NOTE:- 1 COMPANY INFORMATION AND SIGNIFICANT ACCOUNTING POLICY

I. CORPORATE OVERVIEW

Inani Marbles & Industries Ltd. (the “Company”), is a public limited company domiciled in India has been incorporated on 18th day of October, 1994 having CIN: L14101RJ1994PLC008930. The Shares of the Company are listed at BSE Limited. Registered Office of the Company situated at F-17 & 58, RIICO Industrial Area, Chittorgarh and Processing units are also located at Chittorgarh. The Company is engaged in manufacturing, processing and trading of Granite, Stone and Marble Blocks, Slabs and Tiles.

II. BASIS OF PREPARATION

1. Statement of Compliance

These Separate Financial Statements are prepared on Going Concern basis following Accrual basis of accounting and comply in all material aspects with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments thereto, the Companies Act, 2013 (to the extent applicable), applicable provisions of the Companies Act, 1956. These are Company’s first Ind AS compliant financial statements and Ind AS 101 ‘First Time Adoption of Indian Accounting Standards’ has been applied. For all periods up to and including 31st March, 2017, the Company prepared its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in India, accounting standards specified under Section 133 of the Companies Act, 2013, the Companies Act, 2013 (to the extent notified and applicable), applicable provisions of the Companies Act, 1956. The Company followed the provisions of Ind AS 101 in preparing its Opening Ind AS Balance Sheet as on the date of transition, viz. 1st April, 2016. Some of the Company’s Ind AS accounting policies used in the opening Balance Sheet are different from its previous GAAP policies applied as at 31st March, 2016, accordingly the adjustments were made to restate the opening balance as per Ind AS. Therefore, as required by Ind AS 101, those adjustments were recognised directly through retained earnings as at 1st April, 2016. This is the effect of the general rule of the Ind AS 101 which is to apply Ind AS retrospectively. An Explanation of how the transition to Ind AS 101 has affected the reported financial position, financial performance and cash flows of the Company is provided in Note No. 43.

2. Basis of Measurement / Use of Estimates

(i) The Financial Statements are prepared on accrual basis under the historical cost convention.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

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.

(ii) The preparation of financial statements requires judgments, estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

3. Functional and Presentation Currency

These financial statements are presented in Indian Rupees (INR), which is the Company’s functional currency. All financial information presented in INR which is company’s functional and presentation currency.

4. Current and Non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

An asset is current when it is:

- Expected to be realised or intended to sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting period; or

- Cash or Cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current. A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period; or

- There is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as Non-Current. Deferred Tax Assets/Liabilities are classified as non-Current.

5. Cash and cash equivalents

The Group considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be called cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Equity instruments recognised by the Group are recognised at the proceeds received net of direct issue cost.

6.1 Note Advance to suppliers and other includes Rs. 13752492 (Previous Year Rs. 8226503 ) due from related parties.

c. The Company has not issued any Shares for a consideration otherwise then in cash, not issued Bonus Shares and has not bought back any Shares.

d. Terms an Right attached to Equity Shares :

The Company has only one class of equity shares having a par value of Rs. 2/- per shares. During Financial Year 2016-17, The Company has splited Equity shares of Rs. 10/-paid up into 5 equity shares of Rs. 2 paid up. The holders of the equity shares are entitled to dividends as declared from to time and are entitled to voting rights proportionate to their share holding at the meeting of shareholdres.

7.1 Security

Equipment & Vehicle Loans are secured by hypothecation of the specific vehicles or equipments.

8.1 Further information has been disclosed in Note No. 29

9.1 Security

Secured by equitable mortgage on factory Land & Building situated at F-17&58, Riico Industrial Area And Araji No. 1312, Mataji Ki Pandoli, Chittorgarh and hypothecation of Plant and Machinery and floating charges on Stock of Raw Material , work in Progress , Finished Goods, Stores & Spares , Book Debts and further personally guranteed by Director.

10.1 Trade Payables include Rs. Nil (Previous Year Rs. Nil) amount due to Micro & Small Enterprises as at 31st March, 2018. The figures have been disclosed on the basis of informations received from supplies who have registered themselves under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) and/or based on the information available with the Company. Further, no interest during the year has been paid or payable under the provisions of the MSMED Act, 2006.

Disclosures and Additional Informations (Contd.)

11. DISCLOSURE AS PER IND AS 24 “RELATED PARTY DISCLOSURES”

1 List of Related Parties with whom transactions have taken place:-

(ii) Dividend not recognised at the end of reporting period

In addition to the above dividend, at the year end the company's Board of Directors have proposed the payment of final dividend of Rs. 0.04 ( 31st March, 2017 Rs. 0.04) per fully paid Equity Share. This proposed dividend is subject to the approval of the shareholders in ensuing Annual General Meeting. The total outgo towards the same will be Rs. 784212/- Lacs including Dividend Distribution Tax.

12. DISCLOSURE AS PER IND AS 19 “EMPLOYEE BENEFITS”

a) Defined Contribution Plan

The Company makes contributions towards Employees Provident Fund and Family Pension Fund for qualitying employees. The Fund is operated by the Regional Provident Fund Commissioner. The amount of contribution is recognised as expense for defined contribution plans.

Total contribution made by the employer to the Fund during the year is Rs. 856930/- Lacs (Previous year Rs. 886751/- Lacs).

b) Defined Benefit Plan (I) Gratuity

Contribution made to Provident Fund is charged to Profit and Loss account every month. The Company has taken a policy with Life Insurance Corporation of India (LIC) to cover the gratuity liability of the employees and premium paid to the LIC is charged to Profit & Loss Account.

13. DISCLOSURE AS PER IND AS 108 “OPERATING SEGMENTS”

(i) The Company is engaged in Business of Granite , Stone & Marble Processing. Hence there is no separate business segments Details of Export outside country and Domestic sales within country are as under:

14. DISCLOSURE OF CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per section 135 of Companies Act the company is required to spend in every financial year , at least 2% of the average net profits of the company made during the three immediately preceding financial year in accordance with its CSR policy.

A. Gross amount required to be spent by the Company during the year 2017-18 - Rs. 22.04 Lacs includes previous year unspent amount Rs. 12.77 which for preceding year the same was Rs.20.16 Lacs which includes unspent amount of Rs. 6.77 Lacs of earlier year.

B. Amount spent during the year on:

C. The Company is Committed to focus on growth. And betterment of lives by contributing towards communities around which it operaters. We are continuously exploring new opportunities activities and initiatves that align with our CSR Policy and create maximum Impact.

The Amount which remained unspent shall be added to the CSR budget for the financial year 2018-19 and is proposed to be spent in phased manner up on identification of suitable projects in the future.

15. There are no amount due and outstanding to be credited to Investor Education and Protection Fund.

16. Previous year figure have been regrouped wherever necessary.

17. Figures have been rounded off to nearest Rupees.

18. DISCLOSURE AS PER IND AS 101 “FIRST TIME ADOPTION OF IND AS”

Transition to IND AS

“These are the company’s first standalone financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31st March, 2018, the comparative information presented in these financial statements for the year ended 31st March, 2017 and 1st April, 2016. The effective date for Companies Ind AS Opening Balance Sheet is 1st April, 2016. (The date of transition to Ind AS)”

First Time Adoption of Ind AS

These financial statements, for the year ended 31st March, 2018, are the first annual Ind AS financial statements, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with Accounting Standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March, 2018, together with the comparative period data as at and for the year ended 31st March, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 01st April, 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 01st April, 2016 and the previously published Indian GAAP financial statements as at and for the year ended 31st March, 2017.

Optional Exemptions and Mandatory Exceptions

In the Ind AS opening balance sheet as at 1st April, 2016, the carrying amounts of assets and liabilities from the Previous GAAP as at 31st March, 2016 are generally recognized and measured according to Ind AS. However, for certain individual cases, Ind AS 101 “First-time Adoption of Indian Accounting Standards” provides for optional exemptions and mandatory exceptions to the general principles of retrospective application of Ind AS. The Company has made use of the following exemptions and exceptions in preparing its opening Ind AS balance sheet:

i) Deemed cost

As per Ind AS 101, para D7AA, a first-time adopter to Ind ASs may elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind ASs, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

ii) Borrowing

Ind AS 101 permits that if it is impracticable for an entity to apply retrospectively the effective interest method in Ind AS 109 ‘Financial Instruments’, the fair value of the financial liability at the date of transition to Ind AS shall be the new amortized cost of that financial liability at the date of transition to Ind AS

iii) Classification and measurement of Financial Assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

iv) Derecognition of financial assets and financial liabilities

As per Ind AS 101, a first-time adopter shall apply the derecognition requirements in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind ASs.

v) Estimates:

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP, unless there is objective evidence that those estimates were in error. Ind AS estimates as at 01st April, 2016 and 31st March, 2017 are consistent with the estimates as at the same date made in the conformity with previous GAAP

Notes to First time adoption:

a. Property, Plant and Equipment:

“Earlier as per the company’s policy, the transaction costs relating to the loan borrowed from any bank/ financial institution is capitalized in the value of the assets. But as per Ind AS 109 “Financial Instruments”, any transaction cost on the amount of loan is to be amortized over the period of the loan respectively. Hence, the amount of 80.16 Lacs has been adjusted from the value of Property, Plant and Equipment and the same has been deffered over the term of loan. And has been booked under the ““Other Non-Current Assets”“.”

b. Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12-”Income Taxes” requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying value of asset or liability in the balance sheet and its corresponding tax base. The application of Ind AS 12 has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP

In addition, the various transitional adjustments lead to temporary differences. According to the Accounting Policies, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

c. Proposed Dividend and Dividend Distribution tax

Under Previous GAAP proposed dividends are recognized as a liability in the period to which they relate irrespective of the approval by shareholders. But under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (on approval of Shareholders in a general meeting) or paid. Therefore, the liability amounting 7,82,927/- (PY- Rs. 19,57,316 ) recorded under previous GAAP has been derecognized. The same is now recognized in Financial year 2017-18 (2016-17), when dividend was approved by shareholders.

d. Other equity

Retained earnings as at 01st April, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

e. Amount lying in unpaid dividend account earlier classified as Cash and cash equivalents has been reclassified to Other Bank Balances in accordance with Ind AS 7-Statement of Cash Flows and Division II of Schedule III of Companies Act, 2013.