between the fair value and carrying amount reported under previous GAAP of Rs.66.44 lakhs has been taken to Retained Earnings as at April 01, 2016 (Transition Date).

The fair value of the above mentioned assets as at April 01, 2016 has been arrived at, on the basis of a valuation carried out as at March 31, 2016 by Mr. Mohan R Chabbi, Chartered Engineer registered with the Institution of Engineers (India), having appropriate qualification and experience in the valuation of Property, Plant and Equipment after considering various factors like present market price, replacement cost, technical depreciation and obsolescence factors and residual life of assets.

For the land, the fair value was derived using the market approach considering the prevailing market rate in the vicinity of the subject land parcel and also considering available details of recent transactions of similar land parcels adjusted for factors such as negotiation margin, land use, road location etc.

The Term Loans from Banks are repayable in quarterly instalments. Interest is payable on monthly basis. The Term Loans from Banks, namely Canara Bank and Indian Bank are secured by first charge created/to be created on the immovable / Fixed Assets of the Company, and by charges on the other movables including machinery, Spares, Tools, accessories and movable plant and machinery both present and future, save and except book debts and other Deferred Payment Guarantee equipments, assets hypothecated to concerned institutions / Bankers against specific finance for the same. The said charge on the movable properties of the Company in favour of these Bankers is subject to prior charges created in favour of Company''s Bankers for working capital requirements. Loans from ICICI Bank Ltd., Kotak Mahindra Ltd., Oriental Bank of Commerce, The Daimler Financial Services and Sundaram Finance Limited for specific assets are secure against hypothecation of specific items of assets financed for. Loan from LIC of India is against pledge of Key-Man Policy. All the secured and unsecured loans other than public deposits have been further secured by way of Personal Guarantees by Promoter Directors of the Company to the extent applicable. The Term Loan from Indiabulls is secured by way of Mortgage of Title Deeds of specific assets.

The Cash Credit and other working capital facilities from the consortium of Bankers namely, Canara Bank, State Bank of India, Bank of Baroda, The Lakshmi Vilas Bank Ltd., Oriental Bank of Commerce and Axis Bank are secured by way of hypothecation of Raw materials, Stock in Process, Finished Goods, Book Debts and Goods meant for export on pari-passu basis and further secured by way of second & subsequent charge on the whole of the immovable / Fixed Assets of the Company. These borrowings are further secured by way of Personal Guarantees by Promoter Directors of the Company to the extent applicable.

Note : 3 Disclosures under Accounting Standards

3.1 Employee benefit plans

3.1.a DEFINED CONTRIBUTION PLANS

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.The Company recognised Rs.40.58 lakhs (Year ended 31st March, 2017 Rs.38.58 lakhs) for Provident Fund contributions and Rs.13.35 lakhs (Year ended 31st March, 2017 Rs.8.64 lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of schemes.

3.1.b DEFINED BENEFIT PLANS

The Company offers the following employee benefit schemes to its employees :

i. Gratuity : The following tables sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements :

4.1 Segment information

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Ceramic Tiles and Vitrified Tiles. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments. Geographical revenues are allocated based on the location of the customer. Geographic segments of the Company are Americas (including Canada) and South American countries, Europe, India and others.

Net deferred tax (liability) / asset

The Company has recognised deferred tax asset on unabsorbed depreciation to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fixed assets under Income Tax.

Effect of IND AS adoption on Standalone Statement of Profit and Loss for year ending 31.03.2017.

---

Mar 31, 2016

1 Employee benefit plans

a DEFINED CONTRIBUTION PLANS

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.39.92 lacs (Year ended 31st March, 2015 Rs.31.71 lacs) for Provident Fund contributions and ''8.64 lacs (Year ended 31st March, 2015 Rs.7.54 lacs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of schemes.

b DEFINED BENEFIT PLANS

The Company offers the following employee benefit schemes to its employees :

i. Gratuity : The following tables sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements :

2. Segment information

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Ceramic Tiles and Vitrified Tiles. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments. Geographical revenues are allocated based on the location of the customer. Geographic segments of the Company are Americas (including Canada) and South American countries, Europe, India and others.

Note 3 Previous Year''s Figures

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

---

Mar 31, 2015

Note : 1 Corporate Information :

Murudeshwar Ceramics Limited (the Company) was established during the year 1983. The Company is manufacturing Ceramic and Vitrified Tiles. The registered office of the Company is at 604/B, Murudeshwar Bhavan, Gokul Road, Hubli - 580 030 and the Corporate Office is at Naveen Complex, 7th Floor, 14, M.G.Road, Bengaluru - 560 001. The Company is having 2 manufacturing plants at Krishnapur Village, Hubli and Karaikal, Pondicherry. The Company started Trading activities for outsourcing of Vitrified Tiles and Ceramic Tiles. The Company''s products are branded as "Naveen Ceramic Tiles" and "Naveen Diamontile". The Company is having well established marketing network all over the country.

2.1 Contingent liabilities and commitments As at 31st As at 31st (to the extent not pr0vided f0r) March 2015 March 2014

(i) Contingent liabilities

(a) Guarantees 436.01 476.01

(b) Letters of Credit established with Banks 2,549.17 1,126.18

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Tangible assets - 98.46

Note 3 Disclosures under Accounting Standards 28.1 Employee benefit plans

3.1. a DEFINED CONTRIBUTION PLANS

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.The Company recognised Rs.31.71 lacs (Year ended 31st March, 2014 Rs.27.44 lacs) for Provident Fund contributions and Rs.7.54 lacs (Year ended 31st March, 2014 Rs.8.97 lacs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of schemes.

4.1. b DEFINED BENEFIT PLANS

The Company offers the following employee benefit schemes to its employees :

i. Gratuity : The following tables sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements :

---

Mar 31, 2014

Particulars As at As at

1.1 Contingent liabilities and commitments (to the extent 31st March 31st March not provided for) 2014 2013

(i) Contingent liabilities Rsin Lacs Rsin Lacs

(a) Guarantees 476.01 232.41

(b) Letters of Credit established with Banks 1,126.18 1,540.77 (ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Tangible assets 98.46 2.56

1.2 Details of unutilised amounts out of issue of securities made for specific purpose The Company had issued securities (Equity Share and Share Warrants) amounting to Rs. Nil for purposes of clearing high cost debt and working capital needs of the Company.

1.3 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

1.4 Disclosure as per Clause 32 of the Listing Agreements with the Stock Exchanges

Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties:

Note : Figures / percentages in brackets relates to the previous year.

Note 2 Disclosures under Accounting Standards

2.1 Employee benefit plans

2.1.a DEFINED CONTRIBUTION PLANS

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.The Company recognised Rs.27.44 lacs(Year ended 31st March, 2013 Rs.30.45 lacs) for Provident Fund contributions and Rs.8.97 lacs (Year ended 31st March, 2013 Rs.8.36 lacs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of schemes.

2.1.b DEFINED BENEFIT PLANS

The Company offers the following employee benefit schemes to its employees :

i. Gratuity : The following tables sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements :

Note Particulars

2.2 Related party transactions Details of related parties:

Description of relationship

Associates RNS Infrastructure Ltd

Murdeshwar Power Corporation Ltd. Naveen Hotels Ltd RNS Motors Ltd R N Shetty Trust R N S Trust

Key Management Personnel (KMP) Dr. R N Shetty Shri Satish R Shetty Shri Sunil R Shetty Shri Naveen R Shetty

Key Management Personnel / Shri Satish R Shetty, Shri Sunil Relatives of Key R Shetty and Management Personnel Shri Naveen R Shetty are sons of Dr. R N Shetty Company in which KMP / Above mentioned Associate Relatives of KMP can Companies exercise significant influence

Note : Related parties have been identified by the Management.

Note 3 Previous Year''s Figures

3.1 The revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

NOTES TO THE CASH FLOW STATEMENT CASH AND CASH EQUIVALENT :

Cash and cash equivalents consists of cash on hand and balances with Banks and Investments in money market instruments. Cash and cash equivalents in the cash flow statement comprise the following Balance Sheet amounts.

---

Mar 31, 2013

Note : 1 Corporate Information :

Murudeshwar Ceramics Limited (the Company) was established during the year 1983. The Company is manufacturing Ceramic and Vitrified Tiles. The registered office of the Company is at 604/B, Murudeshwar Bhavan, Gokul Road, Hubli - 580 030 and the Corporate Office is at Naveen Complex, 7th Floor, 14, M.G. Road, Bangalore - 560 001. The Company is having 2 manufacturing plants at Krishnapur Village, Hubli and Karaikal, Pondicherry. The Company started Trading activities for outsourcing of Vitrified Tiles and Ceramic Tiles. The Company''s products are branded as ''Naveen Ceramic Tiles'' and ''Naveen Diamontile''. The Company is having well established marketing network all over the country.

2.1 Monies received against share warrants

As approved by the shareholder at the Extra Ordinary General Meeting held on March 14, 2012, the Board of Directors at their meeting held on March 21, 2012 alloted 39,70,000 Convertible Share Warrants at a price of Rs.17/- per Convertible Share Warrants in accordance with SEBI Guidelines at Murdeshwar Power Corporation Ltd. 25% price of convertible Share Warrants which amounts to Rs.1,68,72,500/- was received by them. On 19.03.2013, Murdeshwar Power Corporation Limited converted its first trenche of 19,35,000 Convertible Share Warrants into 19,35,000 Equity shares by paying the balance 75% amount to Rs..2,46,71,250/-. The remaining Convertible Share warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before eighteen months from the date of issue of warrant. In the remaining Convertible Share warrants are not converted into shares within the said period, the Company is eligible to forfeit the amount received towards the warrants.

2.2 Details of unutilised amounts out of issue of securities made for specific purpose

The Company had issued securities (Equity Share and Share Warrants) amounting to Rs. Nil for purposes of clearing high cost debt and working capital needs of the Company.

3.1 Employee benefit plans

3.1.a DEFINED CONTRIBUTION PLANS

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.The Company recognised Rs.30.45 lacs(Year ended 31st March, 2012 Rs.39.41 lacs) for Provident Fund contributions and Rs.8.36 lacs (Year ended 31st March, 2012 Rs.8.72 lacs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of schemes.

3.1.b DEFINED BENEFIT PLANS

The Company offers the following employee benefit schemes to its employees :

i. Gratuity : The following tables sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements :

4 The revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2012

Note : 1 Corporate Information :

Murudeshwar Ceramics Limited (the Company) was established during the year 1983. The Company is manufacturing Ceramic and Vitrified Tiles. The registered office of the Company is at 604/B, Murudeshwar Bhavan, Gokul Road, Hubli - 580 030 and the Corporate Office is at Naveen Complex, 7th Floor, 14, M.G. Road, Bangalore - 560 001. The Company is having 2 manufacturing plants at Krishnapur Village, Hubli and Karaikal, Pondicherry. The Company started Trading activities for outsourcing of Vitrified Tiles and Ceramic Tiles.The Company's products are branded as 'Naveen Ceramic Tiles' and 'Naveen Diamontile'. The Company is having well established marketing network all over the country.

2.1 Monies received against share warrants

As approved by the shareholder at the Extra Ordinary General Meeting held on March 14, 2012, the Board of Directors at their meeting held on March 21, 2012 alloted 18,40,000 Equity Shares & 39,70,000 Convertible Share Warrants at a price of Rs.17/- per Equity Share & per Convertible Share Warrants in accordance with SEBI Guidelines to Murdeshwar Power Corporation Ltd. 25% Price of convertible Share Warrants which amounts to Rs. 1,68,72,500/- was received by them. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before eighteen months from the date of issue of warrant. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

As at As at

31st March 31st March

2012 2011 (Rs. in Lacs) (Rs. in Lacs)

2.2 Contingent liabilities and commitments (to the extentnot provided for)

(i) Contingent liabilities

(a) Claims against the Company not acknowledged

as debt (give details) - -

(b) Guarantees 255.90 239.88

(c) Letters of Credit established with Banks 1,272.07 1,794.43

(ii) Commitments

(a) Estimated amount of contracts remaining to be executedon capital account and not provided for Tangible assets 25.22 33.60

2.3 Details of unutilized amounts out of issue of securities made for specific purpose

The Company had issued securities (Equity Share and Share Warrants) amounting to Rs. 4,81,52,500 for purposes clearing high cost debt and working capital needs of the Company.

3.1 Employee benefit plans

3.1.a DEFINED CONTRIBUTION PLANS

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 39.41 lacs (Year ended 31 March, 2011 Rs. 38.19 lacs) for Provident Fund contributions and Rs. 8.72 lacs (Year ended 31 March, 2011 Rs. 8.13 lacs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.1.b DEFINED BENEFIT PLANS

The Company offers the following employee benefit schemes to its employees :

i. Gratuity : The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements :

3.2 Segment information

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Ceramic Tiles and Vitrified Tiles. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments. Geographical revenues are allocated based on the location of the customer. Geographic segments of the Company are Americas (including Canada and South American countries), Europe, India and others.

4 The revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2010

1. The Term Loans from Banks namely Canara Bank, Bank of Baroda, State Bank of India, The Lakshmi Vilas Bank Ltd., Axis Bank and Indian Bank are secured by first charge created / to be created on the immovable / Fixed Assets of the Company, and by charge on other movables including machinery spares, tools, accessories and movable plant and machinery both present and future, save and except book debts and other Deferred Payment Guarantee equipments, assets hypothecated to concerned institutions / Bankers against specific finance for the same. The said charge on the movable properties of the Company in favour of these Bankers is subject to prior charges created in favour of Companys Bankers for working capital requirements.

2. (a) The Cash Credit and other working capital facilities (including adhoc limits) from the consortium of Bankers namely, Canara Bank, Bank of Baroda, State Bank of India, The Lakshmi Vilas Bank Ltd., and Axis Bank are also secured by way of hypothecation of raw materials, stock in process, finished goods, book debts and goods meant for export on pari-passu basis and further secured by way of second & subsequent charge on the whole of the immovable / Fixed Assets of the Company.

(b) The Working Capital facilities (including Cash Credit) availed from HDFC Bank Limited are secured by way of hypothecation of Raw Material, Stock in Process, Finished goods, Book-debts & goods meant for exports. A further security is subject to ceding of second charge on the whole of immovable / Fixed Assets of the company by the consortium of Bankers as mentioned in 2(a) above.

3. Loans from ICICI Bank Ltd., Tata Finance Ltd., Sundaram Finance Ltd., Sheba Properties Ltd., and HDFC Bank Ltd., for specific assets are secured against hypothecation of specific items of assets financed for. Loan from Life Insurance Corporation of India is against pledge of Key-Man Policy.

4. The term loans availed from State Bank of India and Canara Bank, for specific assets financed for are • secured by way of first charge on such specific assets and a charge on all movable assets subject to charges created / to be created in favour of other Banks / Financial Institutions for Working Capital / Term Loan requirements in the ordinary course of business.

5. All the secured and unsecured loans other than Public Deposits have been further secured by way of Personal Guarantees by Promoter Directors of the Company to the extent applicable.

NOTES ON ACCOUNTS ANNEXED TO AND FORMING PART OF BALANCE SHEET AS ON 31.03.2010 AND THE PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2010.

1. Figures in parenthesis relate to the previous year.

2. Contingent Liabilities not provided for in respect of:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.43.40 lakhs (Rs.88.08 lakhs)

b) Guarantees given by Banks on behalf of the Company Rs.81.22 lakhs (Rs. 125.96 lakhs)

c) Letters of Credit established with Banks Rs.1,039.72 lakhs (Rs.64.26 lakhs)

6. The Company has provided Depreciation on its Fixed Assets at the Rates prescribed in Schedule XIV of The Companies Act, 1956 as amended on 16.12.1993.

7. No Provision for Tax has been made in view of the losses for the year as per The Income Tax Act, 1961. MAT credit U/s.115 JAA shall be carried forward and set off in the year in which the Company pays tax at normal rates.

8. a) Sundry Creditors include Rs.90.49 lakhs (Rs.45.78 lakhs) due to Small Scale and Ancillary Undertakings.

b) List of Small Scale Industrial Undertakings to whom the Company owes a sum exceeding Rs.1 lakh, which is outstanding for more than 30 days :

01. Ashapura China Clay Company, Bhuj 02. Bharat Minerals, Cuddapah 03. Hari Belts & Conveyors Pvt. Ltd., Bangalore 04. Hi-Tech Ceramics, Jaipur 05. M.S. Traders, Namakkal 06. N R Industries, Belgaum 07. SB International, Coimbatore 08. Shri Abirami Enterprises, Namakkal 09. Yesha Industries, Hubli.

9. Balances of sundry debtors, loans and advances and sundry creditors to the extent unconfirmed as on 31.3.2010 are subject to reconciliation and settlement wherever necessary. Sundry Debtors includes a sum of Rs. 83.40 lacs from Group Companies.

a) M/s. Naveen Hotels Ltd., : Rs. 44.77 lacs b) M/s. R.N.S. Motors : Rs. 8.71 lacs,

c) M/s. R.N. Shetty Trust : Rs. 29.92 lacs

10. Deferred tax liability has been shown net of deferred tax asset. The Company has recognized Deferred tax asset of Bs.29.50 lakhs (Rs.27.48 lakhs) in respect of timing differences as per Accounting Standard - 22 issued by Institute of Chartered Accountants of India.

The Company has recognised Deferred tax asset on the unabsorbed depreciation losses carried forward as per the provisions of the Income Tax Act, 1961. The Management is confident that there will be sufficient profits in future to write off the Deferred tax assets. The future business projections made by the Management and its commitment to the same is the basis to support the recognition of Deferred tax assets.

11. Previous years figures have been regrouped / rearranged wherever necessary to conform to current years classification.