q) Provisions and contingent liabilities:
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
These are reviewed at each year end and reflect the best current estimate. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is deter- mined
by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect
to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of best estimate of the Management of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the li- ability. The increase in
the provision due to the passage of time is recognised as interest expense.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Company or a present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
r) Employee benefits:
Short-term employee benefits:
All employee benefits payable within twelve months of service such as salaries, wages, bonus, ex-gratia, medical benefits
etc. are recognised in the year in which the employees render the related service and are presented as current employee
benefit obligations within the Balance Sheet. Termination benefits are recognised as an expense as and when incurred.
Short-term leave encashment is provided at undiscounted amount during the accounting period based on service rendered
by employees. Compensation payable under Voluntary Retirement Scheme is being charged to Statement of Profit and Loss
in the year of settlement.
Other long-term employee benefits:
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service to the extent applicable to the Company. They are therefore
measured as the present value of expected future payments to be made in respect of services provided by employees up
to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields
at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as
a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss. The obligations
are presented as current liabilities in the Balance Sheet if the entity does not have an unconditional right to defer settlement
for at least 12 months after the reporting period, regardless of when the actual settlement is expected to occur.
Defined contribution plan:
Contributions to defined contribution schemes such as contribution to Provident Fund, Superannuation Fund, Employees'
State Insurance Corporation, National Pension Scheme and Labours Welfare Fund are charged as an expense to the
Statement of Profit and Loss based on the amount of contribution required to be made as and when services are rendered
by the employees if applicable to the Company. The above benefits are classified as Defined Contribution Schemes as the
Company has no further defined obligations beyond the monthly contributions.
Defined benefit plan: Gratuity:
Gratuity liability is a defined benefit obligation and is computed on the basis of an actuarial valuation by an actuary appointed
for the purpose as per projected unit credit method at the end of each financial year. The liability or asset recognised in the
Balance Sheet in respect of defined benefit pension and gratuity plans is the present value of the defined benefit obligation
at the end of the reporting period less the fair value of plan assets.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the
terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the
fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised
in the period in which they occur directly in Other Comprehensive Income. They are included in retained earnings in the
Statement of changes in equity and in the Balance Sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.
s) Earnings per share
Earnings per share (EPS) are calculated by dividing the net profit or loss for the period attributable to Equity Shareholders
by the weighted average number of Equity shares outstanding during the period. Earnings considered in ascertaining the
EPS is the net profit for the period and any attributable tax thereto for the period. The treasury shares are not considered as
outstanding equity shares for computing EPS.
t) Foreign Currency Transactions
Initial recognition.
Transactions in foreign currencies are translated into the Company's functional currency i.e “Rupees” at the exchange
rates at the dates of the transactions
Conversion
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange
rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are
translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and
liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of
the transaction.
Exchange difference
Exchange differences are recognised in profit or loss, except exchange differences arising from the translation of the
following items which are recognised in OCI
- equity investments at fair value through OCI (FVOCI);
- a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is
effective; and
- qualifying cash flow hedges to the extent that the hedges are effective
u) Critical estimates and judgements
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent liabilities and
contingent assets at the date of financial statements, income and expenses during the period. Actual results may differ from
these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are
recognized prospectively.
Application of accounting policies that require critical accounting estimates and assumption judgements having the most
significant effect on the amounts recognized in the financial statements are:
- Measurement of defined benefit obligations;
- Recognition of deferred tax assets & minimum alternative tax credit entitlement;
- Useful life and residual value of Property, plant and equipment and intangible assets;
- Impairment test of financial and non-financial assets including recoverability of expenditure on internally- generated
intangible assets;
- Measurement of fair value for share based payments;
- Recognition and measurement of provisions and contingencies.
- Estimate of Sales Return, Rebates and Discounts
- The Company's tax jurisdiction is India. Significant judgements are involved in determining the provision for Income Tax
including amounts to be recovered or paid for uncertain tax positions. Management judgement is required to determine
amount of deferred tax asset/ liability that is recognized.
v) Segment Reporting
An operating segment is defined as a component of the entity that represents business activities from which it earns
revenues and incurs expenses and for which discrete financial information is available. The operating segments are based
on the Company's internal reporting structure and the manner in which operating results are reviewed by the Chief
Operating Decision Maker (CODM) The Management Advisory Committee of the Company has been identified as the CODM
by the Company. Refer Note 34G for Segment disclosure
III Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rule as issued from time to time. MCA has notified Ind AS - 117 Insurance Contracts & consequential
amendments to the other standards 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 this new pronouncement and based on its evaluation
has determined that it does not have any significant i mpact in its financial statements.
IV Changes in Accounting Standards that may affect the Company after 31.03. 2025
New Accounting Standards/Amendments notified but not yet effective. MCA has not notified any new standards or amendments
to the existing standards applicable to the company during the year ended March 31,2025.
B. FINANCIAL RISK MANAGEMENT
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other
receivables, investments in mutual funds and cash and short term deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
i) Market Risk
Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a
financial instrument, as a result of interest rates and other price risks. Financial instruments affected by market risks, primarily
include loans & borrowings, investments and other receivables, payables and borrowings.
Interest Rate Risks
Interest rate risk can be either fair value interest rate or cash flow interest rate risk. Fair value interest rate risk is the risk of
changes in fair values of fixed interest bearing investments because of fluctuations in the interest rate. Cash flow interest rate
risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the
interest rates.
Exposure to interest rate risk
The Company's interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate
risk. The interest rate profile of the Company's interest-bearing financial instruments as reported to the management of the
Company is as follows.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss.
Therefore, a change in interest rates at the reporting date would not affect profit or loss.
Commodity Price Risk
The Company's activities are exposed to Imported Marble and Stones price risks and therefore its overall risk management
program focuses on the volatile nature of the Marble and Stone market, thus seeking to minimize potential adverse effects on
the group's financial performance on account of such volatility.
The Board reviews risk management policies.
Foreign Currency Risks
Currency risk is not material, as the company's business activities are auto hedged since the Company is able to pass on the
increased pricing on account of currency fluctuations if any.
ii) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers.
The carrying amount of following financial assets represents the maximum credit exposure.
Trade and other receivables
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control
relating to customer credit risk management.
The ageing of trade receivables is given in Note 37F
The amounts reflected in the table above are not impaired as on the reporting date.
Investment in Associate Company
The Company has investment in Associate Company. Such Financial Assets are not impaired as on the reporting date.
Cash and Bank balances
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low
credit risk.
iii) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far
as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flows. This monitoring
includes financial ratios and takes into account the accessibility of cash and cash equivalents.
The Company has access to funds from debt markets through bank loan, commercial papers, fixed deposits from public and
other debt instruments. The Company invests its surplus funds in bank fixed deposit and debt based mutual funds.
The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current
liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction
between willing parties. The following methods and assumptions were used to estimate the fair value.
1. The Fair values of Investment are based on NAV at the reporting date.
2. The Company uses the discounted cash flow valuation technique (in relation to fair value of asset measured at amortised cost)
which involves determination of present value of expected receipt/payment discounted using appropriate discounting rates.
The fair value so determined are classified as Level 2.
G) Segment Information:
The Company is engaged interalia in the business of natural stones, building material and allied building activities which is
considered as a single segment. These in the context of Ind AS 108 “ Operating Segment” are considered to constitute one
single primary segment. The Company's operations outside India do not exceed the quantitative threshold for disclosure
envisaged in the Accounting Standard. Non-reportable segments have not been disclosed as unallocated reconciling item in
view of their materiality. In view of the above, primary and secondary reporting disclosures for business/geographical segment
are not applicable.
Note 38 Other Statutory Information
A Transactions with Strike Off Companies: NIL
B Title deeds of Immovable property are held in name of the Company.
C The Company doesn't have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami Property.
D The Company has not traded or invested in crypto currency or virtual currency during the financial year.
E The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.
F The Company does not have any charges which is yet to be registered with ROC beyond the statutory period.
G The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related
parties (as defined under the Companies Act, 2013), either severally or jointly with any other person, except as disclosed in
Note no. 4 of financial statements.
H i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall :
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (ultimate beneficiaries) or
(b) provide any guarantee, security or the like to, or on behalf of the ultimate beneficiaries.
ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with
the understanding (whether recorded in writing or otherwise) that the Company shall :
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the funding party (ultimate beneficiaries)
or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
I The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).
J Clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 does not apply to
the Company.
K Previous year's figures, wherever necessary, have been regrouped/reclassified to conform to the current year's presentation.
The accompanying notes 1 - 38 are an integral part of the financial statements.
In terms of our report attached. For and on behalf of the Board of Directors
For Merchant & Co t m. B. KHAKHAR P. B. KHAKHAR
.Accoun*.a.nts Chairman & Managing Director Jt.ManagingDirector
Firm Reg.N°.14529°W (DiN: 00394065) (DIN: 00394135)
Ushma Merchant M.D.DEWANI H.D.VALIA
P.ropr..or____ Chief Financial Officer Company Secretary
Mem-No-142930 (ACS No.22571)
Place : Mumbai
Date : 8 May, 2025
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