ii. Terms/ rights attached to issued, subscribed and paid up equity shares

1. The Company has only one class of equity share having a par value of INR 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

2. The Company declares and pays dividends in Indian Rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Proposed dividend for Financial Year 2023-24 is Rs. 0.35 per equity share of face value of Rs. 1 each amounting to Rs. 315.26 Lakhs (Previous year - Rs. 0.20 per equity share of face value of Rs.1 each amounting to Rs. 180.15 Lakhs), subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.

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

shares held by the shareholders.

I. Nature of Security and Terms of Repayment

a. Equipment and vehicle loan balance outstanding amounting to INR Nil (March 31, 2023: INR 5.33 lakhs) is secured by hypothecation of specific assets and guaranteed by Directors. Repayable in 47 EMI of INR 2.26 lakhs starting from Jan.,2019. Last installment due in June, 2023 (Current Rate of Interest as on 31.03.2024 is 9.05% p.a.)

b. Equipment and vehicle loan balance outstanding amounting to INR Nil (March 31, 2023: INR 7.94 lakhs) is secured by hypothecation of specific assets and guaranteed by Directors. Repayable in 47 EMI of INR 6.00 lakhs starting from Dec.,2018. Last installment due in May, 2023 (Current Rate of Interest as on 31.03.2024 is 9.05% p.a.)

c. Term Loan from Bank, balance outstanding amounting to INR Nil (March 31, 2023: INR 512.15 lakhs) is secured by 100% guarantee from National Credit Guarantee Trustee Company (“NCGTC”) and second charge on some specific immovable properties of Mining Segment. Repayable in 5 years including moratorium period of one year and quarterly installment starting from May, 2022. Last installment due in April, 2026 (Current Rate of Interest as on 31.03.2024 is 9.25% p.a.).

d. Equipment and vehicle loan balance outstanding amounting to INR 22.72 lakhs (March 31, 2023: INR 36.46 lakhs) is secured by hypothecation of specific assets and guaranteed by Directors. Repayable in 37 EMI of INR 1.34 lakhs starting from Sept., 2022. Last installment due in Sept, 2025 (Current Rate of Interest as on 31.03.2024 is 7.75% p.a.)

e. Vehicle loans balance outstanding amounting to INR 71.03 lakhs (March 31, 2023: INR 102.51 lakhs) is secured by hypothecation of specific vehicle and guaranteed by Directors. Repayable in 39 EMI of Rs. 3.21 Lakhs starting from Jan, 2023 and last installment due in March, 2026. (Current Rate of Interest as on 31.03.2024 is 8.00% p.a.)

f. Vehicle loans balance outstanding amounting to INR 90.36 lakhs (March 31, 2023: INR 136.67 lakhs) is secured by hypothecation of specific vehicle and guaranteed by Directors. Repayable in 39 EMI of Rs. 4.62 Lakhs starting from October, 2022 and last installment due in December, 2025. (Current Rate of Interest as on 31.03.2024 is 7.90% p.a.)

g. Vehicle loans balance outstanding amounting to INR 48.69 lakhs (March 31, 2023: INR Nil ) is secured by hypothecation of specific vehicle and guaranteed by Directors. Repayable in 36 EMI of Rs. 1.59 Lakhs starting from March, 2024 and last installment due in February, 2027. (Current Rate of Interest as on 31.03.2024 is 8.85% p.a.)

h. Unsecured loan from others balance outstanding amounting to INR Nil (March 31,2023: INR 58.59 lakhs). Repayable on completion of 2 years (Rate of Interest 7% p.a.)

i. Unsecured loan from others balance outstanding amounting to INR 206.47 (March 31,2023: INR Nil). Repayable on completion of 2 years (Rate of Interest 8% p.a.)

I. Nature of Security

(a) Cash Credit from bank is secured by first charge by way of hypothecation of mining and stone related business stock, book debts, etc. and equitable mortgage on specific immovable property and guaranteed by Directors.

II. Quarterly statements of current assets filed by the Company with the banks are in agreement with the books of accounts. The Company has not used borrowings for purpose other than specified purpose of the borrowing.

(v) Terms and conditions of transactions with related parties

Assessment is undertaken each financial year through examining the financial position of the related party and market in which the related party operates:

The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding loan balances at the year end are unsecured and interest bearing and trade and other receivables are unsecured and interest free and settlement occurs in cash.

In view of losses at its JV/subsidiary viz. Al Rawasi Rock & Aggregate LLC (RRA), a provision had been made for impairment of investments in subsidiaries during the year 2021-22. However, On receipt of final amount after disposal of shareholding of the Al Rawasi Rocks & Aggregate LLC and on receipt distributed surplus from ASI Global Limited, after liquidation, Impairment of investments in subsidiaries considered during the year 2021-22 has been reversed during the previous financial year 2022-23 by Rs. 185.22 Lacs and credited to profit and loss account.

(vi) Foreign Subsidiaries ceased to exist

During the previous financial year 2022-23, the Company after obtaining approval of the shareholders has sold/ transferred and disposed off entire shareholding of the Company, together with its Wholly Owned Subsidiary, ASI Global Limited, held in Al Rawasi Rocks & Aggregate LLC, Fujairah, UAE ( JV/ subsidiary Co.).

Consequent to sale of shares held in Al Rawasi Rocks & Aggregate LLC, Fujairah, UAE , it was decide by the Management of the Company (ASIL) to voluntarily liquidate ASI Global Ltd (ASIGL) a Wholly Owned Subsidiary of the Company, since it has ceased to carry on business, accordingly, in the previous financial year 2022-23, ASIGL filed an application under section 309 (1) (d) of the Companies Act, 2001 (Mauritius) for removal of its name from the records of the Registrar of Companies. In this regard, ASIGL has discharged all its liabilities to all its known creditors and has distributed its surplus assets in accordance with its Constitution and the Companies Act 2001 (Mauritius). The process of liquidation has completed in Mauritius in accordance with the applicable laws.

(i) Leave Obligations

The leave obligations cover the company's liability for earned leave.

The amount of the provision of INR 61.60 Lakhs (March 31,2023: INR 59.71 Lakhs) is presented as current, since the company does not have an unconditional right to defer settlement for any of these obligations.

(ii) Post Employement obligations

(A) Gratuity

The company provides for gratuity for employees in india as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity is payable on retirement/ termination of service.

The gratuity plan is a funded plan and the Company makes contribution to recognised Gratuity Fund managed by the trust.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined beenfit obligation as a result of reasonable changes in key assumptions occuring at the end of the reporting period.

The average duration of the defined benefit plan obligation at the end of the reporting period is 5 Years (March 31,2023: 5 years) (B) Defined contribution plans

The company also has defined contribution plans. The company pays provident fund contributions to approved provident fund trust and publicly administered provident funds. Contributions are made at the rate of 12% of basic salary as per regulations. The obligation of the company is limited to the amount contributed and it has no further contractual nor any contructive obligation. The expense recognised during the period towards defined contribution plan is INR 244.31 Lakhs (March 31, 2023: INR 230.22 Lakhs)

34. SEGMENT REPORTING A. Information about operating segment

The Company has only one reportable segment i.e Mining & Processing of Natural Stone. Hence segmental reporting is not applicable as per the Indian Accountin Standards.

The management assessed that the fair value of cash and cash equivalent, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair values for loans and other non current financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the Fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

ii. Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in determing fair value, the company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual fund units.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity shares.

iii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

v. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports direclty to the chief financial officer (CFO) and the audit committte. Discussions of valuation processes and results are held between the CFO, audit committe and the valuation team regularily.

36. FINANCIAL RISK MANAGEMENT

The Company's activity exposes it to market risk, liquidity risk and credit risk. Company's overall risk management focuses on the unpredictibility of financial markets and seeks to minimise potential adverse effects on the financial performance of the company. This note explains the sources of risk which the entity is exposed to and how the company manages the risk.

(A) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

i. Credit risk management

Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 90 days past due.

A default on a financial asset is when the counterparty fails to make contractual payments of when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macroeconomic factors.

ii. Provision for expected credit losses

The company follows 'simplified approach' for recognition of loss allowance on Trade receivables

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

(B) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company consistently generated sufficient cash flows from operations to meet its financial obligations. Also, the Company has unutilized credit limits with banks.

Management monitors rolling forecasts of the company's liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. In addition, the company's liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements.

Maturities of financial liabilities

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. In the table below, borrowings include both interest and principal cash flows. To the extent that interest rates are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as commodity risk.

(i) Foreign currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the export receivables.

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies and standard operating procedures to mitigate the risks.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Compnay's exposure to the risk of changes in market interest rates relates primarily to the Group's long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Note: The above analysis is prepared for floating rate liabilities assuming the amount of the liability outstanidng at the end of the reporting period was outstanding for the whole year and the assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

(iii) Commodity Price risk

The company is affected by the price volatility of certain commodities. Its operating activities require the continous purchase of High Speed Diesel (HSD). Due to the significantly increased volatility of the price of the HSD and the regulatory changes, the company is exposed to price risk. The Company has a risk management framework aimed at prudently managing the arising from the volatility in commodity prices.

37. CAPITAL MANAGEMENT

For the purpsoe of the company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity share holders. The primary objective of the Company's capital management is to maximise the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

Note:- explanation for change in the ratio by more than 25% as compared to the preceding year

1. As profitability has been increase during the year, Current Ratio is also improved mainly due to increase in current investment as well as decreased in statutory liabilities.

2. Debt Service Coverage Ratio is improved significantly due to increase in profitability during the year and due to reduction in Current Matutities of Long Term Borrowings on account of full repayment of some term loan before due date.

3. Return on Equity Ratio, Net Profit Ratio, Return on Capital Employed and Return on Investment is improved due to increase in profitability during the year in compare to last year.

4. Movement in the Inventory Turnover Ratio is due to reduction in inventory level on account of sale of stock.

5. Movement in Trade payables turnover ratio is due to increase in Sundry Creditors in compare to last year.

39. DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186 (4) OF THE COMPANIES ACT, 2013

Loans given to and Corporate Guarantees given for the subsidiaries and Investments made are given under the respective heads.

40. Previous year figures have been regrouped/ reclassified wherever considered necessary to confirm to the current year presentation.