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Notes to Accounts of Asian Granito India Ltd.

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:

Subsidiaries

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.

Joint Venture

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.

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.

13.2 Dividend:

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.

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.

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:

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.

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.

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.

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 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.

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.

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 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:

(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.

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 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:

(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

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
Particulars	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

						(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

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

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

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:

			(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

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:

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:

Interest risk:

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 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 /r_s j_n 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. id_s 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 ReportingÂ (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 LiabilitiesÂ (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 Â 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 Â 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 ReportingÃ (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 Ã 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 LiabilitiesÃ (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 ShareholdersÃ 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 methodÃ 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 CostÃ (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 ReportingÃ (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 LiabilitiesÃ (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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