14.2 Terms / rights attached to equity shares:
The company has only one class of equity shares having a par value of H2/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder
a) Securities Premium : The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve.
b) General Reserve: The company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013.
c) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
d) Items of Other Comprehensive Income:
Remeasurement of Net Defined Benefit Plans: Differences between the interest income on plan assets and the return actually achieved, and any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments within the plans, are recognised in other comprehensive income and are adjusted to retained earnings.
16.1 Term loan in Indian rupees of HNil lakhs & working capital facilities of H1632.05 lakhs from Union Bank of India are secured by hypothecation of first charge on all immovable and movable properties including machineries, current assets such as inventories, book debts and other receivables of the company, both present and future and personal properties of some of the directors and personal guarantees of the Directors Mr. Gautam Chand Jain, Mr. Prakash Chand Jain and Mr. Rahul Jain.
Cash credit facility in Indian rupees carries interest @ 1Y MCLR 1.25% i.e., 10.15%, Packing credit loans in foreign currency and Bill discounting facilities in Foreign currency carries interest @ SOFR 100 bps i.e.,4.7448%.
Term loans in Indian rupees of H26.95 lakhs are for purchase of assets, secured by hypothecation of respective assets.
Loan amounting to H2156.07 lakhs from Directors of the Company is Unsecured and carries Interest @ 9.50%. The said loan is repayable within 3 years from end of the year.
The Company has satisfied all the covenants prescribed in terms of borrowings.
Defined benefit plan
The employees’ gratuity fund scheme managed by a trust ( Funded with Life Insurance Corporation of India for Granite Division of the company) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for compensated absence is recognized in the same manner as gratuity.
33. Related party disclosures :
As per IND AS 24, the disclosures of transactions with the related parties are given below:
List of related parties where control exists and related parties with whom transactions have taken place and relationships:
a) Enterprises where control exits:
Pokarna Engineered Stone Limited - wholly owned subsidiary, Pokarna Foundation - subsidiary
b) Names of the associates:
Pokarna Fabrics Pvt Limited
c) Names of Key management personnel
Gautam Chand Jain, Rahul Jain, Vishwanath Reddy, Pratima Khandu Gulankar*, Disha Jindal*
d) Close members of KMP
Raaj Kumar Jain, Ashok Chand Jain,Vidya Jain, Rekha Jain, Ritu Jain, Neha Jain, Megha jain.Pratik Jain, Southend Extension
e) Name of executive & non-executive director
Prakash Chand Jain, Apurva Jain
*Disha Jindal resigned as Company secretary w.e.f. 8th May 2024. Pratima Khandu gulankar appointed as Company Secretary w.e.f. 1st August, 2024.
A. Compensation of key management personnel of the company
34.2 Capital commitments
Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances)
34.3 Other commitments:
i) Granite processing units of the company situated at Aliabad and Toopronpet village are registered as a 100% export oriented units ("EOU"), and are exempted from customs and central excise duties, GST and levies on imported & indigenous capital goods and stores & spares. The company has executed a bond cum legal undertaking to pay customs duty, central excise duty, GST, levies and liquidated damages payable, if any, in respect of imported and indigenous capital goods and stores & spares, consumed duty free, in the event that certain terms and conditions are not fulfilled. As on 31st March,2026, the company has a positive net foreign exchange earning, as defined in the foreign trade policy 2009-2014, 2015-2020 and 2021-2026 wherever applicable.
ii) Obligations towards environmental protection measures in respect of quarry leases H564.72 lakhs (previous year H416.75 lakhs)
iii) The company is also involved in other lawsuits, claims, investigations and proceedings, including trade mark and commercial matters, which arise in the ordinary course of business. However, there are no material claims on such cases.
35. Discontinued operations
During the year ended 31 March 2025, the Company completed the disposal of its Apparel unit, which had been classified as a discontinued
operation in accordance with Ind AS 105 - Non-current Assets Held for Sale and Discontinued Operations.
36. In accordance with IND AS-108 "Operating segment", segment information has been given in the consolidated financial statements of Pokarna Limited and therefore no separate disclosure on segment information is given in these financial statements.
37. Capital management
i) The board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The board of directors monitors the return on capital, which the company defines as result from operating activities divided by total shareholders’ equity.
ii) The board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position.
The fair value of financial instruments is determined using discounted cash flow analysis. The carrying amount of current financial assets and liabilities are considered to be the same as their fair values, due to their short term nature. The fair value of the long-term borrowings with floating-rate of interest is not impacted due to interest rate changes, and will be evaluated for their carrying amounts based on any change in the under-lying credit risk of the Company borrowing (since the date of inception of the loans). For financial assets and liabilities that are measured at fair value, the carrying amount is equal to the fair values.
39. Financial risk management objectives and policies
I. Overview
The company has exposure to the following risks from its use of financial instruments:
• Credit risk
• Liquidity risk
• Market risk
• Operational risk
This note presents information about the company’s exposure to each of the above risks, the company’s objectives, policies and processes for measuring and managing risk, and the company’s management of capital. Further quantitative disclosures are included throughout these financial statements.
II. Risk management framework:
The Board of Directors has overall responsibility for the establishment and oversight of the company’s risk management framework. The Board is responsible for developing and monitoring the company’s risk management policies.
i) Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company’s receivables from customer.
ii) Trade and other receivables: 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.
iii) Cash and cash equivalents: The company held cash and cash equivalents of H160.97 lakhs (previous year H94.04 lakhs). The cash and cash equivalents are held with public sector banks. There is no impairment on cash and cash equivalents as on the reporting date and the comparative period.
iv) In respect of financial guarantees provided by the Company to banks and financial institutions, the maximum exposure which the Company is exposed to is the maximum amount which the Company would have to pay if the guarantee is called upon. Based on the expectation at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided.
• Liquidity risk
i) Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation.
ii) The company aims to maintain the level of its cash and cash equivalents and investments at an amount in excess of expected cash outflows on financial liabilities (other than trade payables) over the next six months. The company also monitors the level of expected cash inflows on trade receivables and loans together with expected cash outflows on trade payables and other financial liabilities. This excludes potential impact of extreme circumstances that cannot be reasonably predicted, such as natural disaster.
ii) Currency risk* The company is exposed to foreign exchange risk arising from foreign currency transaction. The company also imports and the risk is managed by regular follow up. The company has a policy which is implemented when the foreign currency risk become significant.
A 10% appreciation/depreciation of the foreign currencies with respect to functional currency of the Company would result in an increase/decrease in the Company’s net profit before tax by approximately J5.33 lakhs (previous year H15.42 lakhs).
iii) Interest rate risk * Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates, in cases where the borrowings are measured at fair value through the statement of profit and loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
A reasonably possible change of 100 basis points in interest rate at the reporting date would have increased or decreased profit or loss by J18.25 lakhs ( previous year H20.79 lakhs). This analysis assumes that all other variables remain constant.
i) Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the company’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise from all of the company’s operations.
ii) The Company’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the company’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity.
iii) The primary responsibility for the development and implementation of controls to address operational risk is assigned to senior management within each business unit. This responsibility is supported by the development of overall company standards for the management of operational risk in the following areas:
• Requirements for appropriate segregation of duties, including the independent authorization of transactions
• Requirements for the reconciliation and monitoring of transactions
• Compliance with regulatory and other legal requirements
• Documentation of controls and procedures
• Requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified
• Requirements for the reporting of operational losses and proposed remedial action
• Development of contingency plans
• Training and professional development
• Ethical and business standards
• Risk mitigation, including insurance when this is effective.
iv) Compliance with company’s standards is supported by a programme of periodic reviews undertaken by internal audit. The results of internal audit reviews are discussed with the management of the business unit to which they relate, with summaries submitted to the audit committee and board of the company.
42. Additional Regulatory Information
a) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it has taken at the balance sheet date and quarterly returns or statements of current assets filed with banks are in agreement with the books of accounts.
b) The Company has not revalued its Property, Plant and Equipment and its intangible assets.
c) The Company is not holding any Benami Property and there are no proceedings initiated or pending against the Company.
d) The Company has not been declared wilful defaulter by any bank or financial institutions.
e) The Company does not have any relationship with Struck off Companies.
f) There are no transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax act.
g) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
h) There are no funds that have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries"), with the understanding, 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 on behalf of the Ultimate Beneficiaries.
There have been no funds that have been received by the Company from any persons or entities, including foreign entities (“Funding Parties"), 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.
43 The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of 28th May 2026, there are no subsequent events to be recognised or reported that are not already disclosed.
Proposed Dividend:
The Board of Directors at its meeting held on 28th May 2026 have recommended payment of final dividend of H0.60 ( rupees sixty paisa only) per equity share of face value of H2 each for the financial year ended 31st March 2026. The same amounts to H186.02 lakhs.
The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.
46 Previous year figures are regrouped, rearranged and reclassified wherever considered necessary in order to conform to the current year's presentation.
47 The financial statements for the year ended 31st March 2026 have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 28th May 2026.
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