Reply to Clarification- Financial results

MADHAV MARBLES AND GRANITES LIMITED CIN: Ll4101 RJl989PLC004903 Regd. Office: First Floor, "Mumal Towers", 16, Saheli Marg, Udaipur (Raj.) 3 I 3 001 Phone: 91-0294-2981666, E-mail:investor.relations@madhavmarbles.com \Vebsite: www.madhavmarbles.com ANNEXURE Statement of Impact of Audit Qualifications for the financial year ended March 31, 2025 (Standalone) I S. Particulars Audited Numbers Audited Numbers No. as reported before as reported before adjusting for adjusting for Qua Ii fications Qua Ii frcations (Rs. In Lakhs) (Rs. In Lakhs) a. Total Income 3548.78 3548.78 b. Total Expenditure 3440.05 3440.05 C. Net Profit/Loss 75.11 75.11 d. Earning per Share (Rs.) 0.84 0.84 e. Total Assets 15685.75 15685.75 f. Total Liabilities 1884.91 1884.91 g. Net Worth 13800.84 13800.84 h. Any other Financial ltem(s) (as felt - - appropriate by the Management) II. Audit Qualification S.No. Particulars Remarks a. Details of Audit Qualification The Company has made investments in its subsidiary, Madhav Ashok Ventures Private Limited amounting to Rs. 2, 16,00,000 and has extended loans amounting to Rs. 22,85.33,421 as at 31st March 2025. The net worth of the subsidiary has been fully eroded which indicates the existence of indicators of impairment in accordance with the requirements of Indian Accounting Standard (Ind AS) 36 - Impairment of Assets. However, the Company has neither carried out an impairment assessment of the said i1westments and nor recognized any provision for loan in the financial statements for the year ended 3 I st March 2025. In the absence of such an assessment and provision, we are unable lo determine whether any adjustments are necessary to the carrying value of these investments and loans. Had such an impairment assessment been pe,fo rmed and any provision recognized, the carrying value of these financial assets. the profit or loss for the year. and the related disclosures in the financial statements could have been materially affected. b. Type of Audit Qualification Qualified Opinion C. Frequency of Qualification Appeared First Time d. For Audit Qualifications where the impact is The impact is quantified by the Auditors Ill the quantified by the Auditors, management's views above relerred Audit Qualification. Management View: In response to the audit qualification. the management is optimistic about the future performance of its subsidiary. Madhav /\shok Ventures Pri,·ate Limited, and its assot"iatc. ~adhav Surfaces FZC LLC, Oman. in the current financial year. This confidence is underpinned by the anticipated imposition of tariffs by the US on 4uart7 products. which is expected to enhance the competitive advantaue of the Oman-based operations over other MADHAV MARBLES AND GRANITES LIMITED CIN: Ll4101RJl989PLC004903 Regd. Office: First Floor, "Mumal Towen", 16, Sahell ~farg, Udaipur (Raj.) JJJ 001 Phone: 91-0294-2981666, E-mail:investor.nlations@' mad ha, marbles.com Website: www.madhal'1111rbles.com -------------------------------- rountries. indudin~ lnd1:1 This dewlopment 1s lilccly to impm\c the pmdu(! d~m.ind in Middle: East India. US nnd Europtan markets. thus impro\ing profitabiriry of the as..~t'ICtnt~. thc"'by indirectly st"'n!f-~,n~ rhe tinnndol position of the subsidiary. Additionally. the Comrany anticip3tcs improved cash flows m the cumnt year. supported by iocrecl'Sed working capital avnilability and ongoin~ production and dispatches aligned with ~ projected targets. The promoters have also reiterated their commitment to the long-term stability of the subsidiary and are willing to infuse additional funds if necessary to support its increased opemtions. These developments. combined with focused efforts to enhance operational efliciency nnd market posiliontng. provide u strong basis for management"s belief thal the busine~s outlook for both the subsidiary and its associate is expected lo improve in the near term. e. For Audit Qualification(s) where the impact is not quantified by the Auditors, Management's estimation on the impact of Audit Qualification(s) If Management is unable to estimate the impact. Management is confident that the Subsidiary will reason for the same recover from its current financial situation and return to a path of stability and 2.rowth. Auditors' comment,s on (i) or (ii) above : No further comments III. Audit Qualification S. No. Particulars Remarks a. Details of Audit Qualification The Company has made investments m its subsidiary, Madhav Natural Stone and Surface Private Limited ts amounting to Rs. 70,51,000 and has extended loans amounting to Rs. 5.61.43.848 as at 31st March 2025. The net worth of the subsidiary has been fully eroded due to continued losses, which indicates the existence of indicators of impairment m accordance with the requirements of Indian Accounting Standard (Ind AS) 36 - Impairment of Assets. However, the Company has neither carried out an impairment assessment of the said in vestments and nor recognized any provision for loan in the financial statements for the year ended 31st March 2025. In the absence of such an assessment and prov1s1on. we are unable to de1em1ine whether any adjustments are necessary to the carrying value of these in\'estments and loans. Had such an impaim1cnt assessment been performed and any provision recognized. the carrying value of these financial assets. the profit or loss for the year, and the related disclosures in the financial statements could have been materially aftccted. b. Type of Audit Qualification Qualified Opinion C. Fr cquency of Qualification Appeared First Time d. For Audit Qualifications where the impact is The impact is quantified by the Auditors m the qua111ified by the Auditors. manage,m:nt's views above referred Audit Qualification. Management View: The subsidiary had earlier initiated business restructuring efforts lo reduce losses and explore MADHAV MARBLES AND GRANITES LIMITED CIN: Ll4 IOI RJl989PLC004903 Regd. Office: First Floor, ":\1umal Towers", 16, Saheli Marg, Udaipur (Raj.) 313 001 Phone: 91-0294-2981666, E-mail:investor.relations@madhavmarbles.com \\'ebsitc: www.madhavmarbles.com new business opportunities. further supporting long- tenn value. Further while. the impairment assessment could nor be finalized before audit completion. preliminary indications suggest that the recoverable amount (via sale proceeds and cash nows) will support the existing carrying value of the Company's financial exposure to the subsidiary. C. For Audit Qualifieation(s) where the impact is not NA quantified by the Auditors. Management's estimation on the impact of Audit Qualification( s) If Management is unable to estimate the impact, Management will take initiatives for restructuring reason for the same measures. Auditors' comments on (i) or (ii) above : No comments Signatories For Madhav Marbles and Granites Lim' Madhav Doshi S, t'n-llMUll"'I: I' CEO and Managing Director ,·omcer Devendra Manchanda Chairman - Audit Committee For Nyati & Associates Chartered Accountants FRN: 002327C Proprietor (M No.: 070742) Place: Udaipur Date: May 30, 2025 MADHAV MARBLES AND GRANITES LIMITED CIN: Ll4l01RJl989PLC004903 Regd. Office: First Floor, "Mumal Towers''. 16, Saheli Marg, Udaipur (Raj.) 313 001 Phone: 91-0294-2981666, E-mail:inYestor.relations@madhavmarbles.com Website: www.madhavmarbles.com ANNEXURE Statement of Impact of Audit Qualifications for the financial year ended March 3 I, 2025 (Consolidated) I s. Particulars Audited Nwnbers Audited Numbers No. as reported before as reported before adjusting for adjusting for Qualifications Qualifications (Rs. Jn Lakhs) (Rs. Jn Lakhs) a. Total Income 3402.43 3402.43 b. Total Expenditure 3517.19 3517.19 C. Net Profit/Loss -148.39 -148.39 d. Earning per Share (Rs.) -0.76 -0.76 e. Total Assets I 3907.89 13907.89 f. Total Liabilities 2082.69 2082.69 g, Net Worth 11825.20 11825.20 h. Any other Financial Item(s) (as felt - - appropriate by the Management) II. Audit Qualification S. No. Particulars Remarks f Details [Showing first 8,000 characters — download PDF for full document]