Company overview

1.0 Elegant Marbles And Grani Industries Limited is a company incorported in India and is listed on the Bombay Stock Exchange Ltd. The company is engaged in manufacture & trading of marble, granites & other stones tiles & slabs. The details regarding registered office, corporate office & principal place of business is disclosed in the introductory page of this Annual Report.

The Company bought back 840000 equity shares of Rs. 10 each for an aggregate value of Rs.17.22 crores being 18.67% of the total paid up equity share capital at Rs. 205 per equity share in the previous year ended 31st March, 2018. The equity shares bought back were extinguished on 30.03.2018.

(c) Terms/rights attached to equity shares :

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.1 CONTINGENT LIABILITY

(i) The company has preferred appeals before the Commissioner of Income Tax (Appeals), Mumbai against the orders passed by Deputy Commissioner of Income Tax for the assessment years 2013-14 & 2014-15 raising a demand of 41,73,670/- & 7,99,670/- respectively.

(ii) The Company has executed Letter of Undertaking indemnifying the President of India against any liability that may arise on account of Goods & Service Tax provisions on goods exported by it.

3.1 POST RETIREMENT BENEFIT PLANS

Defined Benefits Plan

(i) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity is paid @ 15 days salary for every completed year of service as per the Payment of Gratuity Act, 1972.

The Company has got the valuation of its liability on account of gratuity from an authorised actuarial valuer vide his report dt.06.05.2019. The Company has provided for the liability on account of gratuity in its books of accounts on the basis of the report.

3.2 In the opinion of the management and to the best of their knowledge, the current assets, loans & advances are approximately of the value stated, if realised in the ordinary course of business, unless otherwise stated.

3.3 The Company is trying to ascertain the enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). Based on the details regarding the status of the suppliers, to the extent obtained, no supplier is covered under the Act.

3.4 The Company has, during the year, capitalised a sum of Rs. 43,30,000/- being deposit given for leasing of premises at Raghuvanshi Mills Compound, Senapati Bapat Marg, Mumbai, on the basis of the Consent Terms agreed before the Small Causes Court dt. 03.12.1997 and agreements dt. 02.02.1999 & 28.04.1999 entered into between Raghuvanshi Mills Limited & the Company. The terms of the agreement expressly provide that the lessor, who has taken the premises on rent from the owners, has given these premises on lease to the Company for a long period and on the occurence of the event of the lessor becoming the owners of the whole of the land & premises, the lessee, i.e., the Company, would get these premises on an ownership basis for the above sum of Rs. 43,30,000/-. The Company has provided for depreciation as per Schedule II to the Companies Act, 2013 on Straight Line Method from the date of agreements/consent terms to the current year.

3.5 Having regard to the rate of taxation, company's income profile and other factors, the Company has not provided for deferred tax for credit for minimum alternative tax available to it.

The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the assets or liability, either directly or indirectly.

Liquidity Risk

Liquidity risk is the risk that suitable sources of funding for the company's business activities may not be available. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due, so that the company is not forced to obtain funds at higher rates. The Company monitors rolling forecasts of the Company's cash flow position and ensure that the Company is able to meet its financial obligation at all times including contingencies.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due causing financial loss to the company. It arises from cash and cash equivalents, financial instruments and principally from credit exposures to customers relating to outstanding receivables. The Company deals with highly rated counter parties.