Notes to Accounts of Cochin Minerals & Rutile Ltd.

Mar 31, 2025

7. PROVISIONS, CONTINGENT LIABILITIES & CAPITAL COMMITMENTS

7.1 Provisions

7.1.1. Provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

7.1.2 When the Company expects some or all of a provision to be reimbursed,
reimbursement is recognised as a separate asset, but only when the reimbursement
is virtually certain. The expense relating to a provision is presented in the statement
of profit and loss net of any reimbursement.

7.1.3 If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time
is recognised as a finance cost.

7.1.4 Decommissioning Liability

Decommissioning costs are provided at the present value of expected costs to
settle the obligation using estimated cash flows and are recognised as part of the
cost of the particular asset. The cash flows are discounted at a current pre-tax
rate that reflects the risks specific to the decommissioning liability. The unwinding
of the discount is expensed as incurred and recognised in the statement of profit
and loss as a finance cost. The estimated future costs of decommissioning are
reviewed annually and adjusted as appropriate. Changes in the estimated future
costs or in the discount rate applied are added to or deducted from the cost of the
asset.

7.2 Contingent Liabilities

7.2.1 Show-cause Notices issued by various Government Authorities are not considered
as Obligation.

7.2.2 When the demand notices are raised against such show cause notices and are
disputed by the Company, these are classified as disputed obligations.

7.2.3 The treatment in respect of disputed obligations are as under:

a) a provision is recognized in respect of present obligations where the outflow of
resources is probable;

b) all other cases are disclosed as contingent liabilities unless the possibility of outflow
of resources is remote.

7.3 Capital Commitments

Estimated amount of contracts remaining to be executed on capital account are
considered for disclosure.

8. REVENUE RECOGNITION

8.1 CMRL is in the business of manufacture of Synthetic Rutile, Ferric Chloride, Ferrous
Chloride, Iron Hydroxide (Cemox), Recovered Ti02, Recovered Upgraded ilmenite
and Rutoweld.

Revenue is recognised when control of goods and services are transferred to the
customer at an amount that reflects the consideration which the Company expects
to be entitled in exchange for those goods or services. Revenue is measured
based on the consideration specified in a contract with a customer and excludes
amounts collected on behalf of third parties. The Company is the principle in its
revenue arrangements since it controls the goods or service before transferring
to the customer.

The Company considers whether there are other promises in the contract which are
separate performance obligations to which apportion of the transaction price needs
to be allocated. In determining the transaction price for the Sale of products, the
Company considers the effects of variable consideration, the existence of significant
financing components, non cash consideration and consideration payable to the
customer, if any.

Revenue from sale of products are recognised at appoint in time, generally upon
delivery of products .

Dividend income is recognised when the company’s right to receive dividend is
established.

Interest income from banks is recognised on time proportionate basis . Interest
income from financial assets is recognised on effective interest rate method. Key
man insurance is recognised on receipt of amount on maturity of insurance as
payment of premium paid is debited to profit and loss account

9. TAXES ON INCOME

9.1 Current Income Tax:

Provision for current tax is made as per the provisions of the Income Tax Act, 1961.
Current income tax assets and liabilities are measured at the amount expected to
be recovered from or paid to the taxation authorities.

9.2 Deferred Tax:

9.2.1 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 dates.

9.2.2 Deferred tax liabilities are recognised for all taxable temporary differences.

9.2.3 Deferred tax assets are recognised for all deductible temporary differences, the
carry forward of unused tax credits and any unused tax losses. Deferred tax asset
is recognised to the extend it is probable that taxable profit will be available against
which deductible temporary differences and carry forward of unused tax differences
and unused tax losses can be utilised.

9.2.4. Deferred tax assets and liabilities are measured based on tax rates ( and tax
laws) that have been enacted or substantively enacted at the reporting date.

9.2.5 The carrying amount of deferred income tax assets is reviewed at each reporting
date and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the deferred income tax asset to be
utilised.

9.2.6 Deferred tax relating to items recognised outside profit or loss is recognised outside
profit or loss (either in OCI or equity)

10. EMPLOYEE BENEFITS

10.1 Short term benefits:

Short term benefits are accounted for in the period during which the services have
been rendered.

10.2 Post -employment benefits and other long term employee benefits:

(i) Defined contribution plans: The costs of the benefits are recognised as expense/
CWIP when the employees have rendered services entitling them to the benefits.

(ii) Compensated absences: Such costs which are not expected to occur within 12
months are recognised as actuarially determined liability at the present value of
the defined benefit obligation at the date of each financial statement.

(iii) Defined Benefit Plans:The cost of providing benefits are determined using the
projected unit credit method of actuarial valuations made at the date of each
financial statement..

10.3 Remeasurements

Remeasurements, comprising of Actuarial gains and losses are recognised in Other
Comprehensive income in the period in which they occur and are not reclassified
to profit and loss in subsequent periods.

Past service costs are recognised in profit or loss on the earlier of:

? The date of the plan amendment or curtailment, and

? The date that the Company recognises related restructuring costs

11.2 An asset is treated as current when it is:

* Expected to be realised or intended to be sold or consumed in normal operating
cycle or is held for 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 date.

All other assets are classified as non- current.

11.2 A Liability is current when:

* Expected to be realised or intended to be sold or consumed in normal operating
cycle or is held for 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 date.

All other liabilities are classified as non current
12.FINANCIAL INSTRUMENTS:

12.1 Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four
categories:

o Financial Assets at amortised cost

o Debt instruments at fair value through other comprehensive income (FVTOCI)
o Equity instruments at fair value through other comprehensive income (FVTOCI)
o Financial assets and derivatives at fair value through profit or loss (FVTPL)

12.1.1 Financial Assets at amortised cost

A financial asset is measured at the amortised cost if both the following conditions
are met:

a) The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows,and

b) Contractual terms of the asset give rise on specified dates to cash flows that
are solely payments of principal and interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial assets are subsequently measured at
amortised cost using the effective interest rate (EIR) method. Amortised cost is
calculated by taking into account any discount or premium on acquisition and

fees or costs that are an integral part of the EIR. The EIR amortisation is included
in finance income in the profit or loss. The losses arising from impairment are
recognised in the profit or loss. This category generally applies to trade and other
receivables.

12.1.2Debt instrument at FVTOCI

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria
are met:

a) The objective of the business model is achieved both by collecting contractual
cash flows and selling the financial assets, and

b) The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as
well as at each reporting date at fair value. Fair value movements are recognized in
the other comprehensive income (OCI). However, the company recognizes interest
income, impairment losses & reversals and foreign exchange gain or loss in the
P&L. On derecognition of the asset, cumulative gain or loss previously recognised
in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI
debt instrument is reported as interest income using the EIR method.
12.1.3Equity investments at FVTOCI

All equity investments in scope of Ind AS 109 are measured at fair value. The
company has made an irrevocable election to present subsequent changes in the
fair value in other comprehensive income, excluding dividends. The classification
is made on initial recognition/transition and is irrevocable.

There is no recycling of the amounts from OCI to P&L, even on sale of investment.
However, the company may transfer the cumulative gain or loss within equity.
12.1.4Debt instruments and derivatives at FVTPL

FVTPL is a residual category. Any financial asset, which does not meet the criteria
for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
This category also includes derivative financial instruments entered into by the
company that are not designated as hedging instruments in hedge relationships
as defined by Ind AS 109.

In addition, the company may elect to designate a debt instrument, which otherwise
meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a measurement or recognition
inconsistency (referred to as ‘accounting mismatch’). The company has not
designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value
with all changes recognized in theP&L.

12.1.5Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group
of similar financial assets) is primarily derecognised (i.e. removed from the balance
sheet) when:

? The rights to receive cash flows from the asset have expired, or

? The company has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay
to a third party under a ‘pass-through’ arrangement; and either (a) the company has
transferred substantially all the risks and rewards of the asset, or (b) the company
has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset
or has entered into a pass-through arrangement, it evaluates if and to what extent
it has retained the risks and rewards of ownership. When it has neither transferred
nor retained substantially all of the risks and rewards of the asset, nor transferred
control of the asset, the company continues to recognise the transferred asset to
the extent of the company’s continuing involvement. In that case, the company
also recognises an associated liability. The transferred asset and the associated
liability are measured on a basis that reflects the rights and obligations that the
company has retained.

Continuing involvement that takes the form of a guarantee over the transferred
asset is measured at the lower of the original carrying amount of the asset and the
maximum amount of consideration that the company could be required to repay.

12.1.6Impairment of financial assets

In accordance with Ind AS 109, the company applies expected credit loss (ECL)
model for measurement and recognition of impairment loss on the following financial
assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost
e.g., loans, debt securities, deposits, trade receivables and bank balance

b) Financial guarantee contracts which are not measured as at FVTPL

c) Lease receivables under Ind AS 17

The company follows ‘simplified approach’ for recognition of impairment loss
allowance on Trade receivables that do not contain a significant financing
component.

The application of simplified approach does not require the Company to track
changes in credit risk. Rather, it recognises impairment loss allowance based on
lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the
company determines that whether there has been a significant increase in the credit
risk since initial recognition. If credit risk has not increased significantly, 12-month
ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit
risk since initial recognition, then the entity reverts to recognising impairment loss
allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events
over the expected life of a financial instrument. The 12-month ECL is a portion
of the lifetime ECL which results from default events that are possible within 12
months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the company
in accordance with the contract and all the cash flows that the entity expects to
receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating
the cash flows, an entity is required to consider:

? All contractual terms of the financial instrument (including prepayment extension,
call and similar options) over the expected life of the financial instrument. However,
in rare cases when the expected life of the financial instrument cannot be estimated
reliably, then the entity is required to use the remaining contractual term of the
financial instrument

? Cash flows from the sale of collateral held or other credit enhancements that are
integral to the contractual terms

As a practical expedient, the Company uses a provision matrix to determine
impairment loss allowance on portfolio of its trade receivables. The provision
matrix is based on its historically observed default rates over the expected life
of the trade receivables and is adjusted for forward-looking estimates. At every
reporting date, the historical observed default rates are updated and changes in
the forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognized during the period is
recognized as income/ expense in the statement of profit and loss (P&L). The
balance sheet presentation for various financial instruments is described below:

? Financial assets measured as at amortised cost: ECL is presented as an allowance,

i.e., as an integral part of the measurement of those assets in the balance sheet.
The allowance reduces the net carrying amount. Until the asset meets write-off
criteria, the company does not reduce impairment allowance from the gross carrying
amount.

? Financial guarantee contracts: ECL is presented as a provision in the balance
sheet, i.e. as a liability.

Debt instruments measured at FVTOCI: Since financial assets are already reflected
at fair value, impairmentallowance is not further reduced from its value. Rather,
ECL amount is presented as ‘accumulated impairment amount’ in the OCI

2.2 Financial liabilities

2.2.1 Initial recognition and measurement.

Financial liabilities are classified, at initial recognition, as financial liabilities at fair
value through profit or loss, loans and borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans
and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and
borrowings including financial guarantee contracts.

12.2.2Subsequent measurement

The measurement of financial liabilities depends on their classification, as described
below:

A. Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held
for trading and financial liabilities designated upon initial recognition as at fair value
through profit or loss. Financial liabilities are classified as held for trading if they
are incurred for the purpose of repurchasing in the near term. This category also
includes derivative financial instruments entered into by the company that are not
designated as hedging instruments in hedge relationships as defined by Ind AS
109.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

B. Financial liabilities at amortised cost:

Financial liabilities that are not held for trading and are not designated at FVTPL are
measured at amortised cost at the end of subsequent accounting periods based
on the Effective Interest Rate (EIR) method. Gains and losses are recognised
in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.

Amortised cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to borrowings. The EIR amortisation has been
calculated based on the managements perception of cash outflow which is based
on expected progress of the project.

C. Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that
require a payment to be made to reimburse the holder for a loss it incurs because
the specified debtor fails to make a payment when due in accordance with the
terms of a debt instrument. Financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs that are directly attributable
to the issuance of the guarantee. Subsequently, the liability is measured at the
higher of the amount of loss allowance determined as per impairment requirements
of Ind AS 109 and the amount recognised less cumulative amortisation.
12.2.3Derecognition

A financial liability is derecognised when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced
by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification
is treated as the derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised in the
statement of profit or loss.

12.2.4Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported
in the consolidated balance sheet if there is a currently enforceable legal right to
offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

13. CASH AND CASH EQUIVALENTS

Cash and cash equivalents in the balance sheet comprise cash at banks and in
hand and short term deposits with an original maturity of three months or less,
which are subject to an insignificant risk of changes in value.

14. FAIR VALUE MEASUREMENT

14.1 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 at each balance sheet date in the principal market or most advantageous
market assuming that market participants act in their economic interest.

14.2 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 using techniques which are appropriate and for which
sufficient data is available.

14.3 Fair value hierarchy:

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: Others including using external valuers as required

2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of Company’s financial statements requires management to
make judgements, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities and accompanying disclosures and
the disclosure of contingent liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying
amount of assets and liabilities affected in future periods. The Company continually
evaluates these estimates and assumptions based on the most recently available
information. Revisions to accounting estimates are recognised prospectively in the
statement of profit and loss in the period in which the estimates are revised and
in any future periods attached.

3. CONTINGENCIES

The assessment of the existence and potential quantum of contingencies inherently
involves the exercise of significant judgement and the use of estimates regarding
the outcome of future events.

35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:

The financial liabilities of CMRL comprise of loans and borrowings, trade and other
payables with the main purpose of financing the Company’s activities. The financial
assets of CMRL comprise of Investments, receivables,loans and advances and cash
and cash equivalents CMRL is exposed to market risk, credit risk and liquidity risk.
This is managed by the Company’s management team under guidance of the Board
of Directors. This team ensures that the financial risk activities are governed by ap¬
propriate policies and procedures and financial risks are identified, measured and
managed in accordance with the Company’s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing these risks as sum¬
marised below.

a. Market Risk : Market risk is the risk that the fair value of future cash flows of a financial
instrument will fluctuate because of change in market price and comprises of Interest
rate risk, Currency risk and Other risks. Financial instruments affected by market risk
includes loans and borrowings , deposits and interest on deposits.

(i) Interest Rate Risk : Risk that the fair value of future cash flows will fluctuate due to
changes in market interest rates and primarily affects the long term debt obligations
of the Company which is based on MCLR and reset annually. As per IND AS interest
is charged as per Effective Interest Method based on the IRR of the loan.

(ii) Foreign currency risk : Company has no borrowings in foreign currency.

(iii) Other Risk : The other risk factors are the unpredictable situation in the availability
and price of ilmenite and Hydrochloric acid, the major and critical raw materials of the
company.

The demand and volatile nature of prices of Synthetic Rutile and foreign exchange
fluctuations also have an impact.

b. Credit Risk : Risk of the counter party not meeting its obligations if a customer or
counter party fails to meet its contractual obligations and arises principally from the
Company’s trade receivables and loans and advances. The carrying amounts of
financial instruments represent the maximum exposure.

The Company’s exposure to credit risk is influenced mainly by the characteristics of
each customer and the geography in which it operates. Credit risk is managed by credit
approvals, establishing credit limits and continuously monitoring the credit worthiness
of its customers to which the Company grants credit terms in the normal course of its
business.

The Company’s export sales are backed by letters of credit.

The Company monitors each loans and advance given and makes any provision
whenever required.

Based on prior experience and assessment of current business environment, man¬
agement believes there is no requirement for any credit provision and there is no
significant concentration of credit risk.

36. CAPITAL MANAGEMENT

For the purpose of Company’s capital management, capital includes share capital
and other equity with the primary objective of increasing shareholder value. The
Company manages its capital structure in light of changes in economic conditions
and requirements of the financial covenants through a mix of debt and equity.

The Company monitors capital using the adjusted net debt to capital ratio as
below:

37. PENDING LITIGATIONS:

1. The Ministry of Corporate Affairs, Government of India, ordered investigation of
Company’s affairs u/s 212 of the Companies Act, 2013, which was challenged before
the Hon’ble High Court of Delhi which is pending disposal. In the meanwhile, inves¬
tigation agency SFIO completed investigation and filed a criminal complaint alleging
violation of Sec 447 amongst other provisions which was taken cognizance by the
Special court without notice to the company and other proposed accused and the
cognizance order was challenged for lack of notice to the company by way of a writ
before the Hon’ble High Court of Kerala which was pleased to order status quo in
the proceedings before the special court. The Company had also filed an application
in the main Writ Petition complaining that the SFIO had filed Investigation Report/
complaint even though an assurance was given by the SFIO to the Hon’ble Delhi High
Court that the Investigation Report will not be filed pending disposal of the main Writ
Petition. The Hon’ble High Court of Delhi vide order dt 28.05.2025 had observed that
the SFIO were not to proceed with the Investigation Report/complaint filed before the
Special Court in Kerala till the main Writ Petition is disposed of.

2. ED had also registered an ECIR against the Company and its senior officials u/s
50 of PMLA, 2002. As there was no allegation of the Company having committed any
scheduled offence, the Company approached Hon’ble Kerala High Court by filing a
Writ Petition questioning the jurisdiction of ED and the same is pending before the
Court.

38. The figures appearing in financial statements are rounded off to the nearest ( in Lakhs.

Previous year''s figures have been regrouped / reclassified wherever necessary to
correspond with the current year''s classification / disclosure.

Place : Aluva As per Annexed Report of even date

Dat_e : 21 05 2025

K. A. SAGHESH KUMAR, B.Com, FCA, DISA
CHARTERED ACCOUNTANT
Membership No. 211340

R.K. Garg Saran S. Kartha Mathew M. Cherian Jaya S. Kartha

Chairman Managing Director Director

Director

DIN : 00644462 DIN : 02676326 DIN : 01265695 DIN : 00666957

Anil Ananda Panicker T.P. Thomaskutty Nabiel Mathew Cherian V. Vinod Kamath

Executive Director Director Director Director

DIN : 05214837 DIN : 01473957 DIN : 03619760 DIN : 10700232

Yogindunath S. Venkitraman Anand Dr. Rabinarayan Patra Suresh Kumar P

Director Director Director CGM(Finance)

DIN : 02905727 DIN : 07446834 DIN : 00917044 & ^{Company Secretary}

---

Mar 31, 2024

11. CURRENT VERSUS NON CURRENT CLASSIFICATION

11.1 The Company presents assets and liabilities in the balance sheet based on current/ non- current classification.

11.2 An asset is treated as current when it is:

* Expected to be realised or intended to be sold or consumed in normal operating cycle or is held for 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 date.

All other assets are classified as non- current.

11.2 A Liability is current when:

* Expected to be realised or intended to be sold or consumed in normal operating cycle or is held for 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 date.

All other liabilities are classified as non current 12.FINANCIAL INSTRUMENTS:

12.1 Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

o Financial Assets at amortised cost

o Debt instruments at fair value through other comprehensive income (FVTOCI) o Equity instruments at fair value through other comprehensive income (FVTOCI) o Financial assets and derivatives at fair value through profit or loss (FVTPL)

12.1.1 Financial Assets at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows,and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade and other receivables.

12.1,2Debt instrument at FVTOCI

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the P&L. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

12.1,3Equity investments at FVTOCI

All equity investments in scope of Ind AS 109 are measured at fair value. The company has made an irrevocable election to present subsequent changes in the fair value in other comprehensive income, excluding dividends. The classification is made on initial recognition/transition and is irrevocable.

There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the company may transfer the cumulative gain or loss within equity. 12.1,4Debt instruments and derivatives at FVTPL

FVTPL is a residual category. Any financial asset, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

This category also includes derivative financial instruments entered into by the company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.

In addition, the company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’). The company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in theP&L.

12.1 5Derecognition

Afinancial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the balance sheet) when:

? The rights to receive cash flows from the asset have expired, or

? The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognise the transferred asset to the extent of the company’s continuing involvement. In that case, the company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the company could be required to repay.

12.1 6lmpairment of financial assets

In accordance with Ind AS 109, the company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance

b) Financial guarantee contracts which are not measured as at FVTPL

c) Lease receivables under Ind AS 17

The company follows ''simplified approach’ for recognition of impairment loss allowance on Trade receivables that do not contain a significant financing component.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECLare the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:

? All contractual terms of the financial instrument (including prepayment extension, call and similar options) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument

? Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss (P&L). The balance sheet presentation for various financial instruments is described below:

? Financial assets measured as at amortised cost: ECL is presented as an allowance,

i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount.

? Financial guarantee contracts: ECL is presented as a provision in the balance sheet, i.e. as a liability.

Debt instruments measured at FVTOCI: Since financial assets are already reflected at fair value, impairmentallowance is not further reduced from its value. Rather, ECL amount is presented as ‘accumulated impairment amount’ in the OCI

12.2 Financial liabilities

12.2.1 Initial recognition and measurement.

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including financial guarantee contracts.

12.2.2Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

A. Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

B. Financial liabilities at amortised cost:

Financial liabilities that are not held fortrading and are not designated at FVTPLare measured at amortised cost at the end of subsequent accounting periods based on the Effective Interest Rate (EIR) method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to borrowings. The EIR amortisation has been calculated based on the managements perception of cash outflow which is based on expected progress of the project.

C. Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially asa liability atfairvalue, adjusted fortransaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation. 12.2.3Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

12.2.40ffsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

13. CASH AND CASH EQUIVALENTS

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

14. FAIR VALUE MEASUREMENT

14.1 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 at each balance sheet date in the principal market or most advantageous market assuming that market participants act in their economic interest.

14.2 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 using techniques which are appropriate and for which sufficient data is available.

14.3 Fair value hierarchy:

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: Others including using external valuers as required

2. SIGNIFICANTACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets and liabilities affected in future periods. The Company continually evaluates these estimates and assumptions based on the most recently available information. Revisions to accounting estimates are recognised prospectively in the statement of profit and loss in the period in which the estimates are revised and in any future periods attached.

3. CONTINGENCIES

The assessment of the existence and potential quantum of contingencies inherently involves the exercise of significant judgement and the use of estimates regarding the outcome of future events.

Note : 1 Bank of Baroda Corporate Covid Emergency Credit Line Loan was sanctioned on 14/06/2022 and repayable in 47 monthly instalments of ? 7.02lakhs after the moratorium period of 2 years and at a sanctioned interest rate of BRLLR 1% and maximum 9.25%._

Note a) Company has used the borrowing sanctioned by Bank of Baroda for working capital purposes for the same.

b) There is a variation of ?684.82 lakhs in value of inventories due to difference in valuation method.

SECURITY : 1. The above two Bank of Baroda term loans are secured by paripassu charge by way of

1. First charge by way of equitable mortgage of 21.35 Acres of land in Survey Nos.92/4A, 92/4B.97/1 A part, 97/1B1, 1B2, 1B3.97/2B2, 97/3-1, 97/3-2 part, 98/1A part, 98/1B part,95/4 Part,95/6 Part, 95/7 part, 96/1-1,96/1-2,96/2, 96/3Apart, 96/3B part, 96/4Part, 96/5-1 part, 97/1B-3 part, 97/2A-1 part, 98/1A Part, 132/11-A, 132/12,132/13,95/3 part, 95/5 part, 97/3 part 135/3B, 135/2B, 135/2A,135/1 at Parur Taluk, Kadungallur Village together with building, plant and machinery and movables(save and except inventories of all nature, book debts and other current assets which form part of the primary security towards the working capital advance in the ordinary course of business) including movable machinery, machinery spares, tools and accessories present and future.

2. By personal guarantee of Dr S.N.Sasidharan Kartha, Managing Director

32. Dues to Micro, Small and Medium Enterprises

Based on the information available with the management, the amount payable to micro, small and medium enterprises in respect of whom information is to be disclosed under the Micro, Small and Medium Enterprises Development Act 2006 is ? 190.34 lakhs.

c) No charges or satisfaction is yet to be registered with Registrar of Companies beyond the statutory period.

d) The Company has complied with the no. of layers prescribed u/s 2(87) read with the applicable Rules.

e) There is no Scheme of Arrangements that has been approved in terms of sections 230

to 237._

f) The Company has not advanced/loaned/invested or received funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

g) There are no transactions that are not recorded in the books of account to be surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:

The financial liabilities of CMRL comprise of loans and borrowings, trade and other payables with the main purpose of financing the Company''s activities. The financial assets of CMRL comprise of Investments, receivables,loans and advances and cash and cash equivalents CMRL is exposed to market risk, credit risk and liquidity risk. This is managed by the Company''s management team under guidance of the Board of Directors. This team ensures that the financial risk activities are governed by appropriate policies and procedures and financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing these risks as summarised below.

a. Market Risk : Market risk is the risk that the fairvalue offuture cash flows of a financial instrument will fluctuate because of change in market price and comprises of Interest rate risk, Currency risk and Other risks. Financial instruments affected by market risk includes loans and borrowings , deposits and interest on deposits.

(i) Interest Rate Risk : Risk that the fair value of future cash flows will fluctuate due to changes in market interest rates and primarily affects the long term debt obligations of the Company which is based on MCLR and reset annually. As per IND AS interest is charged as per Effective Interest Method based on the IRR of the loan.

(ii) Foreign currency risk : Company has no borrowings in foreign currency.

(iii) Other Risk : The other risk factors are the unpredictable situation in the availability and price of ilmenite and Hydrochloric acid, the major and critical raw materials of the company.

The demand and volatile nature of prices of Synthetic Rutile and foreign exchange fluctuations also have an impact.

b. Credit Risk : Risk of the counter party not meeting its obligations if a customer or counter party fails to meet its contractual obligations and arises principally from the Company’s trade receivables and loans and advances. The carrying amounts of financial instruments represent the maximum exposure.

The Company''s exposure to credit risk is influenced mainly by the characteristics of each customer and the geography in which it operates. Credit risk is managed by credit approvals, establishing credit limits and continuously monitoring the credit worthiness of its customers to which the Company grants credit terms in the normal course of its business.

The Company''s export sales are backed by letters of credit.

The Company monitors each loans and advance given and makes any provision whenever required.

Based on prior experience and assessment of current business environment, management believes there is no requirement for any credit provision and there is no significant concentration of credit risk.

36. CAPITAL MANAGEMENT

For the purpose of Company’s capital management, capital includes share capital and other equity with the primary objective of increasing shareholder value. The Company manages its capital structure in light of changes in economic conditions and requirements of the financial covenants through a mix of debt and equity.

37. The figuresappearing in financial statements are rounded off to the nearest? in Lakhs. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

38. Consequent to Search operations under section 132 of the Income Tax Act on 25th January 2019, the Income Tax Department re-opened the income tax assessments of the company for the Financial Years 2011 -12 to 2018-19 proposing to disallow certain expenditure claimed by the company in the profit and loss account as inflation / not relating to business. The company filed petition before the Interim Board for Settlement, New Delhi for the financial years 2012-13 to 2018-19 and the litigation was settled as per the Order of the Interim Board for Settlement dated 12.6.2023. The company had paid a sum of Rs.18,09,75,368/- as income tax for the above financial years and the same is disclosed as a separate item in the profit and loss account for the year ended 31.3.2024. The company has contested the re-opening of the assessment for the financial year 2011-12 before the Kerala High Court and the same is subjudice.

39. PENDING LITIGATIONS:

1. Pursuant to a MCA Order dated 31.01.2024, the SFIO has initiated an investigation into the affairs of the Company vide its order No. SFIO/lnv/AOI/2023-24 dated 31.01.2024. The Company has challenged the cited order and filed Writ Petition in the Honourable High Court of Delhi and the litigation is pending.

2. ED has registered an ECIR against the Company and its officials u/s50 of the PMLA Act, 2002. As there exists no scheduled offence, the Company has approached the Honourable High Court of Kerala, questioning the jurisdiction of ED and the same is pending before the Court.

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Mar 31, 2018

A. CORPORATE INFORMATION

Cochin Minerals and Rutile Ltd is a public limited company incorporated in India. Its shares are listed in Bombay stock exchange. The Company is engaged in the manufacture of Synthetic Rutile, Ferric Chloride, Ferrous Chloride, Iron Hydroxide (Cemox), Recovered Ti02 and Recovered Upgraded ilmenite.

B. STANDARDS ISSUED BUT NOT YET EFFECTIVE

The MCA has notified IND AS 115 “Revenue from contract with customers”. It shall come into force w.e.f 01.04.2018. The Company intends to adopt these standards when they become effective.

1. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets and liabilities affected in future periods. The Company continually evaluates these estimates and assumptions based on the most recently available information. Revisions to accounting estimates are recognised prospectively in the statement of profit and loss in the period in which the estimates are revised and in any future periods attached.

1.1 CONTINGENCIES

The assessment of the existence and potential quantum of contingencies inherently involves the exercise of significant judgement and the use of estimates regarding the outcome of future events.

2. Explanation for transition to IND AS:

The transition as at 1st April 2016 to IND AS was carried out from previous GAAP as explained below:

First-time adoption of Ind AS

These financial statements, for the year ended 31 March 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2016, the Company’s date of transition to Ind AS. This note explains exemptions availed by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

In preparing these IND AS financials statements CMRL has claimed certain exemptions and exceptions with the resulting difference as at the transition date and Previous GAAP being recognised directly in Other Equity

Exemptions applied:

2.1 Mandatory exemptions from retrospective application;

a) Estimate

The estimates at 1st April 2016 and at 31 March 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) .

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1 April 2016, the date of transition to Ind AS and as of 31 March 2017.

b) Derecognition of financial assets:

The company has applied the de-recognition requirements in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

c) Classification and measurement of financial assets:

Financial Instruments:

a. Investments In Equity shares have been measured at Fair Value Through OCI (FVTOCI) since CMRL has taken an irrevocable decision regarding the same. At the date of transition the difference between Fair value and previous GAAP value has been recognised in OCI net off deferred tax.

b. Investments in unquoted equity shares of Kerala Enviro Infrastructure Ltd has been assumed to be at Fair value which is equal to cost.

c. Other financial assets has been classified and measured at amortised cost on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

d. Loans and borrowings : Transaction costs are included in the initial recognition of financial liability and charged to Statement of Profit & loss account using the effective interest rate method.

3. Optional exemptions availed:

a. Deemed cost-Previous GAAP carrying amount: (PPE and Intangible)

Company has opted to measure the Property Plant & Equipment and Capital work in progress as at deemed cost at the date of transition to IND AS, measured as per the previous GAAP

b. Investment in subsidiaries, Joint ventures and associates:

Company has elected to continue with the carrying value of its Associate and Society as recognised in the financial statements as per previous GAAP value.

3.1 Notes to the reconciliations

a. Since, it is impracticable for the Company to apply retrospectively the effective interest method in Ind AS 109, the fair value of the financial asset or the financial liability (except for Long Term Borrowings) at the date of transition to Ind AS by applying amortised cost method, has been considered as the new gross carrying amount of that financial asset or the financial liability at the date of transition to Ind AS.

b. Deferred tax is accounted using the balance sheet approach which focuses on the temporary differences between the carrying amount of assets or liability in the Balance Sheet with its tax base.

c. Employee benefits: Actuarial gains/ losses are recognised through Other Comprehensive Income.

Note 4: The Company KEIL has accumulated losses as at March 31,2017. No provision for dimunition in value through OCI has been considered by the management. The Fair value is based on Level 3 and is expected to be the same as cost

Note 5: Share application money of KREML is still pending for allotment since the KREML has not obtained mining lease from Kerala government and the capital structure is not finalised. The management is hopeful for a solution in this matter and considering the high fair valuation expected on the mining rights and due to absence of audited accounts fair valuation and equity based consolidation is not considered at present.

Note : 6 Bank of Baroda Corporate loan was sanctioned on 03/01/2014 and repayable in 72 monthly instalments of Rs. 41.60 lacs and at a sacntioned interest rate of 12.40%.

Note : 7 Bank of Baroda Term loan was sanctioned on 19/02/2009 and repayable in 72 monthly instalments of Rs. 4.30 lacs and at a sanctioned interest rate of 12.40%.

1. First charge by way of equitable mortgage of 21.35 Acres of land in Survey Nos.92/4A, 92/4B,97/1A part, 97/1B1, 1B2, 1B3,97/2B2, 97/3-1, 97/3-2 part, 98/1A part, 98/1B part,95/4 Part,95/6 Part, 95/7 part, 96/1-1, 96/1-2,96/2, 96/3A part, 96/3B part, 96/4Part, 96/5-1part, 97/1B-3 part, 97/2A-1 part, 98/1A Part,132/11-A,132/12,132/13,95/3 part, 95/5 part, 97/3 part 135/3B,135/2B, 135/2A,135/1 at Parur Taluk, Kadungallur Village together with building, plant and machinery and movables(save and except inventories of all nature, book debts and other current assets which form part of the primary security towards the working capital advance in the ordinary course of business) including movable machinery, machinery spares, tools and accessories present and future.

SECURITY : 2. The above two Bank of Baroda Corporte and term loans are secured by personal guarantee of Dr S.N.Sasidharan Kartha , Managing Director

8. Dues to Micro, Small and Medium Enterprises

Based on the information available with the management there are no dues to micro, small and medium enterprises in respect of whom information is to be disclosed under the Micro, Small and Medium Enterprises Development Act 2006

9. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:

The financial liabilities of the Company comprise of loans and borrowings, trade and other payables with the main purpose of financing the Company’s activities. The financial assets of the Company comprise of Investments, receivables, loans and advances and cash and cash equivalents. The Company is exposed to market risk, credit risk and liquidity risk. This is managed by the Company’s management team under guidance of the Board of Directors. This team ensures that the financial risk activities are governed by appropriate policies and procedures and financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing these risks as summarised below.

a. Market Risk : Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market price and comprises of Interest rate risk, Currency risk and Other risks. Financial instruments affected by market risk includes loans and borrowings , deposits and interest on deposits.

(i) Interest Rate Risk : Risk that the fair value of future cash flows will fluctuate due to changes in market interest rates and primarily affects the long term debt obligations of the Company which is based on MCLR and reset annually. As per IND AS interest is charged as per Effective Interest Method based on the IRR of the loan.

(ii) Foreign currency risk : Company has no borrowings in foreign currency.

(iii) Other Risk The other risk factors are the unpredictable situation in the availability and price of ilmenite and Hydrochloric acid, the major and critical raw materials of the company.

The demand and volatile nature of prices of Synthetic Rutile and foreign exchange fluctuations also have an impact.

b. Credit Risk : Risk of the counterparty not meeting its obligations if a customer or counterparty fails to meet its contractual obligations and arises principally from the Company’s trade receivables and loans and advances. The carrying amounts of financial instruments represent the maximum exposure.

The Company’s exposure to credit risk is influenced mainly by the characteristics of each customer and the geography in which it operates. Credit risk is managed by credit approvals, establishing credit limits and continuously monitoring the credit worthiness of its customers to which the Company grants credit terms in the normal course of its business.

The Company’s export sales are backed by letters of credit.

The Company monitors each loans and advance given and makes any provision whenever required.

Based on prior experience and assessment of current business environment management believes there is no requirement for any credit provision and there is no significant concentration of credit risk.

10. CAPITAL MANAGEMENT

For the purpose of Company’s capital management, capital includes share capital and other equity with the primary objective of increasing shareholder value. The Company manages its capital structure in light of changes in economic conditions and requirements of the financial covenants through a mix of debt and equity.

The Company monitors capital using the adjusted net debt to capital ratio as below:

11. The figures appearing in financial statements are rounded off to the nearest Rs. in Lakhs. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

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Mar 31, 2016

1) Paripassu first charge by way of equitable mortgage of 21.35 Acres of land in Survey Nos.92/4A, 92/4B, 97/1A part, 97/1B1,1B2,1B3, 97/2B2,97/3-1, 97/3-2 part, 98/1A part, 98/1B part,95/4 Part, 95/6 Part, 95/7 part, 96/1-1, 96/1-2, 96/2, 96/3A part, 96/3Bpart,96/4 Part,96/5-1part, 97/1B-3 part, 97/2A-1 part,98/1A Part , 132/11-A, 132/12, 132/13,95/3 part,95/5 part,97/3 part 135/3B,135/2B,135/2A, 135/1 at Parur Taluk, Kadungallur Village together with building, plant and machinery and movables (Save and except inventories of all nature, book debts and other current assets which form part of the primary security towards the working capital advance in the ordinary course of business) including movable machinery, machinery spares, tools and accessories present and future.

2) Personal guarantee of Dr.S.N. Sasidharan Kartha, The Managing Director.

3. Terms of repayment of Packing Credits:

PC from Banks is repayable on demand and carries interest @ 10.90% (Current Rate)

Cash Credit/Packing Credit advances from Bank of Baroda are secured by:

4) First charge on all the Company''s stock of raw-materials, consumable stores, finished goods, work in progress, debtors etc. both present and future

5) Second charge by way of equitable mortgage of 21.35 Acres of land in Survey Nos.92/4A, 92/4B, 97/1A part, 97/1B1,1B2,1B3, 97/2B2,97/3-1, 97/3-2 part, 98/1A part, 98/1B part,95/4 Part, 95/6 Part, 95/7 part, 96/1-1, 96/1-2, 96/2, 96/3A part, 96/3Bpart,96/4 Part,96/5-1part, 97/1B-3 part, 97/2A-1 part,98/1A Part , 132/11-A, 132/12, 132/13,95/3 part,95/5 part,97/3 part 135/3B,135/2B, 135/2A, 135/1 at Parur Taluk, Kadungallur Village together with building, plant and machinery and movables including movable machinery, machinery spares, tools and accessories present and future.

6) Personal Guarantee of Dr.S N Sasidharan Kartha, Managing Director.

7. Related party disclosures - As identified by the management and relied upon by the auditors.

8. List of Related parties and description of relationship

9.Parties with significant influence : M/s Sach Exports Pvt. Ltd.

10. Key Management Personnel : Dr. S. N.Sasidharan Kartha

: Shri Saran S Kartha

: Shri P Suresh Kumar

: Shri K S Suresh Kumar

11.. Contingent Liabilities and commitments.

11) Contingent Liabilities not provided for:

12. Bank Guarantees issued on behalf of the Company by Bank of Baroda outstanding as on 31/03/2016 is ''.1,13,83,125/- (''1,09,78,995/)- as on 31/03/2015) and USD30,54,500 for which the Company has given counter guarantee.

13. Bills discounted not maturing on:

31/03/2016 Rs. 3,35,89,224.00 31/03/2015 Rs. 13,88,99,465.00

14. The Additional commissioner of Income Tax has raised a demand of Rs..58,07,820/- while completing the assessment of assessment year 2009-10. The Company has filed an appeal before the Commissioner of Income Tax(Appeal) against the order.

15. Assistant Commissioner, Department of Commercial Tax has raised a demand of Rs..11,50,708/while completing the assessment of the year 2008-09. The Company has filed an appeal before the Deputy Commissioner of Appeals.

16. Micro, Small and Medium Enterprises Development Act 2006.

In accordance with the Notification No.GSR 719(E) dt 16.11.2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is still not available, no disclosures have been made in the accounts.

17. Long Term Contract.

There are no long term contract as on 31.03.2016 including derivative contracts for which there are any material foreseeable losses.

18. Impairment of assets:

No material impairment of assets has been identified by the company and as such no provision is required as per Accounting Standards (AS-28) issued by the Institute of Chartered Accountants of India.

19. Transfer of unclaimed dividend to Investor Education and Protection Fund:

During the year company has transferred the unclaimed dividend for the year 2007-08 amounting to Rs.5,45,438/- to the Investor Education and Protection Fund.

20. Previous figures have been regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2015

1. Corporate Information

Cochin Minerals and Rutile Limited is a public company incorporated in India. Its shares are listed in Bombay Stock Exchange Ltd. The company is engaged in the manufacture of Synthetic Rutile, Ferric Chloride, Ferrous Chloride, Iron Hydroxide and Recovered TiO2.

2. Basis of Presentation.

The financial statement of the company have been prepared in accordance with the generally ac- cepted accounting principles in India (Indian GAAP). The company has prepared these finan- cial statements to comply in all material respect with the Companies (Accounts) Rules 2014 and the relevant provisions of Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those of the previous year.

3. Long Term Borrowings

b) Indian Rupee Term Loan from Bank of Baroda Account No 05620600010728 & Corporate Loan from Bank of Baroda Account No.05620600011975 are secured by:

i) Paripassu first charge by way of equitable mortgage of 21.35 Acres of land in Sur- vey Nos.92/4A, 92/4B, 97/1A part, 97/1B1,1B2,1B3, 97/2B2,97/3-1, 97/3-2 part, 98/1A part, 98/1B part,95/4 Part, 95/6 Part, 95/7 part, 96/1-1, 96/1-2, 96/2, 96/3A part, 96/3Bpart,96/4 Part,96/5-1part, 97/1B-3 part, 97/2A-1 part,98/1A Part , 132/11-A, 132/12, 132/13,95/3 part,95/5 part,97/3 part 135/3B,135/2B,135/2A, 135/1 at Parur Taluk, Kadungallur Village together with building, plant and ma- chinery and movables (Save and except inventories of all nature, book debts and other current assets which form part of the primary security towards the work- ing capital advance in the ordinary course of business ) including movable ma- chinery, machinery spares, tools and accessories present and future.

ii) Personal guarantee of Dr.S.N. Sasidharan Kartha, The Managing Director.

4 Short Term Borrowings

1. Terms of repayment of Packing Credits:

PC from Banks is repayable on demand and carries interst @ 11.5% (Current Rate)

Cash Credit/Packing Credit advances from Bank of Baroda are secured by:

i) First charge on all the Company's stock of raw-materials, consumable stores, finished goods, work in progress, debtors etc. both present and future

ii) Second charge by way of equitable mortgage of 21.35 Acres of land in Survey Nos.92/4A, 92/4B, 97/1A part, 97/1B1,1B2,1B3, 97/2B2,97/3-1, 97/3-2 part, 98/1A part, 98/1B part,95/4 Part, 95/6 Part, 95/7 part, 96/1-1, 96/1-2, 96/2, 96/3A part, 96/3Bpart,96/4 Part,96/5-1part, 97/1B-3 part, 97/2A-1 part,98/1A Part , 132/11-A, 132/12, 132/13,95/3 part,95/5 part,97/3 part 135/3B,135/2B, 135/2A, 135/1 at Parur Taluk, Kadungallur Village together with building, plant and machinery and mova- bles including movable machinery, machinery spares, tools and accessories present and future.

iii) Personal Guarantee of Dr.S N Sasidharan Kartha, Managing Director.

5. Excise duty on sales for the year has been disclosed as reduction from the turnover. Excise Duty payable on Stock of Finished Goods Rs.16,37,423.00 (previous year Rs.31,05,840.00) is provided for and included in the value of stock of finished goods.

6. Employee Benefits

The Company's obligation towards the Gratuity Fund is a defined benefit plan. The details of actuarial Valuation is given below:

7. Related party disclosures - As identified by the management and relied upon by the auditors.

a)List of Related parties and description of relationship

i) Parties with significant influence : M/s Sach Exports Pvt Ltd &

: M/s Kerala Rare Earths and Minerals Ltd : Mathew M Cherian

ii) Key Management Personnel : Dr. S. N.Sasidharan Kartha

: Shri Saran S Kartha : Shri P Suresh Kumar : Shri K S Suresh Kumar

8. Earnings per share.

Net Profit after tax for the year has been used as the numerator and number of shares has been used as denominator for calculating the basic and diluted earnings per share.

9. Contingent Liabilities and Commitments.

a) Contingent Liabilities not provided for:

i) Bank Guarantees issued on behalf of the Company by Bank of Baroda out- standing as on 31/03/2015 is Rs.1,09,78,995/- (Rs.37,33,565/- as on 31/03/2014) and USD54500 for which the Company has given counter guarantee.

ii) Bills discounted not maturing on:

31/03/2015 Rs. 13,88,99,465.00

31/03/2014 Rs. 5,90,25,460.40

b) . The Additional commissioner of Income Tax has raised a demand of Rs.58,07,820/- while completing the assessment of assessment year 2009- 10. The Company has filed an appeal before the Commissioner of Income Tax(Appeal) against the order.

c) Assistant Commissioner, Department of Commercial Tax has raised a de- mand of Rs.11,50,708/- while completing the assessment of the year 2008-09. The Company has filed an appeal before the Deputy Commissioner of Ap- peals.

10. Micro, Small and Medium Enterprises Development Act 2006.

In accordance with the Notification No.GSR 719(E) dt 16.11.2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is still not available, no disclosures have been made in the accounts.

11. Long Term Contract.

There are no long term contract as on 31.03.2015 including derivative contracts for which there are any material forseeable losses.

12. Impairment of assets:

No material impairment of assets has been identified by the company and as such no provision is required as per Accounting Standards (AS-28) issued by the Institute of Chartered Accountants of India.

13. Transfer of unclaimed dividend to Investor Education and Protection Fund:

During the year company has transferred the unclaimed dividend for the year 2006-07 amounting to Rs.4,36,974/- to the Investor Education and Protection Fund.

14. Previous figures have been regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2013

1. Excise & ityon sales for the year has oeendisc losdasrductiOT Goods Rs. 2,321,899.00 (previous year Rs.255,831.00) is provided for and included in the value ofstock of finished goods.

2. Related party disclosures - As identified by the management and relied upon by the auditors.

a) List of Related parties and description of relationship

i)Parties with significant influence : M/sSach Exports Pvt Ltd

ii)Key Management Personnel : Shri S.N.Sasidharan Kartha

Shri SaranS Kartha

b) Transactions with related parties:

3. Earnings per share.

Net Profit tax for the year lias been used as the numerator and the basic and diluted earnings per share.

4. Micro, Small and Medium Enterprises Development Act 2006.

In accordance with the NotificationNo.GSR719(E)dt 16.11.2007 ,issued by the Ministry ofCorporateAf&irs, certain disclosures are required to be maderelating to Micro and Small Enterprises as definedunder die Micro, Small and Medium DevelopmentAct 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage underthesaidAct Since the relevant information is still not available, no disclosures have been made in die accounts.

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Mar 31, 2012

1 Primary Security:

a) DBITetm Loan Account Nos. COCMAR 0508011 and 137673200000064- (i) First charge by way of equitable mortgage of 21.35 Acres of land in Survey

Nos.92/4A.92/4B.97/lApart.97/lBl.lB2.1B3.97/2B2.97/3-1.97/3-2part.98/ lApart.98/lBpait95/4 Part, 95/6 Part, 95/7 part, 96/1-1,96/1-2,96/2,96/3A part, 96/3Bpart,96/4 Part,96/5- l part, 97/1B-3 part, 97/2A-1 part,98/l A Part, 132/11-A, 132/12,132/13,95/3 part, 95/5 part,97/3 part 135/3B, 135/2B, 135/2A, 135/1 aspirer Taluk, KadungallurVillage together with building, plant and machinery etc and movables (Save and except inventories of all nature, book debts and other current assets which form part of the primary security towards the working capital advance in the ordinary course of business) including movable machinery, machinery spares, tools and accessories present and future.

ii) Second charge on the Company's stocks of raw-materials, consumable stores, book debts and such other movables.

iii) Personal guarantee of Mr. S.N. Sasidharan Kartha, the Managing Director, and Mr. Mathew .M. Cherian Vice Chairman,

b) Indian Rupee Term Loan from Bank of Baroda Account No 05620600010728 is secured by - (i)Paripassu first charge by way of equitable mortgage of21.35 Acres of land in Survey Nos.92/4A, 92/4B, 97/l Apart, 97/lBl,lB2,lB3,97/2B2,97/3-1,97/3-2 part, 98/1A part, 98/IB part,95/4Part, 95/6 Part, 95/7 part, 96/1-1,96/1-2,96/2,96/3A part, 96/3Bpart,96/4 Part,96/5- l part, 97/1B-3 part, 97/2A-1 part,98/l A Part, 132/11-A, 132/12,132/13,95/3 part,95/5 part,97/3 part 135/3B, 135/2B, 135/2A, 135/1 at Parur Taluk, Kadungallur Village together with building, plant and machinery and movables (Saveandexcept inventories of all nature, book debts and other current assets which form part of the primary security towards the working capital advance in the ordinary course of business) including movable machinery, machinery spares, tools and accessories present and future.

(ii) Personal guarantee of Mr. S.N. Sasidharan Kartha, The Managing Director.

1. Terms of repayment of Packing Credits: .

PC from Banks is repayable on demand and carries interest @ 11.5% (Current Rate) Cash Credit/Packing Credit advances from Bank of Baroda are secured by:

i) First charge on all the Company's stock of raw-materials, consumable stores, finished goods, work in progress, debtors etc. both present and future.

ii) Second chaise by way of equitable mortgage of 21.35 Acres of land in Survey Nos.92/4A, 92/4B, 97/1A part, 97/lBl,lB2,lB3, 97/2B2,97/3-1,97/3-2 part, 98/1A part, 98/IB part,95/4 Part, 95/6 Part, 95/7 part, 96/1-1,96/1-2,96/2,96/3A part, 96/ 3Bpart,96/4 Part,96/5- L part, 97/1B-3 part, 97/2A-1 part,98/La Part, 132/11-A, 132/12,132/13,95/3 pait,95/5 pait,97/3 part 135/3B,135/2B, 135/2A, 135/1 at Parur Taluk, Kadungallur Village together with building, plant and machinery and movables including movable machinery, machinery spares, tools and accessories present and future.

iii) Personal Guarantee of Shri.S N Sasidharan Kartha, Managing Director.

2. Excise duty on sales for the year has been disclosed as reduction from the turnover. Excise Duty payable on Stock of Finished , Goods Rs 2,55.831.00 (previous year Rs 11,26,415.00) is provided for andincluded in the value of stock of finished goods.

3. Contingent Liabilities: .

a). Additional Commissioner of Income Tax, Range 1, Kochi demanded Rs 58,07,820/- while completing the assessment for the Financial Year 2008 -09. The company has preferred an appeal before the Commissioner of Income Tax (Appeals). The Company Hashemite danamount of Rs 3,00,000/-towards the same.

b) Contingent Liabilities Not Provided for

i) Bank Guarantees issued on behalf of the Company by Bank of Baroda outstanding as on 31/03/2012 is Rs 35,90,685/- (Rs 28,29,785/- as on 31/03/2011) for which the Company has given counter guarantee.

ii) Bills discounted not maturing on:

31/03/2012 Rs. 25,86,26,422.40

31/03/2011 Rs.7,30,22,977.40

4. Micro, Small and Medium Enterprises Development Act 2006.

In accordance with the Notification No.GSR 719(E) dt 16.11.2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined under the Micro, Small and Medium Development Act 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is still not available, no disclosures have been made in the accounts.

5. The Revised Schedule VI has become effective from 1 April 2011 for the preparation of financial statements. This has significantly impacted the disclosures and presentations made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification /disclosure.

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Mar 31, 2011

A) Term Loans from financial Institutions are secured by paripassu charge by way of hypoth- ecation of all the Company's immovable properties such as land, building, plant and machinery etc. and movables (Save and except inventories of all nature book debts and other current assets which form part of the primary security towards the working capital advances in the ordinary course of the business) including movable machinery, machinery spares, tools & accessories, present and future and second charge on the Company's stocks of raw-materials, consumable stores, book debts and such other movables. The Managing Director, Mr. S.N. Sasidharan Kartha and Vice Chairman, Mr. Mathew .M. Cherian have personally guaranteed the whole amount of such loans.

b) Cash Credit/Packing Credit advances from Bank of Baroda are secured by a second charge on the fixed assets and first charge on all the Company's stock of raw-materials, consumable stores, finished goods, work in progress, debtors etc. both present and future and guaran- teed personally by the Managing Director, Mr. S. N. Sasidharan Kartha and Vice Chairman, Mr. Mathew M Cherian.

c) Contingent Liabilities Not Provided for

i) Bank Guarantees issued on behalf of the Company by Bank of Baroda outstanding as on 31/03/2011 is? 28,29,785/-(Rs. 15,30,385/-as on 31/03/2010) for which the Company has given counter guarantee.

ii) Bills discounted not maturing on:

31/03/2011 - Rs. 7,30,22,977.40

31/03/2010 - Rs. 5,80,42,871.30

e) Previous year's figures have been regrouped wherever necessary so as to be in confirmity with the current year's layout.

1) Unpaiddividendamountsfor2006-07 Rs. 4,53,510/-,2007-08 Rs. 5,68,461/-,2008-09 Rs. 6,54,255/- and 2009-10 Rs. 4,90,261/- are deposited in separate accounts with the company's bank and are included in other liabilities.

m) There was no loans and advances in the nature of loans given to subsidiaries and associ- ates etc.

n) There was no investment by any loanee in the shares of the company.

p) In the opinion of the management, all the Current Assets, Loans and Advances have a value on realisation in ordinary course of business at least equal to the amount at which these are stated.

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Mar 31, 2010

A) Term Loans from financial Institutions are secured by paripassu charge by way of hypothecation of all the Companys immovable properties such as land, building, plant and machinery etc. and movables (Save and except inventories of all nature book debts and other current assets which form part of the primary security towards the working capital advances in the ordinary course of the business) including movable machinery, machinery spares, tools & accessories, present and future and second charge on the Companys stocks of raw-materials, consumable stores, book debts and such other movables. The Managing Director, Mr. S.N. Sasidharan Kartha and Vice Chairman, Mr. Mathew .M. Cherian have personally guaranteed the whole amount of such loans.

b) Cash Credit/Packing Credit advances from Bank of Baroda are secured by a second charge on the fixed assets and first charge on all the Companys stock of raw-materials, consumable stores, finished goods, work in progress, debtors etc. both present and future and guaranteed personally by the Managing Director, Mr. S. N. Sasidharan Kartha and Vice Chairman, Mr. Mathew M Cherian.

c) Contingent Liabilities not provided for

i) Bank Guarantees issued on behalf of the Company by Bank of Baroda outstanding as on 31/03/2010 is Rs.15,30,385/- (Rs. 1, 10,33,139/- as on 31/03 2009) for which the Company has given counter guarantee.

ii) Bills discounted not maturing on:

31/03/2010 - Rs.5,80,42,871.30

31/03/2009 - Rs.4,69,15,859.00

e) Previous years figures have been regrouped wherever necessary so as to be in confirmity with the current years layout.

i) Excise Duty payable on Stock of Finished Goods Rs.15,09,141.00/- (previous year Rs.1,77,664.00) is provided for and included in the value of stock of finished goods.

f) Unpaid dividend amounts for 2006-07 Rs.4,55,784/- and 2007-08 Rs.5,73,914/- and 2008-09 Rs. 6,88,268/- are deposited in separate accounts with the companys bank and are included in other liabilities.

g) There was no loans and advances in the nature of loans given to subsidiaries and associates etc.

h) There was no investment by any loanee in the shares of the company.

i) In the opinion of the management, all the Current Assets, Loans and Advances have a value on realisation in ordinary course of business at least equal to the amount at which these are stated.