12. Provision and contingencies

The company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is
probable that an outflow of resource embodying economic benefits will be required to settle such obligation and the amount
of such obligation can be reliably estimated. The details of contingent liabilities as on balance sheet are as under;

13. Cash and cash equivalents

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

14. Earnings per share

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

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

15. Employee benefits

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

(ii) Post-employment benefits

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

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

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

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

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

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

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

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

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

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

16. Investment Property:

The disclosure as per IND AS is as under -

1. Accounting policy for measurement of investment

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

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

17. Segment reporting policies

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

18. Events after the reporting date

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

19. Government Grants/Subsidy

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

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

21. Recent Pronouncements

The Ministry of Corporate Affairs (“MCA”) notifies new standards or amendment to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified
Ind AS - 117 Insurance contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements based on its evaluation
has determined that it does not have any significant impact in its financial statements.

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

1. Details of Benami Property held:

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

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

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

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

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

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

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

Reason for variance:

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

7. Wilful Defaulter:

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

8. Relationship with struck off Companies:

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

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

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

10. Undisclosed Income:

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

11. Details of crypto currency of virtual currency:

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

12. Utilisation of Borrowed funds and share premium:

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

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

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

15. Financial ratios are separately enclosed.

For and on behalf of By Order of the Board

K G Rao & Co., For Murudeshwar Ceramics Limited

Chartered Accountants
FRN: 010463S

Sd-

Krishnaraj K.

Partner

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

Satish R Shetty Naveen R Shetty

^{place: Bengaluru} Chairman & Managing Director Director

Date: 29.05.2025 (DIN 00037526) (DIN 00058779)