Asian Granito India Ltd. - Disclosure under SEBI LODR Reg. 32

Nature of Disclosure: This is a mandatory regulatory filing pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company is reporting deviations and variations in the utilization of proceeds from its Rights Issue.

Fund Raising Details:

  • Mode of Fund Raising: Rights Issue
  • Date of Raising Funds: 10 May 2022
  • Amount Raised: ₹440.96 Crores
  • Monitoring Agency: ICRA Limited
  • Report Filed for Quarter Ended: 30 September 2026

Key Finding: There is a Variation in the Object Clause of the Offer Letter dated 06 April 2022. This change was approved by shareholders on 30 March 2023 via a ballot with postal notice.

Audit Committee & Auditor Comments: The Audit Committee and the Auditors have No Comments on the deviation/variation.

Detailed Breakdown of Fund Utilization and Variations:

Objects with NO Deviation/Variation:

  • Funding Capex for Future Ceramic Pvt. Ltd.: Original Allocation: ₹173.37 Crores; Utilized: ₹173.37 Crores; Deviation: NIL.
  • Funding Capex for AGL Sanitaryware Pvt. Ltd.: Original Allocation: ₹45.26 Crores; Utilized: ₹45.26 Crores; Deviation: NIL.
  • General Corporate Purpose: Original Allocation: ₹94.75 Crores; Utilized: ₹94.75 Crores; Deviation: NIL.

Objects WITH Deviation/Variation:

1. Funding Capex for AGL Surfaces Pvt. Ltd. (CANCELLED):

  • Original Object: Setting up a new manufacturing unit.
  • Original Allocation: ₹32.17 Crores.
  • Modified Allocation: ₹NIL (This object has been cancelled).
  • Funds Utilized: ₹NIL.
  • Amount of Variation: ₹32.17 Crores (full amount reallocated).

2. Working Capital for Greenfield Projects:

  • Original Allocation: ₹39.40 Crores.
  • Modified Allocation: ₹30.00 Crores.
  • Funds Utilized: ₹30.00 Crores.
  • Amount of Variation: ₹9.40 Crores (reduction in allocation).

3. Capex for Setting up Display Centre at Morbi (CANCELLED):

  • Original Allocation: ₹37.23 Crores.
  • Modified Allocation: ₹NIL (This object has been cancelled).
  • Funds Utilized: ₹NIL.
  • Amount of Variation: ₹37.23 Crores (full amount reallocated).

4. Capex for Setting up Display Centre cum Office at Ahmedabad (NEW):

  • Original Allocation: ₹NIL (This is a new object).
  • Modified Allocation: ₹73.80 Crores.
  • Funds Utilized: ₹73.80 Crores.
  • Explanation: The company had initially entered into an agreement with an EPC contractor for this project, supported by an advance payment of ₹69.00 crore. This contract was terminated in Q4 FY25. By the end of Q2 FY26, ₹68.715 crore of the advance had been refunded, leaving a balance of ₹0.285 crore pending. AGL subsequently signed a new agreement with a different vendor, to whom the total of ₹73.802 crore was transferred. The company expects to receive the remaining ₹0.285 crore from the previous contractor in the upcoming quarter. As confirmed by management, implementation of this project is yet to commence as of 30th September 2026.

5. Setting up of Stock Point for Trading of Building Construction Material (NEW):

  • Original Allocation: ₹NIL (This is a new object).
  • Modified Allocation: ₹5.00 Crores.
  • Funds Utilized: ₹5.00 Crores.
  • Explanation: The company entered into an agreement with its wholly-owned subsidiary. An advance of ₹5.00 crore was transferred to the subsidiary in Q1 FY27. The subsidiary will construct a warehouse at its premises in Morbi, which will subsequently be leased to AGL for 12 years for operating the stock point. The advance will be adjusted against future lease rentals. The subsidiary has agreed to complete construction and hand over possession by May 2029. The construction is under progress as of 30 September 2026.

Total Quantified Variation: The sum of the individual variations (₹32.17 Cr + ₹9.40 Cr + ₹37.23 Cr) amounts to ₹78.80 Crores. The funds from these variations, along with other sources, were reallocated to new objects totalling ₹78.80 Crores (₹73.80 Cr + ₹5.00 Cr).