2.13 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Contingent Liability is disclosed in case of a present obligation arising from past events, when it is not probable that an
outflow of resources will be required to settle the obligation or where no reliable estimate is possible. Contingent liabilities
are not recognised in financial statements but are disclosed in notes.
Contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.
Contingent assets are not recognised in financial statements and are disclosed in notes.
2.14 Foreign Currency Transactions
Transactions in foreign currency are recorded at exchange rates prevailing at the date of transactions. Exchange differences
arising on foreign exchange transactions settled during the year are recognised in the statement of profit and loss of the
year.
Monetary assets and liabilities denominated in foreign currencies which are outstanding, as at the reporting date are
translated at the closing exchange rates and the resultant exchange differences are recognised in the statement of profit
and loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are recognised using the exchange
rate at date of initial transactions, are not retranslated.
In respect of forward contracts, the premium or discount on these contracts is recognized as income or expenditure over the
period of the contract. Any profit or loss arising on the cancellation or the renewal of such contracts is recognized as income
or expense for the year.
2.15 Impairment
Non-financial assets
The carrying amount of non- financial assets other than inventories are assessed at each reporting date to ascertain whether
there is any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An
impairment loss is recognised as an expenses in the Statement of Profit and Loss, for the amount by which the asset's
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost to
sell and value in use. Value in use is ascertained through discounting of estimated future cash flows using a discount rate
that reflects the current market assessments of the time value of money and the risk specific to the assets. For the purpose
of assessing impairment, assets are grouped at the lowest levels into cash generating units for which there are separately
identifiable cash flows.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that asset's carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortisation, if no impairment had been recognised.
Financial assets
The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind
AS 109 requires expected credit losses to be measured through a loss allowance. In determining the allowances for doubtful
trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is
adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that
are due and allowance rates used in the provision matrix.
2.16 Government Grant
Government grants are recognised when there is a reasonable assurance that the grant will be received and all attached
conditions will be complied with. Government grants relating to an expense item is recognised in the statement of profit and
loss over the period necessary to match them with costs that they are intended to compensate are expensed. Government
grants relating to asset is recognised as income in equal amounts over the useful life of the asset.
2.17 Earning Per Share (EPS)
Basic earnings per share is computed by dividing the profit/(loss) after tax by the weighted average number of equity shares
outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax as adjusted for
dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic earnings per share and the weighted average number of
equity shares which could have been issued on the conversion of all dilutive potential equity shares.
2.18 Cash Flow Statement
Cash flows are reported using the indirect method, as set out in Ind AS 7 'Statement of Cash Flows', whereby profit for the
period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated.
2.19 Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.
2.20 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset, until
such time as the assets are substantially ready for the intended use or sale. Interest income earned on temporary
investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs
eligible for capitalisation. The borrowing costs other than attributable to qualifying assets are recognised in the profit or loss
in the period in which they incurred.
2.21 Financial Instruments
The company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the
instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial asset or financial
liabilities, as appropriate, on initial recognition. Transactions costs directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit or loss are recognised immediately in Statement of Profit and loss.
Financial assets
All regular way purchases or sale of financial assets are recognised and derecognised on a trade date basis. Regular way
purchases or sales are purchases or sale of financial assets that require delivery of assets within the time frame established
by regulation or convention in the market place. All recognised financial assets are subsequently measured in their entirety
at either amortized cost or fair value, depending on the classification of the financial assets.
Classification of Financial Assets
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
(ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business
model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest rate method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the
short maturity of these instruments.
(v) Equity instrument
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its
liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
c) Derecognition
The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it
transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a
financial liability) is derecognized from the company's balance sheet when the obligation specified in the contract is
discharged or cancelled or expires.
d) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.
2.22 Fair Value Measurement
The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best interest.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as
a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
Level 3 * Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
2.23 Recent Accounting Pronouncement
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified
_any new standards or amendments to the existing standards applicable to the Company._
1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying
- amounts largely due to the short-term maturities of these instruments.
Note 37: Financial Risk Management
Financial risk management policy and objectives
’ The key objective of the Company's financial risk management is to ensure that it maintains a stable capital structure with the focus on total equity to
uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company is focused on maintaining a strong
equity base to ensure independence, security, as well as financial flexibility for potential future borrowings, if required without impacting the risk
profile of the Company
Company's principal financial liabilities, comprise Borrowings from Banks, trade and other payables. The mam purpose of these financial liabilities is to
finance Company's operations and plant expansion. Company's principal financial assets include investments, trade and other receivables, deposits with
banks and cash and cash equivalents, that derive directly from its operations.
Company is exposed to market risk, credit risk and liquidity risk.
The Company's Board oversees the management of these risks. The Company's Board is supported by senior management team that advises on
financial risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance to the Company's
Board that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with the Company's policies and risk objectives.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below
i) 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 risk namely interest rate risk, currency risk and price risk. Financial instruments affected by market risk include investments in
equity shares, security deposits, trade and other receivables, deposits with banks and financial liabilities.
The sensitivity analysis in the following sections relate to the position as at 31 March 2024 and 31 March 2023 The sensitivity of the relevant income
statement item is the effect of the assumed changes in respective market risks.
a) Foreign currency risk
Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate.
The company is not exposed to foreign exchange risk arising from foreign currency transactions primarily to USD as the company makes advance
payment for the goods purchased .Company do not enter into any derivative instrument in order to hedge its foreign currency risks.
b) Interest rate risk
Interest rate risk is the risk that changes in market interest rates will lead to change in interest income and expense for the Company. In order to
optimize the Company's position with regards to interest income & expense and to manage the interest risk, the Company performs comprehensive
interest risk management by balancing the proportion of fix & variable rate financial instruments.
c) Commodity Risk
Commodity risk is defined as the possibility of financial loss as a result of fluctuation in price of Raw Material/Finished Goods and change in demand of
the product and market in which the company operates. The Company is exposed to the movement in price of key raw materials in domestic and
international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations.
The company forecast annual business plan and execute on monthly business plan. Raw material procurement is aligned to its monthly/annual business
plan and inventory position is monitored in accordance with future price trend.
ii) Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk mainly
- from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks.
Credit risk on trade receivables is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has no concentration of risk
as customer base in widely distributed both economically and geographically.
• An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are
grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The
_ Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit
loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as financial
condition, ageing of outstanding and the Company's historical experience for customers.
b) Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with Company's policy.
Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Company monitors
rating, credit spreads and financial strength of its counter parties. Company monitors ratings, credit spread and financial strength of its counter parties.
Based on ongoing assessment Company adjust it's exposure to various counterparties. Company's maximum exposure to credit risk for the components
of balance sheet is the carrying amount as disclosed in Note 36.
Note-38 Segment Reporting
Based on guiding principles given in Ind AS 108 "Operating Segments" the Company's business activity falls within a single operating segment namely,
"Trading and Manufacturing Marbles, Granites and other Stones & Minerals", hence the disclosure requirements relating to "Operating Segments" as
per Ind AS 108 are not applicable.
Note-39 Code on social Security
The Code on Social Security, 2020 ('code') relating to employee benefits, during employment and post-employment, received Presidential assent on
September 28, 2020. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and
has invited suggestions from stakeholders. The Company will assess the impact on its financial statements in the period in which the related rules to
determine the financial impact are notified and the Code becomes effective
NOTE-40 Disclosures regarding COVID-19 related measures
The COVID-19 continues to spread across the globe and India, which has contributed to a significant decline and volatility in global and Indian financial
markets and a significant decrease in global and local economic activities. The Company has used the principles of prudence in applying judgments,
estimates and assumptions to assess overall impact of the pandemic on the business and Financial Statements for the year ended 31 March 2022.
However, due to the uncertainties associated with the pandemic, the actual impact may not be in line with current estimates. The Company will
continue to closely monitor any further development relating to COVID-19, which may have impact on business and financial position. Further the
impact assessment does not indicate any adverse impact on the ability of the company to continue as a going concern.
As per our Report of even date For^fid oiyoehalf of Board of Directors
For Ravi Sharma & Co. / Ja^Marmo Indices Limited
jEtwteredAccountants fj I j '
'(Paras Bhatla) (cz( [/'"A. I Vc j SidhartAjain VandeepJain I
partner V V r*-'** } I (Mataging Director) (Director)
M.NO. 418196 DIN: 01275^06 DIN: 01491361^/^
xWc^y1
UmeshJain Heml^t^plwgi 4
Place- Udaipur (Chief Flnanclal Officer) (Company Secretary)
Date:25th May, 2024 PAN: AGLPJ2591A PAN : CCDPD1563L
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