Solid Stone Company Ltd. - Annual Report 2022

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The General Manager, The Mumbai Stock Exchange, Dalal Street, Fort, Mumbai – 400023.

September 05, 2022

Dear Sir,

Re : Submission of Annual Report for 2021-22 under Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Pursuant to Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we submit herewith the Annual Report of the company for the financial year 2021-22 along with the Notice convening the 32[nd] Annual General Meeting (AGM) scheduled to be held on Wednesday 28 September, 2022 at 09.30 a.m. (IST) through Video Conferencing / Other Audio Visual Means in accordance with relevant circulars issued by the Ministry of Corporate Affairs and SEBI.

In compliance with the aforesaid circulars, the Annual Report along with the Notice of the AGM are being sent by electronic mode to all eligible shareholders whose email address is registered with the Company / Registrar and Transfer Agents of the Company / Depository Participants.

The Annual Report along with the Notice of the AGM for the Financial Year 2021-22 is also available on the website of the company at www.solid-stone.com

Kindly take the above information on your records.

Thanking You,

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SOLID STONE COMPANY LIMITED

ANNUAL REPORT 2021-2022

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

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|---|---|
|CORPORATE INFORMATION..........................................................................................................................|3|
|NOTICE..............................................................................................................................................................|4|
|DIRECTORS’ REPORT..................................................................................................................................... 13|
|ANNEXURES TO DIRECTORS’ REPORT.....................................................................................................|17|
|MANAGEMENT DISCUSSION & ANALYSIS..................................................................................................|18|
|REPORT ON CORPORATE GOVERNANCE..................................................................................................19|
|SECRETARIAL AUDIT REPORT...................................................................................................................... 29|
|STANDALONE FINANCIAL STATEMENTS :|
|AUDITOR’S REPORT........................................................................................................................................ 35|
|BALANCE SHEET.............................................................................................................................................. 44|
|STATEMENT OF PROFIT AND LOSS.............................................................................................................. 45|
|CASH FLOW STATEMENT ............................................................................................................................... 46|
|STATEMENT OF CHANGES IN EQUITY.......................................................................................................... 47|
|NOTES TO THE FINANCIAL STATEMENTS..................................................................................................|49|
|CONSOLIDATED FINANCIAL STATEMENTS :|
|AUDITORS’ REPORT....................................................................................................................................... 83|
|BALANCE SHEET.............................................................................................................................................. 90|
|STATEMENT OF PROFIT AND LOSS.............................................................................................................. 91|
|CASH FLOW STATEMENT...............................................................................................................................|92|
|STATEMENT OF CHANGES IN EQUITY.........................................................................................................|93|
|NOTES TO THE FINANCIAL STATEMENTS...................................................................................................95|

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32nd ANNUAL REPORT 2021-2022

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

THIRTY SECOND ANNUAL REPORT 2021-2022

BOARD OF DIRECTORS

Mr. Milan B. Khakhar Mr. Prakash B. Khakhar Ms. A. Y. Parekh Mr. K. Gopi Nair Mr. Gaurav S.Davda

CHIEF FINANCIAL OFFICER

Mr.Manoj Dewani

Chairman and Managing Director - Joint Managing Director - Director - Director - Director

REGISTERED OFFICE

SOLID STONE COMPANY LIMITED 1501, Maker Chambers - V, Nariman Point, Mumbai - 400 021. CIN: L26960MH1990PLC056449 Email: [email protected] Tel. +91 22 66115800 Fax.+91 22 22826439 Website : www.solid-stone.com

COMPANY SECRETARY

Mr.Hardik Valia

AUDITORS

M/s. Merchant & Co. Chartered Accountants Mumbai

BANKERS

State Bank of India

WORKS

Plot No. 33/34, S. No. 831/15 & 25, Village Mahim, Chintupada, Taluka-Dist. Palghar-401404 (Maharashtra) .

REGISTRAR & TRANSFER AGENT

Link Intime India Pvt.Ltd. C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai-400083. Tel. 022 49186000 / 49186720 Email : [email protected]

THIRTY SECOND ANNUAL GENERAL MEETING through VIDEO CONFERENCING (VC) OR OTHER AUDIO VISUAL MEANS (OAVM) .

on Wednesday, 28[th] September, 2022 at 9:30 A.M.

32nd ANNUAL REPORT 2021-2022

REGISTERED OFFICE :

1501, Maker Chambers-V, Nariman Point, Mumbai – 400 021.

NOTICE OF MEETING

NOTICE is hereby given that the Thirty second Annual General Meeting of the Shareholders of SOLID STONE COMPANY LIMITED will be held on 28[th] September, 2022 at 09.30 a.m, through VIDEO CONFERENCING (VC) OR OTHER AUDIO VISUAL MEANS (OAVM) to transact the following business :

ORDINARY BUSINESS :

To receive, consider and adopt :
a. the Audited Standalone Financial Statements of the Company for financial year ended March 31, 2022, together with the Reports of Board of Directors and the Auditors thereon.
b. the Audited Consolidated Financial Statements of the Company for the financial year ended March 31, 2022, together with the Report of the Auditors thereon.

2. To appoint a Director in place of Mr. K. Gopi Nair (holding DIN 00763252) whose tenure of appointment ends on 28[th] September 2022 and being eligible offers himself for re-appointment.

By Order of the Board of Directors

Milan B. Khakhar

Chairman & Managing Director ( DIN : 00394065)

Place : Mumbai Date : 26[th] May, 2022

NOTES :

In accordance with the provisions of the Act, read with the Rules made thereunder and General Circular nos.14/2020 dated 8th April, 2020, 17/2020 dated 13th April,2020, 20/2020 dated 5th May, 2020, 02/2021 dated 13th January, 2021, 21/2021 dated 14th December, 2021 and 2/2022 dated 5th May, 2022, issued by the Ministry of Corporate Affairs (“MCA”) read with relevant circulars issued by the Securities and Exchange Board of India (“SEBI”), from time to time (hereinafter collectively referred to as “the Circulars”), companies are allowed to hold AGM through Video Conference (“VC”) or Other Audio Visual Means (“OAVM”) upto 31st December, 2022, without the physical presence of members at a common venue. Hence, in compliance with the Circulars, the AGM of the Company is being held through VC/OAVM.

2. Since this General Meeting is held through VC/OAVM the physical attendance of members is dispensed with and no proxies would be accepted by the Company pursuant to the relevant MCA Circulars.

No attendance slip/route map has been sent along with this Notice of the Meeting as the meeting is held through Audio Visual means.
Members who are shareholders as on 20[th] day, of September, 2022 can join the AGM 30 minutes before the commencement of the AGM i.e at 9:00 A.M and till the time of the conclusion of the Meeting by following the procedure mentioned in this Notice.
Members attending the Meeting through VC/OAVM will be counted for the purposes of reckoning of Quorum under Section 103 of the Companies Act, 2013.
Members holding shares in physical form are requested to furnish bank details, email address, change of address etc. to Link Intime India Pvt.Ltd. (Share Transfer Agents of the company) at C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai-400083,

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

Tel.No. 022 49186000, Email:[email protected]. who are the Company’s Registrar and Share Transfer Agents so as to reach them latest by 3rd day of September, 2022, in order to take note of the same. In respect of members holding shares in electronic mode, the details as would be furnished by the Depositories as at the close of the aforesaid date will be considered by the Company. Hence, members holding shares in demat mode should update their records at the earliest.

MCA and SEBI have dispensed with the requirement of printing and sending physical copies of the Annual Report and the Notice of this Meeting and the Annual Reports have been sent via email to all those members who have registered their email ids with the Company or the Registrar and Transfer Agent or the Depositories or the Depository Participants as on 5[th] day of September, 2022. Those Members who have not yet registered their email address are requested to get their email addresses registered by following the procedure given below:
a. Those Members who have registered/not registered their mail address and mobile nos. including address and bank details may please contact and validate/update their details with the Depository Participant in case of shares held in electronic form and with Registrar and Transfer Agents Link Intime India Private Ltd. in case the shares are held in physical form.
b. Members may also visit the website of the Company www.solid-stone.com
c. Alternatively, Members may send an e-mail request to the email id [email protected] along with scanned copy of the signed request letter providing the email address, mobile number, self-attested PAN copy and Client Master copy in case of electronic folio and copy of share certificate in case of physical folio.
All shareholders will be able to inspect all documents referred to in the Notice electronically without any fee from the date of circulation of this Notice up to the date of AGM. Members seeking to inspect such documents can send an email to [email protected].
SEBI has decided that securities of listed companies can be transferred only in dematerialized form with effect from April 1, 2019. In view of the above and to avail various benefits of dematerialisation, members are advised to dematerialize shares held by them in physical form.

10. The Register of Members and Share Transfer Books of the Company will remain closed from 24[th] September, 2022 to 28[th] September, 2022 (both days inclusive ) for the purpose of compliance with the annual closure of Books as per Section 91 of the Companies Act, 2013.

The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (including amendments thereafter) provides for the manner of transfer of the unpaid and unclaimed dividends to the IEPF and the manner of transfer of shares in case any dividend has not been encashed by the shareholders on such shares during the last seven years to the designated Suspense Account as prescribed by the IEPF Authority.

In the event the shareholders do not claim any unclaimed/ unpaid dividends for the past seven years, the Company will be required to transfer the respective shares to the IEPF Suspense Account by the due date prescribed as per the IEPF Rules, 2016 or such other extended date as may be notified.

Members may note that shares as well as unclaimed dividends transferred to IEPF Authority can be claimed back from them. Concerned members/ investors are advised to visit the weblink: http://iepf.gov.in/IEPFA/refund.html or contact Link Intime India Pvt.Ltd. for lodging claim for refund of shares and / or dividend from the IEPF Authority.
There is no unclaimed/unpaid dividends for any of the earlier financial years to be transferred to IEPF.
14 . The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account Number (PAN) by every participant in securities market. Members holding shares in electronic form are, therefore, requested to submit their PAN to their Depository Participants with whom they are maintaining their demat accounts. Members holding shares in physical form can submit their PAN to the Company / Link Intime India Pvt.Ltd..
Non – Resident Indian Members are requested to inform Link Intime India Private Limited, immediately of:
a) Change in their Residential status on return to India for permanent settlement
b) Particulars of their Bank Account maintained in India with complete name, branch, account type, account number and address of the Bank with Pin Number, if not furnished earlier.

32nd ANNUAL REPORT 2021-2022

16 Instruction for attending the meeting through VC:

Process and manner for attending the Annual General Meeting through InstaMeet:

Open the internet browser and launch the URL: https://instameet.linkintime.co.in

Select the “Company” and ‘Event Date’ and register with your following details: -

A. Demat Account No. or Folio No: Enter your 16 digit Demat Account No. or Folio No
Shareholders/ members holding shares in CDSL demat account shall provide 16 Digit Beneficiary ID
Shareholders/ members holding shares in NSDL demat account shall provide 8 Character DP ID followed by 8 Digit Client ID
Shareholders/ members holding shares in physical form shall provide Folio Number registered with the Company
B. PAN: Enter your 10-digit Permanent Account Number (PAN) (Members who have not updated their PAN with the Depository Participant (DP)/

Company shall use the sequence number provided to you, if applicable.

C Mobile No.: Enter your mobile number.
D. Email ID: Enter your email id, as recorded with your DP/Company.

Click “Go to Meeting” (You are now registered for InstaMeet and your attendance is marked for the meeting).

Instructions for Shareholders/ Members to Speak during the Annual General Meeting through InstaMeet:

Shareholders who would like to speak during the meeting must register their request 3 days in advance with the company on the email : [email protected] created for the general meeting.
Shareholders will get confirmation on first cum first basis depending upon the provision made by the client.
Shareholders will receive “speaking serial number” once they mark attendance for the meeting.
Other shareholder may ask questions to the panellist, via active chat-board during the meeting.
Please remember speaking serial number and start your conversation with panellist by switching on video mode and audio of your device.

Shareholders are requested to speak only when moderator of the meeting/ management will announce the name and serial number for speaking.

Instructions for Shareholders/ Members to Vote during the Annual General Meeting through InstaMeet:

Once the electronic voting is activated by the scrutinizer during the meeting, shareholders/ members who have not exercised their vote through the remote e-voting can cast the vote as under:

On the Shareholders VC page, click on the link for e-Voting “Cast your vote”
Enter your 16 digit Demat Account No. / Folio No. and OTP (received on the registered mobile number/ registered email Id) received during registration for InstaMEET and click on ‘Submit’.
After successful login, you will see “Resolution Description” and against the same the option “Favour/ Against” for voting.
Cast your vote by selecting appropriate option i.e. “Favour/Against” as desired. Enter the number of shares (which represents no. of votes) as on the cut-off date under ‘Favour/Against’.
After selecting the appropriate option i.e. Favour/Against as desired and you have decided to vote, click on “Save”. A confirmation box will be displayed. If you wish to confirm your vote, click on “Confirm”, else to change your vote, click on “Back” and accordingly modify your vote.
Once you confirm your vote on the resolution, you will not be allowed to modify or change your vote subsequently.

Note: Shareholders/ Members, who will be present in the Annual General Meeting through InstaMeet facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

through e-Voting facility during the meeting. Shareholders/ Members who have voted through Remote e-Voting prior to the Annual General Meeting will be eligible to attend/ participate in the Annual General Meeting through InstaMeet. However, they will not be eligible to vote again during the meeting.

Shareholders/ Members are encouraged to join the Meeting through Tablets/ Laptops connected through broadband for better experience.

Shareholders/ Members are required to use Internet with a good speed (preferably 2 MBPS download stream) to avoid any disturbance during the meeting.

Please note that Shareholders/ Members connecting from Mobile Devices or Tablets or through Laptops connecting via Mobile Hotspot may experience Audio/Visual loss due to fluctuation in their network. It is therefore recommended to use stable Wi-FI or LAN connection to mitigate any kind of aforesaid glitches.

In case shareholders/ members have any queries regarding login/ e-voting, they may send an email to [email protected] or contact on: - Tel: 022-49186175.

17 E-voting:

Remote e-Voting Instructions for shareholders:

As per the SEBI circular dated December 9, 2020, individual shareholders holding securities in demat mode can register directly with the depository or will have the option of accessing various ESP portals directly from their demat accounts.

Login method for Individual shareholders holding securities in demat mode is given below:

Individual Shareholders holding securities in demat mode with NSDL
Existing IDeAS user can visit the e-Services website of NSDL viz... https://eservices.nsdl.com either on a personal computer or on a mobile. On the e-Services home page click on the “Beneficial Owner” icon under “Login”” which is available under ‘IDeAS’ section, this will prompt you to enter your existing User ID and Password. After successful authentication, you will be able to see e-Voting services under Value added services. Click on “Access to e-Voting” under e-Voting services and you will be able to see e-Voting page. Click on company name or e-Voting service provider name i.e. LINKINTIME and you will be re-directed to “InstaVote” website for casting your vote during the remote e-Voting period.
If you are not registered for IDeAS e-Services, option to register is available at https://eservices.nsdl.com Select “Register Online for IDeAS Portal” or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://eservices.nsdl.com either on a personal computer or on a mobile. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/Member’ section. A new screen will open. You will have to enter your User ID (i.e. your sixteen-digit demat account number hold with NSDL), Password/OTP and a Verification Code as shown on the screen. After successful authentication, you will be redirected to NSDL Depository site wherein you can see e- Voting page. Click on company name or e-Voting service provider name i.e. LINKINTIME and you will be redirected to “InstaVote” website for casting your vote during the remote e-Voting period.
Individual Shareholders holding securities in demat mode with CDSL
Existing users who have opted for Easi / Easiest, can login through their user id and password. Option will be made available to reach e-Voting page without any further authentication. The URL for users to login to Easi / Easiest are https://web.cdslindia.com/myeasi/home/login or www.cdslindia.com and click on New System Myeasi.
After successful login of Easi/Easiest the user will be able to see the E Voting Menu. The Menu will have links of e- Voting service provider i.e. LINKINTIME. Click on LINKINTIME and you will be redirected to “InstaVote” website for casting your vote during the remote e-Voting period.
If the user is not registered for Easi/Easiest, option to register is available at https://web.cdslindia.com/myeasi/ Registration/EasiRegistration.
Alternatively, the user can directly access e-Voting page by providing demat account number and PAN No. from a link in www.cdslindia.com home page. The system will authenticate the user by sending OTP on registered Mobile & Email as recorded in the demat Account. After successful authentication, user will be provided links for the Helpdesk for Individual Shareholders holding securities in demat mode:

32nd ANNUAL REPORT 2021-2022

respective ESP i.e. LINKINTIME. Click on LINKINTIME and you will be redirected to “InstaVote” website for casting your vote during the remote e-Voting period.

Individual Shareholders (holding securities in demat mode) login through their depository participants

You can also login using the login credentials of your demat account through your Depository Participant registered with NSDL/CDSL for e-Voting facility. Upon logging in, you will be able to see e-Voting option. Click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can see e-Voting feature. Click on company name or e-Voting service provider name i.e. LINKINTIME and you will be redirected to “InstaVote” website for casting your vote during the remote e-Voting period.

Login method for Individual shareholders holding securities in physical form is given below:

Individual Shareholders of the company, holding shares in physical form as on the cut-off date for e-voting may register for e-Voting facility of Link Intime as under:

Open the internet browser and launch the URL: https://instavote.linkintime.co.in
Click on “Sign Up” under ‘SHARE HOLDER’ tab and register with your following details: -
A. User ID: Shareholders holding shares in physical form shall provide Event No + Folio Number registered with the Company.
B. PAN: Enter your 10-digit Permanent Account Number (PAN) (Shareholders who have not updated their PAN with the Depository Participant (DP)/ Company shall use the sequence number provided to you, if applicable.
C. DOB/DOI: Enter the Date of Birth (DOB) / Date of Incorporation (DOI) (As recorded with your DP / Company - in DD/MM/ YYYY format)
D. Bank Account Number: Enter your Bank Account Number (last four digits), as recorded with your DP/Company.

* Shareholders/ members holding shares in_ _physical form** but have not recorded ‘C’ and ‘D’, shall provide their Folio number in ‘D’ above

Set the password of your choice (The password should contain minimum 8 characters, at least one special Character (@!#$&*), at least one numeral, at least one alphabet and at least one capital letter).
Click “confirm” (Your password is now generated).
Click on ‘Login’ under ‘SHARE HOLDER’ tab.
Enter your User ID, Password and Image Verification (CAPTCHA) Code and click on ‘Submit’.

Cast your vote electronically:

After successful login, you will be able to see the notification for e-voting. Select ‘View’ icon .
E-voting page will appear.
Refer the Resolution description and cast your vote by selecting your desired option ‘Favour / Against’ (If you wish to view the entire Resolution details, click on the ‘View Resolution’ file link).
After selecting the desired option i.e. Favour / Against, click on ‘Submit’. A confirmation box will be displayed. If you wish to confirm your vote, click on ‘Yes’, else to change your vote, click on ‘No’ and accordingly modify your vote.

Guidelines for Institutional shareholders:

Institutional shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on the e-voting system of LIIPL at https://instavote.linkintime.co.in and register themselves as ‘Custodian / Mutual Fund / Corporate Body’ . They are also required to upload a scanned certified true copy of the board resolution /authority letter/power of attorney etc. together with attested specimen signature of the duly authorised representative(s) in PDF format in the ‘Custodian / Mutual Fund / Corporate Body’ login for the Scrutinizer to verify the same.

Helpdesk for Individual Shareholders holding securities in physical mode/ Institutional shareholders:

Shareholders facing any technical issue in login may contact Link Intime INSTAVOTE helpdesk by sending a request at [email protected] or contact on: - Tel: 022 – 4918 6000.

9 SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

Individual Shareholders holding securities in demat mode may contact the respective helpdesk for any technical issues related to login through Depository i.e. NSDL and CDSL.

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Login type Helpdesk details
Individual Shareholders holding securities in demat Members facing any technical issue in login can contact NSDL
mode with NSDL helpdesk by sending a request at [email protected] or call
at toll free no.: 1800 1020 990 and 1800 22 44 30
Individual Shareholders holding securities in demat Members facing any technical issue in login can contact CDSL
mode with CDSL helpdesk by sending a request at helpdesk.
[email protected] or contact at 022- 23058738 or 22-
23058542-43.
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Individual Shareholders holding securities in Physical mode has forgotten the password:

If an Individual Shareholders holding securities in Physical mode has forgotten the USER ID [Login ID] or Password or both then the shareholder can use the “Forgot Password” option available on the e-Voting website of Link Intime: https://instavote.linkintime.co.in

Click on ‘Login’ under ‘SHARE HOLDER’ tab and further Click ‘forgot password?’
Enter User ID, select Mode and Enter Image Verification code (CAPTCHA). Click on “SUBMIT”.

In case shareholders is having valid email address, Password will be sent to his / her registered e-mail address. Shareholders can set the password of his/her choice by providing the information about the particulars of the Security Question and Answer, PAN, DOB/DOI, Bank Account Number (last four digits) etc. as mentioned above. The password should contain minimum 8 characters, at least one special character (@!#$&*), at least one numeral, at least one alphabet and at least one capital letter.

User ID for Shareholders holding shares in Physical Form (i.e. Share Certificate): Your User ID is Event No + Folio Number registered with the Company

Individual Shareholders holding securities in demat mode with NSDL/ CDSL has forgotten the password:

Shareholders who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available at abovementioned depository/ depository participants website.

It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.
For shareholders/ members holding shares in physical form, the details can be used only for voting on the resolutions contained in this Notice.
During the voting period, shareholders/ members can login any number of time till they have voted on the resolution(s) for a particular “Event”.

By Order of the Board of Directors

Milan B. Khakhar Chairman & Managing Director (DIN : 00394065)

Place : Mumbai Date : 26[th] May, 2022

32nd ANNUAL REPORT 2021-2022

Annexure:

Guidelines to attend the AGM proceedings of Link Intime India Pvt. Ltd.: InstaMEET

For a smooth experience of viewing the AGM proceedings of Link Intime India Pvt. Ltd. InstaMEET, shareholders/ members who are registered as speakers for the event are requested to download and install the Webex application in advance by following the instructions as under:

Please download and install the Webex application by clicking on the link https://www.webex.com/downloads.html/

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11 SOLID STONE COMPANY LIMITED

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(CIN : L26960MH1990PLC056449)
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32nd ANNUAL REPORT 2021-2022

b) If you do not want to download and install the Webex application, you may join the meeting by following the process mentioned as under:
Step 1 Enter your First Name, Last Name and Email ID and click on Join Now.
1 (A) If you have already installed the Webex application on your device, join the meeting by clicking on Join Now
1 (B) If Webex application is not installed, a new page will appear giving you an option to either Add Webex to chrome or Run a temporary application.

Click on Run a temporary application, an exe file will be downloaded. Click on this exe file to run the application and join the meeting by clicking on Join Now

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SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

DIRECTOR’S REPORT

The Members,

Your Directors have pleasure in presenting their Thirty Second Annual Report of the Company for the year ended on 31[st] March, 2022.

FINANCIAL RESULTS :

	Year Ended	Year Ended
	31stMarch, 2022	31stMarch, 2021
	Rs..in ‘000s	Rs..in ‘000s
Gross Income from Operations	2,43,511	1,72,754
Profit/(Loss) before Depreciation and Tax	(1,577)	(3,762)
Profit/(Loss)after Tax	(7,673)	(7,735)
Balance brought forward from
Previous year	98,572	1,06,103
Total Comprehensive Income/(Loss) for	(7,089)	(7,531)
the year
Surplus carried to Balance Sheet	91,483	98,572

OPERATIONS :

Revenue from operations increased to Rs.2432.10 lakhs as against Rs.1723.24 lakhs – a growth of 41%. However, the outbreak of second and third wave of Covid-19 pandemic during the year under review coupled with the burden of fixed overheads and severe liquidity crunch led to incurring of losses during the year under review. In view of these unforeseen circumstances beyond the control of the management, the company has posted negative net income.

SUBSIDIARIES AND ASSOCIATES :

Pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014, the statement containing salient features of the financial statements of the Company’s Subsidiaries’ and Associate (in Form AOC-1) is forming part of this Report.

CONSOLIDATED FINANCIAL STATEMENTS :

In accordance with the Accounting Standard (AS 21) on consolidated Financial Statements read with Accounting Standard (AS 23) on Accounting for Investment in Subsidiaries, the Audited Consolidated Financial Statements are provided in the Annual Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo as required under Section 134(3)(m) of the Act read with Rule 8(3) of the Companies (Accounts) Rules, 2014, is annexed herewith as “Annexure A”.

RELATED PARTY TRANSACTIONS

Transactions with related parties during the year under review were in the ordinary course of business and on an arm’s length basis. During the year the Company had not entered into any contract or arrangement with a related party which would be considered as material in accordance with the policy of the Company on materiality of related party transactions. Details of Contracts or Arrangements or Transactions with Related Parties (In Form AOC-2) is forming part of this Report.

The related party transactions are disclosed under Note No. 35 of the Notes to Financial Statements for the financial year 2021-22.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the Note No.3 of the Notes to the Financial Statements.

32nd ANNUAL REPORT 2021-2022

INSURANCE :

All the assets of the Company are adequately insured.

DIRECTORS AND KEY MANAGERIAL PERSONNEL :

The tenure of Mr.K.Gopi Nair as an Independent Director shall come to an end on 28[th] September 2022. He is eligible for reappointment and offers himself for re-appointment as Director liable to retire by rotation.

Key Managerial Personnel

Mr. Milan Khakhar, Chairman and Managing Director, Mr. Prakash Khakhar, Joint Managing Director, Mr. Manoj Dewani, Chief Financial Officer and Mr. Hardik Valia, Company Secretary of the Company are Key Managerial Personnel of the Company. There was no change in the Key Managerial Personnel during the year.

BOARD EVALUATION :

Pursuant to the provisions of the Companies Act, 2013, the Board has carried out an annual performance evaluation of its own performance and that of its statutory committees viz. Audit Committee, Stakeholder Relationship Committee, Nomination and Remuneration Committee and that of the individual directors. The results of evaluation are satisfactory and adequate and meet the requirements of the company.

POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION :

(including criteria for determining qualification, positive attributes, independence of a Director, policy relating to remuneration for Directors, Key Managerial Personnel and other employees)

Policy on Directors’ Appointment

Policy on Directors’ appointment is to follow the criteria as laid down under the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Emphasis is given to persons from diverse fields or professions.

Policy on Remuneration

Guiding Policy on remuneration of Directors, Key Managerial Personnel and employees of the Company is that -

Remuneration to workmen is as per the prevailing structure, qualification, experience and skills.
Remuneration to Key Managerial Personnel, Senior Executives, Managers, Staff and Workmen (non Unionised) is industry driven in which it is operating taking into account the performance leverage and such factors so as to attract and retain quality talent.
For Directors, it is based on the shareholders resolutions, provisions of the Companies Act, 2013 and Rules framed therein, circulars and guidelines issued by Central Government and other authorities from time to time.

DECLARATION OF INDEPENDENCE BY THE INDEPENDENT DIRECTORS

Pursuant to Section 149(7) of the Companies Act, 2013, Independent Directors of the Company have made declarations confirming the compliance of the conditions of the independence stipulated in Section 149(6) of the Act.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm that:

a) in the preparation of the Annual Accounts, the applicable accounting standards have been followed and there are no material departures;
b) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;
c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

d) the Directors have prepared the Annual Accounts on a going concern basis.
e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively.
f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory, and secretarial auditors and the reviews performed by Management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the Company’s internal financial controls were adequate and effective during the financial year 2021-22.

DETAILS OF COMMITTEES OF DIRECTORS

Composition of Audit Committee of Directors, Nomination and Remuneration Committee of Directors, Stakeholders Relationship/ Grievance Committee of Directors, number of meetings held of each Committee of Directors during the financial year 2021-22 and meetings attended by each member of the Committee as required under the Companies Act, 2013, are provided in Corporate Governance Report and forming part of the report. The recommendations of the Audit Committee, as and when made to the Board, have been accepted by it.

CORPORATE GOVERNANCE :

Your Company reaffirms its commitment to Corporate Governance and is fully compliant with the conditions of Corporate Governance stipulated in Clause ‘C’ of Schedule V on Annual Report pursuant to Regulation 34(3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

A separate section of disclosure on Corporate Governance is annexed hereto and forms part of the Report.

ANALYSIS OF REMUNERATION

The Information as per Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, forms part of this Report as “Annexure D”.

AUDITORS AND AUDITOR’S REPORT :

Statutory Auditors

At the AGM of the Company held on September 29, 2020 pursuant to the provisions of the Act and the Rules made thereunder, M/s. Merchant & Co. Chartered Accountants (Firm Registration No.145290W, were appointed as Statutory Auditors of the company from the conclusion of the 30[th] AGM held on September 29, 2020 till the conclusion of the 35[th] AGM to be held in the year 2025.

The Audit Report of the Statutory Auditors on the financial Statements of the Company for FY 2021-22 forms part of the Annual Report.

During the year under review, the Audit Report does not contain any qualification, reservations, adverse remarks or disclaimer and no frauds were reported by the Auditors of the company under Section 143(12) of the Companies Act, 2013.

Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013, and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/s. Jinang Shah & Associates, Company Secretaries to undertake the Secretarial Audit of the Company. The Report of the Secretarial Auditor is annexed herewith as “Annexure E “.

INTERNAL FINANCIAL CONTROLS

The Company is having in place internal financial controls system. The internal financial controls with reference to financial statements were adequate and operating effectively.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Company has established a vigil / whistle blower mechanism which provides a channel to any employer / director to report to the Management concerns about unethical behavior, actual or suspected fraud or violation of code of conduct or policy. The mechanism provides for adequate safeguards against victimisation of the whistle blower and also provides for direct access to the Chairman & Managing Director /Chairperson of the Audit Committee in exceptional cases.

32nd ANNUAL REPORT 2021-2022

AUDITORS QUALIFICATIONS

The remarks, if any, either by the Statutory Auditors or by the Practising Company Secretary in their respective reports are self explanatory. There are no qualifications or adverse remarks in the aforesaid reports.

RISK MANAGEMENT POLICY

The Company has formulated a Risk Assessment & Management Policy. The details of the Risk Management are covered in the Corporate Governance Report.

MEETINGS OF THE BOARD

Ten meetings of the Board of Directors were held during the year. For further details please refer to the report on corporate governance in this annual report.

PARTICULARS OF EMPLOYEES

Information pursuant to the provisions of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees is not provided as there are no employees drawing remuneration above the prescribed limits.

ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3)(a) of the Companies Act, 2013 the Annual Return as on 31 March, 2022 will be available on the company’s website www.solid-stone.com

GENERAL

No disclosure or reporting is required of the following items as there were no transactions on these items during the year under review.

(i) Issue of equity shares with differential rights as to dividend, voting or otherwise
(ii) Issue of shares (including sweat equity shares) to employees of the Company under any scheme.
(iii) No significant or material order were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in future.

There were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal Act, 2013) during the year under review.

APPRECIATION :

Your Directors wish to place on record their sincere appreciation for their continued support and co-operation received from the Banks, Customers, Suppliers, Employees at all levels and Shareholders of the Company.

By Order of the Board of Directors

Milan B. Khakhar Chairman & Managing Director (DIN : 00394065)

Place : Mumbai Date : 26[th] May, 2022

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

ANNEXURE A to Directors’ Report :

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

A. CONSERVATION OF ENERGY

The Company does not belong to the category of power intensive industry and hence consumption of power is not significant. However, the management gives due importance to conservation of energy wherever feasible, and also reviews from time to time, the measures taken / to be taken for reduction of consumption of energy.

	Current Year	Previous Year
Power Consumption (Electricity)
Units	45,353	40,324
Total Cost	Rs. 6,20,165	Rs. 5,79,875
Rate per unit	Rs.13.67	Rs.14.37

B. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT

i. Research & Development (R & D)

The Company undertakes from time to time, studies for process improvement and plant design development, to improve quality and performance of its products, to substitute imported material and components and to economise the production costs. Based on these studies, appropriate actions are taken to achieve these goals. In absence of a separate research & development department, it is difficult to quantify the amount spent on research & development.

ii. Technology Absorption, Adaptation and Innovation

Efforts are made to absorb the advances in technology with suitable modifications to cater to local needs. The Company keeps itself updated with the latest technological innovations by way of constant communication, personal discussions etc.

C. FOREIGN EXCHANGE USED & EARNED

Foreign exchange used: Rs. 70.99 Lakhs Foreign exchange earned: Rs. 15.23 Lakhs

32nd ANNUAL REPORT 2021-2022

ANNEXURE B to Directors’ Report :

MANAGEMENT DISCUSSION AND ANALYSIS FOR 2021-22

Industry Structure and development :

The Global and Domestic Economy have been witnessing sectoral turnaround during the year, yet economic challenges prevail, which have impact on construction and building materials industries.

Opportunities and threats

Your company deals in very special types of Granite/Marble having unique colors for which the overseas and domestic market, both are very eager. Presently, it is one of the few companies which offers all natural stone products under one roof to the buyers. The demand for top quality natural stone products is also growing in the domestic market and the company has setup Retail outlets within the country so as to cater to the local demand for quality products.

Your Company is also engaged in business of Semi Precious stones which has good potential in global and domestic markets.

However, the number of dealers dealing in imported and other natural stones catering to domestic market are increasing, thus reducing the margins and making the business competitive. The availability of manufactured stone products as an alternative to natural stones is also likely to affect the performance of the company.

Further Outlook

National initiatives such as ‘Make in India’, ‘Skill India’, ‘Startup India’, ‘Smart Cities’, ‘Housing for All’, ‘Affordable Low Cost Housing’; broadening financial inclusion, streamlining of taxation structure with the passage of the GST, strengthening of infrastructure, etc. would lead to improvement in the economic growth of the country in the coming future.

The company foresees reasonable growth of its product line and varieties of Natural stones, designer mosaics as well as semi precious stone products and concepts, subject to the nationwide economic activity being opening up fully post pandemic. The economic outlook for the year is still uncertain but viewed with cautious optimism. Our plans for the growth of the business and profitability are based on an average economic outlook, in the present business scenario.

Performance for 2021-2022

During the financial year 2021-2022, the company achieved a sales turnover of Rs.2432.10 lakhs as against a Sales Turnover of Rs.1723.24 lakhs in the previous year. Total Comprehensive Income after tax stood at Net Loss of Rs.70.89 lakhs as compared to Rs.75.31 lakhs Loss in the previous year. The Company’s gross income for the financial year ended 31[st] March 2022 improved substantially , however has posted negative Net Income due to the adverse impact of pandemic.

Capital Structure

There was no change in the capital structure of the company. The issued and paid up share capital as at 31[st ] March, 2022, comprises of 53,80,000 equity shares of Rs.10 each.

Internal Control Systems

The internal controls system for safeguarding and protecting assets against loss from unauthorised use or disposition are in place.

Regular internal audits, review by management and documented policies, guidelines and procedures supplements the internal controls which are designed to ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability of assets

Cautionary Statement

Statements in the Management Discussions and Analysis describing the Company’s objectives, projections, estimates, expectation may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Several factors make a significant difference to the company’s operations, including climatic conditions, economic scenario affecting demand and supply, Govt. regulations, taxation, natural calamity and other such factors which the company does not have any direct control.

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

ANNEXURE C to the Directors’ Report :

REPORT ON CORPORATE GOVERNANCE

A. Philosophy :

The Company subscribes fully to the principle and spirit of sound corporate governance practices in all its activities to ensure the ultimate goal of making the company a value driven organization. The Company has taken a series of steps to implement all the measures of good corporate governance practice, laying emphasis on transparency, integrity, accountability and value creation in conducting its Corporate Affairs and enhance value for all its stakeholders.

B. Board of Directors :

Composition, Meetings and Attendance :

The Board of Directors comprises of five Directors, three of them being Non Executive Directors. Sixty percent of the total strength of the Board comprises of Independent Directors.

During the financial year ended 31[st] March 2022, the Board met Ten times, on 2nd April, 2021, 28[th] April, 2021, 30[th] June, 2021, 13[th ] August, 2021, 20[th] September, 2021, 8[th] November, 2021, 11[th] November, 2021, 20[th] November, 2021, 10[th] February, 2022, and 30[th] March, 2022.

The notice for the Board Meeting and the detailed agenda papers are circulated to all the Directors well in advance to enable them to attend and take an informed decision at the Meetings. The Directors of the company make necessary disclosures regarding the Committee positions held by them in all the Companies in which they are Directors.

The composition of the Board of Directors as on March 31, 2022 and other details are as under:

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----- Start of picture text -----

Name of Category No of Shares held No of Board Meetings Whether No.of Director- No.of
Director attended during attended last ships in other Committee
2021-22 AGM Public Limited positions held in
other
Companies
Companies
Mr.Milan Executive
B. Khakhar Promoter 808415 10 Yes 3 2
Mr.Prakash Executive
B.Khakhar Promoter 1378895 10 Yes 2 -
Ms.Ashni Non-Executive
Y.Parekh Independent 45951 10 Yes - -
Mr.K.Gopi Non-Executive
Nair Independent 840 8 No - -
Mr.Gaurav Non-Executiv
Davda Independent 32341 9 Yes - -
----- End of picture text -----

1. Mr.M.B. Khakhar and Mr.P.B.Khakhar are related as brothers.

The Company, through periodical presentation to Board of Directors and various committee of Directors, provides an opportunity to independent directors to facilitate their active participation and familiarise the company’s business.
The Company have informal plan for orderly succession for appointment to the Board of Directors and Senior Management.
Memberships of the Directors in various committees were within the permissible limits of Listing Regulations.

Declaration of Independence of Board:

Based on the confirmation/disclosures received from the Directors and on evaluation of the relationship disclosed, all the NonExecutive Independent Directors are independent in terms of the provisions of section 149(6) of Companies Act,2013 and Regulation 16(1)(b) and 25(8) of SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015

C. Audit Committee :

The Board of Directors has constituted an Audit Committee of Directors and empowered the Committee to deal with all such matters which it may consider appropriate to perform as audit committee including items specified in Section 177(4) of the Companies Act, 2013 (as may be modified/amended from time to time), items specified in Part C of Schedule II in the Securities

32nd ANNUAL REPORT 2021-2022

and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 under the head role of audit committee (as may be modified/amended from time to time) and such matters as may be assigned from time to time by the Board of Directors.

The Audit Committee comprises Ms.A.Y.Parekh, Mr.K.Gopi Nair and Mr.Gaurav Davda. All the members of this Committee are independent Directors and Ms. A. Y. Parekh is the Chairperson of the Audit Committee. The Chief Financial Officer, Statutory and Internal Auditors are Invitees to the Committee. The Company Secretary of the company acts as the Secretary to the Committee.

The Audit Committee’s primary role is to review the Company’s financial statements, internal financial reporting process, internal financial controls, the audit process, adequacy, reliability and effectiveness of the internal control systems, vigil mechanism, related party transactions, monitoring process for compliance with laws and regulations and the code of conduct.

The Audit Committee also reviews reports and presentations and the responses thereto by the management. The reports and findings of the internal auditor and the internal control system are periodically reviewed by the Audit Committee.

The composition of the Audit Committee and the details of Meetings attended by the Directors are given below:

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----- Start of picture text -----

Name of Members Category No.of Committee Meetings attended
during 2021-2022
Ms.A.Y.Parekh, Chairperson Independent Non-Executive 4
Mr.K.Gopi Nair, Member Independent Non-Executive 4
Mr.Gaurav Davda, Member Independent Non-Executive 4
----- End of picture text -----

During the year 2021-22, Four Audit Committee Meetings were held on 30[th] June, 2021, 20[th] September, 2021, 11[th] November, 2021 and 10[th] February, 2022.

Meeting of Independent Directors and Attendance Record

Independent Directors to meet at least once in a year to deal with matters listed out in Regulation 25 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Schedule IV to the Companies Act, 2013 which inter-alia includes, review the performance of non-independent directors, chairman and the Board as a whole and assess the quality, quantity and timeliness of flow of information between the Management and the Board that is necessary to perform the duties by the Board of Directors.

Attendance Record of Meetings of Independent Directors

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----- Start of picture text -----

Name of the Director Number of Meeting held Number of Meeting attended
Ms.A.Y.Parekh, Chairperson 1 1
Mr.K.Gopi Nair, Member 1 1
Mr.Gaurav Davda, Member 1 1
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The meeting of the Independent Directors was held on 30[th] June, 2021.

Performance Evaluation Criteria for Independent Directors:

The framework used to evaluate the performance of the Independent Directors is based on the expectation that they are performing their duties in a manner which should create and continue to build sustainable value for the shareholders, and in accordance with the duties and obligations imposed upon them.

Whistle Blower Policy:

The Board of Directors on the recommendations of the Audit Committee has approved and adopted a Whistle Blower Policy that provides a formal mechanism for all employees of the Company to approach the Chairperson of the Audit Committee of the Company and make protective disclosures about the unethical behavior, actual or suspected fraud or violation of the Company’s Code of Conduct.

D. Nomination & Remuneration Committee

The Board of Directors has constituted a Nomination and Remuneration Committee of Directors. The role of the Committee is to perform all such matters as prescribed under the Companies Act, 2013 and Schedule II - Part D about Role of Nomination and Remuneration Committee of Directors under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which inter alia includes - recommendation to Board of Directors, the remuneration policy for the Company, formulation of criteria for performance evaluation of directors, Board and Committee, appointment of Director, appointment and remuneration of Whole-time Director and Key Managerial Personnel. The Committee will also deal with matters as may be assigned from time to time by the Board of Directors.

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

Role of Nomination and Remuneration Committee inter-alia includes:

The brief description of Terms of Reference of Nomination and Remuneration Committee is to guide the Board in relation to the appointment and removal, identifying persons and to recommend/review remuneration of the directors including Whole-time/ Executive Directors, Key Managerial Personnel (KMP) and Senior Management Personnel.

Remuneration policy of the Company is directed towards rewarding performance, based on review of achievements on a periodical basis. The remuneration policy is in accordance with the existing industry practice.

The Nomination and Remuneration Committee consists of the following Non-Executive Directors:

Ms.A.Y. Parekh (Chairperson) Mr. K. Gopi Nair Mr. Gaurav Davda

Meetings of this Committee are held only when required.

One Meeting of this Committee was held during the year 2021-22.

Remuneration Policy

The elements of the remuneration package of Non-Executive Directors consists only of Sitting Fees for attending Board & Committee meetings of the Company. All the Executive Directors of the company have been appointed on a contractual basis, based on the approval of the Shareholders. The elements of the remuneration package of Executive Directors comprises of Salary, Perquisites and Allowances as approved by the Shareholders at the Annual General Meeting.

Details of Remuneration paid to the Directors during the year ended 31[st] March 2022 are as follows:

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----- Start of picture text -----

Name Salary Allowances Perquisites Sitting Total
Fees
Mr.M.B.Khakhar 36,02,400 — — — 36,04,400
Mr.P.B.Khakhar 36,02,400 — — — 36,02,400
Ms.A.Y.Parekh — — — — —
Mr.K.Gopi Nair — — — — —
Mr.Gaurav Davda — — — — —
----- End of picture text -----

The Directors have waived Sitting Fees for the year 2021-22

E. Stakeholders’ Relationship/Grievance Committee of Directors :

The Board of Directors has constituted a Stakeholders’ Relationship/Grievance Committee of Directors. The role of the committee is to consider and resolve the grievances of security holders and perform such roles as may require under the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Continuous efforts are made to ensure that grievances are expeditiously redressed to the satisfaction of investors. A status report of shareholders complaints and redressal thereof is prepared and placed before Stakeholders’ Relationship/Grievance Committee of Directors.

Mr.Hardik Valia, Company Secretary is the Compliance Officer.

The shareholders/investors can send shares related complaints, if any, through e-mail Id:- [email protected] designated exclusively for this purpose.

The Stakeholders Relationship Committee met two times during the year on 20[th] September, 2021, and 10[th] February, 2022.

The Attendance and Composition of the Directors of the Committee is as follows :

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----- Start of picture text -----

Name of Members Category Meetings Attended During the year 2021-2022
Ms.A.Y.Parekh (Chair Person) Independent Non-Executive 2
Mr.Milan B.Khakhar Promoter Executive 2
Mr.Prakash B.Khakhar Promoter Executive 2
----- End of picture text -----

32nd ANNUAL REPORT 2021-2022

All the valid Share Transfer requests received during the year were duly attended to and there were no valid request pending for Share Transfer as on 31[st] March, 2022.

No.of Investors’ complaints received during financial year 2021-22 : Nil No. of Complaints pending unresolved as on 31st March, 2022 : Nil

F. Name and Designation of Compliance officer : Mr.Hardik Valia – Company Secretary

Solid Stone Company Limited, Maker Chambers V, Nariman Point, Mumbai - 400021.

Tel: 66115800 Fax: 22826439 Email : [email protected]

G. Annual General Meetings :

The details of the location and time for last three Annual General Meetings are given below:

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----- Start of picture text -----

AGM No Accounting Date & Location Special Resolutions passed
Year Time
31st 2020-21 Sep 24 Through Video Conferencing/
2021 at Other Audio Visuals means -
9:30 am (VC/OAVM)
30 [th] 2019-20 Sep 29 Through Video Conferencing/ -
2020 at Other Audio Visuals means
9:30 am (VC/OAVM)
29 [th] 2018-19 Sep 13 2019 Half Centrum, Centre 1, 1. Re-Appointment of Ms.
at 9:15 am 1 [st] Floor,
Ashni Parekh (DIN: 00763224) as as an
World Trade Centre,
Independent Director for a further period of 5
Cuffe Parade,
Mumbai-400005 years effective from September 29, 2019 to
September 28, 2024
2. Re-Appointment of Mr. Gaurav Davda (DIN:
01372614) as as an Independent Director for
a further period of 5 years effective from
September 29, 2019 to September 28, 2024
3. Consent to Board to give Loan, Guarantee,
Invest in other Body Corporate, provided that
the total amount of loans given, guarantees
provided or investments made by the Board
of Directors and outstanding at anytime shall
not exceed the sum of Rs. 100 Crores
To approve / authorise to transact with related
party / material entity. on arms length basis
and in ordinary course of business with the
Promoter Directors and their relatives
considered to be related to the company,
pursuant to the Act and/or Securities and
Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations,
2015.
----- End of picture text -----

All resolutions moved at the last AGM were passed by the requisite majority of Members.

(b) Whether any Special Resolutions were passed last year through postal ballot: During the year under review no Special Resolution was passed through postal ballot.
(c) Person who conducted postal ballot exercise: Not Applicable
(d) Whether any special resolution is proposed to be passed through postal ballot this year: NO

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

Other disclosures:

(a) Related Party Transactions:

All transactions entered into with Related Parties during the financial year were in the ordinary course of business and on an arm’s length pricing basis. There were no materially significant transactions with related parties during the financial year which were in conflict with the interest of the Company. Suitable disclosure as required by the Indian Accounting Standards (IndAS 24) has been made in the notes to the Financial Statements. The Company has formulated a policy on Related Party Transactions.

(b) Details of non-compliance by the Company, penalties and strictures imposed on the Company by Stock Exchange or SEBI or any statutory authority, on any matter related to capital markets, during the last three years: None
(c) Risk Management:

The Company has a comprehensive risk management policy. The risk management policy inter-alia provides for review of the risk assessment and minimisation procedure, laying down procedure to inform the Board in the matter and for periodical review of the procedure to ensure that executive management controls the risks through properly defined framework.

(d) Code of Conduct:

The Company has framed and adopted a Code of Conduct which is approved by the Board of Directors. The code is applicable to all Directors and Senior Management of the Company.

Declaration by the Managing Director:

During the year under review i.e. April 01, 2021 to March 31, 2022 all Directors and Senior Management personnel have affirmed adherence to the provisions of the code of conduct for Board Members and Senior Management.

Milan Khakhar

Chairman & Managing Director

(e) COMPLIANCE CERTIFICATE BY CHIEF EXECUTIVE OFFICER / CHIEF FINANCIAL OFFICER
A. We have reviewed the financial statements and the cash flow statement for the year and that to the best of our knowledge and belief:
- (1) these statements do not contain any material untrue statement or omit any material fact or contain statements that might be misleading.
- (2) these statements together present a true and fair view of the listed entity’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.
B. To the best of our knowledge and belief, no transactions entered into by the listed entity during the year which are fraudulent, illegal or violative of the listed entity’s code of conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and we have disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
D. We have indicated to the auditors and the Audit Committee:
- (1) significant changes in internal control over financial reporting during the year;
- (2) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statement and
- (3) instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the listed entity’s internal control system over financial reporting.

MILAN KHAKHAR MANOJ DEWANI Managing Director

Chief Financial Officer

The above certificate was placed before the Board at its meeting held on May 26, 2022.

(f) Disclosures as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The Company has zero tolerance for sexual harassment at workplace and has adopted a Policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder for prevention and redressal of complaints of sexual harassment at workplace.

32nd ANNUAL REPORT 2021-2022

The Company has not received any complaint on sexual harassment during the financial year 2021-22.

I. Means of Communication :

The means of communication between the Company and the shareholders are transparent and investor friendly. The Company’s quarterly unaudited results are published in leading newspapers in English and Marathi. As such the Company does not send unaudited results to shareholders individually. The company has not made any presentation to any Institutional Investors/ Analysts during the year.

Management Discussion and Analysis Report forms part of this Annual Report :

J. General Shareholder Information :

a) Annual General Meeting

The 32[nd] AGM of the members of the company is scheduled to be held on 28[th] September, 2022 at 09.30 a.m, through VIDEO CONFERENCING (VC) OR OTHER AUDIO VISUAL MEANS (OAVM) .

b) Financial Calendar for the year 2022-2023 (Provisional)

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A Unaudited Results for the first quarter ending on June 30, 2022 12 [th] of August, 2022
B Unaudited Results for the second quarter ending on September 30, 2022 By 14 [th] of November, 2022
C Unaudited Results for the third quarter ending on December 31, 2022 By 14 [th] of February, 2023
D Results (Audited) for the financial Year ending March 31, 2023 By 30 [th] of May, 2023
E Annual General Meeting for the year ending March 31, 2023 By end of September, 2023
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c) Details of book closures :

From 24[th] September, 2022 to 28[th] September, 2022 (both days inclusive)

d) Dividend Payment

The Directors have not proposed any Dividend for the financial year ended 31st March, 2022

e) Stock Exchange Listing :

The Company’s shares are listed on Bombay Stock Exchange (BSE), Mumbai. The Company has yet to pay Annual Listing

fees for financial year 2022-2023 to the Bombay Stock Exchange (BSE)

Scrip code on the Bombay Stock Exchange (BSE) : 513699

ISIN : INE584G01012

f) Market Price Data :

The details of monthly highest and lowest closing quotations of the equity shares of the Company at the Bombay Stock Exchange, during financial year 2021-2022 are as under :-

Month	Quotation at Bombay	Quotation at Bombay
	Stock Exchange
	High	Low
April, 2021	44.00	27.50
May, 2021	28.45	19.35
June, 2021	34.40	22.80
July, 2021	26.50	21.60
August, 2021	33.15	23.00
September, 2021	32.90	23.50
October, 2021	28.45	23.70
November, 2021	28.20	22.40
December, 2021	27.65	23.10
January, 2022	28.60	23.55
February, 2022	28.85	23.75
March, 2022	27.75	23.00

(Source : www.bseindia.com)

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

g) Registrars and Transfer Agents :

The Company has appointed Link Intime India Pvt.Ltd. at C-101, 247 Park, L.B.S.Marg, Vikhroli West, Mumbai-400083, as Registrar’s and Share transfer Agents. Email: [email protected] Tel.No. : 022-49186000

h) Share Transfer System

Share transfers are registered and returned within a period of 15 days from the date of receipt, if the documents are clear in all respects. Executives of the Company have been authorized to approve transfers.

Distribution of Shareholding as on 31[st] March, 2022

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Shares held No. of % of No. of % of
Shareholders Shareholders Shares held Shares held
1-500 1044 86.28 1,04,838 1.949
501 – 1000 51 4.21 43,488 0.808
1001 – 2000 31 2.56 45,247 0.841
2001 – 3000 16 1.32 41,523 0.772
3001 – 4000 9 0.74 33,496 0.623
4001 – 5000 11 0.91 51,518 0.958
5001 – 10000 11 0.91 82,142 1.527
10001 and above 37 3.06 49,77,748 92.523
Total 1210 100.00 53,80,000 100.00
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Includes shareholders having more than 1 folio

Shareholding Pattern as on March 31, 2022 :

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Categories No.of Shareholders No of Shares % of shareholding
Promoters 10 37,70,985 70.09
Indian Public 1136 10 ,64,618 19.79
Private Corporate Bodies 39 5,35,504 9.95
NRI / OCBs 10 8,893 0.17
Clearing Members - - -
FPI
Total 1195 53,80,000 100.000
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g) Dematerialization of Shares :

The company has appointed M/s.Link Intime India Pvt.Ltd., C-101, 247 Park, L.B.S. Marg, Vikroli (West), Mumbai-400083 as Share Transfer Agents of the Company for transfer of Shares in physical and demat form.

97.35 % of the Company’s Share Capital is dematerialized as on 31[st] March, 2022.

h) The Company has not issued any GDRs/ADRs. No Bonds were outstanding as on 31[st] March, 2022.

m) Address for correspondence :

1501, Maker Chambers V, Nariman Point, Mumbai-400021.

Ph. 91 22 66115800

n) ROC - Company Identity Number (CIN) :

L26960MH1990PLC056449

32nd ANNUAL REPORT 2021-2022

BRIEF RESUME OF PERSONS PROPOSED TO BE APPOINTED/RE-APPOINTED AS DIRECTORS OF THE COMPANY AT THE ANNUAL GENERAL MEETING

None of the Directors are proposed to be re-appointed and hence the said Annexure is not required to be given in the Notice of Annual General Meeting.

Independent Auditors’ Certificate on Corporate Governance.

Since the Paid up Equity Capital of the company is below Rs.10 crores and its Net Worth is below Rs.25 crores as on the last day of the previous financial year, Regulation 15(2) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 issued on 02/09/2015 is applicable to this company; granting exemption to the applicability of filing Corporate Governance Report and hence the Independent Auditors’ Certificate on Corporate Governance is not required to be obtained.

By Order of the Board of Directors

Milan B. Khakhar

Chairman & Managing Director ( DIN : 00394065)

Place : Mumbai Date : 26[th] May 2022

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause 10(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To, The Members

SOLID STONE COMPANY LIMITED CIN NO: L26960MH1990PLC056449 Mumbai

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of SOLID STONE COMPANY LIMITED having CIN L26960MH1990PLC056449 and having registered office at 1501, Maker Chambers V, Nariman Point, Mumbai, Maharashtra - 400021, India and (hereinafter referred to as ‘the Company’) produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(1) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. In our opinion and to the best of our information and according to the verifications (including Directors identification Number (DIN) status at the portal (www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its officers.

We hereby certify that none of the Directors on the Board of the Company as stated below for the financial Year ending on 31[st] March, 2022 have been debarred or disqualified from being appointed or continuing as Directors of Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

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Sr.No. Name of Director DIN Date of appointment in Company
1 Milan Bhagwandas Khakhar 00394065 08/05/1990
2 Prakash Bhagwandas Khakhar 00394135 08/05/1990
3 Ashni Yogendra Parekh 00763224 26/09/1997
4 Gopinathan Kizhuveetil Nair 00763252 01/01/2003
5 Gaurav Shekhar Davda 01372614 29/05/2014
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Ensuing the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification.

The Certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For, JINANG SHAH & ASSOCIATES

Sd/-

Jinang Dineshkumar Shah Practising Company Secretary Proprietor Membership No.F10649 COP No.14215 UDIN: F010649D000813462

Date: 26.05.2022 Place: Ahmedabad

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

ANNEXURE “D” to Directors’ Report:

DETAILS OF THE REMUNERATION OF DIRECTORS, KMP’S AND EMPLOYEES

[Pursuant To Section 197(12) of the Companies Act, 2013 read with Rule 5 (1) Of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] for the year ended 31[st] March, 2022

The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the financial year 2021-22, ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2021-22 and the comparison of remuneration of each Key Managerial Personnel (KMP) against the performance of the Company are as under:

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Sl. Name of Director/ Remuneration % increase in Ratio of Remuneration % increase in Ratio of
No. KMP and of Director/ Remuneration Remuneration of Director / Remunera-tion Remunera-
Designation KMP for in the of each KMP for in the tion of
Financial Year Financial Year Director/KMP Financial Year Financial Year each
2021-22 2021-22 to median 2020-21 2020-21 Director/
(Rs.in Lakhs) remuneration (Rs.in Lakhs) KMP to
of employees median
during remunera-
F.Y.2021-22 tion of
employees
during
F.Y.2020-
21
1 Mr.Milan Khakhar,
Chairman &
Managing Director 36.02 NIL 12.83 36.02 NIL 19.22
2 Mr. Prakash Khakhar,
Joint Managing Director 36.02 NIL 12.83 36.02 NIL 19.22
3 Ms.Ashni Parekh,
Non-Executive &
Independent xxx xxx 0 xxx xxx 0
4 Mr. K.Gopi Nair,
Non-Executive &
Independent xxx xxx 0 xxx xxx 0
5 Mr. Gaurav Davda,
Non-Executive &
Independent xxx xxx 0 xxx xxx 0
6 Mr. Manoj Dewani,
Chief Financial Officer 17.27 15.55% 6.15 14.95 -17.03% 7.98
7 Mr. Hardik Valia,
Company Secretary 5.42 75.59% 1.93 3.09 -8.58% 1.65
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ii. The median remuneration of employees of the Company during the financial year was Rs.2.81 Lakhs per annum (Previous year Rs.1.87 Lakhs). In the financial year 2021-22, there was a increase of 49.83 % in the median remuneration of employees (Previous year : decrease of 39.23%);

iii. There were 30 number of permanent employees on the rolls of Company as on March 31, 2022 (Previous year: 32);

iv. The explanation on the relationship between average increase in remuneration and company performance : The increase in remuneration is linked to the performance of the Company as a whole, the performance of the concerned Division, the performance of the employees and other factors like industry trends and economic environment.

32nd ANNUAL REPORT 2021-2022

v. a) Variations in the market capitalisation of the Company : Our market capitalization decreased by 50.41 % to Rs.1291.20 Lakhs as on March 31, 2022 from Rs.2603.92 Lakhs as on March 31, 2021.(In the previous financial year, market capitalization increased by 156.08 % to Rs.2603.92 Lakhs as on March 31, 2021 from Rs.1016.82 Lakhs as on March 31, 2020 .)
b) Price Earnings ratio of the Company was Rs. (-)16.67 as at March 31, 2022 and was Rs.(-)33.61 as at March 31, 2021.
c) Percentage increase over / decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer – The closing price of the Equity Shares as on March 31, 2022 was Rs. 24.00 representing 240.00% increase over the IPO price of Rs.10/-. (closing price of the Equity Shares as on March 31, 2021 was Rs.48.40 representing 484.00% increase)
vi. Average percentage increase/decrease made in the salaries of employees other than the managerial personnel in the last financial year. 2021-22 and 2020-21 was 67.57% and (-)41.04% respectively and the increase/decrease in the managerial remuneration for the same financial year 2021-22 and 2020-21 was 5.17% and (-)3.21% respectively.
vii. Comparison of Remuneration of each Key Managerial Personnel(s) and All Key Managerial Personnel(s) together against the performance of the Company:

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Mr.Milan Mr.Prakash Mr.Hardik Valia Mr.Manoj Total
B.Khakhar B.Khakhar Dewani
Aggregate remuneration of Key managerial 36.02 36.02 5.42 17.27 94.73
personnel (KMP) (36.02) (36.02) (3.09) (14.95) (90.08)
in financial year 2021-22 (Rs. in Lakhs)
Revenue (Rs. in Lakhs) 2432.10 (1723.24)
Remuneration of KMPs (as % of revenue) 1.48% 1.48% 0.22% 0.71% 3.89%
(2.09%) (2.09%) (0.18%) (0.87%) (5.23%)
Profit/(-)Loss before Tax (PBT) (Rs. in Lakhs) (-)95.91 ((-)96.82)
Remuneration of KMPs (as % of PBT) N.A. N.A. N.A. N.A. N.A.
(N.A.) (N.A.) (N.A.) (N.A.) (N.A.)
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(Figures in bracket relate to data of previous financial year)

viii. The key parameters for any variable component of remuneration availed by the directors: There are no variable components of remuneration to the directors during the financial year 2021-22 and 2020-21.

ix. The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year: There are no such cases wherein any employee received remuneration in excess of the highest paid Director.
x. Affirmation that the remuneration is as per the remuneration policy of the company : It is hereby affirmed that the remuneration paid is as per the Remuneration Policy of the Company.

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

Annexure “E” to Directors’Report

Form No. MR-3 SECRETARIAL AUDIT REPORT

For the financial year ended March 31, 2022 [Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, The Members,

Solid Stone Company Limited CIN No.: L26960MH1990PLC056449 Mumbai

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Solid Stone Company Limited (hereinafter called the ‘’Company’’). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit of the Company, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on March 31, 2022 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on March 31, 2022 according to the provisions of:

i. The Companies Act, 2013 (the Act) and the rules made thereunder;
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder as applicable during the financial year 202122;
iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; - (Not applicable to the Company during the Audit Period);
v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) as applicable during the financial year 2021-22):-
a. Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
b. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
c. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 (up to May 14, 2015) and Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (effective May 15, 2015);
d. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
e. The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999/ The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (effective October 28, 2014);
f. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
g. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;
h. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable to the Company during the Audit Period); and
i. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; (Not applicable to the Company during the Audit Period);

32nd ANNUAL REPORT 2021-2022

We have also examined compliance with the applicable clauses of the following:

i. Secretarial Standards with regard to Meeting of Board of Directors (SS-1) and General Meetings (SS-2) issued by The Institute of Company Secretaries of India and made effective July 1, 2015;
ii. The Listing Agreements entered into by the Company with BSE Limited pursuant to SEBI (Listing Obligations and Disclosure Requirements), 2015 made effective 1st December 2015;

During the period under review, the Company has complied with the applicable provisions of the Act, Rules, Regulations and Guidelines, Standards as mentioned above.

We further report that

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors / Committees thereof that took place during the period under review were carried out in compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

Majority decisions of the Board are carried out unanimously as recorded in the minutes of the meetings of the Board of Directors.

We further report that there are adequate systems and processes in the company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

This Report is to be read with our letter of even date which is annexed as Annexure I and forms an integral part of this Report.

For JINANG SHAH & ASSOCIATES

(JINANG SHAH) Practising Company Secretary Proprietor Membership No. F10649 COP NO. 14215 UDIN : F010649C000558130

Date : 26.05.2022 Place : Ahmedabad

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

Annexure I to Secretarial Audit Report

To,

The Members, Solid Stone Company Limited CIN No.: L26960MH1990PLC056449

Mumbai

Our report of even date is to be read along with this letter.

Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.
We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that the correct facts are reflected in secretarial records. We believe that the practices and processes we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Account of the company.
Wherever required, we have obtained management representation about the compliance of laws, rules, regulations, norms and standards and happening of events.
The compliance of the provisions of the Corporate and other applicable laws, rules, regulations and norms is the responsibility of management. Our examination was limited to the verification of procedure on test basis.
The secretarial audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.

For JINANG SHAH & ASSOCIATES

(JINANG SHAH) Practising Company Secretary Proprietor Membership No. F10649 COP NO.14215 UDIN : F010649C000558130

Date : 26.05.2022 Place : Ahmedabad

32nd ANNUAL REPORT 2021-2022

SECRETARIAL COMPLIANCE REPORT OF SOLID STONE COMPANY LIMITED

(CIN: L26960MH1990PLC056449) For the Year Ended on 31[st] March, 2022

(As per Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

I have examined:

a. All the documents and records made available to us and explanation provided by SOLID STONE COMPANY LIMITED (“the listed entity”),
b. the filings/ submissions made by the listed entity to the stock exchanges,
c. website of the listed entity,
d. any other document/ filing, as may be relevant, which has been relied upon to make this certification,

For the year ended March 31, 2022 (“Review Period”) in respect of compliance with the provisions of:

a. the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations, circulars, guidelines issued thereunder; and
b. the Securities Contracts (Regulation) Act, 1956 (“SCRA”), rules made thereunder and the Regulations, circulars, guidelines issued thereunder by the Securities and Exchange Board of India (“SEBI”);

The specific Regulations, whose provisions and the circulars/ guidelines issued thereunder, have been examined, include:-

a. Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
b. Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ;
c. Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
d. Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 (Not Applicable to Company during the Period under Review);
e. Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;
f. Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not Applicable to Company during the Period under Review);
g. Securities and Exchange Board of India (Issue and Listing of Non- Convertible and Redeemable Preference Shares) Regulations, 2013 (Not Applicable during the Period Under Review)
h. Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015
i. other regulations as applicable and circulars/ guidelines issued thereunder;

and based on the above examination, I hereby report that, during the Review Period:

a. The listed entity has complied with the provisions of the above Regulations and circulars/ guidelines issued thereunder, except in respect of matters specified below:- NIL
b. The listed entity has maintained proper records under the provisions of the above Regulations and circulars/ guidelines issued thereunder insofar as it appears from my/our examination of those records.
c. There were no actions taken against the listed entity/ its promoters/ directors/ material subsidiaries either by SEBI or by Stock Exchanges (including under the Standard Operating Procedures issued by SEBI through various circulars) under the aforesaid Acts/ Regulations and circulars/ guidelines issued thereunder:
d. The Reporting of actions by the listed entity to comply with the observations made in previous reports does not arise during the review period.

For JINANG SHAH & ASSOCIATES

Jinang Dineshkumar Shah Practising Company Secretary Proprietor Membership No. F10649 COP No. 14215 UDIN : F010649D000528958

Date : May 26, 2022 Place : Ahmedabad

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

ANNEXURE F TO Directors’ Report

FORM AOC-1

Part “A”: Subsidiaries Information

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Sr. No. Particulars Details
NOT APPLICABLE
(Since no Subsidiaries during the financial year 2021-22)
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Part “B”: Associate and Joint ventures

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Global Instile Solid Industires Limited
Sr. No. Particulars
(Associate Company)
1 Latest audited Balance Sheet date 31-03-2022
2 Shares of Associate held by the company on the year end
Number 2,70,000
Amount of Investment in Associate (Rs.in ‘000s) 9450.00
Extent of Holding % 29.88%
3 Description of how there is significant influence Voting Power
4 Reason why the associate is not consolidated Not Applicable
5 Networth attributable to shareholding as per latest audited
Balance Sheet (Rs.in ‘000s) 3163.02
6 Profit/(Loss) for the year
i. Considered in Consolidated (Rs.in ‘000s) 347.08
ii. Not Considered in Consolidated (Rs.in ‘000s) Not Applicable
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For and on behalf of the Board

Milan B. Khakhar Chairman & Managing Director

Place : Mumbai Dated : 26th May, 2022

32nd ANNUAL REPORT 2021-2022

ANNEXURE G to Directors’ Report

Form AOC-2

[Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014.]

Form for Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transaction under third proviso thereto.

Part A - Details of Contracts or Arrangements or Transactions not at arm’s length basis

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Sl. No. Particulars Details
1 Name (s) of the related party & nature of relationship
2 Nature of contracts/arrangements/transaction
3 Duration of the contracts/arrangements/transaction
4 Salient terms of the contracts or arrangements or transactionincluding the value, if any None
5 Justification for entering into such contracts or arrangements or transactions’
6 Date of approval by the Board
7 Amount paid as advances, if any
8 Date on which the special resolution was passed in General meeting as requiredunder
first proviso to section 188
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Part B - Details of contracts or arrangements or transactions at arm’s length basis

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Sl. No. Particulars Details
1 Name of the related party & nature of relationship Milan Marble and Tiles (Enterprise owned and
significantly influenced by Key Management personnel)
2 Nature of contracts / arrangements / transaction Lease of Office premises
3 Duration of the contracts/ arrangements / transaction 1 [st] April, 2021 to 31 [st] March, 2022
4 Salient terms of the contracts or arrangements or The agreement provides for lease of office premises at
transaction including the value, if any Nariman Point owned by Milan Marble and Tiles to the
company for the period stipulated above
5 Date of approval by the Board 13 [th] February, 2021
6 Amount paid as advances, if any Security Deposit paid: Rs.13.50 Lakhs
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For and on Behalf of the Board

Milan B. Khakhar Chairman & Managing Director ( DIN : 00394065)

Place : Mumbai Date : 26[th] May, 2022

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SOLID STONE COMPANY LIMITED

Opinion

We have audited the accompanying standalone financial statements (also known as standalone financial statements) of SOLID STONE COMPANY LIMITED(“the Company”), which comprise the Balance Sheet as at March 31,2022,the Statement of Profit and Loss (including other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (IndAS) prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015 as amended and other accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at March 31,2022, and its Loss(financial performance including other comprehensive income), the changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (“SA’s”) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the Standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone financial statements.

Emphasis of Matter

We draw your attention to Note 1-II-(w)to the accompanying standalone financial statements which explains the uncertainties and the management’s assessment of the financial impact due to the lock-down and other restrictions and conditions related to COVID-19 pandemic situation, for which a definitive assessment of the impact in subsequent period is dependent upon circumstances as they evolve. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Sr.
Key Audit Matters How the matter was addressed by us.
No.
Revenue recognition (refer Note 1(II) ( c) and Note 21 of the Standalone Financial Statements)
1 Revenue is one of the key profit drivers and is therefore Our audit procedures with regard to revenue recognition
susceptible to misstatement. Cut-off is the key assertion included testing controls, automated and manual, around
insofar as revenue recognition is concerned, since an dispatches / deliveries, inventory reconciliations and cir-
inappropriate cut-off can result in material misstatement cularization of receivable balances, testing of cut-off s
of results for the year. and performing analytical review procedures
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Information Other than the Standalone financial statements and Auditor’s Report thereon

The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Board’s Report including Annexures to Board’s Report but does not include the Standalone financial statements and our auditor’s report thereon.

Our opinion on the Standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

32nd ANNUAL REPORT 2021-2022

If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibility for the audit of the Standalone financial statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion, The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained upto the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order, 2020(“the Order”) issued by the Central Government in terms of Section 143 (11) of the Act, we give in “Annexure B” - a statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure “A”.
g) With respect to the other matters to be included in the Auditor’s Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
- i. There are no pending litigations on the Company impacting Financial Statements;
- ii. The Company has no long-term contracts including derivative contracts for which there were no material foreseeable losses; and
- iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the company
- iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in its aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kinds of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
  - (b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the

32nd ANNUAL REPORT 2021-2022

Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

  - (c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. The Company has neither declared nor paid any final or interim dividend during the year.
With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section 197(16) of the Act, as amended.

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act

For Merchant & Co. Chartered Accountants ICAI Firm Registration No. 145290W

Ushma Merchant Proprietor Membership No.: 142930 UDIN : 22142930AKKYNE8843

Place : Mumbai Dated: May 26, 2022

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

ANNEXURE “A”: TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 15 (f) under “Report on other Legal and Regulatory Requirements” section of our report to the Members of Solid Stone Company Limited of even date)

1. Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-Section 3 of Section 143 of The Companies Act, 2013 (“The Act”)

We have audited the internal financial controls over financial reporting of SOLID STONE COMPANY LIMITED (“the Company”) as of March 31, 2022 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

2. Management’s Responsibility for Internal Financial Controls

The Management of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Act.

3. Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by ICAI and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

4. Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

5. Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk

32nd ANNUAL REPORT 2021-2022

that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

6. Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2022, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India.

For Merchant & Co. Chartered Accountants ICAI Firm Registration No. 145290W

Ushma Merchant Proprietor Membership No.: 142930 UDIN : 22142930AKKYNE8843

Place : Mumbai Dated: May 26, 2022

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

ANNEXURE “B”: TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 14 under “Report on other Legal and Regulatory Requirements” section of our report to the Members of Solid Stone Company Limited of even date)

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that:

i) In respect of the Company’s Property, Plant and Equipment and Intangible Assets:
a) (A) The company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment;
- (B) The Company is maintaining proper records showing full particulars of Intangible Assets.
b) As explained to us, Property, Plant and Equipment have been physically verified by the management in accordance with a regular programme of verification, which in our opinion is reasonable, considering the size and the nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification;
c) Based on our examination of the registered sale deed and property tax receipts provided to us, we report that, the title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in the financial statements included under Property, Plant and Equipment are held in the name of the Company as at the balance sheet date.
d) The Company has not revalued any of its Property, Plant and Equipment during the year. Accordingly, the reporting under Clause 3(i)(d) of the Order is not applicable to the Company.
e) Based on the information and explanation furnished to us, no proceedings have been initiated on are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988) and rules made thereunder.
ii) (a) Inventories (including lying with third parties) has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification.
(b) According to the information and explanations given to us and based on our examination of the books and documents made available, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of current assets where the quarterly statements filed by the Company with such banks are in agreement with the books of account of the Company other than as set out below.

==> picture [459 x 123] intentionally omitted <==

----- Start of picture text -----

Name of the Aggregate Nature of Quarter Amount Amount as Difference Reasons for
Bank working capital Current ended disclosed as per books of (Rs. In difference
Limits (Rs. Asset per quarterly accounts Lakhs)
Lakhs) offered as return/ (Rs. Lakhs)
security statement
(Rs. Lakhs)
State Bank of 900.00 (as on Refer Note Dec 31, 2080.35 2111.89 31.54 Few lots of material
India 31 March, Below 2021 were erroneously
2022) not included while re-
porting with bank
----- End of picture text -----

Note :Paripassu charge by way of hypothecation of inventories, book debts and receivables, both present and future and further secured by way of equitable mortgage of company’s factory and machinery and equipments as well as equitable mortgage over factory and machinery and equipments of Global Instile Solid Industries Limited (Associate Company).

iii) According to the information and explanations given to us , the Company has not made investments in, provided any guarantee or security or granted any loans and advances, secured or unsecured during the year to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the clauses 3(iii) (a), (b) (c) (d),(e),(f) of the Order are not applicable to the Company.
iv) In our opinion and according to the information and explanations given to us, the Company, during the year has not given any loans or made any investments, or provided guaranteed and securities to the parties covered under the provisions of Section 185 and 186. Consequently, clause 3(iv)of the Order are not applicable to the Company.

32nd ANNUAL REPORT 2021-2022

v) The Company has not accepted any deposits within the meaning of Provisions of Section 73 to 76 of the Act, and the rules framed thereunder from the public. Hence, reporting under clause 3(v) of the Order is not applicable.
vi) The maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 for the business activities carried out by the Company. Hence, reporting under clause 3 (vi) of the Order is not applicable to the Company.
vii) i. a) The company is regular in depositing undisputed statutory dues, including Provident Fund, Employees’ State Insurance, Income Tax, Goods & Services Tax, duty of customs, duty of excise, and any other statutory dues with appropriate authorities, where applicable. According to the information and explanations given to us, there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at March 31,2022 for a period of more than six months from the date they became payable.
- b) According to the records of the company, there are no dues outstanding of income-tax, sales-tax, service tax, duty of customs, duty of excise and value added tax, goods and services tax on account of any dispute.
viii) There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
ix) a. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender hence reporting under clause 3 (ix)(a) of the Order is not applicable to the Company
b. According to the information and explanations given to us, the Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
c. To the best of our knowledge and according to the information and explanations given to us, term loans were applied for the purpose for which the loans were obtained.
d. To the best of our knowledge and according to the information and explanations given to us, funds raised on short-term basis have, prima facie, not been used during the year for long-term purposes by the Company.
e. To the best of our knowledge and according to the information and explanations given to us, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries.
f. To the best of our knowledge and according to the information and explanations given to us, the Company has not raised during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.
x) a) The Company has not raised any moneys by way of Initial public offer or further Public offer (Including debt instruments). Moneys raised by way of Term Loan were applied for the purpose for which those are raised.
b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.
xi) a) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or any fraud on the company by its officers or employees has been noticed or reported during the year, nor have we been informed of any such case by the management.
b) No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report.
c) To the best of our knowledge and according to the information and explanations given to us, no whistle blower complaints have been received during the year by the Company.
xii) The company is not a nidhi Company and accordingly provisions of clause (xii) of Para 3 of the order are not applicable to the Company.
xiii) On the basis of our examination and according to the information and explanations given to us, we report that all the transaction with the related parties are in compliance with Section 177 and 188 of the Act, and the details have been disclosed in the Financial statements in Refer Note 35 as required by the applicable accounting standards.
xiv) (a) In our opinion and according to the information and explanations given to us, the Company has an internal audit system commensurate with the size and nature of the business.

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

(b) We have considered the reports of the Internal Auditors for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.
xv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into any non-cash transactions with directors or persons connected with the directors. Accordingly, provisions of clause (xv) of Para 3 of the Order are not applicable to the company.
xvi) (a) In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.
(b) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly, reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii) The Company has incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

xviii) There has been no resignation of the statutory auditors of the Company during the year.

xix) On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
xx) The Company is not required to comply provisions of Section 135 of Companies Act, 2013 relating to Expenditure towards CSR. Hence, reporting under clause 3(xx)(a), (b) of the Order is not applicable.

For Merchant & Co. Chartered Accountants ICAI Firm Registration No. 145290W

Ushma Merchant Proprietor Membership No.: 142930 UDIN : 22142930AKKYNE8843

Place : Mumbai Dated: May 26, 2022

32nd ANNUAL REPORT 2021-2022

STANDALONE BALANCE SHEET AS AT MARCH 31, 2022

Particulars Note	31	As at As at March 2022 31 March 2021	As at As at March 2022 31 March 2021
		Rs. in ‘000s	Rs. in ‘000s
A ASSETS 1 Non-current assets (a) Property,Plant and Equipment 2(a)&( c) (b) Capital Work in Progress - (c) Investment Property - (d) Other Intangible assets 2(b) (e) Financial Assets (i) Investments 3 (ii) Trade Receivables (iii) Loans (iv) Other Financial assets 4 (f) Deferred Tax assets(net) 5 (g) Other Non Current assets 6 2 Current assets (a) Inventories 7 (b) Investment Property held for sale (c) Financial Assets (i) Investments (ii) Trade Receivables 8 (iii) Cash and cash equivalents 9 (iv) Bank Balances other than (iii) above 10 (v) Loans 11 (vi) Others Financial Assets (d) Other Current assets 12 TOTAL ASSETS B EQUITY AND LIABILITY 1 Equity (a) Equity share capital SOCE (b) Instruments entirely equity in nature (c) Other Equity SOCE Liabilities 2 Non Current liabilities (a) Financial liabilities (i) Borrowings 13 (ia) Lease Liabilities 14(a) (ii) Trade Payables a) Total Outstanding dues of Micro Enterprises and small enterprises ; b) Total Outstanding dues of creditors other than Micro Enterprises and small enterprises ; (iii) Other financial liabilities (b) Provisions 15 (c) Deferred tax liabilities (net) (d) Other non-current liabilities 3 Current liabilities (a) Financial liabilities (i) Borrowings 16 (ia) Lease Liabilities 14(b) (ii) Trade payables 17 a) Total Outstanding dues of Micro Enterprises and small enterprises ; b) Total Outstanding dues of creditors other than Micro Enterprises and small enterprises ; (iii) Other Financial liabilities 18 (b) Other current liabilities 19 (c) Provisions 20 TOTAL EQUITY AND LIABILITIES See accompanying notes forming part of the financial statements		26593.03 - - 0.83 9463.00 - - 7649.28 7273.64 - 50979.78 213656.34 - - 117682.54 2267.48 - 61.00 - 73965.00 407632.37 458612.15 53800.00 - 148787.02 202587.02 82173.71 19434.45 - - 4935.00 - - 106543.16 108888.56 - - 8308.52 7234.72 24856.25 193.92 149481.97 458612.15 -	12059.97 2.75 9463.00 - - 6586.71 5041.28 - 33153.72 208079.28 - - 120197.37 1008.38 159.71 153.20 - 93479.88 423077.82 456231.54 53800.00 - 155876.41 209676.41 22683.94 4009.80 - - 5087.97 - 31781.71 162584.98 - - 19288.78 9207.05 23555.32 137.29 214773.42 456231.54 -

In terms of our report attached. For Merchant & Co Chartered Accountants Firm Reg.No.145290W

Ushma Merchant Propreitor Mem.No.142930 Place : Mumbai Date : May 26, 2022

For and on behalf of the Board of Directors

M. B. KHAKHAR P. B. KHAKHAR Chairman & Managing Director Jt.ManagingDirector (DIN: 00394065) (DIN: 00394135)

M.D.DEWANI Chief Financial Officer

H.D.VALIA Company Secretary (ACS No.22571)

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH, 2022

Particulars Note	As at 31 March 2022	As at 31 March 2021
	Rs. in ‘000s	Rs. in ‘000s
I INCOME (a) Revenue from operations 21 (b) Other income 22 Total Income II EXPENSES (a) Cost of materials consumed 23 (b) Purchases of stock-in-trade 24 (c) Changes in Inventories 25 (d) Employee benefits expense 26 (e) Finance costs 27 (f) Depreciation,amortisation,impairment expense 28 (g) Other expenses 29 Total expenses III Profit / (Loss) before exceptional items IV Exceptional items V Profit / (Loss) before tax VI Tax expense: (a) Current tax (b) Mat Entitlement (c) Excess/ Shortage of earlier years tax provision (d) Deferred tax VII Profit / (Loss) for the year VIII Other Comprehensive Income (a) Items that will not be reclassified to Profit or loss (i) Measurement of employment defined benefit plans (ii) Fair value changes of equity instruments (iii) Revaluation of property, plant and equipment (b) Income tax relating to items in (a) above Total Other Comprehensive Income (Net of Tax) IX Total Comprehensive Income for the period X Earnings Per Share (Rs 10 per share fully paid up) (a) Basic 30 (b) Diluted 30 See accompanying notes forming part of the financial statements	243210.32 300.70 243511.02 1569.51 189279.46 -6286.03 19273.45 23178.51 8013.72 18073.05 253101.67 -9590.65 - -9590.65 - 511.57 -2428.79 -1917.22 -7673.43 780.46 - - -196.43 584.04 -7089.40 -1.43 -1.43	172324.12 430.31 172754.43 1204.26 133682.20 -12941.07 17297.56 23288.36 5920.70 13984.84 182436.85 -9682.42 - -9682.42 - 247.68 -2195.12 -1947.44 -7734.97 272.24 - - -68.52 203.72 -7531.25 -1.44 -1.44

In terms of our report attached. For Merchant & Co Chartered Accountants Firm Reg.No.145290W Ushma Merchant Propreitor Mem.No.142930 Place : Mumbai Date : May 26, 2022

For and on behalf of the Board of Directors M. B. KHAKHAR P. B. KHAKHAR Chairman & Managing Director Jt.ManagingDirector (DIN: 00394065) (DIN: 00394135) M.D.DEWANI H.D.VALIA Chief Financial Officer Company Secretary (ACS No.22571)

32nd ANNUAL REPORT 2021-2022

STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

	(Rs.in ‘000s)
	Year Ended Year Ended 31 March, 2022 31 March, 2021
CASH FLOW FROM OPERATING ACTIVITIES Net Profit before tax Adjustments for Non cash and other items : Depreciation and amortisation Mark to Market gain on valuation of Mutual Funds Finance Cost considered in financing activities Income on Amortization of loans Interest on lease liabilities Interest on loans at amortized cost (Profit)/ Loss on loss of fixed asset Apportioned Income from Government Grant Total Operating Profit before working capital changes Adjustments for: (Increase) / Decrease in inventories (Increase) / Decrease in trade receivables (Increase) / Decrease in loans and other financial assets (Increase) / Decrease in other current and non assets Increase / (Decrease) in other Trade Payables Increase / (Decrease) in other financial liabilities Increase / (Decrease) in provisions Increase / (Decrease) in other current liabilities Less: Income tax paid (net of refunds) Cash generated from Operating Activities (I) CASH FLOW FROM INVESTING ACTIVITIES Inflows Sale of assets Sale of investments Outflows Purchase of fixed assets Purchase of equity investments (NET) Capital Advances Cash generated from Investing Activities (II) CASH FLOW FROM FINANCING ACTIVITIES Inflows Increase in share capital Proceeds from term loan Proceeds from Working Capital Loan Outflows Proceeds / (Repayment) of unsecured Loan Finance cost Lease rent paid Cash generated from Financing Activities (III) NET INCREASE / (DECREASE) CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	-9590.65 -9682.42 8013.72 5920.70 - 22357.38 22979.79 -97.11 -67.45 - - 821.13 308.56 - 506.12 - - 31095.12 29647.73 21504.47 19965.32 -5577.06 -13860.87 2514.83 47449.47 92.20 -104.10 18709.13 -41077.36 -10980.27 1972.85 -1972.33 9207.05 684.13 641.89 1300.94 -12783.76 26276.04 11410.49 -511.57 -1174.03 25764.47 10236.47 428.33 - - -517.45 -427.75 - - - -517.45 0.59 - - 59489.77 11629.00 -60199.69 16613.51 6503.27 -12860.15 -22357.38 -22979.79 -7423.89 -3468.91 -23987.92 -11066.36 1259.10 -829.31 1008.38 1837.69 2267.48 1008.38

(Rs.in ‘000s)

Year Ended
Year Ended
31 March, 2022
31 March, 2021

CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax
Adjustments for Non cash and other items :
Depreciation and amortisation
Mark to Market gain on valuation of Mutual Funds

Finance Cost considered in financing activities
Income on Amortization of loans
Interest on lease liabilities

Interest on loans at amortized cost
(Profit)/ Loss on loss of fixed asset

Apportioned Income from Government Grant

Total
Operating Profit before working capital changes
Adjustments for:
(Increase) / Decrease in inventories
(Increase) / Decrease in trade receivables
(Increase) / Decrease in loans and other financial assets
(Increase) / Decrease in other current and non assets
Increase / (Decrease) in other Trade Payables
Increase / (Decrease) in other financial liabilities
Increase / (Decrease) in provisions
Increase / (Decrease) in other current liabilities
Less: Income tax paid (net of refunds)
Cash generated from Operating Activities (I)
CASH FLOW FROM INVESTING ACTIVITIES
Inflows
Sale of assets
Sale of investments

Outflows
Purchase of fixed assets
Purchase of equity investments (NET)

Capital Advances

Cash generated from Investing Activities (II)
CASH FLOW FROM FINANCING ACTIVITIES
Inflows
Increase in share capital

Proceeds from term loan
Proceeds from Working Capital Loan
Outflows
Proceeds / (Repayment) of unsecured Loan
Finance cost
Lease rent paid
Cash generated from Financing Activities (III)
NET INCREASE / (DECREASE) CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

-9590.65
-9682.42
8013.72
5920.70
-
22357.38
22979.79
-97.11
-67.45
-
-
821.13
308.56
-
506.12
-
-
31095.12
29647.73
21504.47
19965.32
-5577.06
-13860.87
2514.83
47449.47
92.20
-104.10
18709.13
-41077.36
-10980.27
1972.85
-1972.33
9207.05
684.13
641.89
1300.94
-12783.76
26276.04
11410.49
-511.57
-1174.03
25764.47
10236.47
428.33
-
-
-517.45
-427.75
-
-
-
-517.45
0.59
-
-
59489.77
11629.00
-60199.69
16613.51
6503.27
-12860.15
-22357.38
-22979.79
-7423.89
-3468.91
-23987.92
-11066.36
1259.10
-829.31
1008.38
1837.69
2267.48
1008.38

In terms of our report attached. For Merchant & Co Chartered Accountants Firm Reg.No.145290W

Ushma Merchant Propreitor Mem.No.142930 Place : Mumbai Date : May 26, 2022

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH, 2022

STATEMENT OF CHANGES IN EQUITY	FOR THE YEAR ENDED 31 MARCH, 2022
	(Rs. in ‘000s)
Particulars	31 March 2022 31 March 2021
	No of shares Rs. in ‘000s No of shares Rs. in ‘000s
(A) Equity Share Capital Opening Equity Share Capital Add: Increase during the year Less: Reduction during the year	53,80,000 53800.00 53,80,000 53800.00 - - - - - -
Total	53,80,000 53800.00 53,80,000 53800.00

Reconciliation of number of shares

Reconciliation of number of shares
Particulars	31 March 2022 31 March 2021
	No of shares Rs. No of shares Rs.
Balance at beginning of year Issued subscribed and fully paid up Right issue	53,80,000 53800.00 53,80,000 53800.00 - -- - - -- -
Balance at closing of year	53,80,000 53800.00 53,80,000 53800.00

(a) Rights, preferences and restrictions attached to shares

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

- (b) Shareholders holding more than 5 percent of the equity shares :

Name of Shareholder	31 March 2022 31 March 2021
	No. of Shares held % of Holding No. of Shares held % of Holding
Prakash Bhagwandas Khakhar Milan Bhagwandas Khakhar Jeenoo Milan Khakhar Vasumati Bhagwandas Khakhar	1378895 25.63% 1378895 25.63% 808415 15.03% 808415 15.03% 699300 13.00% 699300 13.00% 682190 12.68% 682190 12.68%

(c) Details of Share holding pattern of promoters

Name of Shareholder	31 March 2022 31 March 2021
	No. of Shares held % of Holding No. of Shares held % of Holding
Prakash Bhagwandas Khakhar Milan Bhagwandas Khakhar Jeenoo Milan Khakhar Vasumati Bhagwandas Khakhar Mahi Prakash Khakhar Yash Prakash Khakhar Kanika Milan Khakhar Isha Milan Khakhar Shabnam Prakash Khakhar Charu Shekar Davda	1378895 25.63% 1378895 25.63% 808415 15.03% 808415 15.03% 699300 13.00% 699300 13.00% 682190 12.68% 682190 12.68% 49216 0.91% 49216 0.91% 47969 0.89% 47969 0.89% 40700 0.76% 40700 0.76% 33300 0.62% 33300 0.62% 30500 0.57% 30500 0.57% 500 0.01% 500 0.01%

32nd ANNUAL REPORT 2021-2022

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH, 2022

(Rs. in ‘000s)

(B) Other Equity

Particulars	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Other Comprehensive Income	Other Comprehensive Income	TOTAL
	General Reserves	Capital Reserve	Securities Premium	Retained Earnings	Equity Instru- ments FVTOCI	Remeasur- ement of Employee benefits
Balance as at April 01, 2020 Profit for the year Other Comprehensive income for the year Total Dividends Transfer to retained earnings Balance as at March 31, 2021 Balance as at April 01, 2021 Profit for the year Other Comprehensive income for the year Total Bonus Shares issued during the year Dividends Transfer to retained earnings Balance as at March 31, 2022	500.00 - -	4404.90	52400.00 - -	105640.44 -7734.97	- - -	462.32 - 203.72	163407.67 -7734.97 203.72
	500.00	4404.90	52400.00	97905.47	-	666.04	155876.41
	- -		- -	- -	- -	- -	- -
	500.00	4404.90	52400.00	97905.47	-	666.04	155876.41
	500.00 - - 500.00 - - -	4404.90 4404.90	52400.00 - - 52400.00 - - -	97905.47 -7673.43 90232.04 - - -	- - - - - - -	666.04 - 584.04 1250.08 - - -	155876.41 -7673.43 584.04 148787.02 - - -
	500.00	4404.90	52400.00	90232.04	-	1250.08	148787.02

In terms of our report attached. For Merchant & Co Chartered Accountants Firm Reg.No.145290W

Ushma Merchant Propreitor Mem.No.142930 Place : Mumbai Date : May 26, 2022

For and on behalf of the Board of Directors

M. B. KHAKHAR Chairman & Managing Director (DIN: 00394065)

P. B. KHAKHAR Jt.ManagingDirector (DIN: 00394135)

M.D.DEWANI Chief Financial Officer

H.D.VALIA Company Secretary (ACS No.22571)

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Notes forming part of the Financial statements

Note:- 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

I. Background

Solid Stone Company Limited is a Public Limited Company domiciled and headquartered in India and incorporated under the provisions of Companies Act, 1956. The registered office of the Company is located at 1501, Maker Chambers V, Nariman Point, Mumbai - 400 021.

The Company is primarily engaged in the business of natural stones, building materials and allied building business activities.

The standalone financial statements are approved and adopted by the board of directors of the Company in their meeting dated May 26, 2022

II. Significant Accounting Policies followed by the Company

a) Basis of preparation:

(i) Compliance with Ind AS:

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, hereinafter referred to as Ind AS.

(ii) Basis of measurement:

The financial statements have been prepared on an accrual basis and under the historical cost convention, except for the following: - Certain financial assets and liabilities (including derivative instruments) and contingent considerations are measured at fair value; - Defined benefit plan assets measured at fair value; - Share-based payments measured at fair value.

(iii) Functional and presentation currency:

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (“the functional currency”). The financial statements are presented in Indian National Rupee (‘¹ ’), which is the Company’s functional and presentation currency. All amounts disclosed in the financial statements and notes have been rounded off to the nearest thousands as per the requirement of Schedule III, unless otherwise stated. The sign ‘-’ in these standalone financial statements indicates that amounts are nil.

(iv) Historical cost convention:

The Financial Statements have been prepared on a historical cost basis, except for the following:

A certain financial assets and liabilities that are measured at fair value;
B assets held for sale - measured at lower of carrying amount or fair value less cost to sell;
C defined benefit plans - plan assets measured at fair value;

b) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:

Expected to be realised or intended to be 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 the normal operating cycle

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

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 the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current

Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

c) Revenue recognition:

i) Timing of recognition:

Revenue on sale of goods is recognised at the time of transfer of significant risks and rewards of ownership to the buyer which generally coincides with their delivery and the seller retains no effective control of the goods transferred to a degree usually associated with ownership, and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of the goods.

Revenue from service transactions is usually recognised as the service is performed and upon completion of services or substantial completion of services under contract and raising of Invoices, and no significant uncertainty exists regarding the amount of the consideration that will be derived from rendering the service.

Other Operating Revenue

Unpaid liabilities written back for operational creditors are recognized as other operating revenue.

ii) Measurement of revenue:

When a performance obligation is satisfied, an entity shall recognize as revenue the amount of transaction price that is allocated to that performance obligation. The transaction price is the amount of consideration to which an entity expects to be entitled to in exchange for transferring promised goods or services to a customer excluding amounts collected on behalf of third parties, viz. taxes on sales. The consideration promised in a contract with a customer may include fixed amounts, variable amounts or both. In determining the transaction price, an entity shall consider the effect of variable consideration which includes discounts, rebates, price concessions, refunds, incentives or other similar items.

Interest Income

For all debt instruments measured at amortised cost, interest income is measured using the effective interest rate (EIR) method. EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

Dividends

Revenue is recognised when the Company’s right to receive the payment is established, which is generally when shareholders approve the dividend.

d) Income taxes:

Income tax expense comprises current and deferred tax. It is recognised in the statement of profit and loss except to the extent that it relates to a business combination, or items recognised directly in equity or in OCI.

Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the country where the company operates and generates taxable income. Current tax assets and liabilities are offset only if there is a legally enforceable right to set it off the recognised amounts and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is provided using the balance sheet method on temporary differences between the tax base of assets

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

Taxable temporary differences arising on the initial recognition of goodwill.

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 recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

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 taxes relate to the same taxable entity and the same taxation authority.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

e) Leases:

Company as Lessee:

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset. The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any re-measurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term.

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company as a Lessor:

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the company is classified as a finance lease.

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term, unless the payments are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increase.

f) Property, Plant and Equipment

(i) Tangible assets:

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the carrying amount of asset or recognised 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 expenses are charged to the Statement of Profit and Loss during the period in which they are incurred. Gains or losses arising on retirement or disposal of assets are recognised in the Statement of Profit and Loss.

Borrowing costs relating to acquisition of qualifying fixed assets, if material, are also included in cost to the extent they relate to the period till such assets are ready to be put to use.

Stand-by equipment and servicing equipment are recognised as property, plant and equipment if they are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and are expected to be used during more than one period. Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as ‘Capital work-in-progress’.

Depreciation methods, estimated useful lives and residual value:

Depreciation on Tangible Fixed Assets is provided on Straight Line Method on the basis of useful life of assets specified in Part C of Schedule II of the Companies Act, 2013, which are as follows:

- Buildings including factory buildings and Roads	3 - 60 years
- Plant and machinery	15 years
- Electrical installations and equipment	10 years
- Furniture and fixtures	10 year
- Office equipment’s	15 years
- Vehicles	8 - 10 years
- Computer and Data Processing Units	3 - 6 years

Leasehold land is being amortised over the lease period and Cost of improvement on leasehold building is being amortised over the lease period or useful life whichever is shorter.

The residual values are not more than 5% of the original cost of the asset.

The residual values, useful lives and method of depreciation of property, plant and equipment are reviewed at each financial year end and any changes there in are considered as change in estimate and accounted prospectively from the date of change

ii) Intangible assets:

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses.

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Intangible Assets having finite useful life are amortised on the straight line method as per following estimated useful life:

Asset category Estimated useful life

Computer software 3 years

The residual values, useful lives and method of depreciation of intangible assets are reviewed at each financial year end and any changes there in are considered as change in estimate and accounted prospectively.

Intangible assets having indefinite useful life are tested for impairment at least once in an accounting year regardless of indicators of impairment.

g) Investment Property:

Property that is held for long-term rental yields or for capital appreciation or both, and that is not in use by the Company, is classified as investment property. Land held for a currently undetermined future use is also classified as an investment property. Investment property is measured initially at its acquisition cost, including related transaction costs and where applicable borrowing costs and are carried at cost less accumulated depreciation and accumulated impairment losses.

h) Impairment of Non- Financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication on impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash flows are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or Cash Generating Units (‘CGUs’).

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of profit and loss.

In respect of assets for which impairment loss has been recognised in prior periods, the company reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

i) Investments and other financial assets: Classification:

The Company classifies its investments in the following measurement categories:

i) Those to be measured subsequently at fair value (either through Other Comprehensive Income, or through profit or loss), and
ii) Those measured at amortised cost.

The classification depends on business model of the entity for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or Other Comprehensive Income.

For investments in equity instruments, it depends on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through Other Comprehensive Income.

Initial recognition and measurement:

Financial assets are recognised when the Company becomes a party to the contractual terms of the instrument.

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Transaction Cost

Financial assets are recognised initially at fair value plus/minus (in the case of financial assets are not recorded 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.

Subsequent measurement:

After initial recognition, financial assets are measured at:

(i) Fair value {either through Other Comprehensive Income (FVOCI) or through profit or loss (FVPL)} or,
(ii) Amortised cost

Debt instruments :

Subsequent measurement of debt instruments depends on the business model of the Company for managing the asset and the cash flow characteristics of the asset.

There are three measurement categories into which the Company classifies its debt instruments:

Measured at amortised cost:

Debt instruments that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method less impairment, if any, the amortisation of EIR and loss arising from impairment, if any is recognised in Profit or Loss.

Measured at fair value through Other Comprehensive Income (OCI) :

Debt instruments that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through Other Comprehensive Income. Fair value movements are recognised in the OCI (net of taxes). Interest income measured using the EIR method and impairment losses, if any are recognised in Profit or Loss. On de-recognition, cumulative gain | (loss) previously recognised in OCI is reclassified from the equity to Profit or Loss.

Measured at fair value through profit or loss:

A financial asset not classified as either amortised cost or FVOCI, is classified as FVPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognised as other income in Profit or Loss.

Equity instruments :

The Company subsequently measures all investments in equity instruments other than subsidiary companies, associate company and Joint Venture Company at fair value through profit and loss (FVTPL), with fair value changes recognized in the statement of profit and loss. Dividends from such investments continue to be recognised in profit or loss as other income when the right to receive payment is established.

Investments in subsidiary companies, associate company and Joint Venture Company :

Investments in subsidiary companies, associate company and Joint Venture Company are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiary companies, associate company and Joint Venture Company, the difference between net disposal proceeds and the carrying amounts are recognised in Profit or Loss.

Impairment of financial assets:

The Company assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 33 details how the Company determines whether there has been a significant increase in credit risk. For trade and lease receivable only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of such receivables.

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

De-recognition:

A financial asset is de-recognised only when

i) The Company has transferred the rights to receive cash flows from the financial asset, or
ii) Retains the contractual rights 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 entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de-recognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de- recognised. Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Financial liabilities & Equity instruments:

i) Classification as debt or equity - Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
ii) Initial recognition and measurement - Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the fair value.
iii) Subsequent measurement - Financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities carried at fair value through profit or loss is measured at fair value with all changes in fair value recognised in Profit or Loss.
iv) De-recognition - A financial liability is de-recognised when the obligation specified in the contract is discharged, cancelled or expires.
v) Reclassification of Financial Assets and Financial Liabilities : The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. If the company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model.

j) Fair Value Measurement

The Company measures financial instruments, such as Derivatives, at fair value at each balance sheet date. 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or
In the absence of the principal market, in the most advantageous market for the asset of liability.

The principal or the most advantageous market must be accessible by the company. The fair value of asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

External Valuers are involved for valuation of significant assets such as certain items or property, plant and equipment. For the purpose of fair value disclosure, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

k) Inventories:

Items of Inventories are valued on the basis given below:

i. Raw materials, packing materials, stores and spares: at cost determined on First – in – First – Out (FIFO) basis or net realizable value whichever is lower.
ii. Process stock and finished goods: At cost or net realizable values whichever is lower.

Cost comprises of cost of purchase, costs of conversion and other costs incurred in bringing the inventory to its present location and condition.

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

Due allowances are made for slow moving and obsolete inventories based on estimates made by the Company.

l) Cash and cash equivalents:

Cash and cash equivalents include cash in hand, demand deposits with bank and other short-term (three months or less from the date of acquisition), highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value.

m) Trade receivables:

Trade receivables are initially recognised at fair value of the revenue. Subsequently, trade receivables are stated at cost less provision for impairment, if any.

Customer credit risk is managed by the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of the customer is assessed and individual limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

The Company applies expected credit losses (ECL) model for measurement and recognition of provision / loss allowance on the Trade receivables as given in Ind AS 109 Financial Instruments

As a practical expedient, the Company uses a provision matrix to measure ECL on its portfolio of trade receivables. The provision matrix is prepared based on historically observed default floating rates over the expected life of trade receivables and is adjusted for forward-looking estimates. At each reporting date, the historically observed default rates and changes in the forward-looking estimates are updated.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in Profit or Loss under the head ‘Other expenses’.

n) Offsetting financial instruments:

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

o) Borrowings:

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income /(expense). Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

p) 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. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

q) Provisions and contingent liabilities:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. These are reviewed at each year end and reflect the best current estimate. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is deter- mined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of best estimate of the Management of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the li- ability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities are disclosed 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 that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

r) Employee benefits:

Short-term employee benefits:

All employee benefits payable within twelve months of service such as salaries, wages, bonus, ex-gratia, medical benefits etc. are recognised in the year in which the employees render the related service and are presented as current employee benefit obligations within the Balance Sheet. Termination benefits are recognised as an expense as and when incurred. Short-term leave encashment is provided at undiscounted amount during the accounting period based on service rendered by employees. Compensation payable under Voluntary Retirement Scheme is being charged to Statement of Profit and Loss in the year of settlement.

Other long-term employee benefits:

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service to the extent applicable to the Company. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss. The obligations are presented as current liabilities in the Balance Sheet if the entity does not have an unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is expected to occur.

Defined contribution plan:

Contributions to defined contribution schemes such as contribution to Provident Fund, Superannuation Fund, Employees’

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

State Insurance Corporation, National Pension Scheme and Labours Welfare Fund are charged as an expense to the Statement of Profit and Loss based on the amount of contribution required to be made as and when services are rendered by the employees if applicable to the Company. The above benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.

Defined benefit plan: Gratuity:

Gratuity liability is a defined benefit obligation and is computed on the basis of an actuarial valuation by an actuary appointed for the purpose as per projected unit credit method at the end of each financial year. The liability or asset recognised in the Balance Sheet in respect of defined benefit pension and gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.

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 the reporting period on Government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions 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.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

s) Earnings per share

Earnings per share (EPS) are calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by the weighted average number of Equity shares outstanding during the period. Earnings considered in ascertaining the EPS is the net profit for the period and any attributable tax thereto for the period. The treasury shares are not considered as outstanding equity shares for computing EPS.

t) Foreign Currency Transactions

Initial recognition .

Transactions in foreign currencies are translated into the Company’s functional currency at the exchange rates at the dates of the transactions

Conversion

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.

Exchange difference

Exchange differences are recognised in profit or loss, except exchange differences arising from the translation of the following items which are recognised in OCI

equity investments at fair value through OCI (FVOCI);
a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; and
qualifying cash flow hedges to the extent that the hedges are effective

u) Critical estimates and judgements

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent liabilities and contingent assets at the date of financial statements, income and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Application of accounting policies that require critical accounting estimates and assumption judgements having the most significant effect on the amounts recognized in the financial statements are:

Measurement of defined benefit obligations;
Recognition of deferred tax assets & minimum alternative tax credit entitlement;
Useful life and residual value of Property, plant and equipment and intangible assets;
Impairment test of financial and non-financial assets including recoverability of expenditure on internally- generated intangible assets;
Measurement of fair value for share based payments;
Recognition and measurement of provisions and contingencies.
Estimate of Sales Return, Rebates and Discounts

v) Segment Reporting

An operating segment is defined as a component of the entity that represents business activities from which it earns revenues and incurs expenses and for which discrete financial information is available. The operating segments are based on the Company’s internal reporting structure and the manner in which operating results are reviewed by the Chief Operating Decision Maker (CODM)

The Management Advisory Committee of the Company has been identified as the CODM by the Company. Refer Note 24 C for Segment disclosure

w) Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID 19):

The company has considered the possible effects that may result from the pandemic relating to second wave of COVID19 on the carrying amounts of inventories, receivables, unbilled revenues and Investments. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the company, as at the date of approval of these financial statements has used internal and external sources of information and related information, economic forecasts. The impact of COVID-19 on the Company’s financial statements may differ from that estimated as at the date of approval of these financial statements.

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 2 (a). Property, Plant and Equipment

(Rs.in '000s)

Particulars	Facility Land and Building	Plant and Machinery	Furniture and Fixtures	Computers	Vehicles	Office Equip- ments	Speed Boat	Electrical fitting	Total
A GROSS BLOCK As At April 01, 2020 Additions during the Year Deductions	4656.42	7744.43 89.43	26860.78	2779.18 86.12	20605.60	5765.22 252.20	1919.92 1919.92		70331.56 427.75 1919.92
As at March 31, 2021	4656.42	7833.87	26860.78	2865.30	20605.60	6017.41	-	-	68839.38
Additions during the Year Deductions		27.00 1635.50	18071.23	197.23 2570.05	892.35	293.22 414.72			517.45 23583.86
As at March 31, 2022	4656.42	6225.37	8789.55	492.47	19713.25	5,896	-	-	45772.97
B DEPRECIATION As At April 01, 2020 For the Year Deductions	2735.96 144.45	6788.10 282.61 -	26860.78 -	2583.98 91.67 -	14586.89 1364.04	3927.67 392.68 -	957.21 28.26 985.47	-	58440.59 2303.72 985.47
As at March 31, 2021	2880.41	7070.72	26860.78	2675.65	15950.93	4320.35	0.00	-	59758.84
Additions during the Year Deductions	144.45	276.12 1635.50	18071.23	129.46 2570.05	1364.03 892.35	364.88 414.72			2278.94 23583.86
As at March 31, 2022	3024.87	5711.34	8789.55	235.05	16422.61	4270.50	0.00	-	38453.93
C NET BLOCK As at March 31, 2021 As at March 31, 2022	1776.01 1631.55	763.15 514.03	- -	189.65 257.42	4654.67 3290.64	1697.07 1625.41	- -0.00	- -	9080.54 7319.04

Note 2(b): Intangibles

(Rs.in '000s)

Note 2(b): Intangibles								(R	s.in 000s)
Particulars	Software								Total
A GROSS BLOCK As At April 01, 2020 Additions during the Year Deductions	43.20 - -	- - -	- - -	- - -	- - -	- - -	- - -	- - -	43.20 - -
As at March 31, 2021	43.20	-	-	-	-	-	-	-	43.20
Additions during the Year Deductions	- -	- -	- -	- -	- -	- -	- -	- -	- -
As at March 31, 2022	43.20	-	-	-	-	-	-	-	43.20
B DEPRECIATION As At April 01, 2020 For the Year Deductions	38.53 1.92 -	- - -	- - -	- - -	- - -	- - -	- - -	- - -	38.53 1.92 -
As at March 31, 2021	40.45	-	-	-	-	-	-	-	40.45
Additions during the Year Deductions	1.92 -	- -	-	-	-	-	-	-	1.92
As at March 31, 2022	42.37	-	-	-	-	-	-	-	42.37
C NET BLOCK As at March 31, 2021 As at March 31, 2022	2.75 0.83	- -	- -	- -	- -	- -	- -	- -	2.75 0.83
TOTAL NET BLOCK(2a + 2b)
As at March 31,2021	2.75	-	-	-	-	-	-	-	2.75
As at March 31, 2022	0.83	-	-	-	-	-	-	-	0.83

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 2(c): Right of use Asset

(Rs.in '000s)

Note 2(c): Right of use Asset								(	.n s
Particulars	Buildings								Total
A GROSS BLOCK As At April 01, 2020 Additions during the Year Deductions	14195.31 - 2277.58	- - -	- - -	- - -	- - -	- - -	- - -	- - -	14195.31 - 2277.58
As at March 31, 2021	11917.73	-	-	-	-	-	-	-	11917.73
Additions during the Year Deductions	22027.41 11917.73								22027.41 11917.73
As at March 31, 2022	22027.41	-	-	-	-	-	-	-	22027.41
B DEPRECIATION As At April 01, 2020 For the Year Deductions	5323.24 3615.06 -	- - -	- - -	- - -	- - -	- - -	- - -	- - -	5323.24 3615.06 -
As at March 31, 2021	8938.30	-	-	-	-	-	-	-	8938.30
Additions during the Year Deductions	5732.86 11917.73	- -	- -	- -	- -	- -	- -	- -	5732.86 11917.73
As at March 31, 2022	2753.43	-	-	-	-	-	-	-	2753.43
C NET BLOCK As at March 31, 2021	2979.43	-	-	-	-	-	-	-	2979.43
As at March 31, 2022	19273.99	-	-	-	-	-	-	-	19273.99
TOTAL NET BLOCK (2a + 2b) As at March 31, 2021	4755.44	763.15	-	189.65	4,655	1697.07	-	-	12059.97
As at March 31, 2022	20905.54	514.03	-	257.42	3,291	1625.41	-0.00	-	26593.03

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note No. 3 : Investments - Non Current

(Rs.in '000s)

Particulars	As at 31st March 2022 No.of Units Rs.in '000s	As at 31 March, 2021
		No.of Units Rs.in '000s
I Investments in Subsidiaries, Associates and Joint ventures Unquoted, fully paid up At COST 270000 Equity shares of Rs.10/- each of Global Instile Solid Industries Limited 2,70,000 9450.00 Trade Unquoted - In Shares: (at fair value through Profit or Loss ) Shreeji Bhatia Co-operative Bank 520 13.00		2,70,000 9450.00 520 13.00
Total 2,70,520 9463.00		2,70,520 9463.00
Total Investments 2,70,520 9,463.00		2,70,520 9463.00
Aggregate amount ofUnquotedinvestments at Cost - 9463.00 Aggregate amount ofQuotedinvestments at Cost - - Market Value ofQuoted investments - -		- 9463.00 - - - -

32nd ANNUAL REPORT 2021-2022

Note 4 : Other non current financial assets

Particulars	As at 31 March 2022 As at 31 March 2021	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Security Deposits Term deposits with banks / Financial Institutions Total		3964.39 2901.82 3684.89 3684.89
		7649.28 6586.71
Note 5 : Deferred Tax Asset :
Particulars	31	As at March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Deferred Tax Asset ; - Arising on account of difference in carrying - on remeasurements of defined benefit obligations - on account of Unabsorbed Depreciation and Loss under Income TAX act A Deferred Tax Liabilities: - Accrued Expenses allowable on Actual Payments - Creation of Deferred TAX liabilities on ‘account of IND AS 116 “Leases” - on remeasurements of defined benefit obligations B Deferred Tax Assets/( Liabilities) - (Net) A+B MAT Credit	1871.32 1814.44 1290.85 1315.09 4463.52 2132.17
	7625.69 5261.70
	- -64.81 -352.04 -155.62
	-352.04 -220.42

	7273.64 5041.28
	- -
Total A+B	7273.64 5041.28

Note 6 Other Non Current Assets
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Capital Advances Total		- -
		- -

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 7 : Inventories

(At lower of cost and net realisable value)

Particulars	As at 31 March 2022 As at 31 March 2021	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Raw materials Finished goods - Manufactiured Finished goods - Traded Stores & Spares		2045.27 2700.17 3834.40 3918.19 207515.52 201145.69
		213395.18 207764.05 261.16 315.22
		261.16 315.22
Total		213656.34 208079.28
Note 8 : Trade Receivables
Particulars	31	As at March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Trade Receivables (Refer Note below) Less: Provision for loss allowance	117682.54 120197.37 - -
Total	117682.54 120197.37
Break-Up: Secured, considered good Unsecured,considered good Trade Receivables with significant increase in credit risk Trade receivables - credit impaired Less: Provision for Loss allowance	- - 117682.54 120197.37 - - - - 117682.54 120197.37 - -
Total	117682.54 120197.37

A) Refer Note 33B for information about credit risk and market risk of trade receivables B) Refer Note 36F for Ageing of Trade receivables

Note 9 : Cash and cash equivalents

Note 9 : Cash and cash equivalents
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Cash on hand Balances with banks In current accounts	2267.48 981.55 - - 26.83
Total	2267.48 1008.38
Note 10 : Bank balances other than Cash and Cash Equivalents
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Bank / Financial Institution deposits (Maturity of less than 12 months) Earmarked balances with banks	- - 159.71
Total	- 159.71

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 11 : Current financial assets - Loans

Particulars	As at 31 March 2022 As at 31 March 2021	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Loans to related parties Loans and advances to employees Loans - Others Less: Provision for Loss allowance		- - 61.00 153.20 - -
		61.00 153.20 -
Total		61.00 153.20
Break-Up: Secured, considered good Unsecured,considered good Loans which have a significant increase in credit risk Loans which are credit impaired Less: Provision for Loss allowance		- - 61.00 153.20 - - - - - -
Total		61.00 153.20

Refer Note 33B for information about credit risk and market risk of Loans

Note 12 : Other current assets

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Advances to Suppliers Prepaid expenses Balances with government authorities Advances recoverable in kind for value to be received Interest Accrued on Deposit Advance Tax Net of provision	63076.34 76136.96 517.48 146.44 26.00 321.69 9332.98 16093.59 250.96 75.52 761.24 705.68
Total	73965.00 93479.88

A) Advances to suppliers includes advances from related parties to the tune of Rs. 35.52 lakhs as on 31st March 2022 (Rs. 26.14 lakhs as on 31st March 2021)

Note 13 : Non-current borrowings

Note 13 : Non-current borrowings
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Loans - From banks - From Financial Institutions Loans from Others	- 76554.68 13620.51 5619.04 9063.43 - -
Total	82173.71 22683.94
Secured Unsecured	75540.31 10701.85 6633.41 11982.10
Total	82173.71 22683.94

(i) Details of each loan taken are stated in note no. 34

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 14(a) : Lease Liability - Non Current

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Lease Rent Liability	19434.45 4009.80
Total	19434.45 4009.80

Note 14(b) : Lease Liability - Current

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Current maturities of lease liabilities	- -
Total	- -

Note 15 : Non-current provisions

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Provision for employee benefits Provision for gratuity (net) Provision for other employee benefits	4935.00 5087.97 - -
Total	4935.00 5087.97

Note 16 : Current Borrowings

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Loans Repayable on Demand - From banks - From other parties Loans and advances from related parties Current maturities of long-term debt	85185.14 158500.98 3469.70 3651.14 1873.13 432.85 18360.59 -
Total	108888.56 162584.98
Break -up: Secured Unsecured	96824.22 158500.98 12064.34 4083.99
Total	108888.56 162584.98

(i) Details of each loan taken are stated in note no. 34

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 17 : Trade Payables - Current

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Trade payables: -For Goods -For Services Due to related parties Due to Micro Enterprises and Small Enterprises	6880.86 18430.54 1427.66 858.24 - - - -
Total	8308.52 19288.78
From above payable to Micro Small Medium Enterprises
Particulars	As at 31 March 2022 As at 31 March 2021
Principal amount due to suppliers registered under the MSMED Act and remaining unpaid as at year end Interest due to suppliers registered under the MSMED Act and remaining unpaid as at year end Principal amounts paid to suppliers registered under the MSMED Act, beyond the appointed day during the year Interest paid, other than under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year Interest paid, under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year Interest due and payable towards suppliers registered under MSMED Act, for payments beyond the appointed day during the year Interest due and payable towards suppliers registered under MSMED Act, for payments already made Further interest remaining due and payable for earlier years	- - - - - - - - - - - - - - - -

i. * Trade payables are dues in respect of goods purchased or services received (including from employees, professionals and others under contract) in the normal course of business.

Refer Note 38B for information about credit risk and market risk for Trade payables

Note 18 : Other current financial liabilities

Note 18 : Other current financial liabilities
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Current maturities of Long Term Debt Salary Payable Other payables	- 927.06 3768.11 3885.79 3466.61 4394.20
Total	7234.72 9207.05

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 19 : Other current liabilities

Note 19 : Other current liabilities
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Statutory dues payable GST payable Unclaimed Dividend Provident Fund and ESIC payable Witholding taxes payable Security Deposit from customer	70.90 83.00 220.82 1179.86 - 159.71 11.42 34.83 905.14 2687.74 23647.98 19410.18
Total	24856.25 23555.32

There is no amount due for payment to the Investor Education and Protection Fund under Section 125 of the Companies Act, 2013 as at year end

Note 20 : Current Provisions

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Provision for employee benefits Provision for Gratuity (net) Provision for other employee benefits Provision for taxation	193.92 137.29 - -
Total	193.92 137.29

Note 21 : Revenue from operations

Note 21 : Revenue from operations
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Sale of Products Sales - Services Other operating revenues	234408.97 161618.62 2608.76 6678.46 6192.59 4027.04
Total	243210.32 172324.12

Note 22 : Other Income

Note 22 : Other Income
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Interest Income Interest on loans at amortized cost Apportioned Income from Government Grant ( Refer Note 35 ii) Gain on foreign exchange fluctuations (NET) Other Non operating income	194.91 230.81 97.11 67.45 - - - 127.56 8.69 4.50
Total	300.70 430.31

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 23 : Cost of materials consumed

Note 23 : Cost of materials consumed
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Opening Stock : Add : Purchase Less : Closing Stock Raw Material Details of Materials Consumed	2700.17 1915.88 914.61 1988.55 2045.27 2700.17 1569.51 1204.26 1569.51 1204.26
Total	1569.51 1204.26
Note 24 : Purchases of Stock in Trade
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Purchases of Stock in Trade	189279.46 133682.20
Total	189279.46 133682.20
Note 25 : Changes in inventories of finished goods, stock in trade, work in progress
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Opening inventories Finished goods - Manufactured Finished goods - Traded Closing Inventories Finished goods - Manufactured Finished goods - Traded	3918.19 3842.19 201145.69 188280.63 205063.88 192122.82 3834.40 3918.19 207515.52 201145.69 211349.91 205063.88
Total	-6286.03 -12941.07
Note 26 : Employee Benefit expenses
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Salaries, Bonus and Other Allowances Remuneration to Directors Contribution to Provident and Other Funds Gratuity and other long term employee benefits Employee Welfare expenses	10670.66 8938.21 7204.80 7204.80 126.31 124.63 684.13 677.89 587.56 352.03
Total	19273.45 17297.56

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 27 : Finance Cost

Note 27 : Finance Cost
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Interest expenses Other Borrowing costs Interest on lease liabilities Interest on loans at amortized cost	21312.86 21629.74 1044.53 1350.05 - - 821.13 308.56
Total	23178.51 23288.36

Note 28 : Depreciation

Note 28 : Depreciation
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Depreciation on Property Plant and equipment Depreciation on Intangibles Depreciation on Right to use	2278.94 2303.72 1.92 1.92 5732.86 3615.06
Total	8013.72 5920.70
Note 29 : Other Expenses
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Power and Fuel Water Charges Job work charges Stores and spares Interest in delayed statutory dues GST Repairs and Renewals - Buildings Repairs and Renewals - Plant and Machinery Repairs and Renewals - Others Insurance Bad Debts Rent Printing and Stationery Travelling and Conveyance Motor Car Expenses Legal and Professional fees Payment to Auditors Postage and Courier Business Promotion Communication charges Commission on Sales Discounts and Rebates ROC fees and stamp duty Loss on foreign exchange fluctuations (NET) Tools and stores consumed Packing materials consumed Loss on sale of fixed asset Miscellaneous Expenses	1159.28 1044.69 - - 1041.09 655.82 - - 885.88 168.12 164.50 136.10 167.07 264.38 10.80 10.80 499.27 500.11 590.55 - 1656.87 1735.23 309.79 235.07 2558.08 1499.43 345.88 243.89 3333.00 3004.85 475.00 475.00 3.58 2.34 148.11 148.59 435.87 466.85 83.74 56.02 - 40.90 - - 22.94 - 543.89 502.87 45.53 70.79 - 506.12 3592.34 2216.88
Total	18073.05 13984.84

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 30 : Earnings Per Share

Note 30 : Earnings Per Share
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Earnings per share has been computed as under : (a) Profit and Loss for the period (b) Weighted Average of number of equity shares outstanding	-7673.43 -7734.97 53,80,000 53,80,000
Earnings per Share - BASIC	-1.43 -1.44
Diluted shares per share is the same as Basic Earnings per share

Note 31 : Contingent Liabilities & Commitments

Contingent Liability not provided for:

i) Demands/claims by various Government Authorities not acknowledged as debts and contested by the company:
a) Income Tax Rs. Nil (Prev.Yr. Rs. 8.25 lakhs) [Appeal filed with the C.I.T.(Appeals), Mumbai for Assessment Year 2011-12]
b) The Company has exposure to currency fluctuations. It does not hedge its position as the management feels it does not have any material impact as the company is importer as well as exporter of goods and services.

Note 32 : Disclosures as per IND AS - 19 - Employee Benefits

During the year, the company has recognised the following amounts in the Statement of Profit and Loss:

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
i) Employer’s contribution to Provident Fund Included in “ Contribution to Provident and other Funds” (Note 21).	126.31 124.63

.ii) Defined benefit obligation: (Unfunded)

The valuation results for the defined benefit gratuity plan as at 31-3-2022 are produced in the tables below:

i) Changes in the Present Value of Obligation

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Present Value of Obligation as at the beginning Current Service Cost Interest Expense or Cost Re-measurement (or Actuarial) (gain) / loss arising from: - change in financial assumptions - change in demographic assumptions - experience variance (i.e. Actual experience vs assumptions) Benefits Paid Present Value of Obligation as at the end	5225.25 4855.60 338.64 353.20 345.49 324.69 -405.01 46.35 - -375.46 -318.59 - -36.00 5128.92 5225.25
ii) Expenses Recognised in the Income Statement
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Current Service Cost Net Interest Cost / (Income) on the Net Defined Benefit Liability / (Asset) Expenses Recognised in the Income Statement	338.64 353.20 345.49 324.69 684.13 677.89

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

iii) Other Comprehensive Income

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Actuarial (gains) / losses - change in financial assumptions -405.01 46.35 - change in demographic assumptions - - - experience variance (i.e. Actual experience vs assumptions) -375.46 -318.59 Return on Plan Assets excluding interest income - - Components of defined benefit costs recognised in other comprehensive income -780.46 -272.24

iv) Actuarial Assumptions

a. Financial Assumptions

The principal financial assumptions used in the valuation are shown in the table below:

Particulars	Year Ended 31 March 2022 Year Ended 31 March 2021
	Rs.in '000s Rs.in '000s
Discount rate (per annum) Salary growth rate (perannum)	7.35% 6.70% 3.00% 3.00%

b. Demographic Assumptions

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Mortality Rate IALM(2012-14) IALM(2012-14) Employee Atrition Rate : (per annum) (PS) 0 to 5 years 20.00% 20.00% 5 to 47 years 1.00% 1.00%

v) Amount, Timing and Uncertainty of Future Cash Flows

a. Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given below:

Particulars		As at 31 March 2022 As at 31 March 2021
		Rs.in '000s Rs.in '000s
Defined Benefit Obligation (Base)		5128.92 5225.25

Particulars	As at 31 March 2022 Increase Decrease	As at 31 March 2021
		Increase Decrease
Discount Rate (- / + 1%) (% change compared to base due to sensitivity) Salary Growth Rate (- / + 1%) (% change compared to base due to sensitivity)	4,582 5,770 *-10.67%* *12.51%* 5,640 4,651 *9.96%* *-9.32%*	4,613 5,953 -11.72% 13.93% 5,820 4,690 11.38% -10.24%

The scheme is managed on funded basis.

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

b. Effect of Plan on Entity’s Future Cash Flows

Funding arrangements and Funding Policy

	As at	As at
Particulars	31 March 2022	31 March 2021
The scheme is unfunded.
- Expected Contribution during the next annual reporting period
The Company’s best estimate of Contribution during the next year	258.71	338.64
- Maturity Profile of Defined Benefit Obligation
Weighted average duration (based on discounted cash flows)	13.33 years	14.51 years
- Expected cash flows over the next (valued on undiscounted basis):	(Rs. in ‘000s)	(Rs. in ‘000s)
1 year	193.92	137.29
2 to 5 years	784.04	787.02
6 to 10 years	1554.73	1139.89
vi) Movement of Liability : Employee Benefits	-	-
Opening balance	5225.25	4855.60
Add : Provision for the year	-96.34	405.65
Less : Paid during the year	-	-36.00
Closing Balance	5128.92	5225.25

Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

A Salary Increases- Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability
B Investment Risk – If Plan is funded then the mismatch between assets and liabilities and actual return on assets being lower than the discount rate assumed at the last valuation date can impact the liability
C Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan’s liability
D Mortality & disability – Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E Withdrawals – Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

NOTE 33

A. CAPITAL MANAGEMENT

For the purpose of Company’s Capital Management, capital includes Issued Equity Capital, and retained earnings attributable to the Equity Holders of the Company. The primary objective of the Company’s Capital Management is to maximise the Share Holder Value.

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

The Company monitors capital using a ratio of ‘Net Debt’ to ‘Equity’. For this purpose, net debt is defined as total borrowings less Cash & Bank Balances and Other Current Investments.

The Company’s net debt to equity ratios are as follows:

Particulars Loans and Borrowings Less: Cash and Short Term Deposits Net Debt Equity Other Equity Total Capital Capital and Net Debt Net Debt to Equity Ratio	(Rs. in ‘000s) 31st March 2022 31st March 2021 191062.28 185268.92 -2267.48 -1008.38
	188794.80 184260.54 53800.00 53800.00 148787.02 155876.41
	202587.02 209676.41 391381.81 393936.96
	48.24% 46.77%

B. FINANCIAL RISK MANAGEMENT

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other receivables, investments in mutual funds and cash and short term deposits.

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.

i) Market Risk

Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates and other price risks. Financial instruments affected by market risks, primarily include loans & borrowings, investments and other receivables, payables and borrowings.

Interest Rate Risks

Interest rate risk can be either fair value interest rate 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 rate. 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.

Exposure to interest rate risk

The Company’s interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company’s interest-bearing financial instruments as reported to the management of the Company is as follows.

		(Rs. in ‘000s)
Particulars	31st March 2022	31st March 2021
Fixed-rate Instruments
Borrowings	191062.28	185268.92

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Commodity Price Risk

The Company’s activities are exposed to fibre price risks and therefore its overall risk management program focuses on the volatile nature of the fibre market, thus seeking to minimize potential adverse effects on the group’s financial performance on account of such volatility.

The Board reviews risk management policies.

Foreign Currency Risks

Currency risk is not material, as the company’s business activities are auto hedge since our Raw Material is imported whereas our Finished product pricing are determined in Dollar pricing, so we get the benefit of auto hedging.

ii) Credit Risk

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 customers.

The carrying amount of following financial assets represents the maximum credit exposure.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is almost negligible in case of its residential sale business as the same is done to the fact that in case of its residential sell business it does not handover possession till entire outstanding is received.

The ageing of trade receivables is given in Note 36F

The amounts reflected in the table above are not impaired as on the reporting date.

Investments in Debt Securities, Limited Liability Partnerships, Loans to Related Parties and Project Deposits

The Company has investments in mutual funds, and loans to related parties. Such Financial Assets are not impaired as on the reporting date.

Cash and Bank balances

The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.

iii) Liquidity Risk

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 have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

The Company has access to funds from debt markets through bank loan, commercial papers, fixed deposits from public and other debt instruments. The Company invests its surplus funds in bank fixed deposit and debt based mutual funds.

Exposure to Liquidity Risk

The following are the remaining contractual maturities of financial liabilities at the reporting date

(Rs. in ‘000s) .

March 31, 2022 Carrying Amount	Contractual cash flows
	Total Within 12 months 1-2 years 2-5 years More than 5 years
Financial Liabilities Non Current Borrowings 82173.71 Current Borrowings 108888.56 Trade Payables 8308.52 Others 7234.72	82173.71 - 24572.41 57601.30 - 108888.56 108888.56 - - - 8308.52 8308.52 - - - 7234.72 7234.72 - - -

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

March 31, 2021 Carrying Amount	Contractual cash flows
	Total Within 12 months 1-2 years 2-5 years More than 5 years
Financial Liabilities Non Current Borrowings 22683.94 Current Borrowings 162584.98 Trade Payables 19288.78 Others 9207.05	14231.15 - 9213.32 5017.83 - 162584.98 162584.98 - - - 19288.78 19288.78 - - - 9207.05 9207.05 - - -

FAIR VALUES AND HIERARCHY

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

March 31, 2022	(Rs. in ‘000s)
Particulars	Carrying Value Fair Value Heirarchy At Cost Fair Value through profit or loss Amortised Cost Total Level 1 Level 2 Level 3 Total
Financial Assets - Investments 9463.00 - - 9463.00 9463.00 9463.00 - Loans 61.00 - - 61.00 61.00 61.00 - Others financial assets 7649.28 - - 7649.28 7649.28 7649.28 Financial Liabilities - Borrowings 191062.28 - - 191062.28 191062.28 191062.28

March 31, 2021	(Rs. in ‘000s)
Particulars	Carrying Value Fair Value Heirarchy At Cost Fair Value through profit or loss Amortised Cost Total Level 1 Level 2 Level 3 Total
Financial Assets - Investments 9463.00 - - 9463.00 - - 9463.00 9463.00 - Loans 153.20 - - 153.20 - 153.20 153.20 - Others financial assets 6586.71 - - 6586.71 - - 6586.71 6586.71 Financial Liabilities - Borrowings 185268.92 - - 185268.92 - 185268.92 185268.92

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction between willing parties. The following methods and assumptions were used to estimate the fair value.

The Fair values of Investment are based on NAV at the reporting date.
The Company uses the discounted cash flow valuation technique (in relation to fair value of asset measured at amortised cost) which involves determination of present value of expected receipt/payment discounted using appropriate discounting rates. The fair value so determined are classified as Level 2.

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

NOTE 34 : Non Current and Current Borrowings

Vehicle loan is secured by a specific charge on respective purchases of Assets. Details of each loan taken are stated below:-

Nature of Security Terms of Repayment	Nature of Security Terms of Repayment
I -Vehicle Loan
Term loan from Kotak Mahindra Prime Limited, balance outstanding amounting to Rs 4,35,076 as on March 31, 2022 (March 31, 2021 Rs 6,20,846 ) is secured by charge on the Vehicle located at Mumbai .	Repayable in 62 installments starting from 01 Feb 2018. Last installment due in 01 June 2023 Rate of Interest is 8.25%
Term loan from Kotak Mahindra Prime Limited, balance outstanding amounting to Rs 3,85,259 as on March 31, 2022 (March 31, 2021 Rs 6,45,491 ) is secured by charge on the Vehicle located at Mumbai .	Repayable in 62 installments starting from 05 March 2018. Last installment due in 05 July 2023 Rate of Interest is 8.25%
Term loan from Toyota Financial Services (India) Limited, balance outstanding amounting to Rs 7,71,976 as on March 31, 2022 (March 31, 2021 Rs 9,32,432 ) is secured by charge on the Vehicle located at Mumbai .	Repayable in 65 installments starting from 20 Sep 2019. Last installment due in 20 Jan 2025 Rate of Interest is 10.01%
Term loan from Toyota Financial Services (India) Limited, balance outstanding amounting to Rs 8,19,720 as on March 31, 2022 (March 31, 2021 Rs 9,77,346 ) is secured by charge on the Vehicle located at Mumbai .	Repayable in 65 installments starting from 10 Dec 2019. Last installment due in 10 Apr 2025 Rate of Interest is 9.51%
Details Terms of Repayment
II- Working Capital / Term Loan
Term loan from IDFC Capital First Limited, balance outstanding amounting to Rs 9,15,122 as on March 31, 2022 (March 31, 2021 Rs 12,17,298 ) is Unsecured.	Repayable in 67 installments starting from 02 June 2018. Last installment due in 02 Dec 2023 Rate of Interest is 18.00%
Term loan from Deutsche Bank, balance outstanding amounting to Rs 29,37,851 as on March 31, 2022 (March 31, 2021 Rs 34,76,416) is Unsecured.	Repayable in 52 installments starting from 05 Oct 2019. Last installment due in 05 June 2025 Rate of Interest is 18.00%
Term loan (GECL) from Deutsche Bank, balance outstanding amounting to Rs 3,08,858 as on March 31, 2022 (March 31, 2021 Rs 3,53,000) is Unsecured.	Repayable in 48 installments starting from 05 Nov 2020. Last installment due in 05 Oct 2024 Rate of Interest is 9.00%
Term loan from Edelweiss Retail Finance Limited, balance out- standing amounting to Rs 16,12,436 as on March 31, 2022 (March 31, 2021 Rs 20,23,259) is Unsecured.	Repayable in 58 installments starting from 05 May 2018. Last installment due in 05 Feb 2023 Rate of Interest is 18.00%
Term loan (GECL) from Edelweiss Retail Finance Limited, balance outstanding amounting to Rs 3,73,732 as on March 31, 2022 (March 31, 2021 Rs 4,34,100) is Unsecured.	Repayable in 48 installments starting from 05 Oct 2020. Last installment due in 05 Sep 2024 Rate of Interest is 14.00%
Term loan from India Infoline Finance Limited, balance outstand- ing amounting to Rs 41,60,113 as on March 31, 2022 (March 31, 2021 Rs 38,42,983) is Unsecured.	Repayable in 65 installments starting from 03 March 2020. Last installment due in 03 July 2025 Rate of Interest is 18.70%
Term loan (GECL) from India Infoline Finance Limited, balance outstanding amounting to Rs 6,02,649 as on March 31, 2022 (March 31, 2021 Rs 7,00,000) is Unsecured.	Repayable in 48 installments starting from 03 Oct 2020. Last installment due in 03 Sep 2024 Rate of Interest is 14.00%
Term loan from Kotak Mahindra Bank Limited, balance outstand- ing amounting to Rs 16,56,767 as on March 31, 2022 (March 31, 2021 Rs 30,94,429) is Unsecured.	Repayable in 26 installments starting from 01 Jan 2021. Last installment due in 01 Feb 2023 Rate of Interest is 19.00%

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Term loan from Shriram City Union Finance Limited, balance outRepayable in 36 installments starting from 05 Jan 2019. Last standing amounting to Rs 5,13,499 as on March 31, 2022 (March installment due in 05 Aug 2022 Rate of Interest is 19.00% 31, 2021 Rs 17,18,670) is Unsecured. Term loan from Tata Capital Financial Services Limited, balance Repayable in 36 installments starting from 03 Jan 2019. Last outstanding amounting to Rs 2,73,889 as on March 31, 2022 installment due in 03 Jul 2022 Rate of Interest is 15.00% (March 31, 2021 Rs 10,69,963) is Unsecured. Term loan from R & G Advani Impex Private Limited, balance outstanding amounting to Rs 18,07,703 as on March 31, 2022 Repayable on demand. Rate of Interest is 12.00% (March 31, 2021 Rs 21,31,071) is Unsecured. Term loan from Shalimar Hotels Private Limited, balance outstanding amounting to Rs 16,62,001 as on March 31, 2022 (March 31, Repayable on demand. Rate of Interest is 12.00% 2021 Rs 15,20,071) is Unsecured. Term loan (GECL 1) from State Bank of India, balance outstanding Repayable in 36 installments starting from 14 Jul 2022. Last amounting to Rs 2,44,25,343 as on March 31, 2022 (March 31, installment due in 14 Jun 2025 Rate of Interest is 7.40% 2021 Rs 2,66,66,551) extended against existing security of Term Loan / cashcredit accounts as part of the Covid19 package Term loan (GECL 2) from State Bank of India, balance outstanding Repayable in 36 installments starting from 25 Nov 2023. Last amounting to Rs 1,19,07,842 as on March 31, 2022 (March 31, installment due in 25 Oct 2026 Rate of Interest is 7.40% 2021 Rs. NIL) extended against existing security of Term Loan / cashcredit accounts as part of the Covid19 package Term loan (WCTL) from State Bank of India, secured on pari passu Repayable in 72 installments starting from 01 Dec 2022. Last basis, by way of hypothecation of inventories, book debts and installment due in 01 Nov 2028 Rate of Interest is 10.65% receivables both present and future and further secured by way of equitable mortgage of company’s factory and machinery and equipments as well as equitable mortgage over factory and machinery and equipments of M/s. Global Instile Solid Industries Limited (Related party) balance outstanding amounting to Rs 4,84,34,170 as on March 31, 2022 (March 31, 2021 Rs. NIL )

Cash Credit facilities from State Bank of India, secured on pari passu basis, by way of hypothecation of inventories, book debts and receivables both present and future and further secured by way of equitable mortgage of company’s factory and machinery and equipments as well as equitable mortgage over factory and Repayable on demand. Rate of Interest is 10.65% machinery and equipments of M/s. Global Instile Solid Industries Limited (Related party) balance outstanding amounting to Rs 8,51,85,143 as on March 31, 2022 (March 31, 2021 Rs. 13,18,34,433).

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

NOTE 35(1) Related Party Disclosures

Related Party Disclosure: (as required by Ind AS 24)

a) List of Parties which significantly influence / are influenced by the company (either individually or with others) : 1) Relationships : (a) Key Management Personnel : Mr. Milan B. Khakhar

Mr. Prakash B. Khakhar

Mr. Manoj Dewani

Mr. Hardik Valia

(b) Associate Concern : Global Instile Solid Industries Ltd.

(c) Relatives of Key Management personnel and Enterprise owned and significantly influenced by Key Management personnel or their relatives Milan Marble & Tiles

Yash P. Khakhar Jeenoo Khakhar Shabnam Khakhar (Formerly called Shraddha Khakhar) Sonal Dewani

Note : Related party relationship on the basis of the requirements of Ind AS 24 is as identified by the Company and relied upon by the Auditors

2) Transactions carried out with Related parties referred to in 1 above, in ordinary course of business :

==> picture [478 x 358] intentionally omitted <==

----- Start of picture text -----

NATURE OF TRANSACTIONS RELA TED PARTIES
Relatives of Key Management
Key Management Personnel Associate Concern personnel and Enterprise owned
and significantly influenced by
Key Management personnel or
their relatives
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
PURCHASES :
Goods and Material — — 108921.10 43068.11 — —
SALES :
Goods and Material — — — — — —
EXPENSES :
Rent — — — — 720.00 780.00
Salary / Remuneration &
Allowances 9474.60 9008.60 — — 1959.80 1507.20
Directors’ fees — — — — — —
INCOME : — — — — — —
OUTSTANDINGS :
Payable 1542.36 1,640.36 — — 1405.31 1706.52
Receivable — — 3551.96 2613.59 — —
LOANS :
Payable 1873.13 432.85 — — — —
Receivable — — — — — —
Taken 6485.00 1630.00 — — — —
Re-Paid 5044.72 4846.08 — — — —
DEPOSITS :
Given — — — — 1350.00 1000.00
GUARANTEES :
Given — — — — — —
Taken 276000.00 276000.00 138000.00 138000.00 — —
----- End of picture text -----

Disclosures pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 & section 186 of the Companies Act, 2013

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

NOTE 35(2) : Related Party Disclosures

==> picture [477 x 543] intentionally omitted <==

----- Start of picture text -----

Sr. Nature of Associate Relatives of Key Management personnel and
No. Transaction Key Management Personnel Concern Enterprise owned and significantly influenced by
Key Management personnel or their relatives
Milan Prakash Manoj Hardik Valia Global Milan Yash Jeenoo Shabnam Sonal
Khakhar Khakhar Dewani (Company Instile Solid Marble & Khakhar Khakhar Khakhar Dewani
(Chairman & (Joint (Chief Secretary) Industries Tiles
Managing Managing Financial Ltd.
Director) Director) Officer)
1 Payments to &
provision for :
a) Salary/Remuneration
& Allowance 3602.40 3602.40 1727.40 542.40 — — 392.60 242.40 242.40 1082.40
— —
(3602.40) (3602.40) (1494.90) (308.90) (151.10) (362.40) (242.40) (902.40)
b) Rent — — — — — 720.00 — — — —
— — — — — (780.00) — — — —
c) Director’s Fees — — — — — — — — — —
— — — — — — — — — —
2 a) Loans Taken 5925.00 560.00 — — — — — — — —
(1430.00) (200.00) — — — — — — — —
b) Loans refunded 4346.55 698.17 — — — — — — — —
— — — — — — — —
(4751.70) (94.38)
c) Loans Payable 1830.17 42.96 — — — — — — — —
(251.73) (181.13) — — — — — — — —
3 Purchase of Goods — — — — 108921.10 — — — — —
— — — — — — — — —
(43068.11)
4 Sale of Goods — — — — — — — — — —
— — — — — — — — — —
5 Deposits
Receivable as
on 31st March — — — — — 1350.00 — — — —
— — — — — — — — —
(1000.00)
6 Outstanding Payable
as on 31st March 524.86 25.26 804.85 187.40 — 493.36 59.90 190.46 244.69 416.90
— —
(326.73) (288.33) (860.90) (164.40) (762.16) (149.22) (173.74) (537.40)
7 Outstanding
Receivable as on
31st March — — — — 3551.96 — — — — —
— — — — — — — — —
(2613.59)
8 Outstanding
Guarantee taken as
on 31st March 138000.00 138000.00 — — 138000.00 — — — — —
— — — — — — —
(138000.00) (138000.00) (138000.00)
----- End of picture text -----

(figures in Brackets relate to previous year)

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 36

A In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realises in the ordinary course of business. The provisions for all known liabilities are adequate and neither in excess or short of the amount reasonably necessary.

	amount reasonably necessary.
			(Rs. in ‘000s)
B	Remuneration to Auditors	March’ 2022	March’ 2021
	Audit Fees	475.00	475.00
	Taxation Matters	-	-
	Total	475.00	475.00
C	Remuneration to Directors	March’ 2022	March’ 2021
	Total	7204.80	7204.80
D	Disclosure for Shareholding Movement

Sr	Particulars	March’	March’	March’	March’	March’
		2022	2021	2020	2019	2018
(i)	Aggregate number and class of shares allotted
	as fully paid-up pursuant to contract(s) without
	payment being received in cash.	Nil	Nil	Nil	Nil	Nil
(ii)	Aggregate number and class of shares allotted
	as fully paid-up by way of bonus shares.	Nil	Nil	Nil	Nil	Nil
(iii)	Aggregate number and class of shares
	bought back.	Nil	Nil	Nil	Nil	Nil

E Trade Payables Ageing Schedule (As on 31 March, 2022) :

(Rs. in ‘000s)

Sr No. Particulars	Outstanding for following periods from due date of payment
	Less than 1-2 years 2-3 More than Total 1 year years 3 years
(i) MSME (ii) Others (iii) Disputed dues— MSME (iv) Disputed dues— Others	- - - - - 6880.86 - - - 6880.86 - - - - - - - - - -

E Trade Payables Ageing Schedule (As on 31 March, 2021) : (Rs. in ‘000s)

Sr No. Particulars	Outstanding for following periods from due date of payment
	Less than 1-2 years 2-3 More than Total 1 year years 3 years
(i) MSME (ii) Others (iii) Disputed dues— MSME (iv) Disputed dues— Others	- - - - 18393.88 18.64 - 18.02 18430.54 - - - - - - - -

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

F Trade Receivables Ageing Schedule(As on 31 March, 2022) :

(Rs. in ‘000s)

Sr No. Particulars	Outstanding for following periods from due date of payment
	Less than 6 Months - 1-2 2-3 More than Total 6 Months 1 Year Years Years 3 Years
(i) Undisputed Trade Receivables - Considered Good (ii) Undisputed Trade Receivables - Considered Doubtful (iii) Disputed Trade Receivables - Considered Good (iv) Disputed Trade Receivables - Considered Doubtful	38853.61 17.13 5945.98 30059.70 42806.12 117682.54 - - - - - - - - - - - - - - - - - -

F Trade Receivables Ageing Schedule(As on 31 March, 2021) :

(Rs. in ‘000s)

Sr No. Particulars	Outstanding for following periods from due date of payment
	Less than 6 Months - 1-2 2-3 More than Total 6 Months 1 Year Years Years 3 Years
(i) Undisputed Trade Receivables - Considered Good (ii) Undisputed Trade Receivables - Considered Doubtful (iii) Disputed Trade Receivables - Considered Good (iv) Disputed Trade Receivables - Considered Doubtful	39906.55 - 36984.70 23076.69 20229.43 120197.37 - - - - - - - - - - - - - - - - - -

G Ratios Disclosed

Sr No.	Particulars	Numerator	Denominator	March’	March’	%	Reasons for variance
				2022	2021	Variance	(above 25%)
(i)	Current Ratio (in times)	Current assets	Current liabilities	2.73	1.97	38%	Current ratio has increased
							due to decrease in current
							borrowings
(ii)	Debt - Equity Ratio (in times)	Total Debt	Total Equity	1.04	0.90	15%	-
(iii)	Debt Service Coverage Ratio	Net profit after tax+	Interest +	0.56	0.94	-40%	On account of moratorium
	(in times)	Interest+Non-cash	Principal				on loans in F.Y.2020-21
		operating expenses	repayments of				due to COVID-19, the loan
			Non current				repayment was consider-
			borrowings				ably low as compared to
							current year F.Y.2021-22
(iv)	Return on Equity Ratio (in %)	Net profit after tax	Average Total	-4%	-4%	1%	-
			Equity
(v)	Inventory Turnover Ratio (in	Average Inventory	Cost of Goods	417.02	602.07	-31%	In F.Y.2020-21 due to
	days)		sold				COVID-19, Turnover was
							considerably low as
							compared to current year
							F.Y.2021-22

32nd ANNUAL REPORT 2021-2022

NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Sr No.	Particulars	Numerator	Denominator	March’	March’	%	Reasons for variance
				2022	2021	Variance	(above 25%)
(vi)	Trade Receivables Turnover	Average Trade	Revenue from	178.50	304.84	-41%	In F.Y.2020-21 due to
	Ratio (in days)	receivables	Operations				COVID-19, Turnover was
							considerbly low as
							compared to current year
							F.Y.2021-22
(vii)	Trade Payables Turnover Ratio	Average Trade	Purchases	26.48	49.24	-46%	In F.Y.2020-21 due to
	(in days)	payables					COVID-19, Purchases
							were abnormally low as
							compared to current year
							F.Y.2021-22 .
(viii)	Net Capital Turnover Ratio (in	Average Working	Revenue from	350	439	-20%	-
	days)	Capital	Operations
(ix)	Net Profit Ratio (in %)	Net profit after tax	Revenue from	-3%	-4%	-30%	In F.Y.2020-21 due to
			Operations				COVID-19, sales and
							margin were considerably
							low as compared to current
							year F.Y.2021-22.
(x)	Return on Capital Employed (in	Net profit before	Capital	3%	3%	-3%	-
	%)	interest and tax	Employed [Total
			Equity + Non
			Current Debt]
(xi)	Return on Invesments (in%)	Earnings before	Average Total	3%	3%	0%	-
		interest and tax	Assets

H Segment Information:

The Company is engaged interalia in the business of natural stones, building material and allied building activities which is considered as a single segment. These in the context of Ind AS 108 “ Operating Segment” are considered to constitute one single primary segment. The Company’s operations outside India do not exceed the quantitative threshold for disclosure envisaged in the Accounting Standard. Non-reportable segments have not been disclosed as unallocated reconciling item in view of their materiality. In view of the above, primary and secondary reporting disclosures for business/geographical segment are not applicable.
I The Company continues to monitor the impact of COVID 19 on its business and is in a position to meet its commitments and will be able to meet all its debts obligations as and when they come up. Although there are uncertainties due to the pandemic, the Company expects the demand to normalise for its products as the impact of pandemic recedes.
J Previous year’s figures, wherever necessary, have been regrouped/reclassified to conform to the current year’s presentation.

In terms of our report attached. For Merchant & Co Chartered Accountants Firm Reg.No.145290W

Ushma Merchant Propreitor Mem.No.142930 Place : Mumbai Date : May 26, 2022

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SOLID STONE COMPANY LIMITED

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated Ind AS financial statements of SOLID STONE COMPANY LIMITED (hereinafter referred to as “the Holding Company”) and its Associate (the Holding Company and its Associate together referred to as “the Group”) comprising of the Consolidated Balance Sheet as at March 31, 2022, the Consolidated Statement of Profit and Loss, the consolidated Statement of Changes in Equity, the Consolidated Cash Flow Statement for the period then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the Consolidated Ind AS Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us the aforesaid consolidated Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the consolidated state of affairs (financial position) of the Group as at 31st March, 2022, and their consolidated profit (financial performance including other comprehensive income), the consolidated changes in equity and their consolidated cash flows for the year ended on that date

Basis of Opinion

We conducted our audit of the Consolidated Financial Statements in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the Consolidated Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred in sub-paragraph 14 of the Other Matters section below is sufficient and appropriate to provide a basis for our audit opinion on the Consolidated Financial Statements.

Emphasis of Matter

We draw your attention to Note 1-II-(x) to the accompanying consolidated financial statements which explains the uncertainties and the management’s assessment of the financial impact due to the lock-downs and other restrictions and conditions related to COVID-19 pandemic situation, for which a definitive assessment of the impact in subsequent period is dependent upon circumstances as they evolve. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

==> picture [460 x 103] intentionally omitted <==

----- Start of picture text -----

Sr. No. Key Audit Matters How the matter was addressed by us.
Revenue recognition (refer Note 1(II) (c) and Note 21 of the Consolidated Financial Statements)
1 Revenue is one of the key profit drivers and is there- Our audit procedures with regard to revenue recognition
fore susceptible to misstatement. Cut-off is the key included testing controls, automated and manual, around dis-
assertion insofar as revenue recognition is con- patches / deliveries, inventory reconciliations and circular-
cerned, since an inappropriate cut-off can result in ization of receivable balances, testing of cut-off s and per-
material misstatement of results for the year. forming analytical review procedures
----- End of picture text -----

32nd ANNUAL REPORT 2021-2022

Other Information

The Holding Company’s management and Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Holding Company’s Annual Report but does not include the Consolidated Financial Statements and our auditor’s report thereon.
Our opinion on the Consolidated Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Consolidated Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Consolidated financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management’s and Board of Directors’ Responsibility for the Consolidated Financial Statements

The Holding Company’s Management and Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (hereinafter referred to as “the Act”) with respect to the preparation of these Consolidated Financial Statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Group in accordance with accounting principles generally accepted in India, including the Accounting Standards, specified under Section 133 of the Act, read together with Rules thereon. The respective Board of Directors/management of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Management and Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective Board of Directors/Management of the companies and its associate included in the group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Management and Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors/management of the companies and its associate included in the group are responsible for overseeing the financial reporting process of the Group.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
l Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion, The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

l Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Group has adequate Internal Financial Controls with reference to these financial statements in place and the operating effectiveness of such controls.
l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
l Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern
l Evaluate the overall presentation, structure and content of the Consolidated Financial Statements, including the disclosures, and whether the Consolidated Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
l Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. For the entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
l Materiality is the magnitude of misstatements in the Consolidated Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
l We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
l We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
l From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Consolidated Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication

Other Matters

We did not audit the financial statements of Global Instile Solid Industries Limited, associate of the Holding Company. The amount of share of profit of Rs. 3.47 Lakhs ( of associate company is part of the consolidated revenue of the Consolidated Financial Statements.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is no modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditor and the financial statements certified by the Management.

Report on Other Legal and Regulatory Requirements

With respect to the matters specified in clause (xxi) of paragraph 3 and paragraph 4 of the Companies (Auditor’s Report) Order, 2020 (“CARO”/ “the Order”) issued by the Central Government in terms of Section 143(11) of the Act, according to the

32nd ANNUAL REPORT 2021-2022

information and explanations given to us, and based on the CARO reports issued by us and the auditors of respective companies included in the Consolidated Financial Statements to which reporting under CARO is applicable, as provided to us by the Management of the Parent, we report that there are no qualifications or adverse remarks by the respective auditors in the CARO reports of the said companies included in the Consolidated Financial Statements.

As required by Section 143 (3) of the Act, read together with Other Matters Para referred to above, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
b) In our opinion, proper books of account, as required by the law relating to preparation of the aforesaid consolidated financial statements, have been kept so far as it appears from our examination of those books and the reports of the other auditors.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, the Consolidated Statement of Changes in Equity and the Consolidated Cash Flow statement dealt with by this report are in agreement with the relevant books of account, maintained for the purpose of preparation of the consolidated financial statements.
d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act, read together with Rules thereon.
e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2022 taken on record by the Board of Directors of the Holding Company and the reports of the Statutory Auditors of Associate for the entity incorporated in India, none of the directors of the Holding Company and Associate company incorporated in India, is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Group and the operating effectiveness of such controls, refer to our separate report in “Annexure A”; and
g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us;
- i) The Management has represented that there are no pending litigations on the Holding Company and its associate impacting the consolidated financial statements;
- ii) The Group did not have any long-term contracts including derivative contracts, for which there were any material foreseeable losses during the year ended March 31, 2022.
- iii) There has been no delay in transferring amount required to be transferred, to the Investor Education Protection Fund by the Holding Company and its Associate Company incorporated in India during the year ended March 31, 2022.
- iv) (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in its aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kinds of funds) by the Group to or in any other person or entity, including foreign entity (“Intermediaries”), with the, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Group (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
  - (b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Group from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Group shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

  - (c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

(v) Neither the Holding Company nor its associate has declared or paid any final or interim dividend during the year.
With respect to the matter to be included in the Auditors’ Report under Section 197 (16) of the Act, we report that:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Group to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act; and the Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.

For Merchant & Co. Chartered Accountants ICAI Firm Registration No. 145290W

Ushma Merchant Proprietor Membership No.: 142930 UDIN : 22142930AKKYSQ7391

Place : Mumbai Date : May 26, 2022

32nd ANNUAL REPORT 2021-2022

ANNEXURE “A”: TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 15 (f) under “Report on other Legal and Regulatory Requirements” section of our report to the Members of Solid Stone Company Limited of even date)

1. Report On The Internal Financial Controls Over Financial Reporting Under Clause (I) Of Sub-Section 3 Of Section 143 Of The Companies Act, 2013 (“The Act”)

We have audited the internal financial controls over financial reporting of SOLID STONE COMPANY LIMITED (hereinafter referred to as “the Holding Company”) and its associate company as of March 31, 2022 in conjunction with our audit of the consolidated financial statements of the Company for the year ended on that date.

2. Management’s Responsibility for Internal Financial Controls

The respective Board of Directors of the Holding Company and associate company are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Holding Company and its associate company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Act.

3. Auditors’ Responsibility

Our responsibility is to express an opinion on the Holding Company’s internal financial controls over consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by Institute of Chartered accountants of India and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred in Other Matters paragraph below is sufficient and appropriate to provide a basis for our audit opinion on the Holding Company’s internal financial controls system over financial reporting with reference to consolidated financial statements.

4. Meaning of Internal Financial Controls over Financial Reporting

5. Inherent Limitations of Internal Financial Controls Over Financial Reporting

SOLID STONE COMPANY LIMITED (CIN : L26960MH1990PLC056449)

projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

6. Opinion

In our opinion, the Holding Company am its associate Company have in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2022, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India.

7. Other Matters

Our aforesaid reports under Section 143(ii) of the Act on the adequacy and operating effectiveness of internal financial controls with reference to the consolidated financial statements insofar as it related to the associate Company is based on the corresponding report of the auditor of such Company incorporated in India. Our opinion is not modified in respect of this matter

For Merchant & Co. Chartered Accountants ICAI Firm Registration No. 145290W

Ushma Merchant Proprietor Membership No.: 142930 UDIN : 22142930AKKYSQ7391

Place : Mumbai Date : May 26, 2022

32nd ANNUAL REPORT 2021-2022

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2022

Particulars Note	As at As at 31 March 2022 31 March 2021	As at As at 31 March 2022 31 March 2021	As at As at 31 March 2022 31 March 2021
		Rs. in ‘000s	Rs. in ‘000s
A ASSETS 1 Non-current assets (a) Property,Plant and Equipment 2(a)&( c) (b) Capital Work in Progress (c) Investment Property (d) Other Intangible assets 2(b) (e) Financial Assets (i) Investments 3 (ii) Trade Receivables (iii) Loans (iv) Other Financial assets 4 (f) Deferred Tax assets(net) 5 (g) Other Non Current assets 6 2 Current assets (a) Inventories 7 (b) Investment Property held for sale (c) Financial Assets (i) Investments (ii) Trade Receivables 8 (iii) Cash and cash equivalents 9 (iv) Bank Balances other than (iii) above 10 (v) Loans 11 (vi) Others Financial Assets (d) Other Current assets 12 TOTAL ASSETS B EQUITY AND LIABILITY 1 Equity (a) Equity share capital SOCE (b) Instruments entirely equity in nature (c) Other Equity SOCE Liabilities 2 Non Current liabilities (a) Financial liabilities (i) Borrowings 13 (ia) Lease Liabilities 14(a) (ii) Trade Payables a) Total Outstanding dues of Micro Enterprises and small enterprises ; b) Total Outstanding dues of creditors other than Micro Enterprises and small enterprises ; (iii) Other financial liabilities (b) Provisions 15 (c) Deferred tax liabilities (net) (d) Other non-current liabilities 3 Current liabilities (a) Financial liabilities (i) Borrowings 16 (ia) Lease Liabilities 14(b) (ii) Trade payables 17 a) Total Outstanding dues of Micro Enterprises and small enterprises ; b) Total Outstanding dues of creditors other than Micro Enterprises and small enterprises ; (iii) Other Financial liabilities 18 (b) Other current liabilities 19 (c) Provisions 20 TOTAL EQUITY AND LIABILITIES See accompanying notes forming part of the financial statements		26593.03 - - 0.83 9524.87 - - 7649.28 7273.64 - 51041.65 213656.34 - - 117682.54 2267.48 - 61.00 - 73965.00 407632.36 458674.01 53800.00 - 148848.88 202648.88 82173.71 19434.45 - - 4935.00 - - 106543.16 108888.56 - - 8308.52 7234.72 24856.25 193.92 149481.97 458674.01 -	12059.97 - - 2.75 9177.78 - - 6586.71 5041.28 - 32868.50 208079.28 - - 120197.37 1008.38 159.71 153.20 - 93479.88 423077.82 455946.32 53800.00 - 155591.20 209391.20 22683.94 4009.80 - - 5087.97 - 31781.71 162584.98 - - 19288.78 9207.05 23555.32 137.29 214773.41 455946.32 -

See accompanying notes forming part of the financial statements

In terms of our report attached. For Merchant & Co Chartered Accountants Firm Reg.No.145290W

For and on Behalf of the Board

M. B. KHAKHAR P. B. KHAKHAR Chairman & Managing Director Jt.ManagingDirector (DIN: 00394065) (DIN: 00394135) M.D.DEWANI H.D.VALIA Chief Financial Officer Company Secretary (ACS No.22571)

Ushma Merchant Propreitor Mem.No.142930 Place : Mumbai Date : May 26, 2022

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2022

Particulars Note	As at 31 March 2022	As at 31 March 2021
	Rs. in ‘000s	Rs. in ‘000s
I INCOME (a) Revenue from operations 21 (b) Other income 22 Total Income II EXPENSES (a) Cost of materials consumed 23 (b) Purchases of stock-in-trade 24 (c) Changes in Inventories 25 (d) Employee benefits expense 26 (e) Finance costs 27 (f) Depreciation,amortisation,impairment expense 28 (g) Other expenses 29 Total expenses III Profit / (Loss) before exceptional items IV Exceptional items V Profit / (Loss) before tax VI Tax expense: (a) Current tax (b) Mat Entitlement (c) Excess/ Shortage of earlier years tax provision (d) Deferred tax VII Profit / (Loss) for the year VIII Other Comprehensive Income (a) Items that will not be reclassified to Profit or loss (i) Measurement of employment defined benefit plans (ii) Fair value changes of equity instruments (iii) Revaluation of property, plant and equipment (b) Income tax relating to items in (a) above Total Other Comprehensive Income (Net of Tax) Add / (Less) : Share of Profit / (Loss) of Associate Company IX Total Comprehensive Income for the period X Earnings Per Share (Rs 10 per share fully paid up) (a) Basic 30 (b) Diluted 30 See accompanying notes forming part of the financial statements	243210.32 300.70 243511.02 1569.51 189279.46 -6286.03 19273.45 23178.51 8013.72 18073.05 253101.67 -9590.65 - -9590.65 - 511.57 -2428.79 -1917.22 -7673.43 780.46 - - -196.43 584.04 347.08 -6,742 (1.43) (1.43)	172324.12 430.31 172754.43 1204.26 133682.20 -12941.07 17297.56 23288.36 5920.70 13984.84 182436.85 -9682.42 - -9682.42 - 247.68 -2195.12 -1947.44 -7734.97 272.24 - - -68.52 203.72 -35.83 -7,567 (1.44) (1.44)

In terms of our report attached. For Merchant & Co Chartered Accountants Firm Reg.No.145290W

Ushma Merchant Propreitor Mem.No.142930 Place : Mumbai Date : May 26, 2022

For and on Behalf of the Board

M. B. KHAKHAR P. B. KHAKHAR Chairman & Managing Director Jt.ManagingDirector (DIN: 00394065) (DIN: 00394135)

M.D.DEWANI H.D.VALIA Chief Financial Officer Company Secretary (ACS No.22571)

32nd ANNUAL REPORT 2021-2022

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2022

	(Rs.in ‘000s)	(Rs.in ‘000s)	(Rs.in ‘000s)
	Year Ended Year Ended 31 March, 2022 31 March, 2021
CASH FLOW FROM OPERATING ACTIVITIES Net Profit before tax Adjustments for Non cash and other items : Depreciation and amortisation Mark to Market gain on valuation of Mutual Funds Finance Cost considered in financing activities Income on Amortization of loans Interest on lease liabilities Interest on loans at amortized cost (Profit)/ Loss on loss of fixed asset Apportioned Income from Government Grant Total Operating Profit before working capital changes Adjustments for: (Increase) / Decrease in inventories (Increase) / Decrease in trade receivables (Increase) / Decrease in loans and other financial assets (Increase) / Decrease in other current and non assets Increase / (Decrease) in other Trade Payables Increase / (Decrease) in other financial liabilities Increase / (Decrease) in provisions Increase / (Decrease) in other current liabilities Less: Income tax paid (net of refunds) Cash generated from Operating Activities (I) CASH FLOW FROM INVESTING ACTIVITIES Inflows Sale of assets Sale of investments Outflows Purchase of fixed assets Purchase of equity investments (NET) Capital Advances Cash generated from Operating Activities (II)		(9590.65) 8013.72 - 22357.38 (97.11) - 821.13 - -	(9682.42) 5920.70 22979.79 (67.45) - 308.56 506.12 - 29647.73 19965.32 (13860.87) 47449.47 (104.10) (41077.36) 1972.85 9207.05 641.89 (12783.76) 11410.49 (1174.03) 10236.47 428.33 - (427.75) - 0.59
		31095.12 21504.47 (5577.06) 2514.83 92.20 18709.13 (10980.27) (1972.33) 684.13 1300.94
		26276.04 (511.57) 25764.47 - (517.45) - - (517.45)
CASH FLOW FROM FINANCING ACTIVITIES Inflows Increase in share capital Proceeds from term loan Proceeds from Working Capital Loan Outflows Proceeds / (Repayment) of unsecured Loan Finance cost Lease rent paid Cash generated from Financing Activities (III) NET INCREASE / (DECREASE) CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		- 59489.77 -60199.69 6503.27 -22357.38 -7423.89 -23987.92 1259.10 1008.38 2267.48	- 11629.00 16613.51 -12860.15 -22979.79 -3468.91 -11066.36 -830.31 1837.69 1007.38

In terms of our report attached. For Merchant & Co Chartered Accountants Firm Reg.No.145290W

Ushma Merchant Propreitor Mem.No.142930 Place : Mumbai Date : May 26, 2022

For and on Behalf of the Board

M. B. KHAKHAR

P. B. KHAKHAR

Chairman & Managing Director Jt.ManagingDirector (DIN: 00394065) (DIN: 00394135)

M.D.DEWANI Chief Financial Officer

H.D.VALIA Company Secretary (ACS No.22571)

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH, 2022

(Rs. in ‘000s)

STATEMENT OF CHANGES IN EQUITY	FOR THE YEAR ENDED 31 MARCH, 2022 (Rs. in ‘000s)
Particulars	31 March 2022 31 March 2021
	No of shares Rs. in ‘000s No of shares Rs. in ‘000s
(A) Equity Share Capital Opening Equity Share Capital Add: Increase during the year Less: Reduction during the year	53,80,000 53800.00 53,80,000 53800.00 - - - - - -
Total	53,80,000 53800.00 53,80,000 53800.00

Reconciliation of number of shares

Reconciliation of number of shares
Particulars	31 March 2022 31 March 2021
	No of shares Rs. No of shares Rs.
Balance at beginning of year Issued subscribed and fully paid up Right issue	53,80,000 53800.00 53,80,000 53800.00 - -- - - -- -
Balance at closing of year	53,80,000 53800.00 53,80,000 53800.00

(a) Rights, preferences and restrictions attached to shares

- (b) Shareholders holding more than 5 percent of the equity shares :

Name of Shareholder	31 March 2022 31 March 2021
	No. of Shares held % of Holding No. of Shares held % of Holding
Prakash Bhagwandas Khakhar Milan Bhagwandas Khakhar Jeenoo Milan Khakhar Vasumati Bhagwandas Khakhar	1378895 25.63% 1378895 25.63% 808415 15.03% 808415 15.03% 699300 13.00% 699300 13.00% 682190 12.68% 682190 12.68%

(c) Details of Share holding pattern of promoters

Name of Shareholder	31 March 2022 31 March 2021
	No. of Shares held % of Holding No. of Shares held % of Holding
Prakash Bhagwandas Khakhar Milan Bhagwandas Khakhar Jeenoo Milan Khakhar Vasumati Bhagwandas Khakhar Mahi Prakash Khakhar Yash Prakash Khakhar Kanika Milan Khakhar Isha Milak Khakhar Shabnam Prakash Khakhar Charu Shekar Davda	1378895 25.63% 1378895 25.63% 808415 15.03% 808415 15.03% 699300 13.00% 699300 13.00% 682190 12.68% 682190 12.68% 49216 0.91% 49216 0.91% 47969 0.89% 47969 0.89% 40700 0.76% 40700 0.76% 33300 0.62% 33300 0.62% 30500 0.57% 30500 0.57% 500 0.01% 500 0.01%

32nd ANNUAL REPORT 2021-2022

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH, 2022

(Rs. in ‘000s)

(B) Other Equity

Particulars	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Other Comprehensive Income	Other Comprehensive Income	TOTAL
	General Reserves	Capital Reserve	Securities Premium	Retained Earnings	Equity Instru- ments FVTOCI	Remeasur- ement of Employee benefits
Balance as at April 01, 2020 Profit for the year Other Comprehensive income for the year Total Dividends Transfer to retained earnings Balance as at March 31, 2021 Balance as at April 01, 2021 Profit for the year Other Comprehensive income for the year Total Bonus Shares issued during the year Dividends Transfer to retained earnings Balance as at March 31, 2022	500.00 - -	4404.90 -	52400.00 - -	108474.36 -7770.81	- - -	-2620.98 - 203.72	163158.28 -7770.81 203.72
	500.00	4404.90	52400.00	100703.55	-	-2417.26	155591.20
	- -		- -	- -	- -	- -	- -
	500.00	4404.90	52400.00	100703.55	-	-2417.26	155591.20
	500.00 - - 500.00 - - -	4404.90 4404.90	52400.00 - - 52400.00 - - -	100703.55 -7326.35 93377.20 - - -	- - - - - - -	-2417.26 - 584.04 -1833.22 - - -	155591.20 -7326.35 584.04 148848.88 - - -
	500.00	4404.90	52400.00	93377.20	-	-1833.22	148848.88

In terms of our report attached. For Merchant & Co Chartered Accountants Firm Reg.No.145290W

Ushma Merchant Propreitor Mem.No.142930 Place : Mumbai Date : May 26, 2022

For and on Behalf of the Board

M. B. KHAKHAR Chairman & Managing Director (DIN: 00394065)

P. B. KHAKHAR

Jt.ManagingDirector (DIN: 00394135)

M.D.DEWANI Chief Financial Officer

H.D.VALIA Company Secretary (ACS No.22571)

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Notes forming part of the Consolidated Financial statements

Note:- 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

I. Background

The Company and its Associates (collectively referred to as “the Group”) is primarily engaged in the business of natural stones, building materials and allied building business activities.

The consolidated financial statements are approved and adopted by the board of directors of the Company in their meeting dated May 26, 2022

II. Significant Accounting Policies followed by the Group

a) Basis of preparation:

(i) Compliance with Ind AS:

The consolidated financial statements of the Group have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, hereinafter referred to as Ind AS.

(ii) Basis of measurement:

The consolidated financial statements have been prepared on an accrual basis and under the historical cost convention, except for the following: - Certain financial assets and liabilities (including derivative instruments) and contingent considerations are measured at fair value; - Defined benefit plan assets measured at fair value; - Sharebased payments measured at fair value.

(iii) Functional and presentation currency:

Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which the Company operates (“the functional currency”). The consolidated financial statements are presented in Indian National Rupee (‘¹ ’), which is the Company’s functional and presentation currency. All amounts disclosed in the financial statements and notes have been rounded off to the nearest thousands as per the requirement of Schedule III, unless otherwise stated. The sign ‘-’ in these standalone financial statements indicates that amounts are nil.

(iv) Historical cost convention:

The Consolidated Financial Statements have been prepared on a historical cost basis, except for the following:

a. certain financial assets and liabilities that are measured at fair value;
b. assets held for sale - measured at lower of carrying amount or fair value less cost to sell;
c. defined benefit plans - plan assets measured at fair value;

b) Basis of consolidation

The consolidated financial statements includes Group’s share of profits in the associate and is consolidated using the equity method of consolidation

c) Current versus non-current classification

The Group presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:

Expected to be realised or intended to be 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

32nd ANNUAL REPORT 2021-2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

A liability is current when:

It is expected to be settled in the 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 the settlement of the liability for at least twelve months after the reporting period.

The Group classifies all other liabilities as non-current

d) Revenue recognition:

i) Timing of recognition:

Other Operating Revenue

Unpaid liabilities written back for operational creditors are recognized as other operating revenue.

ii) Measurement of revenue:

Interest Income

Dividends

Revenue is recognised when the Group’s right to receive the payment is established, which is generally when shareholders approve the dividend.

e) Income taxes:

Current tax

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Deferred tax

Deferred tax is provided using the balance sheet method on temporary differences between the tax base 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, except:

Taxable temporary differences arising on the initial recognition of goodwill.

f) Leases:

Company as Lessee:

The Group measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses incremental borrowing rate. For short-term and low value leases, the group recognises the lease payments as an operating expense on a straight-line basis over the lease term.

Company as a Lessor:

32nd ANNUAL REPORT 2021-2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

reduction of the lease liability to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.

g) Property, Plant and Equipment

(i) Tangible assets:

Subsequent costs are included in the carrying amount of asset or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance expenses are charged to the Statement of Profit and Loss during the period in which they are incurred. Gains or losses arising on retirement or disposal of assets are recognised in the Statement of Profit and Loss.

Borrowing costs relating to acquisition of qualifying fixed assets, if material, are also included in cost to the extent they relate to the period till such assets are ready to be put to use.

Depreciation methods, estimated useful lives and residual value:

Depreciation on Tangible Fixed Assets is provided on Straight Line Method on the basis of useful life of assets specified in Part C of Schedule II of the Companies Act, 2013, which are as follows:

-	Buildings including factory buildings and Roads	3 - 60 years
-	Plant and machinery	15 years
-	Electrical installations and equipment	10 years
-	Furniture and fixtures	10 year
-	Office equipment’s	15 years
-	Vehicles	8 - 10 years
-	Computer and Data Processing Units	3 - 6 years

Leasehold land is being amortised over the lease period and Cost of improvement on leasehold building is being amortised over the lease period or useful life whichever is shorter.

The residual values are not more than 5% of the original cost of the asset.

ii) Intangible assets:

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses.

Intangible Assets having finite useful life are amortised on the straight line method as per following estimated useful life:

Asset category Estimated useful life

Computer software 3 years

SOLID STONE COMPANY LIMITED

(CIN : L26960MH1990PLC056449)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Intangible assets having indefinite useful life are tested for impairment at least once in an accounting year regardless of indicators of impairment.

h) Investment Property:

Property that is held for long-term rental yields or for capital appreciation or both, and that is not in use by the Group, is classified as investment property. Land held for a currently undetermined future use is also classified as an investment property. Investment property is measured initially at its acquisition cost, including related transaction costs and where applicable borrowing costs and are carried at cost less accumulated depreciation and accumulated impairment losses.

i) Impairment of Non- Financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication on impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of profit and loss.

In respect of assets for which impairment loss has been recognised in prior periods, the Group reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

j) Investments and other financial assets: Classification:

The Group classifies its investments in the following measurement categories:

i) Those to be measured subsequently at fair value (either through Other Comprehensive Income, or through profit or loss), and
ii) Those measured at amortised cost.

For investments in equity instruments, it depends on whether the r has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through Other Comprehensive Income.

Initial recognition and measurement:

Financial assets are recognised when the Group becomes a party to the contractual terms of the instrument.

Transaction Cost

Transaction costs of financial assets carried at fair value through profit or loss are expensed in Profit or Loss.

Subsequent measurement:

After initial recognition, financial assets are measured at:

i) Fair value {either through Other Comprehensive Income (FVOCI) or through profit or loss (FVPL)} or,
ii) Amortised cost

32nd ANNUAL REPORT 2021-2022

100

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Debt instruments :

Subsequent measurement of debt instruments depends on the business model of the Group for managing the asset and the cash flow characteristics of the asset.

There are three measurement categories into which the Group classifies its debt instruments:

Measured at amortised cost:

Measured at fair value through Other Comprehensive Income (OCI) :

Debt instruments that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through Other Comprehensive Income. Fair value movements are recognised in the OCI (net of taxes). Interest income measured using the EIR method and impairment losses, if any are recognised in Profit or Loss. On derecognition, cumulative gain | (loss) previously recognised in OCI is reclassified from the equity to Profit or Loss.

Measured at fair value through profit or loss:

Equity instruments :

The Group subsequently measures all investments in equity instruments other than subsidiary companies, associate company and Joint Venture Company at fair value through profit and loss (FVTPL), with fair value changes recognized in the statement of profit and loss. Dividends from such investments continue to be recognised in profit or loss as other income when the right to receive payment is established.

Investments in subsidiary companies, associate company and Joint Venture Company :

Investments in subsidiary companies, associate company and Joint Venture Company are carried at cost less accumulated impairment losses, if any. It is accounted for using the equity method and initially recognised at cost from the date significant influence commences until the date that significant influence ceases. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiary companies, associate company and Joint Venture Company, the difference between net disposal proceeds and the carrying amounts are recognised in Profit or Loss.

Impairment of financial assets:

The Group assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 33 details how the Group determines whether there has been a significant increase in credit risk. For trade and lease receivable only, the Group applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of such receivables.

De-recognition:

A financial asset is de-recognised only when

i) The Group has transferred the rights to receive cash flows from the financial asset, or
ii) Retains the contractual rights 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 entity has transferred an asset, the Group evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de-recognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de- recognised. Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognised if the Group has not retained control of the financial asset. Where the Group retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

SOLID STONE COMPANY LIMITED

101

(CIN : L26960MH1990PLC056449)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Financial liabilities & Equity instruments:

i) Classification as debt or equity - Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
ii) Initial recognition and measurement - Financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the fair value.
iii) Subsequent measurement - Financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities carried at fair value through profit or loss is measured at fair value with all changes in fair value recognised in Profit or Loss.
iv) De-recognition - A financial liability is de-recognised when the obligation specified in the contract is discharged, cancelled or expires.
v) Reclassification of Financial Assets and Financial Liabilities : The Group determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. If the Group reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model.

k) Fair Value Measurement

The Group measures financial instruments, such as Derivatives, at fair value at each balance sheet date. 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or
In the absence of the principal market, in the most advantageous market for the asset of liability.

The principal or the most advantageous market must be accessible by the Group. The fair value of asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

External Valuers are involved for valuation of significant assets such as certain items or property, plant and equipment. For the purpose of fair value disclosure, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

l) Inventories:

Items of Inventories are valued on the basis given below:

i. Raw materials, packing materials, stores and spares: at cost determined on First – in – First – Out (FIFO) basis or net realizable value whichever is lower.
ii. Process stock and finished goods: At cost or net realizable values whichever is lower.

32nd ANNUAL REPORT 2021-2022

102

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Cost comprises of cost of purchase, costs of conversion and other costs incurred in bringing the inventory to its present location and condition.

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

Due allowances are made for slow moving and obsolete inventories based on estimates made by the Group.

m) Cash and cash equivalents:

n) Trade receivables:

Trade receivables are initially recognised at fair value of the revenue. Subsequently, trade receivables are stated at cost less provision for impairment, if any.

Customer credit risk is managed by the Group’s established policy, procedures and control relating to customer credit risk management. Credit quality of the customer is assessed and individual limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

The Group applies expected credit losses (ECL) model for measurement and recognition of provision / loss allowance on the Trade receivables as given in Ind AS 109 Financial Instruments

As a practical expedient, the Group uses a provision matrix to measure ECL on its portfolio of trade receivables. The provision matrix is prepared based on historically observed default floating rates over the expected life of trade receivables and is adjusted for forward-looking estimates. At each reporting date, the historically observed default rates and changes in the forward-looking estimates are updated.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in Profit or Loss under the head ‘Other expenses’.

o) Offsetting financial instruments:

p) Borrowings:

Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income /(expense). Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

q) Borrowing costs:

r) Provisions and contingent liabilities:

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. These are reviewed at each year end and reflect the best current estimate. Provisions are not recognised for future operating losses.

SOLID STONE COMPANY LIMITED

103

(CIN : L26960MH1990PLC056449)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Contingent liabilities are disclosed 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 Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

s) Employee benefits:

Short-term employee benefits:

Other long-term employee benefits:

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service to the extent applicable to the Group. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss. The obligations are presented as current liabilities in the Balance Sheet if the entity does not have an unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is expected to occur.

Defined contribution plan:

Contributions to defined contribution schemes such as contribution to Provident Fund, Superannuation Fund, Employees’ State Insurance Corporation, National Pension Scheme and Labour Welfare Fund are charged as an expense to the Statement of Profit and Loss based on the amount of contribution required to be made as and when services are rendered by the employees if applicable to the Group. The above benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.

Defined benefit plan: Gratuity:

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

t) Earnings per share

32nd ANNUAL REPORT 2021-2022

104

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

EPS is the net profit for the period and any attributable tax thereto for the period. The treasury shares are not considered as outstanding equity shares for computing EPS.

u) Foreign Currency Transactions

Initial recognition .

Transactions in foreign currencies are translated into the Group’s functional currency at the exchange rates at the dates of the transactions

Conversion

Exchange difference

Exchange differences are recognised in profit or loss, except exchange differences arising from the translation of the following items which are recognised in OCI

equity investments at fair value through OCI (FVOCI);
a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; and
qualifying cash flow hedges to the extent that the hedges are effective

v) Critical estimates and judgements

In preparing these consolidated financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent liabilities and contingent assets at the date of consolidated financial statements, income and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively.

Application of accounting policies that require critical accounting estimates and assumption judgements having the most significant effect on the amounts recognized in the consolidated financial statements are:

Measurement of defined benefit obligations;
Recognition of deferred tax assets & minimum alternative tax credit entitlement;
Useful life and residual value of Property, plant and equipment and intangible assets;
Impairment test of financial and non-financial assets including recoverability of expenditure on internally- generated intangible assets;
Measurement of fair value for share based payments;
Recognition and measurement of provisions and contingencies.
Estimate of Sales Return, Rebates and Discounts

w) Segment Reporting

The Management Advisory Committee of the Company has been identified as the CODM by the Company. Refer Note 24 C for Segment disclosure

x) Estimation of uncertainties relating to the global health pandemic from COVID-19 (COVID 19):

The company has considered the possible effects that may result from the pandemic relating to second wave of COVID19 on the carrying amounts of inventories, receivables, unbilled revenues and Investments. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the company, as at the date of approval of these consolidated financial statements has used internal and external sources of information and related information, economic forecasts. The impact of COVID-19 on the Company’s consolidated financial statements may differ from that estimated as at the date of approval of these consolidated financial statements.

105

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

(Rs.in '000s)

Note 2 (a). Property, Plant and Equipment

Particulars	Facility Land and Building	Plant and Machinery	Furniture and Fixtures	Computers	Vehicles	Office Equip- ments	Speed Boat	Electrical fitting	Total
A GROSS BLOCK As At April 01, 2020 Additions during the Year Deductions	4656.42	7744.43 89.43	26860.78	2779.18 86.12	20605.60	5765.22 252.20	1919.92 1919.92		70331.56 427.75 1919.92
As at March 31, 2021	4656.42	7833.87	26860.78	2865.30	20605.60	6017.41	-	-	68839.38
Additions during the Year Deductions		27.00 1635.50	18071.23	197.23 2570.05	892.35	293.22 414.72			517.45 23583.86
As at March 31, 2022	4656.42	6225.37	8789.55	492.47	19713.25	5895.91	-	-	45772.97
B DEPRECIATION As At April 01, 2020 For the Year Deductions	2735.96 144.45	6788.10 282.61 -	26860.78 -	2583.98 91.67 -	14586.89 1364.04	3927.67 392.68 -	957.21 28.26 985.47	-	58440.59 2303.72 985.47
As at March 31, 2021	2880.41	7070.72	26860.78	2675.65	15950.93	4320.35	0	-	59758.84
Additions during the Year Deductions	144.45	276.12 1635.50	18071.23	129.46 2570.05	1364.03 892.35	364.88 414.72			2278.94 23583.86
As at March 31, 2022	3024.87	5711.34	8789.55	235.05	16422.61	4270.50	0	-	38453.93
C NET BLOCK As at March 31, 2021 As at March 31, 2022	1776.01 1631.55	763.15 514.03	- -	189.65 257.42	4654.67 3290.64	1697.07 1625.41	- -	- -	9080.54 7319.04
Note 2(b): Intanibles (Rs.in '000s)

Note 2(b): Intangibles

Note 2(b): Intangibles								(R	s.in 000s)
Particulars	Software								Total
A GROSS BLOCK As At April 01, 2020 Additions during the Year Deductions As at March 31, 2021 Additions during the Year Deductions As at March 31, 2022 B DEPRECIATION As At April 01, 2020 For the Year Deductions As at March 31, 2021 Additions during the Year Deductions As at March 31, 2022 C NET BLOCK As at March 31, 2021 As at March 31, 2022 TOTAL NET BLOCK (2a + 2b) As at March 31, 2021 As at March 31, 2022	43.20 - - 43.20 - - 43.20 38.53 1.92 - 40.45 1.92 - 42.37- 2.75 0.83 2.75 0.83	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	43.20 - 43.20 - - 43.20 38.53 1.92 - 40.45 1.92 - 42.37 2.75 0.83 2.75 0.83

32nd ANNUAL REPORT 2021-2022

106

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 2(c): Right of use Asset

(Rs.in '000s)

Note 2(c): Right of use Asset								(R	s.in 000s)
Particulars	Buildings								Total
A GROSS BLOCK As At April 01, 2020 Additions during the Year Deductions As at March 31, 2021 Additions during the Year Deductions As at March 31, 2022 B DEPRECIATION As At April 01, 2020 For the Year Deductions As at March 31, 2021 Additions during the Year Deductions As at March 31, 2022 C NET BLOCK As at March 31, 2021 As at March 31, 2022 TOTAL NET BLOCK (2a + 2b) As at March 31, 2021 As at March 31, 2022	14195.31 - 2277.58 11917.73 22027.41 11917.73 22027.41 5323.24 3615.06 - 8938.30 5732.86 11917.73 2753.43 2979.43 19273.99 4755.44 20905.54	- - - - - - - - - - - - - - 763.15 514.03	- - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - 189.65 257.42	- - - - - - - - - - - - - - 4654.67 3290.64	- - - - - - - - - - - - - - 1697.07 1625.41	- - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -	14195.31 - 2277.58 11917.73 22027.41 11917.73 22027.41 5323.24 3615.06 - 8938.30 5732.86 11917.73 2753.43 2979.43 19273.99 12059.97 26593.03

Note No. 3 Investments - Non Current

(Rs.in '000s)

Particulars	As at 31st March 2022 No.of Units Amount	As at 31 March, 2021
		No.of Units Amount
I Investments in Subsidiaries, Associates and Joint ventures Unquoted, fully paid up At COST 270000 Equity shares of Rs.10/- each of Global Instile Solid Industries Limited 2,70,000 9511.87 Trade Unquoted - In Shares: (at fair value through Profit or Loss ) Shreeji Bhatia Co-operative Bank 520 13.00		2,70,000 9164.78 520 13.00
Total 2,70,520 9524.87		2,70,520 9177.78
Total Investments 2,70,520 9524.87		2,70,520 9177.78
Aggregate amount ofUnquotedinvestments at Cost - 9524.87 Aggregate amount ofQuotedinvestments at Cost - - Market Value ofQuoted investments - -		- 9177.78 - - - -

107

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 4

Other non current financial assets

Particulars	As at 31 March 2022 As at 31 March 2021	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Security Deposits Term deposits with banks / Financial Institutions Total		3964.39 2901.82 3684.89 3684.89
		7649.28 6586.71
Note 5 : Deferred Tax Asset :
Particulars	As at 31 March 2022 Rs.in '000s As at 31 March 2021 Rs.in '000s
Deferred Tax Asset ; - Arising on account of difference in carrying - on remeasurements of defined benefit obligations - on account of Unabsorbed Depreciation and Loss under Income TAX act A Deferred Tax Liabilities: - Accrued Expenses allowable on Actual Payments - Creation of Deferred TAX liabilities on ‘account of IND AS 116 “Leases” - on remeasurements of defined benefit obligations B Deferred Tax Assets/( Liabilities) - (Net) A+B MAT Credit	1871.32 1814.44 1290.85 1315.09 4463.52 2132.17
	7625.69 5261.70
	- -64.81 -352.04 -155.62
	-352.04 -220.42

	7273.64 5041.28
	- -
Total A+B	7273.64 5041.28

Note 6 Other Non Current Assets
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Capital Advances Total		- -
		- -

32nd ANNUAL REPORT 2021-2022

108

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 7 : Inventories

(At lower of cost and net realisable value)

Particulars	As at 31 March 2022 As at 31 March 2021	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Raw materials Finished goods - Manufactiured Finished goods - Traded Stores & Spares		2045.27 2700.17 3834.40 3918.19 207515.52 201145.69
		213395.18 207764.05 261.16 315.22
		261.16 315.22
Total		213656.34 208079.28

Note 8 : Trade Receivables

Note 8 : Trade Receivables
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Trade Receivables (Refer Note below) Less: Provision for loss allowance	117682.54 120197.37 - -
Total	117682.54 120197.37
Break-Up: Secured, considered good Unsecured,considered good Trade Receivables with significant increase in credit risk Trade receivables - credit impaired Less: Provision for Loss allowance	- - 117682.54 120197.37 - - - - 117682.54 120197.37 - -
Total	117682.54 120197.37

A) Refer Note 33B for information about credit risk and market risk of trade receivables B) Refer Note 36F for Ageing of Trade receivables

Note 9 : Cash and cash equivalents

Note 9 : Cash and cash equivalents
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Cash on hand Balances with banks In current accounts	2267.48 981.55 - - 26.83
Total	2267.48 1008.38
Note 10 : Bank balances other than Cash and Cash Equivalents
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Bank / Financial Institution deposits (Maturity of less than 12 months) Earmarked balances with banks	- - 159.71
Total	- 159.71

109

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 11 : Current financial assets - Loans

Particulars	As at 31 March 2022 As at 31 March 2021	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Loans to related parties Loans and advances to employees Loans - Others Less: Provision for Loss allowance		- - 61.00 153.20 - -
		61.00 153.20 -
Total		61.00 153.20
Break-Up: Secured, considered good Unsecured,considered good Loans which have a significant increase in credit risk Loans which are credit impaired Less: Provision for Loss allowance		- - 61.00 153.20 - - - - - -
Total		61.00 153.20

Refer Note 33B for information about credit risk and market risk of Loans

Note 12 : Other current assets

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Advances to Suppliers (Refer Note Below) Prepaid expenses Balances with government authorities Advances recoverable in kind for value to be received Interest Accrued on Deposit Advance Tax Net of provision	63076.34 76136.96 517.48 146.44 26.00 321.69 9332.98 16093.59 250.96 75.52 761.24 705.68
Total	73965.00 93479.88

A) Advances to suppliers includes advances from related parties to the tune of Rs. 35.52 lakhs as on 31st March 2022 (Rs. 26.14 lakhs as on 31st March 2021)

Note 13 : Non-current borrowings

Note 13 : Non-current borrowings
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Loans - From banks - From Financial Institutions Loans from Others	- 76554.68 13620.51 5619.04 9063.43 - -
Total	82173.71 22683.94
Secured Unsecured	75540.31 10701.85 6633.41 11982.10
Total	82173.71 22683.94

(i) Details of each loan taken are stated in note no. 34

32nd ANNUAL REPORT 2021-2022

110

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 14(a) : Lease Liability - Non Current

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Lease Rent Liability	19434.45 4009.80
Total	19434.45 4009.80

Note 14(b) : Lease Liability - Current

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Current maturities of lease liabilities	- -
Total	- -

Note 15 : Non-current provisions

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Provision for employee benefits Provision for gratuity (net) Provision for other employee benefits	4935.00 5087.97 - -
Total	4935.00 5087.97

Note 16 : Current Borrowings

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Loans Repayable on Demand - From banks - From other parties Loans and advances from related parties Current maturities of long-term debt	85185.14 158500.98 3469.70 3651.14 1873.13 432.85 18360.59 -
Total	108888.56 162584.98
Break -up: Secured Unsecured	96824.22 158500.98 12064.34 4083.99
Total	108888.56 162584.98

(i) Details of each loan taken are stated in note no. 34

111

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 17 : Trade Payables - Current

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Trade payables: -For Goods -For Services Due to related parties Due to Micro Enterprises and Small Enterprises	6880.86 18430.54 1427.66 858.24 - - - -
Total	8308.52 19288.78
From above payable to Micro Small Medium Enterprises
Particulars	As at 31 March 2022 As at 31 March 2021
Principal amount due to suppliers registered under the MSMED Act and remaining unpaid as at year end Interest due to suppliers registered under the MSMED Act and remaining unpaid as at year end Principal amounts paid to suppliers registered under the MSMED Act, beyond the appointed day during the year Interest paid, other than under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year Interest paid, under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year Interest due and payable towards suppliers registered under MSMED Act, for payments beyond the appointed day during the year Interest due and payable towards suppliers registered under MSMED Act, for payments already made Further interest remaining due and payable for earlier years	- - - - - - - - - - - - - - - -

i. * Trade payables are dues in respect of goods purchased or services received (including from employees, professionals and others under contract) in the normal course of business.

Refer Note 38B for information about credit risk and market risk for Trade payables

Note 18 : Other current financial liabilities

Note 18 : Other current financial liabilities
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Current maturities of Long Term Debt Salary Payable Other payables	- 927.06 3768.11 3885.79 3466.61 4394.20
Total	7234.72 9207.05

32nd ANNUAL REPORT 2021-2022

112

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 19 : Other current liabilities

Note 19 : Other current liabilities
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Statutory dues payable GST payable Unclaimed Dividend Provident Fund and ESIC payable Witholding taxes payable Security Deposit from customer	70.90 83.00 220.82 1179.86 - 159.71 11.42 34.83 905.14 2687.74 23647.98 19410.18
Total	24856.25 23555.32

There is no amount due for payment to the Investor Education and Protection Fund under Section 125 of the Companies Act, 2013 as at year end

Note 20 : Current Provisions

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Provision for employee benefits Provision for Gratuity (net) Provision for other employee benefits Provision for taxation	193.92 137.29 - -
Total	193.92 137.29

Note 21 : Revenue from operations

Note 21 : Revenue from operations
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Sale of Products Sales - Services Other operating revenues	234408.97 161618.62 2608.76 6678.46 6192.59 4027.04
Total	243210.32 172324.12

Note 22 : Other Income

Note 22 : Other Income
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Interest Income Interest on loans at amortized cost Apportioned Income from Government Grant ( Refer Note 35 ii) Gain on foreign exchange fluctuations (NET) Other Non operating income	194.91 230.81 97.11 67.45 - - - 127.56 8.69 4.50
Total	300.70 430.31

113

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 23 : Cost of materials consumed

Note 23 : Cost of materials consumed
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Opening Stock : Add : Purchase Less : Closing Stock Raw Material Details of Materials Consumed	2700.17 1915.88 914.61 1988.55 2045.27 2700.17 1569.51 1204.26 1569.51 1204.26
Total	1569.51 1204.26

Note 24 : Purchases of Stock in Trade

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Purchases of Stock in Trade	189279.46 133682.20
Total	189279.46 133682.20

Note 25 : Changes in inventories of finished goods, stock in trade, work in progress

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Opening inventories Finished goods - Manufactured Finished goods - Traded Closing Inventories Finished goods - Manufactured Finished goods - Traded	3918.19 3842.19 201145.69 188280.63 205063.88 192122.82 3834.40 3918.19 207515.52 201145.69 211349.91 205063.88
Total	-6286.03 -12941.07

Note 26 : Employee Benefit expenses

Note 26 : Employee Benefit expenses
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Salaries, Bonus and Other Allowances Remuneration to Directors Contribution to Provident and Other Funds Gratuity and other long term employee benefits Employee Welfare expenses	10670.66 8938.21 7204.80 7204.80 126.31 124.63 684.13 677.89 587.56 352.03
Total	19273.45 17297.56

32nd ANNUAL REPORT 2021-2022

114

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 27 : Finance Cost

Note 27 : Finance Cost
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Interest expenses Other Borrowing costs Interest on lease liabilities Interest on loans at amortized cost	21312.86 21629.74 1044.53 1350.05 - - 821.13 308.56
Total	23178.51 23288.36

Note 28 : Depreciation

Note 28 : Depreciation
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Depreciation on Property Plant and equipment Depreciation on Intangibles Depreciation on Right to use	2278.94 2303.72 1.92 1.92 5732.86 3615.06
Total	8013.72 5920.70
Note 29 : Other Expenses
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Depreciation on Property Plant and equipment Power and Fuel Water Charges Job work charges Stores and spares Interest in delayed statutory dues GST Repairs and Renewals - Buildings Repairs and Renewals - Plant and Machinery Repairs and Renewals - Others Insurance Bad Debts Rent Printing and Stationery Travelling and Conveyance Motor Car Expenses Legal and Professional fees Payment to Auditors Postage and Courier Business Promotion Communication charges Commission on Sales Discounts and Rebates ROC fees and stamp duty Loss on foreign exchange fluctuations (NET) Tools and stores consumed Packing materials consumed Loss on sale of fixed asset Miscellaneous Expenses	2278.94 2303.72 1159.28 1044.69 - - 1041.09 655.82 - - 885.88 168.12 164.50 136.10 167.07 264.38 10.80 10.80 499.27 500.11 590.55 - 1656.87 1735.23 309.79 235.07 2558.08 1499.43 345.88 243.89 3333.00 3004.85 475.00 475.00 3.58 2.34 148.11 148.59 435.87 466.85 83.74 56.02 - 40.90 - - 22.94 - 543.89 502.87 45.53 70.79 - 506.12 3592.34 2216.88
Total	18073.05 13984.84

115

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 30 : Earnings Per Share

Note 30 : Earnings Per Share
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Provision for employee benefits Earnings per share has been computed as under : (a) Profit and Loss for the period (b) Weighted Average of number of equity shares outstanding	-7673.43 -7734.97 53,80,000 53,80,000
Earnings per Share - BASIC	-1.43 -1.44

Diluted shares per share is the same as Basic Earnings per share

Note 31 : Contingent Liabilities & Commitments

Contingent Liability not provided for:

i) Demands/claims by various Government Authorities not acknowledged as debts and contested by the company:
a) Income Tax Rs. Nil (Prev.Yr. Rs. 8.25 lakhs) [Appeal filed with the C.I.T.(Appeals), Mumbai for Assessment Year 2011-12]
b) The Company has exposure to currency fluctuations. It does not hedge its position as the management feels it does not have any material impact as the company is importer as well as exporter of goods and services.

Note 32 : Disclosures as per IND AS - 19 - Employee Benefits

During the year, the company has recognised the following amounts in the Statement of Profit and Loss:

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
i) Employer’s contribution to Provident Fund Included in “ Contribution to Provident and other Funds” (Note 21).	126.31 124.63

iii) Defined benefit obligation: (Unfunded)

The valuation results for the defined benefit gratuity plan as at 31-3-2022 are produced in the tables below:

i) Changes in the Present Value of Obligation

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Present Value of Obligation as at the beginning Current Service Cost Interest Expense or Cost Re-measurement (or Actuarial) (gain) / loss arising from: - change in financial assumptions - change in demographic assumptions - experience variance (i.e. Actual experience vs assumptions) Benefits Paid Present Value of Obligation as at the end	5225.25 4855.60 338.64 353.20 345.49 324.69 -405.01 46.35 - -375.46 -318.59 - -36.00 5128.92 5225.25

ii) Expenses Recognised in the Income Statement

ii) Expenses Recognised in the Income Statement
Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Current Service Cost Net Interest Cost / (Income) on the Net Defined Benefit Liability / (Asset) Expenses Recognised in the Income Statement	338.64 353.20 345.49 324.69 684.13 677.89

32nd ANNUAL REPORT 2021-2022

116

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

iii) Other Comprehensive Income

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Actuarial (gains) / losses - change in financial assumptions -405.01 46.35 - change in demographic assumptions - - - experience variance (i.e. Actual experience vs assumptions) -375.46 -318.59 Return on Plan Assets excluding interest income - - Components of defined benefit costs recognised in other comprehensive income -780.46 -272.24

iv) Actuarial Assumptions

a. Financial Assumptions

The principal financial assumptions used in the valuation are shown in the table below:

Particulars	Year Ended 31 March 2022 Year Ended 31 March 2021
	Rs.in '000s Rs.in '000s
Discount rate (per annum) Salary growth rate (perannum)	7.35% 6.70% 3.00% 3.00%

b. Demographic Assumptions

Particulars	As at 31 March 2022 As at 31 March 2021
	Rs.in '000s Rs.in '000s
Mortality Rate IALM(2012-14) IALM(2012-14) Employee Atrition Rate : (per annum) (PS) 0 to 5 years 20.00% 20.00% 5 to 47 years 1.00% 1.00%

v) Amount, Timing and Uncertainty of Future Cash Flows

a. Sensitivity Analysis

Particulars		As at 31 March 2022 As at 31 March 2021
		Rs.in '000s Rs.in '000s
Defined Benefit Obligation (Base)		5128.92 5225.25

Particulars	As at 31 March 2022 Increase Decrease	As at 31 March 2021
		Increase Decrease
Discount Rate (- / + 1%) (% change compared to base due to sensitivity) Salary Growth Rate (- / + 1%) (% change compared to base due to sensitivity)	4,582 5,770 *-10.67%* *12.51%* 5,640 4,651 *9.96%* *-9.32%*	4,613 5,953 -11.72% 13.93% 5,820 4,690 11.38% -10.24%

The scheme is managed on funded basis.

SOLID STONE COMPANY LIMITED

117

(CIN : L26960MH1990PLC056449)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

b. Effect of Plan on Entity’s Future Cash Flows

Funding arrangements and Funding Policy

	As at	As at
Particulars	31 March 2022	31 March 2021
The scheme is unfunded.
- Expected Contribution during the next annual reporting period
The Company’s best estimate of Contribution during the next year	259	339
- Maturity Profile of Defined Benefit Obligation
Weighted average duration (based on discounted cash flows)	13.33 years	14.51 years
- Expected cash flows over the next (valued on undiscounted basis):	(Rs. in ‘000s)	(Rs. in ‘000s)
1 year	193.92	137.29
2 to 5 years	784.04	787.02
6 to 10 years	1554.73	1139.89
vi) Movement of Liability : Employee Benefits	-	-
Opening balance	5225.25	4855.60
Add : Provision for the year	-96.34	405.65
Less : Paid during the year	-	-36.00
Closing Balance	5128.92	5225.25

Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

A Salary Increases- Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability
B Investment Risk – If Plan is funded then the mismatch between assets and liabilities and actual return on assets being lower than the discount rate assumed at the last valuation date can impact the liability
C Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan’s liability
D Mortality & disability – Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
E Withdrawals – Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

32nd ANNUAL REPORT 2021-2022

118

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

NOTE 33

A. CAPITAL MANAGEMENT

The Company monitors capital using a ratio of ‘Net Debt’ to ‘Equity’. For this purpose, net debt is defined as total borrowings less Cash & Bank Balances and Other Current Investments.

The Company’s net debt to equity ratios are as follows:

Particulars Loans and Borrowings Less: Cash and Short Term Deposits Net Debt Equity Other Equity Total Capital Capital and Net Debt Net Debt to Equity Ratio	(Rs. in ‘000s) 31st March 2022 31st March 2021 191062.28 185268.92 -2267.48 -1008.38
	188794.80 184260.54
	53800.00 53800.00 148848.88 155591.20
	202648.88 209391.20
	391443.68 393651.74
	0.48 0.47

B. FINANCIAL RISK MANAGEMENT

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.

i) Market Risk

Interest Rate Risks

Exposure to interest rate risk

		(Rs. in ‘000s)
Particulars	31st March 2022	31st March 2021
Fixed-rate Instruments
Borrowings	191062.28	185268.92

119

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Fair value sensitivity analysis for fixed-rate instruments

Commodity Price Risk

The Board reviews risk management policies.

Foreign Currency Risks

ii) Credit Risk

The carrying amount of following financial assets represents the maximum credit exposure.

Trade and other receivables

The ageing of trade receivables is given in Note 36F

The amounts reflected in the table above are not impaired as on the reporting date.

Investments in Debt Securities, Limited Liability Partnerships, Loans to Related Parties and Project Deposits

The Company has investments in mutual funds, and loans to related parties. Such Financial Assets are not impaired as on the reporting date.

Cash and Bank balances

The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.

iii) Liquidity Risk

Exposure to Liquidity Risk

The following are the remaining contractual maturities of financial liabilities at the reporting date.

March 31, 2022 Carrying Amount	Contractual cash flows
	Total Within 12 months 1-2 years 2-5 years More than 5 years
Financial Liabilities Non Current Borrowings 82173.71 Current Borrowings 108888.56 Trade Payables 8308.52 Others 7234.72	82173.71 - 24572.41 57601.30 - 108888.56 108888.56 - - - 8308.52 8308.52 - - - 7234.72 7234.72 - - -

32nd ANNUAL REPORT 2021-2022

120

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

March 31, 2021 Carrying Amount	Contractual cash flows
	Total Within 12 months 1-2 years 2-5 years More than 5 years
Financial Liabilities Non Current Borrowings 22683.94 Current Borrowings 162584.98 Trade Payables 19288.78 Others 9207.05	14231.15 - 9213.32 5017.83 - 162584.98 162584.98 - - - 19288.78 19288.78 - - - 9207.05 9207.05 - - -

FAIR VALUES AND HIERARCHY

those with carrying amounts	that are reasonable approximations of fair values:
March 31, 2022	(Rs. in ‘000s)
Particulars	Carrying Value Fair Value Heirarchy At Cost Fair Value through profit or loss Amortised Cost Total Level 1 Level 2 Level 3 Total
Financial Assets - Investments 9524.87 61.87 - 9586.73 9586.73 9586.73 - Loans 61.00 - - 61.00 61.00 61.00 - Others financial assets 7649.28 - - 7649.28 7649.28 7649.28 Financial Liabilities - - Borrowings 191062.28 - - 191062.28 191062.28 191062.28

March 31, 2021	(Rs. in ‘000s)
Particulars	Carrying Value Fair Value Heirarchy At Cost Fair Value through profit or loss Amortised Cost Total Level 1 Level 2 Level 3 Total
Financial Assets - - Investments 9177.78 -285.22 - 8892.57 - - 8892.57 8892.57 - Loans 153.20 - - 153.20 - - 153.20 153.20 - Others financial assets 6586.71 - - 6586.71 - - 6586.71 6586.71 Financial Liabilities - - Borrowings 185268.92 - 185268.92 - 185268.92 185268.92

The Fair values of Investment are based on NAV at the reporting date.
The Company uses the discounted cash flow valuation technique (in relation to fair value of asset measured at amortised cost) which involves determination of present value of expected receipt/payment discounted using appropriate discounting rates. The fair value so determined are classified as Level 2.

SOLID STONE COMPANY LIMITED

121

(CIN : L26960MH1990PLC056449)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

NOTE 34 : Non Current and Current Borrowings

Vehicle loan is secured by a specific charge on respective purchases of Assets. Details of each loan taken are stated below:-

Nature of Security Terms of Repayment	Nature of Security Terms of Repayment
I -Vehicle Loan
Term loan from Kotak Mahindra Prime Limited, balance outstanding amounting to Rs 4,35,076 as on March 31, 2022 (March 31, 2021 Rs 6,20,846 ) is secured by charge on the Vehicle located at Mumbai .	Repayable in 62 installments starting from 01 Feb 2018. Last installment due in 01 June 2023 Rate of Interest is 8.25%
Term loan from Kotak Mahindra Prime Limited, balance outstanding amounting to Rs 3,85,259 as on March 31, 2022 (March 31, 2021 Rs 6,45,491 ) is secured by charge on the Vehicle located at Mumbai .	Repayable in 62 installments starting from 05 March 2018. Last installment due in 05 July 2023 Rate of Interest is 8.25%
Term loan from Toyota Financial Services (India) Limited, balance outstanding amounting to Rs 7,71,976 as on March 31, 2022 (March 31, 2021 Rs 9,32,432 ) is secured by charge on the Vehicle located at Mumbai .	Repayable in 65 installments starting from 20 Sep 2019. Last installment due in 20 Jan 2025 Rate of Interest is 10.01%
Term loan from Toyota Financial Services (India) Limited, balance outstanding amounting to Rs 8,19,720 as on March 31, 2022 (March 31, 2021 Rs 9,77,346 ) is secured by charge on the Vehicle located at Mumbai .	Repayable in 65 installments starting from 10 Dec 2019. Last installment due in 10 Apr 2025 Rate of Interest is 9.51%
Details Terms of Repayment
II- Working Capital / Term Loan
Term loan from IDFC Capital First Limited, balance outstanding amounting to Rs 9,15,122 as on March 31, 2022 (March 31, 2021 Rs 12,17,298) is Unsecured.	Repayable in 67 installments starting from 02 June 2018. Last installment due in 02 Dec 2023 Rate of Interest is 18.00%
Term loan from Deutsche Bank, balance outstanding amounting to Rs 29,37,851 as on March 31, 2022 (March 31, 2021 Rs 34,76,416) is Unsecured.	Repayable in 52 installments starting from 05 Oct 2019. Last installment due in 05 June 2025 Rate of Interest is 18.00%
Term loan (GECL) from Deutsche Bank, balance outstanding amounting to Rs 3,08,858 as on March 31, 2022 (March 31, 2021 Rs 3,53,000) is Unsecured.	Repayable in 48 installments starting from 05 Nov 2020. Last installment due in 05 Oct 2024 Rate of Interest is 9.00%
Term loan from Edelweiss Retail Finance Limited, balance out- standing amounting to Rs 16,12,436 as on March 31, 2022 (March 31, 2021 Rs 20,23,259) is Unsecured.	Repayable in 58 installments starting from 05 May 2018. Last installment due in 05 Feb 2023 Rate of Interest is 18.00%
Term loan (GECL) from Edelweiss Retail Finance Limited, balance outstanding amounting to Rs 3,73,732 as on March 31, 2022 (March 31, 2021 Rs 4,34,100) is Unsecured.	Repayable in 48 installments starting from 05 Oct 2020. Last installment due in 05 Sep 2024 Rate of Interest is 14.00%
Term loan from India Infoline Finance Limited, balance outstand- ing amounting to Rs 41,60,113 as on March 31, 2022 (March 31, 2021 Rs 38,42,983) is Unsecured.	Repayable in 65 installments starting from 03 March 2020. Last installment due in 03 July 2025 Rate of Interest is 18.70%
Term loan (GECL) from India Infoline Finance Limited, balance outstanding amounting to Rs 6,02,649 as on March 31, 2022 (March 31, 2021 Rs 7,00,000) is Unsecured.	Repayable in 48 installments starting from 03 Oct 2020. Last installment due in 03 Sep 2024 Rate of Interest is 14.00%
Term loan from Kotak Mahindra Bank Limited, balance outstand- ing amounting to Rs 16,56,767 as on March 31, 2022 (March 31, 2021 Rs 30,94,429) is Unsecured.	Repayable in 26 installments starting from 01 Jan 2021. Last installment due in 01 Feb 2023 Rate of Interest is 19.00%

32nd ANNUAL REPORT 2021-2022

122

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Term loan from Shriram City Union Finance Limited, balance outRepayable in 36 installments starting from 05 Jan 2019. Last standing amounting to Rs 5,13,499 as on March 31, 2022 (March installment due in 05 Aug 2022 Rate of Interest is 19.00% 31, 2021 Rs 17,18,670) is Unsecured. Term loan from Tata Capital Financial Services Limited, balance Repayable in 36 installments starting from 03 Jan 2019. Last outstanding amounting to Rs 2,73,889 as on March 31, 2022 installment due in 03 Jul 2022 Rate of Interest is 15.00% (March 31, 2021 Rs 10,69,963) is Unsecured. Term loan from R & G Advani Impex Private Limited, balance outstanding amounting to Rs 18,07,703 as on March 31, 2022 Repayable on demand. Rate of Interest is 12.00% (March 31, 2021 Rs 21,31,071) is Unsecured. Term loan from Shalimar Hotels Private Limited, balance outstanding amounting to Rs 16,62,001 as on March 31, 2022 (March 31, Repayable on demand. Rate of Interest is 12.00% 2021 Rs 15,20,071) is Unsecured. Term loan (GECL 1) from State Bank of India, balance outstanding Repayable in 36 installments starting from 14 Jul 2022. Last amounting to Rs 2,44,25,343 as on March 31, 2022 (March 31, installment due in 14 Jun 2025 Rate of Interest is 7.40% 2021 Rs 2,66,66,551 ) extended against existing security of Term Loan / cashcredit accounts as part of the Covid19 package Term loan (GECL 2) from State Bank of India, balance outstanding Repayable in 36 installments starting from 25 Nov 2023. Last amounting to Rs 1,19,07,842 as on March 31, 2022 (March 31, installment due in 25 Oct 2026 Rate of Interest is 7.40% 2021 Rs. NIL ) extended against existing security of Term Loan / cashcredit accounts as part of the Covid19 package Term loan (WCTL) from State Bank of India, secured on pari passu Repayable in 72 installments starting from 01 Dec 2022. Last basis, by way of hypothecation of inventories, book debts and installment due in 01 Nov 2028 Rate of Interest is 10.65% receivables both present and future and further secured by way of equitable mortgage of company’s factory and machinery and equipments as well as equitable mortgage over factory and machinery and equipments of M/s. Global Instile Solid Industries Limited (Related party) balance outstanding amounting to Rs 4,84,34,170 as on March 31, 2022 (March 31, 2021 Rs. NIL) Cash Credit facilities from State Bank of India, secured on pari passu basis, by way of hypothecation of inventories, book debts and receivables both present and future and further secured by way of equitable mortgage of company’s factory and machinery and equipments as well as equitable mortgage over factory and Repayable on demand. Rate of Interest is 10.65% machinery and equipments of M/s. Global Instile Solid Industries Limited (Related party) balance outstanding amounting to Rs 8,51,85,143 as on March 31, 2022 (March 31, 2021 Rs. 13,18,34,433).

SOLID STONE COMPANY LIMITED

123

(CIN : L26960MH1990PLC056449)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

NOTE 35(1) Related Party Disclosures

Related Party Disclosure: (as required by Ind AS 24)

a) List of Parties which significantly influence / are influenced by the company (either individually or with others) - 1) Relationships : (a) Key Management Personnel :
Mr. Milan B. Khakhar
Mr. Prakash B. Khakhar
Mr. Manoj Dewani
Mr. Hardik Valia
(b) Associate Concern :

Global Instile Solid Industries Ltd.

(c) Relatives of Key Management personnel and Enterprise owned and significantly influenced by Key Management personnel or their relatives Milan Marble & Tiles

Yash P. Khakhar

Jeenoo Khakhar

Shabnam Khakhar (Formerly called Shraddha Khakhar)

Sonal Dewani

Note : Related party relationship on the basis of the requirements of Ind AS 24

is as identified by the Company and relied upon by the Auditors

2) Transactions carried out with Related parties referred to in 1 above, in ordinary course of business :

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Disclosures pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 & section 186 of the Companies Act, 2013

32nd ANNUAL REPORT 2021-2022

124

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

NOTE 35(2) : Related Party Disclosures

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----- Start of picture text -----

Sr. Nature of Associate Relatives of Key Management personnel and
No. Transaction Key Management Personnel Concern Enterprise owned and significantly influenced by
Key Management personnel or their relatives
Milan Prakash Manoj Hardik Valia Global Milan Yash Jeenoo Shabnam Sonal
Khakhar Khakhar Dewani (Company Instile Solid Marble & Khakhar Khakhar Khakhar Dewani
(Chairman & (Joint (Chief Secretary) Industries Tiles
Managing Managing Financial Ltd.
Director) Director) Officer)
1 Payments to &
provision for :
a) Salary/Remuneration
& Allowance 3602.40 3602.40 1727.40 542.40 — — 392.60 242.40 242.40 1082.40
— —
(3602.40) (3602.40) (1494.90) (308.90) (151.10) (362.40) (242.40) (902.40)
b) Rent — — — — — 720.00 — — — —
— — — — — — — — —
(780.00)
c) Director’s Fees — — — — — — — — — —
— — — — — — — — — —
2 a) Loans Taken 5925.00 560.00 — — — — — — — —
— — — — — — — —
(1430.00) (200.00)
b) Loans refunded 4346.55 698.17 — — — — — — — —
— — — — — — — —
(4751.70) (94.38)
c) Loans Payable 1830.17 42.96 — — — — — — — —
(251.73) (181.13) — — — — — — — —
3 Purchase of Goods — — — — 108921.10 — — — — —
— — — — — — — — —
(43068.11)
4 Sale of Goods — — — — — — — — —
— — — — — — — — — —
5 Deposits Receivable
as on 31st March — — — — — 1350.00 — — — —
— — — — — — — — —
(1000.00)
6 Outstanding Payable
as on 31st March 524.86 25.26 804.85 187.40 — 493.36 59.90 190.46 244.69 416.90
(326.73) (288.33) (860.90) (164.40) — (762.16) — (149.22) (173.74) (537.40)
7 Outstanding
Receivable as on
31st March — — — — 3551.96 — — — — —
— — — — — — — — —
(2613.59)
8 Outstanding
Guarantee taken
as on 31st March 138000.00 138000.00 — — 138000.00 — — — — —
— — — — — — —
(138000.00) (138000.00) (138000.00)
----- End of picture text -----

(figures in Brackets relate to previous year)

125

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Note 36

Note 36	Note 36	Note 36	Note 36	Note 36	Note 36	Note 36
A In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realises in the ordinary course of business. The provisions for all known liabilities are adequate and neither in excess or short of the amount reasonably necessary. (Rs. in ‘000s)
B	Remuneration to Auditors March’ 2022 March’ 2021
	Audit Fees 475.00 475.00 Taxation Matters - -
	Total 475.00 475.00
C	Remuneration to Directors March’ 2022 March’ 2021
	Total 7204.80 7204.80
D	Disclosure for Shareholding Movement
Sr No.	Particulars March’ March’ March’ March’ March’ 2022 2021 2020 2019 2018
(i) (ii) (iii)	Aggregate number and class of shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash. Nil Nil Nil Nil Nil Aggregate number and class of shares allotted as fully paid-up by way of bonus shares. Nil Nil Nil Nil Nil Aggregate number and class of shares bought back. Nil Nil Nil Nil Nil
E	Trade Payables Ageing Schedule (As on 31 March, 2022) : (Rs. in ‘000s)
		Outstanding for following periods from due date of payment
Sr No.	Particulars	Less than 1 year	1-2 years	2-3 years	More than 3 years	Total
(i) (ii) (iii) (iv)	MSME Others Disputed dues— MSME Disputed dues— Others	- 6880.86 - -	- - - -	- - - -	- - - -	- 6880.86 - -
E	Trade Payables Ageing Schedule (As on 31 March, 2021) : (Rs. in ‘000s)

	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment
Sr No. Particulars	Less than 1 year	1-2 years	2-3 years	More than 3 years	Total
(i) MSME (ii) Others (iii) Disputed dues— MSME (iv) Disputed dues— Others	- 18393.88 - -	- 18.64 - -	- - - -	- 18.02 - -	18430.54

32nd ANNUAL REPORT 2021-2022

126

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

F Trade Receivables Ageing Schedule(As on 31 March, 2022) :

(Rs. in ‘000s)

	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment
Sr No. Particulars	Less than 6 Months	6 Months - 1 Year	1-2 Years	2-3 Years	More than 3 Years	Total
(i) Undisputed Trade Receivables - Considered Good (ii) Undisputed Trade Receivables - Considered Doubtful (iii) Disputed Trade Receivables - Considered Good (iv) Disputed Trade Receivables - Considered Doubtful	38853.61 - - -	17.13 - - -	5945.98 - - -	30059.70 - - -	42806.12 - - -	117682.54 - - -

F Trade Receivables Ageing Schedule(As on 31 March, 2021) :

(Rs. in ‘000s)

	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment
Sr No. Particulars	Less than 6 Months	6 Months - 1 Year	1-2 Years	2-3 Years	More than 3 Years	Total
(i) Undisputed Trade Receivables - Considered Good (ii) Undisputed Trade Receivables - Considered Doubtful (iii) Disputed Trade Receivables - Considered Good (iv) Disputed Trade Receivables - Considered Doubtful	39906.55 - - -	- - - -	36984.70 - - -	23076.69 - - -	20229.43 - - -	120197.37 - - -

G Ratios Disclosed

Sr No.	Particulars	Numerator	Denominator	March’	March’	%	Reasons for variance
				2022	2021	Variance	(above 25%)
(i)	Current Ratio (in times)	Current assets	Current liabilities	2.73	1.97	38%	Current ratio has increased
							due to decrease in current
							borrowings
(ii)	Debt - Equity Ratio (in times)	Total Debt	Total Equity	1.04	0.90	15%	-
(iii)	Debt Service Coverage Ratio	Net profit after tax+	Interest +	0.56	0.94	-40%	On account of moratorium
	(in times)	Interest+Non-cash	Principal				on loans in F.Y.2020-21
		operating expenses	repayments of				due to COVID-19, the loan
			Non current				repayment was consider-
			borrowings				ably low as compared to
							current year F.Y.2021-22
(iv)	Return on Equity Ratio (in %)	Net profit after tax	Average Total	-4%	-4%	1%	-
			Equity
(v)	Inventory Turnover Ratio (in	Average Inventory	Cost of Goods	417.02	602.07	-31%	In F.Y.2020-21 due to
	days)		sold				COVID-19, Turnover was
							considerably low as
							compared to current year
							F.Y.2021-22

127

(CIN : L26960MH1990PLC056449)

SOLID STONE COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH 2022

Sr No.	Particulars	Numerator	Denominator	March’	March’	%	Reasons for variance
				2022	2021	Variance	(above 25%)
(vi)	Trade Receivables Turnover	Average Trade	Revenue from	178.50	304.84	-41%	In F.Y.2020-21 due to
	Ratio (in days)	receivables	Operations				COVID-19, Turnover was
							considerbly low as
							compared to current year
							F.Y.2021-22
(vii)	Trade Payables Turnover Ratio	Average Trade	Purchases	26.48	49.24	-46%	In F.Y.2020-21 due to
	(in days)	payables					COVID-19, Purchases
							were considerably low as
							compared to current year
							F.Y.2021-22 .
(viii)	Net Capital Turnover Ratio (in	Average Working	Revenue from	350	439	-20%	-
	days)	Capital	Operations
(ix)	Net Profit Ratio (in %)	Net profit after tax	Revenue from	-3%	-4%	-30%	In F.Y.2020-21 due to
			Operations				COVID-19, sales and
							margin were considerably
							low as compared to current
							year F.Y.2021-22 .
(x)	Return on Capital Employed (in	Net profit before	Capital	3%	3%	-4%	-
	%)	interest and tax	Employed [Total
			Equity + Non
			Current Debt]
(xi)	Return on Invesments (in%)	Earnings before	Average Total	3%	3%	0%	-
		interest and tax	Assets

H Segment Information:

The Company is engaged interalia in the business of natural stones, building material and allied building activities which is considered as a single segment. These in the context of Ind AS 108 “ Operating Segment” are considered to constitute one single primary segment. The Company’s operations outside India do not exceed the quantitative threshold for disclosure envisaged in the Accounting Standard. Non-reportable segments have not been disclosed as unallocated reconciling item in view of their materiality. In view of the above, primary and secondary reporting disclosures for business/geographical segment are not applicable.
I The Company continues to monitor the impact of COVID 19 on its business and is in a position to meet its commitments and will be able to meet all its debts obligations as and when they come up. Although there are uncertainties due to the pandemic, the Company expects the demand to normalise for its products as the impact of pandemic recedes.
J Previous year’s figures, wherever necessary, have been regrouped/reclassified to conform to the current year’s presentation.

In terms of our report attached. For and on Behalf of the Board For Merchant & Co M. B. KHAKHAR P. B. KHAKHAR Chartered Accountants Chairman & Managing Director Jt.ManagingDirector Firm Reg.No.145290W (DIN: 00394065) (DIN: 00394135) Ushma Merchant M.D.DEWANI H.D.VALIA Propreitor Chief Financial Officer Company Secretary Mem.No.142930 (ACS No.22571) Place : Mumbai Date : May 26, 2022

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AI assistant

Solid Stone Company Ltd. — Annual Report 2022

61744_rns_2022-09-05_96d7525e-2173-4725-89cc-9c6d429a984c.pdf

Re : Submission of Annual Report for 2021-22 under Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

SOLID STONE COMPANY LIMITED

CONTENTS

SOLID STONE COMPANY LIMITED

THIRTY SECOND ANNUAL REPORT 2021-2022

BOARD OF DIRECTORS

CHIEF FINANCIAL OFFICER

REGISTERED OFFICE

COMPANY SECRETARY

AUDITORS

BANKERS

WORKS

REGISTRAR & TRANSFER AGENT

REGISTERED OFFICE :

NOTICE OF MEETING

ORDINARY BUSINESS :

Milan B. Khakhar

NOTES :

Process and manner for attending the Annual General Meeting through InstaMeet:

Instructions for Shareholders/ Members to Speak during the Annual General Meeting through InstaMeet:

17 E-voting:

Remote e-Voting Instructions for shareholders:

Login method for Individual shareholders holding securities in demat mode is given below:

Login method for Individual shareholders holding securities in physical form is given below:

Cast your vote electronically:

Guidelines for Institutional shareholders:

Helpdesk for Individual Shareholders holding securities in physical mode/ Institutional shareholders:

Individual Shareholders holding securities in Physical mode has forgotten the password:

Individual Shareholders holding securities in demat mode with NSDL/ CDSL has forgotten the password:

DIRECTOR’S REPORT

The Members,

FINANCIAL RESULTS :

OPERATIONS :

SUBSIDIARIES AND ASSOCIATES :

CONSOLIDATED FINANCIAL STATEMENTS :

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

RELATED PARTY TRANSACTIONS

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

INSURANCE :

DIRECTORS AND KEY MANAGERIAL PERSONNEL :

Key Managerial Personnel

BOARD EVALUATION :

POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION :

Policy on Directors’ Appointment

Policy on Remuneration

DECLARATION OF INDEPENDENCE BY THE INDEPENDENT DIRECTORS

DIRECTORS’ RESPONSIBILITY STATEMENT

DETAILS OF COMMITTEES OF DIRECTORS

CORPORATE GOVERNANCE :

ANALYSIS OF REMUNERATION

AUDITORS AND AUDITOR’S REPORT :

Statutory Auditors

Secretarial Audit

INTERNAL FINANCIAL CONTROLS

VIGIL MECHANISM / WHISTLE BLOWER POLICY

AUDITORS QUALIFICATIONS

RISK MANAGEMENT POLICY

MEETINGS OF THE BOARD

PARTICULARS OF EMPLOYEES

ANNUAL RETURN

GENERAL

APPRECIATION :

ANNEXURE A to Directors’ Report :

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

A. CONSERVATION OF ENERGY

B. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT

i. Research & Development (R & D)

ii. Technology Absorption, Adaptation and Innovation

C. FOREIGN EXCHANGE USED & EARNED

ANNEXURE B to Directors’ Report :

MANAGEMENT DISCUSSION AND ANALYSIS FOR 2021-22

Industry Structure and development :

Opportunities and threats

Further Outlook

Performance for 2021-2022

Capital Structure

Internal Control Systems

Solid Stone Company Ltd. Annual Report 2022