Asian Granito India Ltd Incorporates Subsidiary AGL Stones LLP

On June 5, 2024, Asian Granito India Ltd. informed in a stock exchange filing that it had incorporated a Subsidiary LLP named M/s. AGL STONES LLP operates under the Limited Liability Partnership Act 2008. The entity’s total contribution obligation amounts to ₹1,00,000. It has not initiated any business operations, thus indicating no turnover.

The acquisition of M/s. AGL STONES LLP qualifies as a related party transaction since M/s. Asian Granito India Limited has contributed 51% of the initial fixed capital contribution to the LLP. Additionally, Mr. Kamleshkumar B. Patel, Chairman and Managing Director of the Company, serves as a Designated Partner nominated by the Company in M/s. AGL STONES LLP. Despite these related party connections, the partners’ capital contributions will adhere to the LLP Agreement and be conducted at arm’s length.

The acquired entity operates within the trading industry, explicitly dealing with ceramic tiles, vitrified tiles, wall tiles, floor tiles, marbles, sanitary ware, hardware and plumbing materials, plywood, and other building materials. The acquisition of M/s. AGL STONES LLP aligns with the listed entity’s objective of diversifying its business activities.

In the second quarter of FY 2024, Asian Granito India Ltd. established wholly-owned subsidiaries in the USA and Dubai. Additionally, it entered into a joint venture agreement to manufacture wall tiles in Nepal.

Acquisition Cost

The shares of M/s. AGL STONES LLP were acquired at a cost of ₹51,000, representing the initial fixed capital contribution to the LLP. This contribution secures a 51% partnership stake in the LLP, indicating a significant shareholding and control acquired by the listed entity.

About M/s. AGL STONES LLP

M/s. AGL STONES LLP, established as a Limited Liability Partnership under the Limited Liability Partnership Act, 2008, on June 4, 2024, operates as a subsidiary of M/s Asian Granito India Limited. As it has not initiated business operations yet, there is no applicable turnover history for the last three years.

For the quarter ending in March 2024, Asian Granito India reported a net loss of ₹2.35 crore, a significant improvement compared to the net loss of ₹44.69 crore in the same quarter the previous year.

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