Lexus Granito (India) Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2025

Note-31- Details of Employee Benefits:

The Company has the following post-employment benefit plans:

A. Defined Contribution Plan

Contribution to defined contribution plan recognised as expense for the year is as under:

The Company offers its employees benefits under defined contribution plans in the form of provident fund. Provident fund cover substantially all regular employees which are on payroll of the company. Both the employees and the Company pay predetermined contributions into the provident fund and approved superannuation fund. The contributions are normally based on a certain proportion of the employee''s salary and are recognised in the Statement of Profit and Loss as incurred.

B. Defined Benefit Plan - Gratuity:

(i) The Company administers its employees'' gratuity scheme funded liability. The present value of the liability for the defined benefit plan of gratuity obligation is determined based on actuarial valuation by an independent actuary at the period end, which is calculated using the projected unit credit method, which recognises each year of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(iii) Characteristics of defined benefit plans and risks associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit plans which are as follows:

A. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience:

Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

B. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter- valuation period.

C. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

Notes to the Standalone Financial Statements for the year ended on 31st March, 2025 Note- 32- Contingent Liabilities and Capital Commitments		(Amount in Lakhs)
Particulars	Period ended 31st March, 2025	Period ended 31st March, 2024
(I) Contingent Liabilities
a) Bank Guarrantees	230.73	189.54
b) Direct Tax*	623.15	527.32
c) Indirect Tax*	1,519.53	58.44
*To the extent quantifiable and ascertainable

(II) Capital Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances)

Note -33 - Leases (Right to Use of Assets)

The Company''s significant leasing arrangements are in respect of Land and buildings and office premises taken on lease and license basis. The Company has recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the ROU asset at its carrying amount. The weighted average incremental borrowing rate applied to lease liabilities is 10.00 %.

Note - 34 - Financial Instruments

Financial Risk Management - Objectives and Policies

The Company''s financial liabilities mainly comprise the loans and borrowings in domestic currency, money related to capital expenditures, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets comprise mainly of investments, security deposits, cash and cash equivalents, other balances with banks, trade and other receivables that derive directly from its business operations.

The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments.

The Management of the Company has implemented a risk management system which is monitored by the Board of Directors of the Company. The general conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk management system aims to identify, assess, mitigate the risks in order to minimize the potential adverse effect on the Company''s financial performance.

The following disclosures summarize the Company''s exposure to the financial risks and the information regarding use of derivatives employed to manage the exposures to such risks. Quantitative Sensitivity Analysis has been provided to reflect the impact of reasonably possible changes in market rate on financial results, cash flows and financial positions of the Company.

(*) Investment in subsidiaries are measured at cost as per Ind AS 27, âSeparate financial statements", and hence not presented here.

(**) Fair value of financial assets and liabilities measured at amortized cost approximates their respective carrying values as the management has assessed that there is no significant movement in factor such as discount rates, interest rates, credit risk from the date of the transition. The fair values are assessed by the management using Level 3 inputs.

(***) The financial instruments measured at FVTPL represents current investments and derivative assets having been valued using level 2 valuation hierarchy.

Fair value hierarchy

The fair value of financial instruments as referred to in note below has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

B. 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: " Interest Rate Risk, Currency Risk and Other Price Risk". Financial instrument affected by the Market Risk includes loans and borrowings in foreign as well as domestic currency, retention money related to capital expenditures, trade and other payables.

(a) Interest Rate Risk

Interest Rate Risk is the risk that fair value or future cash outflows of a financial instrument will fluctuate because of changes in market interest rates. An upward movement in the interest rate would adversely affect the borrowing cost of the Company. The Company is exposed to long term and short - term borrowings. The Company manages interest rate risk by monitoring its mix of fixed and floating rate instruments and taking actions as necessary to maintain an appropriate balance. The Company has not used any interest rate derivatives.

(b) Foreign Currency Risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering the volume of foreign currency transactions, the Company has taken certain forward contracts to manage its exposure.

C. Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and other Financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets. (i) Low credit risk, (ii) Moderate credit risk, (iii) High credit risk.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

(i) Cash and cash equivalent and bank balance:

Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

(ii) Loans and Other financial assets measured at amortized cost:

Other financial assets measured at amortized cost includes Security Deposit to various authorities , Loans to staff and other receivables. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

(iii) Trade receivables:

Life time expected credit loss is provided for trade receivables. Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions. Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

(A) Expected credit losses:

Expected credit loss for trade receivables under simplified approach:

The Company recognizes lifetime expected credit losses on trade receivables & other financial assets using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trend of default based on the criteria defined below and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Further, the Company has evaluated recovery of receivables on a case to case basis. No provision on account of expected credit loss model has been considered for related party balances. The Company computes credit loss allowance based on provision matrix. The provision matrix is prepared on historically observed default rate over the expected life of trade receivable and is adjusted for forward - looking estimate. The provision matrix at the end of reporting period is as follows:

D. Liquidity Risk

Liquidity Risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity

Expiring beyond One Year

The cash credit and other facilities may be drawn at any time and may be terminated by the bank without notice.

Maturities of Financial Liabilities:

The tables below analyze the Company''s financial liabilities into relevant maturity based on their contractual maturities for all nonderivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. AS per Annexure "A"

E. Capital Management

The Company''s capital management objectives are to ensure the company''s ability to continue as a going concern, to provide an adequate return to share holders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet. Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

The Company manages its capital on the basis of Net Debt to Equity Ratio which is Net Debt (Total Borrowings net of Cash and Cash Equivalents) divided by total equity.

The Company has complied with the covenants as per the terms and conditions of the major borrowing facilities throughout the Reporting Period.

Note - 35 - Balance confirmation of Receivables

Confirmation letters have not been obtained from all the parties in respect of Trade Receivable, Other Non- Current Assets and Other Current Assets. Accordingly, the balances of the accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

Note - 36 - Balance Confirmation of Payables

Confirmation letters have not been obtained from all the parties in respect of Trade Payable and other current liabilities. Accordingly, the balances of the accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

Note - 37 - Events occurring after the Balance sheet Date

The Group evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. There are no subsequent events to be recognized or reported that are not already disclosed.

Note - 42 - Additional regulatory information

A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease reements are duly executed in favour of the lessee) are held in the name of the Company.

B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

D) There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are outstanding as on 31st March, 2025 .

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

F) The company is not declared willful defaulter by any bank or financial institution or other lender.

G) The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

H) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

I) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries)by or on behalf of the company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

J) 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 directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

K) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. There are no such previously unrecorded income or related assets.

L) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

M) The Company has executed settlement agreement with Debentures holders dated 29th September, 2023, and as per the agreement company will pay settlement amount of Rs 150.00 Lakhs on the terms contained in settlement Agreement, towards full and final settlement before 30th November, 2023, however Company has paid Rs 75 lakhs towards this agreement till the date of this financial statements and for the balance amount company has requested extension of time period of settlement.

N) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are not applicable to the Company during the period.

Note - 43 - Previous year''s figures have been regrouped, reclassified wherever necessary to correspond with the current year classification / disclosure.

Reasons or variances of more than 25%.

1 Current Ratio (in times)

During 2024-25, a decrease in trade payables and short-term borrowings led to an increase in the current ratio from 1.11 to 1.42.

2 Debt-Equity Ratio (in times)

In 2024-25, a decline in shareholders'' equity as compared to previous year, increased the debt-equity ratio from 6.22 to 14.91.

3 Debt Service Coverage Ratio (in times)

During 2024-25,There is decreased in loss as compared o previous year. Thus, Debt service coverage ratio increased from 0.1 to 0.69.

4 Return on Equity Ratio (in %)

During 2024-25,there is Decreased in Net loss as compared to previous year. Thus Return on Equity ratio decreased from 1.78 to 1.15.

5 Inventory Turnover Ratio (in times)

In 2024-25, there is decrease in cost of good sold as comapred to previous year. Thus Inventory turnover ration decreased from 1.77 to 1.12.

6 Trade Receivables Turnover Ratio (in times)

During the year, Credit sales and average receivables decreased due to which Trade Receivables turnover ratio decreased from5.95 to 4.42.

7 Trade Payables Turnover Ratio (In Times)

During the year, Purchase increased from 186.19 Lakhs to 225.56 Lakhs. Thus, Trade Payables Turnover ratio increased from 0.04 to 0.05.

8 Net Capital Turnover Ratio (In Times)

During the year, Revenue from operations decreased and net working capital increased significantly. Thus, Net capital turnover ratio decreased from 18.02 to 3.43 times.

9 Net Profit ratio (in %)

During the year, Net loss reduced substanially sales also reduced . Thus, Net profit ratio decreased by 52.42%.

10 Return on Capital employed (in %)

Return on Capital employed moved from (27.24)% to (2.66)% due to comparatively more increase in capital employed during the year.

11 Return on investment. (in %)

During the year, average cost of investment increased from 40.04 Lakhs to 48.29 Lakhs due to which Return on investment decreased from 11.16 to 6.01.

Mar 31, 2024

(iii) Characteristics of defined benefit plans and risks associated with them:

A. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience:

Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected. Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

B. Investment Risk:

C. Liquidity Risk:

D. Market Risk:

E. Legislative Risk:

Note- 32- Contingent Liabilities and Capital Commitments
	As on	As on
Particulars	March 31, ''24	March 31,''23
(I) Contingent Liabilities a) Claims against the Company not acknowledged as debts: a) Corporate Guarantees given By Company
b) Bank Guarrantees	189.54	6.61
c) Bills Discounting	-	-
c) Direct Tax*	527.32	658.40
d) Indirect Tax*	58.44	58.44
*To the extent quantifiable and ascertainable

(II) Capital Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances)

Note- 33- Segment Reporting

Looking to the nature of Business, Company is operating under single Operating segement , Segement Reporting is Applicable as per IND AS 108.

Note -34- Related Party Discloures

Disclosure of transactions with Related Parties, as required by Ind AS 24 "Related Party Disclosures" has been set out below. Related parties as defined under clause 9 of the Ind AS 24 have been identified on the basis of representations made by the management and information available with the Company and the same has been relied upon by the auditors.

Note -35- LEASES (Right to Use of Assets)

The Company''s significant leasing arrangements are in respect of Land and buildings and office premises taken on lease and license basis.

The Company has recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the ROU asset at its carrying amount. The weighted average incremental borrowing rate applied to lease liabilities is 10.00 %.

Note - 36 - Financial Instruments

Financial Risk Management - Objectives and Policies

The Company''s financial liabilities mainly comprise the loans and borrowings in domestic currency, money related to capital expenditures, trade The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments.

The Management of the Company has implemented a risk management system which is monitored by the Board of Directors of the Company. The The following disclosures summarize the Company''s exposure to the financial risks and the information regarding use of derivatives employed to

(**) Fair value of financial assets and liabilities measured at amortized cost approximates their respective carrying values as the management has (***) The financial instruments measured at FVTPL represents current investments and derivative assets having been valued using level 2 valuation Fair value hierarchy

The fair value of financial instruments as referred to in note below has been classified into three categories depending on the inputs used in the The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net

B. 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 (a) Interest Rate Risk

Interest Rate Risk is the risk that fair value or future cash outflows of a financial instrument will fluctuate because of changes in market interest Exposure to Interest Rate Risk

C. Credit Risk

Financial assets (other than trade receivables) that expose the entity to credit risk are managed and categorized as follows:

(i) Cash and cash equivalent and bank balance:

Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

(ii) Loans and Other financial assets measured at amortized cost:

(iii) Trade receivables:

(A) Expected credit losses:

Expected credit loss for trade receivables under simplified approach:

The cash credit and other facilities may be drawn at any time and may be terminated by the bank without notice.

Maturities of Financial Liabilities:

The tables below analyze the Company''s financial liabilities into relevant maturity based on their contractual maturities for all non-derivative E. Capital Management

The Company''s capital management objectives are to ensure the company''s ability to continue as a going concern, to provide an adequate return to share holders

The Company manages its capital on the basis of Net Debt to Equity Ratio which is Net Debt (Total Borrowings net of Cash and Cash Equivalents) divided by total equity.

The Company has complied with the covenants as per the terms and conditions of the major borrowing facilities throughout the Reporting Period. Note - 37 - Balance confirmation of Receivables

Note - 38 - Balance Confirmation of Payables

Note - 39 - Events occurring after the Balance sheet Date

Notes to the Standalone Financial Statements for the year ended on 31 March, ''24 Note - 43- Additional regulatory information

B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

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

F) The company is not declared willful defaulter by any bank or financial institution or other lender.

G) The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

H) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

I) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

K) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. There are no such previously unrecorded income or related assets.

L) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

M) The Company has executed settlement agreement with Debentures holders dated 29th September ''23, and as per the agreement company will pay settlement amount of Rs 150.00 Lakhs on the terms contained in settlement Agreement, towards full and final settlement before 30th November ''23, however Company has paid Rs 75 lakhs towards this agreement till the date of this financial result and for the balance amount company has requested extension of time period of settlement.

N) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are not applicable to the Company duringthe period.

Note - 44- Previous year''s figures have been regrouped, reclassified wherever necessary to correspond with the current year classification / disclosure.

* Reason for Variance

2 Debt-Equity Ratio (in times)

In the current year Changes in debt equity ratio are due to decrease in overall debt of the company alongwith decrease in share holder''s equity which has been from Rs.2035.55 to Rs.931.87 lakhs on account of cash losses incured by the company during the year.

3 Debt Service Coverage Ratio (in times)

In the Current FY 2023-24 Earning available for debt services has been decreased from Rs. 595.20 lakhs to Rs. 108.61. Hence Debt service coverage ratio has been Decreased from 0.53 to 0.10 times.

4 Return on Equity Ratio (in %)

In the current year Substaintially reduction in Share holder''s equity from Rs. 2035.55 to Rs. 931.87 lakhs due to cash losses of the company. This Resulted into increase in Return on Equity ratio.

5 Inventory Turnover Ratio (in times)

In the FY 2023-24 Cost of goods sold increased as compare to Previous year also Decrease in Average inventory. This lead to Increase of Inventory Turnover Ratio From 1.36 to 1.77 times.

7 Trade Payables Turnover Ratio (In Times)

Due to Decrease in Average trade payables from Rs.5394.35 to Rs. 5033.93 lakhs, Also Significant decrease in Credit purchase from Rs. 811.01 to Rs. 186.19 lakhs, Hence Trade payable turnover ratio has been decreased.

8 Net Capital Turnover Ratio (In Times)

In the current year current liablity decreased as compare to previous year. Due to that Working capital decrease in current year Also Revenue from operation has been increased.Hence net capital turnover ratio has been increased.

10 Return on Capital employed (in %)

Cash losses of the company in the current financial year 2023-24 has been increased. Due to that Return on capital employed has been decreased from (12.13%) to (27.24%).

11 Return on investment. (in %)

Due to Decrease in cost of investment from 95.77 to 40.04 in curent year also decrease in return on investment income, Resulting to Increase in Return on Investment.

Mar 31, 2023

7. Provisions and Contingent Liability: -

a) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, and 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 obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation, at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

b) Contingent Liabilities

A disclosure for a contingent liability is made 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 arising because of past event that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

For detailed contingent assets and liabilities refer to note 32. (Notes to the accounts)

8. Tangible Assets & Capital Work-In-Progress: -

Tangible Assets are stated at cost less Depreciation. Cost includes taxes, duties, freight and other incidental expenses related to acquisition, improvements and installation of the assets.

10. Property, Plant & Equipment (PPE): -

Property, Plant & Equipment, are accounted for on historical cost basis (inclusive of the cost of installation and other incidental costs till commencement of commercial production) net of

recoverable taxes, less accumulated depreciation, and impairment loss, if any. It also includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent costs are added to the existing asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Profit and Loss during the period in which they are incurred.

Depreciation on property, plant & equipment is provided on pro-rata basis, on written down value basis in the case of Plant & Machinery, Buildings and Data Processing Equipment, over the useful life of the assets estimated by the management, in the manner prescribed in Schedule II of the Companies Act, 2013. The asset''s residual values, useful lives and method of depreciation are reviewed at the end of each reporting period and necessary adjustments are made accordingly, wherever required. The useful lives in the following cases are different from those prescribed in Schedule II of the Companies Act, 2013. The Useful Life of Various assets are mentioned in the Chart below.

11. Financial Instruments: -

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

1) Financial Assets

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument.

a) Initial recognition and measurement

At initial recognition, all financial assets are recognized at its fair value, in the case of a financial asset not carried at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

b) Classification and subsequent measurement

For subsequent measurement, financial assets are classified in the following categories:

I. Financial assets measured at amortized cost.

II. Financial assets measured at fair value through other comprehensive income (FVTOCI); and

III. Financial assets measured at fair value through profit and loss (FVTPL)

Where financial assets are measured at fair value, gains and losses are either recognized entirely in the Statement of Profit and Loss (i.e. fair value through profit and loss), or recognized in other comprehensive income (i.e. fair value through Other Comprehensive Income).

The classification of financial assets depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows. Management determines the classification of its financial assets at initial recognition.

I. Financial assets measured at amortized cost:

A financial asset is measured at amortized cost if both the following conditions are met:

â¢ Business Model Test: The objective of the business model is to hold financial asset in order to collect contractual cash flows (rather than to sell the asset prior to its financial maturity to realize its fair value changes); and

â¢ Cash Flow Characteristics Test: Contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is most relevant to the Company. After initial measurement, such financial asset is subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of EIR. EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses. The EIR amortization is included in interest income in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit or loss. This category generally applies to trade receivables, deposits with banks, security deposits, investment in debt instruments, cash and cash equivalents and employee loans, etc.

II. Financial instruments measured at Fair Value Through Other Comprehensive Income (FVTOCI):

A financial instrument shall be measured at fair value through other comprehensive income if both of the following conditions are met:

â¢ Business Model Test: The objective of the business model is achieved by both collecting contractual cash flows and selling financial assets; and

â¢ Cash Flow Characteristics Test: The Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on principal amount outstanding.

Financial instruments included within FVTOCI category are measured initially as well as at each reporting period at fair value. Fair value movements are recognized in Other Comprehensive Income (OCI) except for the recognition of interest income, impairment gains and losses and foreign exchange gain and losses which are recognized in the Statement of Profit and Loss. This category generally applies to non-current investments in un-quoted equity instruments.

III. Financial instruments measured at Fair Value Through Profit and Loss (FVTPL)

Fair Value Through Profit and Loss is a residual category. Any financial instrument, which does not meet the criteria for categorization as at amortized cost or fair value through other comprehensive income is classified as FVTPL. Financial instruments included in FVTPL category are measured initially as well as at each reporting period at fair value. Fair value movements i.e., gain or loss and interest income are recorded in Statement of Comprehensive Income.

a. Impairment of financial assets

The Company assesses impairment based on expected credit losses (ECL) model to the following:

â¢ Financial Assets measured at amortized cost.

â¢ Financial Assets measured at FVTOCI.

Expected credit losses are measured through a loss allowance at an amount equal to:

â¢ the 12 months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

â¢ full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

â¢ Financial assets that are debt instruments, and are measured at amortized cost i.e. trade receivables, deposits with banks, security deposits and employee loans etc.

â¢ Financial assets that are debt instruments and are measured at FVTOCI. The Company as at the Balance Sheet date is not having any such instruments.

Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

The trade receivables are initially recognized at the sale/recoverable value and are assessed at each Balance Sheet date for collectability. Trade receivables are classified as current assets, if collection is expected within twelve months as at Balance Sheet date, if not, they are classified under noncurrent assets.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12 months (Expected Credit Loss) ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12-months ECL.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on timely basis.

b. Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company''s Balance Sheet date) when:

a) The rights to receive cash flows from the asset have been expired/transferred, or

b) The Company retains the contractual right to receive the cash flows of the financial asset but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, it evaluates whether it has substantially transferred all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized. When the Company has not transferred substantially all the risks and rewards of ownership of a financial asset, the financial asset is not derecognized.

Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognized if the Company has

not retained control of the financial asset. When the entity retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

2) Financial Liabilities

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

a) Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans, borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include loans, borrowings, trade payables, security deposits and other payables etc.

b) Subsequent measurement

All the financial liabilities after initial recognition at fair value, are subsequently measured at amortized cost using EIR method. Amortized cost is calculated by considering any discount or premium on acquisition and costs or fee that is an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

c) Financial Guarantee Contract

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative amortization.

d) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.

e) Offsetting of financial instruments:

Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet, if there is enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

12. Earnings per Share: -

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. The numbers of equity shares are adjusted retrospectively for all periods presented.

LEXUS GRANITO (INDIA) LIMITED

Notes to the financial statements for the year ending on 31^st March, 2023

The Calculation of Weighted Average Number of Equity Shares for Earning per share is described below: -

Particulars	Current Year			Previous Year
	No. Of Shares outstanding	No. Of Days outstanding	Weighted average number of Shares	No. Of Shares Outstanding	No. Of Days outstanding	Weighted average number of Shares
Number of Shares outstanding at the Beginning of the year	19190724	365	19190724	19190724	365	19190724
By way of Bonus Issue	-	-	-	-	-	-
Issue through preferential allotment		-	-	-	-	-
Total Shares outstanding at the end of the year	19190724		19190724	19190724		19190724

The Calculation of Weighted Average Number of Equity Shares for Restated Earnings per share described below: -

Particulars	Current Year			Previous Year
	No. Of Shares outstanding	No. Of Days outstanding	Weighted average number of Shares	No. Of Shares Outstanding	No. Of Days outstanding	Weighted average number of Shares
Number of Shares outstanding at the Beginning of the year	19190724	365	19190724	19190724	365	19190724
By way of Bonus Issue	-	-	-	-	-	-
Issue through preferential allotment	-	-	-	-	-	-
Total Shares outstanding at the end	19190724		19190724	19190724		19190724

13. Investments: -

Non-Current/ Long-term Investments are stated at fair value as per IND AS 32 and 109 except investment in subsidiaries are stated at cost. Provision is made for a diminution in the value of the investments, if, in the opinion of the management, the same is considered to be other than temporary in nature. On disposal of an investment, the difference between it carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

Current investments are carried at lower of cost and fair value determined on an individual basis. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

Investments are either classified as current or non-current based on the management''s intention. Long T erm Investments includes investment made in the share capital of Subsidiary Company which are carried at cost.

14. Foreign Currency Transactions: -

a. Initial recognition

Transactions in foreign currency are accounted for at exchange rates prevailing on the date of the transaction.

b. Measurement of foreign currency monetary items at Balance Sheet date

Foreign currency monetary items (other than derivative contracts) as at Balance Sheet date are restated at the year End rates.

c. Exchange difference

Exchange differences arising on settlement of monetary items are recognized as income or expense in the period in which they arise.

Exchange difference arising on restatement of foreign currency monetary items as at the year End being difference between exchange rate prevailing on initial recognition/subsequent restatement on reporting date and as at current reporting date is adjusted in the Statement of Profit & Loss for the respective year.

Any expense incurred in respect of Forward contracts entered into for the purpose of hedging is charged to the Statement of Profit and loss.

15. I n v e n to r i e s: -

The Inventories are carried in the Balance Sheet as follows:

A. Raw materials and stores & spares: At lower of cost (FIFO Method) and net realizable Value

B. Finished goods and stock-in-process: At lower of cost, and net realizable value. Cost includes cost of inputs, conversion costs and other costs incurred in bringing finished goods and stock-in-process, to their present location and condition.

C. Broken tiles are valued at Net realizable value.

The net-realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make sale.

16 Duty Drawback: -

Duty Drawback is recorded on Receipt basis. Management is not able to estimable the amount of Claim receivable, therefore the duty drawback is recorded on receipt basis rather than on Accrual basis.

17. Prior Period Expenses: -

Prior Period Expenses for previous years have been expensed out during the current year and it is disallowed as per Income Tax Act.

18. Management Remuneration: -

Disclosures with respect to the remuneration of Directors and employees as required under Section 197 of Companies Act, 2013 and Rule 5 (1) Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been provided in the below mentioned table: -

19. Cash and Cash Equivalents: -

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, fixed deposits with banks which are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

20. Segment Reporting: -

The activities of the company are such that the according to IND AS-108 "Operating Segmentâ: is not applicable in the company.

21. Lease: -

Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. The Company allocates the consideration in the contract to the lease based on their relative stand-alone prices. However, for leases of real estate for which the Company is a lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include net present value of the following lease payments:

â¢ Fixed payments (including in substance fixed payments), less any lease incentives receivable,

â¢ Variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date,

â¢ Amounts expected to be payable by the Company under residual value guarantees,

â¢ The exercise price of a purchase option if the Company is reasonably certain to exercise that option, and

â¢ Payment of penalties for terminating the lease, if the lease term reflects the Company exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for lease in the Company, the lessee''s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in similar economic environment with similar terms, security, and conditions.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following:

â¢ The amount of the initial measurement of lease liability,

â¢ Any lease payments made at or before the commencement date less any lease incentives received,

â¢ Any initial direct costs, and

â¢ Restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset''s useful life.

Payments associated with short-term leases of equipment and all leases of low value assets are recognised on a straight-line basis as an expense in profit or loss. Short term leases are leases with a lease term of twelve months or less.

22. Impairment of Non-Financial Assets: -

The Company assesses at each reporting date, using external and internal sources, whether there is an indication that a non-financial asset may be impaired and whether there is an indication of reversal of impairment loss recognized in the previous period/s. If any indication exists, or when annual impairment testing for an asset is required, the Company determines the recoverable amount and impairment loss is recognized when the carrying value of an asset exceeds its recoverable amount.

The recoverable amount is determined:

â¢ in the case of an individual asset, at the higher of the asset''s fair value less cost of sell and value in use; and

â¢ in the case of cash generating unit (a group of assets that generates identified, independent cash flows) at the higher of the cash generating unit''s fair value less cost to sell and value in use.

In assessing value in use, estimated future cash flows are discounted to their present value using a pretax discount rate that affects current market assessments of the time value of money and the risks specific to that asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

An impairment loss for an asset is reversed, if and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized, the carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss being recognized for the asset in prior year/s.

23. Employee Benefits: -

a. Short Term Employee Benefits

All Employee benefits payable within twelve months of rendering the services are classified as short-term benefits. Such benefits include salaries, wages, bonus, awards, ex-gratia etc. and the same are recognized in the period in which the employee renders the related services.

b. Defined contribution plan:

The Company''s approved provident fund scheme, pension scheme, employees'' state insurance scheme, and employees'' superannuation scheme are defined contribution plans. The Company has no obligation, other than the contribution paid/payable under such schemes. The contribution paid/payable under the schemes is recognized during the period in which the employee renders the related service.

c. Defined Benefit Plan

The employees'' Gratuity fund scheme is the Company''s defined benefit plan and is partly funded / managed by a Trust. The liability with respect to gratuity is determined based on the actuarial valuation on projected unit credit method as at the balance sheet date. The difference, if any, between the actuarial valuation and the balance of the funds maintained by the Trust, is provided for as liability / assets in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to the Statement of Profit and Loss in subsequent periods.

d. Other Long-Term Benefit

The liability towards encashment of the employees'' long term compensated absences, which are partly en-cashable during the service period and balance at the time of retirement / separation of the employees is determined based on the actuarial valuation on projected unit credit method as at the balance sheet date. Re-measurement, comprising of actuarial gains and losses, is recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.

C. Others Accounting Policies

1. The financial statements including financial information have been prepared after making such regroupings and adjustments, considered appropriate to comply with the same. As result of these regroupings and adjustments, the amount reported in the financial statements / information may not necessarily be same as those appearing in the respective audited financial statements for the previous year.

2. The Micro Small and Medium Enterprise registered under The Micro small and Medium Enterprise Development Act 2006 has been taken based on the list of MSME creditors provided by the management. However, as the Company has not received any claims in respect of such interest and as such, no provision has been made in the books of accounts.

Note 14.2 Additional information to Secured/Unsecured long term borrowings

i] The long term portion of term loans are shown under long term borrowings and the current maturities of the long term borrowings are shown under the short term borrowings as per the disclosure requirements of the Division II of Schedule III.

ii) The long term portion of lease libility are shown under long term borrowings and the current maturities of the lease libility are shown under the other current libilities as per the disclosure requirements of the Division II of Schedule III.

Note 14.3 Details of securities and Terms of repayment

I. Secured

(A]. Term Loans a). From Banks

1. State Bank Of India - Note 4(B) (a) (1)

The company has taken term loans from State Bank Of India amounting of Rs.10 Cr for settingup of new machinery at Surey No.800, Off NH-8A, Lakhdirpur Road, Village Ghutu, Morbi. The Loans are secured by hypothecation of entire plant & machineries along with other fixed asset to be created out ofbankfiaance( Present & future). The term loans sanctioned on 23.08.2022.The Loans carries ROI of 10.10 %. The Loans are repayable in 84 Months from original Sanction. The period of maturity of Term loan w.r.t balance sheet is 76 months.

2. State Bank Of India - Note 4(B) (a) (2 to3)

The company has taken 2 term loans from State Bank Of India amounting as T/LNo.l for Rs.15 Cr andT/LNo.2 for Rs.21 Cr for settingup company''s Plant situated at Surey No.800, Off NH-8A, Lakhdirpur Road, Village Ghutu, Morbi. The Loans are secured by hypothecation of entire plant & machineries along with other fixed asset to be created out of bank fiaance( Present & future). Collateral security is Extension of hypothecation of units entire current asset including stock of raw materials, stock in process,finished goods ,stores and spares etc. bills/book-debt/receivables and other current asset (Present & future). Both term loans is renewed as on 26.02.2021.The Loans carries ROI of 9.60 %. The Loans are repayable in 67 Months from original Sanction.The T/L No.l is fully paid during the financial year 2021-22 and The T/L No.2 fully paid during the fiancial year 2022-23.

3. State Bank Of India - Note 4(B) (a) (4)

Company has taken Loan (common COVID-19 emergency credit Line) from State Bank Of India amounting as for Rs.2.20 Cr which is used to augment net working capital, to meet operational liabilities & restart their businesses during COVID-19 crisis. .The Loans is secured by hypothecation of entire current asset including stock of raw materials, stock in process,finished goods .stores and spares etc. bills/book-debt/receivables and other current asset (Present & future). Loan is further secured by equitable mortgage of factoiy land admeasuring 40873 sq. mtr. & building theron .Collateral security is Extension of hypothecation of entire plant & machineries along with other fixed asset to be created out of bank fiaance( Present & future)The Loans carries ROI of 6.95 %.The Loans is sanctioned for 2 years and there will be monotorium of 6 months. The repayment shall commence from Nov.2021 in 18 monthly insttalement of Rs.12,22,222 .The term loan fully paid during the year.

4. State Bank Of India - Note 4(B) (a) (5)

As per loan agreeement executed on 21.10.2020, the company has taken Loan (Guaranteed Emergency Credit Line) from State Bank Of India amounting for Rs.7.85 Cr which is used to augment net working capital, to meet operational liabilities & restart their businesses during COVID-19 crisis. The Loans are secured on 2nd charge with the existing credit facility in respect of loan granted by State Bank of India as well as cash flow of repayments. The Loans carries ROI of 7.40%. The Loans is sanctioned for 4 yeras and there will be monotorium of 12 months. The repayment shall commence from Sep.2021 in 36 monthly insttalement of Rs.21,21,622/- .The period of maturity w.r.t balance sheet date is 1 years & 5 months.

5. HDFC Bank Limited -Note 4(B) (a) (6)

Secured on hypothecation of Volvo Car owned by the company as specified in the Repayment schedule. The Loan is repayable in 36 Monthly Installments of Rs. 1,13,294/-. The entire loan was repaid in F.Y.2021-22. (b). Others

1. ASHV Finance Ltd (Erstwhile Jainsnns flnlease Ltd. )-Note 4(B)(b)(2)

Unsecured Business Loan as specified in the schedule annexure to the original loan agreement executed on 27.03.2017. The Loan is repayable in two equal bullet payments in 38th and 41th month from the date of execution of loan agreement Further this loan is restructured as on 31.12.2020 .As per restructring agreement loan is restrained for Rs.1.43 Cr.The Loans is sanctioned for 3 years and there will be monotorium of 3 months The repayment shall commence from May 2021 in 33 monthly insttalement of. 5,73,801.The period of maturity w.r.t balance sheet date is 10 months.

2. Mas Financial Services Ltd -Note 4(B) (b)(4)

Unsecured Loan as specified in the schedule annexure to the loan agreement executed on 01.06.2017. The Loan is repayable in 35 Monthly Installments of Rs. 12,20,892/-. The loan was scheduled to be compeltely repaid in May 2020 but company has made restructring agreement with the lendor and as per agreement entire loan was repaid in F.Y.2021-22.

Note 4.3 Details of Long term Borrowings guaranteed by some of directors and others

The terms loan with State Bank Of India has been guaranteed by all the directors of the company

II. Unsecured

(A). Bonds/Debenture

The company has issued 640 rated,unlisted, taxable, transferable, redeemable non convertible unsecured debenture of face value of Rs.100000 each. The debenture carries 14.50% Rate of interest and payable Half yearly. As per original agreement with debentureholders, Debentures are redeemable in two installments of Rs.3.20 Cr due on 08.04.2020 and 12.06.2020. The company has executed settlement agreement with debentures holders dated 20.01.2022. As per settlement agreement the company will pay an lump sum amount of Rs 300,00,000/- (Rupees Three Crore Only) on the terms contained in Settlement Agreement, towards full and final settlement towards the outstanding amounts and all other amounts payable under the Transaction Documents (as defined in Settlement Agreement), as per settlement agreement entire amount will be paid on 29.04.2022 in single installment but company only paid 25.00 lakhs as on balancesheet date date and balance amount still pending.

Note - 32 - Financial Instruments 1. Capital Management

The Companyâs capital management objectives are to ensure the companyâs ability to continue as a going concern, to provide an adequate return to share holders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Companyâs various classes of debt The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt

The Company manages its capital on the basis of Net Debt to Equity Ratio which is Net Debt (Total Borrowings net of Cash and Cash Equivalents] divided by total equity.

2. Financial Risk Management - Objectives and Policies

The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments.

B. Market Risk

Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of a business. There are no material market risk affecting the financial position of the Company.

(a) Interest Rate Risk

Interest risk is the risk or uncertainty arising from possible interest rate movements and their impact on the future obligations or cash flows of a business. There are no material interest risk affecting the financial position of the Company.

(b) Currency Risk

Other Price Risk is the Risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. The Company is exposed to price risk arising mainly from investments in equity/equity-oriented instruments recognized at FVTPL/FVTOCI.

C. Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and other Financial assets measured at amortized cost The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets, (i) Low credit risk, (ii) Moderate credit risk, (iii) High credit risk.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

(i) Cash and cash equivalent and bank balance:

Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

(ii) Loans and Other financial assets measured at amortized cost:

Other financial assets measured at amortized cost includes Security Deposit to various authorities, Loans to staff and other receivables. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

(iii) Trade receivables:

Life time expected credit loss is provided for trade receivables. Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions. Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment Recoveries made are recognized in statement of profit and loss.

(A) Expected credit losses:

Expected credit loss for trade receivables under simplified approach:

D. Liquidity Risk

Liquidity Risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments associated with financial instruments that are settled by delivering cash or another financial asset Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Financing arrangements:

6. Disclosures of Benami Properties held.

There are no proceedings have been initiated or pending against the company for holding any benami property under the benami Transections (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

7. Disclosures of Wilful Defaulter

The company has not been declared wilful defaulter by any bank or financial institution.

8. Relationship with struck off Companies

The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

9. Registration of Charges or Satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with Registrar of Companies.

10. Layers of the company

The company has no subsidiary companies as at the balance sheet date.

Mar 31, 2018

Note No.1 to the financial Statements for the Year ending on 31st March, 2018

Note 1(a). Background of the Company

Our company was originally registered as a Partnership firm as âM/S Vitco Vitrifiedâ dated May 05, 2008 which was then converted into a Joint Stock Company under the name âVitco Vitrified Private Limitedâ under the provisions of the Companies Act, 1956 vide certificate of incorporation having CIN: U26914GJ2008PTC053838 dated May 08, 2008 in Gujarat. Subsequently, the name of the Company was changed to âLexus Granito (India) Private Limitedâ on June 26, 2010. Further, the company was converted into public limited company i.e. Lexus Granito (India) Limited having CIN: U26914GJ2008PLC053838 vide fresh certificate of incorporation dated April 28, 2017.

The registered office of the company is situated Survey No. 800 Opposite Lakhdhirpur Village, Lakhdhirpur Road, Lakhdhirpur, N.H. 8A, Tel. Morbi, Lakhdhirpur, Rajkot-363642, Gujarat, India.

Lexus Granito (India) Limited (the âCompanyââ) is a limited company incorporated in India under the provisions of the Companies Act 1956. The company is engaged in manufacturing, trading, and marketing of vitrified ceramic tiles and wall tiles in domestic and international market. Recently the company has set up its own wall tile manufacturing unit.

Note 1(b). Notes to Accounts: -

1. The Financial Statements for the year ended on 31st March, 2018 are prepared based on Schedule III of Companies Act, 2013.

2. The financial statements including financial information have been prepared after making such regroupings and adjustments, considered appropriate to comply with the same. As result of these regroupings and adjustments, the amount reported in the financial statements/information may not necessarily be same as those appearing in the respective audited financial statements for the previous year.

3. The Micro Small and Medium Enterprise registered under The Micro small and Medium Enterprise Development Act 2006 have been taken based on the list of MSME creditors provided by the management. However, as the Company has not received any claims in respect of such interest and as such, no provision has been made in the books of accounts.

4. Related Party Disclosure(AS18):-

Related party transactions are reported as per AS-18 of Companies (Accounting Standards) Rules, 2006, as amended, in the below mentioned table:

5. Accounting for Taxes on Income (AS 22) Deferred Tax liability/Asset in view of Accounting Standard - 22: - âAccounting for Taxes on Incomeâ as at the end of the year/period is reported in the below mentioned table:-

The Company has recognized deferred tax liability on depreciation as per books of accounts and depreciation allowable as per Income Tax Act 1961.

The net deferred tax liability is classified as non-current liabilities and disclosed on the face of the Balance Sheet.

6. Amounts in the financial statements are rounded off to nearest rupee. Figures in brackets indicate negative values.

7. Unsecured loans, advances from customers, advances recoverable in cash or in kind, investments and various other parties are subject to confirmations.

8. The management of the company has carried out an exercise to ascertain impairment of Fixed Assets, if any, In the opinion of the management of the company there are no indication of impairment of assets as at 31/03/2018 and therefore no effect of impairment is required to be given in the books of accounts.

9. Cash balance is taken as valued & certified by management.

10. Pending Litigations and Criminal Proceedings:-

As details provided by management and further verified by us, apart from those as stated below there are no outstanding litigations, suits, criminal or civil prosecutions, proceedings or tax liabilities against/by the Company, directors, promoters and group entities and there are no defaults, non-payment of statutory dues, over-dues to banks/financial institutions, defaults against banks/financial institutions by Company, default incretion of full security as per terms of issue/other liabilities, no amount so we to small scale undertakings or any other creditor exceeding1 lakh, which is outstanding for more than 30 days, no proceedings initiated for economic/civil/any other offences (including past cases where penalties may or may not have been awarded and irrespective of whether they are specified under paragraph(I) of Part1 of Schedule V to the Companies Act) other than unclaimed liabilities of our Company and no disciplinary action hasbeen taken by SEBI or any stock exchange against the Company, Promoters, directors and group entities.

Further, there are no show-cause notices/claims served on Company, promoters, directors or group entities from any statutory authority/revenue authority that would have a material adverse effect on the business.

a. Outstanding Statutory Dues Related to Indirect Tax: -

The total amount outstanding dues relating to indirect tax which are verified through the online portals of GST or payable in the books of accounts are attached in the below mentioned table: -

Refer Notes 2.1 to 2.5 below

Note 1.1 During the year, the company has made an initial Public Offer (IPO) of 57.60 Lacs Equity Shares of Rs.10/- each at premium of Rs.35/- per share for cash aggregating to Rs. 2592.00 Lacs and shares of the company has been listed on National Stock Exchange Ltd (NSE Emerge) on 23rd August, 2017.

Note 1.2 Rights, preferences and restrictions attached to the equity shares

The Company has only one class of shares referred to as equity shares having a par value of 10/-. Each holder of equity shares is entitled to one vote per share.

Note 1.3 Dividend declared/paid

The Company has not declared and paid any dividends during the year.

b. Outstanding Statutory Dues Related to Direct Tax:-

The total amount outstanding relating to direct tax which are verified through the online portals of income tax and traces portal or payable in the books of accounts are attached in the below mentioned table: -

Note 2.1 Additional Information to Secured/Unsecured long term borrowings

The Long term Portion of term loans are shown under long term borrowings and current maturities of long tem borrowings are shown under the current liabilities are per disclosure requirements of the revised schedule III.

Note 2.2 Details of securities and terms of repayments

I. Unsecured

(A). Bonds/Debenture

The company has issued 640 rated, listed, taxable, transferable, redeemable non convertible unsecured debenture of face value of Rs.100000 each. The debenture carries 14.50% Rate of interest and payable Half yearly. The debenture are redemeable in two installments of Rs.3.20 Cr due on 08.04.2020 and 12.06.2020

II. Secured

(B). Term Loans

(a). Banks

1. State Bank Of India - Note 4(A)(a)(l to 4)

The company has taken 4 term loans from State Bank Of India amounting as T/L No.l for Rs.22.75 Cr, T/L No.2 for Rs. 3.15 Cr, T/L No.3 for Rs.15 Cr and T/L No.4 for Rs.21 Cr for setting up companyâs Plant situated at Surey No.800, Off NH-8A, Lakhdirpur Road, Village Ghutu, Morbi. The Loans are secured on EQM of company Factory Land & Building, Directors and Shareholders personal immovable property and Corporate gaurantee of Lexus Ceremic Pvt Ltd. The Loans are further secured by lien of company mutual funds held in State Bank Of India. The Loans carries ROI of 10.70%. The Loans are repayable in 60 Months from Sanction and last Installment is due on March 2022.

2. HDFC Bank Limited -Note 4(A)(a)(5)

Secured on hypothecation of BMW Car owned by the Directors of the company as specified in the schedule annexure to the loan agreement executed on 20.09.2015. The Loan is repayable in 36 Monthly Installments of Rs. 79,800/-. The Period of Maturity w.r.t balance sheet date is 5 months.

3. HDFC Bank Limited -Note 4(A)(a)(6)

Secured on hypothecation of Mercedes Benz Car owned by the Directors of the company as specified in the schedule annexure to the loan agreement executed on 20.12.2017. The Loan is repayable in 36 Monthly Installments of Rs. 85,450/-. The Period of Maturity w.r.t balance sheet date is 2 years and 9 months.

3. HDFC Bank Limited -Note 4(A)(a)(7)

Secured on hypothecation of Mercedes Benz Car owned by the Directors of the company as specified in the schedule annexure to the loan agreement executed on 16.06.2015. The Loan is repayable in 36 Monthly Installments of Rs. 2,39,520/-. The Period of Maturity w.r.t balance sheet date is 2 months.

(b). Others

1. HDFC Bank Limited -Note 4(A)(b)(l)

Unsecured Business Loan as specified in the schedule annexure to the loan agreement executed on 28.03.2017. The Loan is repayable in 36 Monthly Installments of Rs. 1,74,554/-. The Period of Maturity w.r.t balance sheet date is 2 years and 1 months.

2. Jainson Finlease Ltd -Note 4(A)(b)(2)

Unsecured Business Loan as specified in the schedule annexure to the loan agreement executed on 27.03.2017. The Loan is repayable in two equal bullet payments in 38th and 41th month from the date of execution of loan agreement. The Period of Maturity w.r.t balance sheet date is 3 and 0 months.

3. Jainson Finlease Ltd -Note 4(A)(b)(3)

Unsecured Loan as specified in the schedule annexure to the loan agreement executed on 23.01.2017. The Loan is repayable in 24 Monthly Installments of Rs. 14,97,723/-. The Period of Maturity w.r.t balance sheet date is 11 months.

4. Mas Financial Services Ltd -Note 4(A)(b)(4)

Unsecured Loan as specified in the schedule annexure to the loan agreement executed on 01.06.2017. The Loan is repayable in 35 Monthly Installments of Rs. 12,20,892/-. The Period of Maturity w.r.t balance sheet date is 2 years and 2 months.

5. Visu Leasing and Finance Pvt Ltd -Note 4(A)(b)(5)

Unsecured Loan as specified in the schedule annexure to the loan agreement executed on 19.01.2017. The Loan is repayable in 24 Monthly Installments of Rs. 9,98,482.04/-. The Period of Maturity w.r.t balance sheet date is 1 years and 11 months.

Note 2.2 Details of Long term Borrowings guaranteed by some of directors and others

The terms loan with State Bank Of India has been guaranteed by all the directors of the company

Note 3.1 âFor the disclosure of the suppliers under the Micro, small and medium enterprises Development Act, 2006 refer note no.24.3.

4.1 The Schedule III has become effective from 1 April, 2014 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.

Details of consumption of imported and indugenous items for the current year is provided by management. Company has not maintained proper record of indigenous and import material consumption therefore it is not possible to verify raw material consumption into indigenous and import materials for the current year and to ascertain bifercation into import and indigenous for the last year.

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