I. Corporate information:

Divyashakti Granite Limited was Incorporated on 4th June, 1991 in the state of Andhra Pradesh. The Company’s objectives are manufacture of polished granite slabs, tiles & monuments. The Company undertook to set up a 100% Export Oriented Unit (EOU) at Narsapur Village, Medak District, Telangana State and it’s Reg. Office at 7-1-58, Divyashakti Complex, Ameerpet, Hyderabad, Telangana, Divyashakti Granites Limited, ever since its inception in 1991, has carved a niche for itself for producing world-class granite. Despite its brief presence, the company has grown into one of the Country’s largest 100% Export Oriented Granite Processing Units in a wide spectrum of colors, textures and finish, to customers world-wide.

2 Employee benefit plans A Defined contribution plans

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.6.32 lakhs (Year ended 31 March, 2017 Rs. 4.16 lakhs ) for Provident Fund contributions and Rs.3.92 lakhs (Year ended 31 March, 2017 Rs. 3.36 lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

B The Company offers the Gratuity scheme to its employees . The following table sets out the unfunded status of the Grantuity scheme and the amount recognised in the financial statements:

3.01 The Company has entered into sale agreement for the purchase of office premises at Ameerpet, Hyderabad with M/s N.V.Rattaiah& Co, at a sale price of Rs.28,42,278/- on 2nd April, 1993. The Conveyance deed has not yet been executed.

3.02 Confirmation letters have been sent in respect of sundry debtors/creditors and loans and advances. In view of all confirmations not having been received, the balances are subject to reconciliation and adjustments if any.

3.03 The Company has not received any Memorandum as required to be filed by the suppliers with the notified authority under the Micro, Small & Medium Enterprises Development Act, 2006) to claim their status as micro, small & medium enterprises. Consequently the amount paid/payable to such parties during the year is NIL.

3.04 The company’s business during the reporting period consists of single reportable segment i.e. manufacturing and sale of Polished Granite only.Hence no separate disclosure pertaining to segment reporting as per AS 108 as issued by ICAI is made.

3.05 Deferred Tax provision has been made as per Accounting Standard No.22 of Institute of Chartered Accountants of India.

3.06 CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE

As per section 135(1) of Companies Act, 2013 the provision of Corporate Social Responsibility are applicable to the Company. The Company constituted CSR Committee and framed CSR Policy. The Company allocated an amount of Rs.29.70 lakhs to be spent during the year 2017-18 for Corporate Social Responsibility. However, the Company couldn’t spend the amount earmarked for Corporate Social Responsibility. During the year 2017-18, the amount of Rs.3.20 lakhs was spent by the company towards the CSR activities in the field of Education and Environment. The Company is identifying the better areas and beneficiaries as per its approved CSR Policy.

3.07 Figures in the Balance Sheet and Statement of Profit and Loss have been rounded off to the nearest rupee.

3.08 Previous year figures have been regrouped and reclassified wherever necessary.

3.09. Schedules 1.01 to 1.13, 2.01 to 2.13 and 3.01 to 3.15 form part of Balance Sheet and Statement of Profit and Loss and have been authenticated.