1. Corporate Information:
Glittek Granites Limited (the ‘Company’) is a public limited company domiciled in India incorporated
under the provisions of the Companies Act. Its shares are listed in Bombay Stock Exchange Ltd. (BSE)
The registered office of the company at Honnappa Building, 2nd Floor, V.V. Extension, Behind MCM ITI
College, Old Madras Road, Hoskote, Bangalore Rural, Karnataka, India, 562114.
Company was engaged in the business of manufacturing, processing and trading of:
i) Grantites Slab
ii) Tiles
The Company has sold its factory in financial year 2024-25 and looking for new opportunity.
2. Basis of preparation of Financial Statements:
The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as
prescribed under Section 133 of the Companies Act 2013 (“the Act”), as notified under the Companies
(Indian Accounting Standard) Rules, 2015 and other relevant provision of the Act, to the extent applicable
and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS
compliant Schedule III), as applicable to the Standalone Financial Statement.
The financial statements have been prepared under historical cost convention and on an accrual basis,
except for the following items which have been measured as required by relevant Ind AS:
a) Financial Instruments classified as fair value through other comprehensive income.
b) The defined benefit loss/(profit) is recognized as at the present value of defined benefit obligation less
fair value of plan assets through other comprehensive income.
Accounting policies have been consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting policy
hitherto in use. The Company’s management evaluates all recently issued or revised accounting standards
on an on-going basis.
For the year ended 31st March, 2026, MCA has not notified any new standards or amendments to the
existing standards applicable to the Company.
Where changes are made in presentation, the comparative figures of the previous years are regrouped and
re-arranged accordingly.
3. Accounting Estimates and Assumptions:
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of
operations during the reporting year end. Although these estimates are based upon management’s best
knowledge of current events and actions, actual results could differ from these estimates.
4. Equitya. Ordinary Shares
Ordinary shares are classified as Equity Share capital. Incremental costs directly attributable to the issuance
of new shares and buyback are recognized as a deduction from equity, net of any tax effects.
b. Securities Premium
The amount received in excess of the par value of equity shares has been classified as securities premium.
c. Retained Earnings
Retained earnings represent the amount of accumulated earnings of the company.
d. Capital Reserve
Government grants in the nature of State Investment Subsidy are accounted for on cash basis and treated as
Capital Reserve.
5. Property, Plant and Equipment
a. Property, Plant and Equipment are stated at original cost (net of tax/ duty credit availed) less
accumulated depreciation and impairment losses except freehold land which was carried at cost. Cost
includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental
expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative expenses
including attributable borrowing costs incurred during pre-operational period.
b. Subsequent costs are included in the 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. The carrying amount of any
component as a separate asset is derecognised when replaced. All other repairs and maintenance are
charged to profit and loss during the reporting period in which they are incurred.
c. Assets which are not ready for their intended use on reporting date are carried as capital work-in¬
progress at cost, comprising direct cost and related incidental expenses.
d. On transition to Ind AS, the Company has elected to continue with the carrying value of all of its
property, plant and equipment as at 1st April 2016 measured as per the previous GAAP and use that
carrying value as the deemed cost of the property, plant and equipment.
e. Property, Plant and Equipments including continuous process plants are depreciated and/or amortized
on the basis of their useful lives as notified in Schedule II to the Companies Act, 2013. The assets
residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
Depreciation on Property, Plant & Equipment is provided on straight-line basis on the useful life of the
asset as mentioned in Schedule II to the companies Act, 2013
Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the
period when the assets are ready for use. The Provision for Depreciation for the multiple shifts has
been made in respect of eligible assets on the basis of operation of respective units.
f. Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act,
2013:
Furniture and Fixtures - 10 years
Vehicles - 8 years for Motor car and 10 years for two wheelers
Office Equipments - 5 years
Computers - 3 years
6. Intangible Assets
a. Intangible assets acquired by payment e.g., Computer Software are disclosed at cost less amortization
on a straight-line basis over its estimated useful life.
b. Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.
c. On transition to Ind AS, the Company has elected to continue with the carrying value of all of its
intangible assets as at 1st April 2016 measured as per the previous GAAP and use that carrying value
as the deemed cost of the intangible assets
d. Intangible assets are amortised on straight-line method as follows :
Computer Software - 3 years
7. Lease Property
The Company determines the lease term as the non-cancellable period of a lease, together with both
periods covered by an option to extend the lease if the Company is reasonably certain to exercise that
option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to
exercise that option. In assessing whether the Company is reasonably certain to exercise an option to
extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for the Company to exercise the option to extend the lease,
or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change
in the non-cancellable period of a lease.
Lease rentals under an operating lease, are recognized as an expense in the statement of profit and loss on a
straight line basis over the lease term.
8. Impairment of Assets
At the end of each accounting year the carrying amount of property, plant and equipment intangible
assets and financial assets is reviewed for impairment. Impairment, if any, is recognized where the
carrying amount exceeds the recoverable amounts being the higher of net realizable price and value
in use. An impairment loss is charged to Statement of Profit and loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior accounting periods is reversed if
there has been a change in the estimate of recoverable amount.
9. Inventories
a. Inventories related to raw materials, packing materials, stores & spares are valued at cost on weighted
average basis or net realizable value whichever is lower.
b. Waste & scraps are valued at estimated realizable value.
c. Semi Finished goods and Finished goods are valued at Estimated cost or net realizable value whichever
is lower. Finished goods and process stock include all cost of purchases, cost of conversion and other
related costs incurred in bringing the inventories to their present location and condition.
10. Cash Flow Statement
Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flow from regular revenue generating, financing and investing activities of the Company is
segregated.
Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short term
investments (excluding pledged term deposits) with an original maturity of three months or less.
11. A. Financial Assets(i) Initial Recognition and Measurement
The Company classifies its financial assets as those to be measured subsequently at fair value (either
through other comprehensive income, or through profit or loss) and those to be measured at amortized cost.
(ii) Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
(a) Debt instruments measured at amortized cost using the effective interest rate method and losses arising
from impairment are recognized in Profit and Loss if both the following conditions are met:
•The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and
•Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.
(b) Equity instruments at fair value through other comprehensive income.
(c) Equity instruments at fair value through profit or loss (FVTPL)
(d) Equity Instruments in subsidiaries are carried at cost, in accordance with option available in Ind AS 27
“Separate Financial Statements”.
(e) Mutual funds at fair value through other comprehensive income.
(iii) De-Recognition
A financial asset is de-recognized only when the Company has transferred the rights to receive cash flows
from the financial asset, or when it has transferred substantially all the risks and rewards of the asset, or
when it has transferred the control of the asset.
(iv) Impairment of Financial Assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement
and recognition of impairment loss on the Trade receivables or any contractual right to receive cash or
another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18.
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade
receivables.
The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime ECL at each reporting date, right from
its initial recognition.
As a practical expedient, the Company uses historically observed default rates over the expected life of the
trade receivables and is adjusted for forward-looking estimates to determine impairment loss allowance on
portfolio of its trade receivables.
B. Financial Liabilities:
i) Classification as debt or equity - Debt and equity instruments are classified as either financial liabilities
or as equity in accordance with the substance of the contractual arrangement.
ii) Equity instruments - An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are
recognized at the proceeds received, net of direct issue costs.
iii) Initial Recognition and Measurement:
All Financials Liabilities are recognized net of transaction costs incurred.
iv) Subsequent Measurement-
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the Effective Interest Rate (“EIR”) method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised through the EIR amortisation process.
v) De-Recognition
All Financials Liabilities are removed from balance sheet when the obligation specified in the contract is
discharged, cancelled or expired.
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 recognised in the statement of profit and loss.
12. Tax Asset
Tax assets and Tax liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.
13. Revenue Recognition:
Revenue comprises of all economic benefits that arise in the ordinary course of activities of the
Company which result in increase in Equity, other than increases relating to contributions from equity
participants. Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the
consideration received or receivable.
Sale of Goods: Revenue from sales of goods is recognised on transfer of significant risks and rewards of
ownership to the customers either at the time of dispatch or delivery or when the risk of loss transfers.
Services: Revenue from Services are recognized as and when the services are rendered. The Company
collects service tax/Goods & Service Tax on behalf of the government and therefore, it is not an economic
benefit flowing to the Company and hence excluded from Revenue.
Interest: Interest income is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable.
14. Foreign Currency Transactions:
The Company's financial statements are presented in Indian Rupees (‘INR’), which is also the Company's
functional currency.
Foreign currency transactions are recorded on initial recognition in the functional currency, using the
exchange rate at the date of the transaction. At each balance sheet date, foreign currency monetary items
are reported using the closing exchange rate. Exchange differences that arise on settlement of monetary
items or on reporting at each balance sheet date of the Company's monetary items at the closing rate are
recognised as income or expenses in the period in which they arise.
Non-monetary items which are carried at historical cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rate at the date when the fair value is determined.
15. Employee Benefits:
Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of
Profit and Loss of the year in which the related service is rendered.
Post Employment and Retirement benefits in the form of Gratuity are considered as defined benefit
obligations, using the projected unit credit method, as at the date of the Balance Sheet. Every Employee
who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the
provisions of The Payment of Gratuity Act, 1972. Gratuity is covered under a scheme of LIC and
contribution in respect of such scheme is recognized in Profit & Loss Account. The liability at the Balance
Sheet date is provided for based on actuarial valuation carried out by Life Insurance Corporation of India
The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of reporting period on government bonds that have terms
approximating to the terms of the related obligation
Re-measurement gains and losses arising from experience adjustments and changes in actuarial
assumptions of the defined benefit obligation are recognised in the period in which they occur, directly in
other comprehensive income. They are included in retained earnings in the statement of changes in equity
and in the balance sheet.
Employee benefits in the form of Provident Fund is considered as defined contribution plan and the
contributions to Employees’ Provident Fund Organization established under The Employees' Provident
Fund and Miscellaneous Provisions Act 1952 is charged to the Statement of Profit and Loss of the year
when the contributions to the respective funds are due. The Company pays provident fund contributions to
publicly administered provident funds as per local regulations.
The Company has no further payment obligations once the contributions have been paid.
16. Borrowing Costs:
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection
with the borrowing of funds.
General and specific borrowing costs that are directly attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of such assets during the period of time that is required
to complete and prepare the asset for its intended use. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use.
All other borrowing costs are expensed in the period in which they are incurred.
17. Accounting for Taxes on Income:
Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.
Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the
same period in which the related revenue and expenses arise. A provision is made for income tax annually,
based on the tax liability computed, after considering tax allowances and exemptions. Provisions are
recorded when it is estimated that a liability due to disallowances or other matters is probable.
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at
the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax
assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and
any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profits
against which the deductible temporary differences, and the carry forward unused tax credits and unused
tax losses can be utilised.
Deferred tax is recognised in the statement of profit and loss, except to the extent that it relates to items
recognized in other comprehensive income. As such, deferred tax is also recognised in other
comprehensive income.
Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities
relate to taxes on income levied by same governing taxation laws.
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