Click it and Unblock the Notifications
Notes to Accounts of Deccan Cements Ltd.
Mar 31, 2025
The Company recognises provisions when there is present obligation as a result of past event and it
is probable that there will be an outflow of resources and reliable estimate can be made of the amount
of the obligation. If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows to net present value using an appropriate pre-tax discount
rate that reflects current market assessments of the time value of money and, where appropriate, the
risks specific to the liability. Unwinding of the discount is recognised in the Statement of Profit and
Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the
current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed
as a contingent liability. Contingent Liabilities are also disclosed when there is a possible obligation
arising from past events, the existence of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the Company.
Contingent assets are not recognized in financial statements since this may result in the recognition
of income that may never be realised.
xv) Financial instruments:
Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument. Financial assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognised immediately
in profit or loss.
Financial assets
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
(ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if
it is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. Further, in case where the company has made an irrevocable selection
based on its business model, for its investments which are classified as equity instruments, the
subsequent changes in fair value are recognized in other comprehensive income.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair
valued through profit or loss.
(iv) The Company recognizes loss allowances using the expected credit loss (ECL) model for
the financial assets which are not fair valued through profit or loss. Loss allowance for trade
receivables with no significant financing component is measured at an amount equal to lifetime
ECL. For all other financial assets, expected credit losses are measured at an amount equal to the
12-month ECL, unless there has been a significant increase in credit risk from initial recognition
in which case those are measured at lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at the reporting date to the amount that is
required to be recognised is recognized as an impairment gain or loss in statement of profit or
loss.
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability and
an equity instrument.
Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of
direct issue costs.
Financial Liabilities
Trade and other payables are initially measured at fair value, net of transaction costs, and are
subsequently measured at amortised cost, using the effective interest rate method where the time
value of money is significant.
Interest bearing bank loans, overdrafts and unsecured loans are initially measured at fair value and
are subsequently measured at amortised cost using the effective interest rate method. Any difference
between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is
recognised over the term of the borrowings in the statement of profit and loss.
Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition
under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the
Company''s balance sheet when the obligation specified in the contract is discharged or cancelled or
expires.
Fair value of financial instruments
In determining the fair value of its financial instruments, the Company uses a variety of methods
and assumptions that are based on market conditions and risks existing at each reporting date. The
methods used to determine fair value include discounted cash flow analysis, available quoted market
prices and dealer quotes. All methods of assessing fair value result in general approximation of value,
and such value may or may not be realized.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle
on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right
must not be contingent on future events and must be enforceable in the normal course of business
and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
xvi) Earnings Per Share :
The basic earnings per share is computed by dividing the profit/(loss) for the year attributable to the
equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, profit/(loss) for the year attributable to the
equity shareholders and the weighted average number of the equity shares outstanding during the
year are adjusted for the effects of all dilutive potential equity shares.
xvii) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and demand deposits with banks. Cash equivalents
are short-term balances (with an original maturity of three months or less), highly liquid investments
that are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.
xviii) Government Grants:
Grants from the government are recognised at fair value where there is a reasonable assurance that
the grant will be received and the Company will comply with all attached conditions. Government
grants relating to income are deferred and recognised in the profit or loss over the period necessary
to match them with the costs they are intended to compensate and presented within other income.
Government grants relating to the purchase of property, plant and equipment are included in non¬
current liabilities as deferred income and are credited to profit and loss on a straight line basis over the
expected lives of the related assets and presented within other income. The benefit of a government
loan at below current market rate of interest is treated as a government grant.
xix) Leases
As a lessee:
The Company assesses whether a contract contains a lease, at inception of a contract. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified asset for
a period of time in exchange for consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the company assesses whether:
(1) The Contract involves the use of an identified asset;
(2) The Company has substantially all the economic benefits from use of the asset through the
period of the lease and
(3) The Company has the right to direct the use of the asset.
The Company recognizes a right-of-use asset (âROUâ) and a corresponding lease liability for
all lease arrangements in which it is a lessee, except for leases with a term of twelve months or
less (short-term leases) and low value leases. For these short-term and low value leases, the
Company recognizes the lease payments as an operating expense on a straight-line basis over
the term of the lease. Certain lease arrangements includes the options to extend or terminate
the lease before the end of the lease term. ROU assets and lease liabilities includes these
options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of
the lease liability adjusted for any lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are
depreciated from the commencement date on a straight-line basis over the balance lease term
of the underlying asset. Right of use assets are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable.
The lease liability is initially measured at amortized cost at the present value of the future lease
payments. The lease payments are discounted using the interest rate implicit in the lease or, if
not readily determinable, using the incremental borrowing rates in the country of domicile of the
leases. Lease liabilities are re-measured with a corresponding adjustment to the related right of
use asset if the company changes its assessment if whether it will exercise an extension or a
termination option.
Lease liability and ROU asset shall be separately presented in the Balance Sheet and lease
payments shall be classified as financing cash flows.
xx) Dividend Distribution
Dividends paid (including income tax thereon) is recognised in the period in which the interim
dividends are approved by the Board of Directors, or in respect of the final dividend when approved
by shareholders.
xxi) Rounding off amounts
All amounts disclosed in the standalone financial statements and notes have been rounded off to the
nearest lakh as per the requirement of Schedule III, unless otherwise stated.
xxii) Standards issued but not yet effective
There is no such notification is applicable from April 1, 2025.
During the financial year 2022-23, company was sanctioned a term loan of Rs. 73000.00 lacs for
setting up of clinker production unit (1.2 million tonnes per annum), Cement Grinding Unit (0.8 million
tonnes per annum) and a split grinding unit (1 million tonnes per annum) at different locations, from
State Bank of India, IDBI Bank Limited, Canara Bank and IndusInd Bank Ltd. The said term loan is
modified to Rs. 67000.00 lacs. On company''s request, the lenders have extended date of completion
of project from 31.12.2024 to 31.12.2025. The term loan is repayable in 28 equal quarterly instal¬
ments starting from the quarter June''26 and ending March''33 to all the bankers. Out of total loan
sanctioned, the company has drawn an amount of Rs. 53450.84 lacs upto 31st March''25.
ii) Security:
The term loans from State Bank of India, IDBI Bank Limited, Canara Bank and IndusInd Bank Limited
are secured by paripassu first charge on Property, Plant and Equipment and second charge (pari
passu) on the current assets. The term loan from Bank of Bahrain & Kuwait is secured by exclusive
charge on equipments and dumpers purchased out of loan proceeds.
The cash credit facilities/working capital loans which are obtained from various banks, are secured by
hypothecation of stocks of raw materials, stock in process, finished goods , spares and book debts and
second charge on property, plant and equipment and further secured by the personal guarantee of Ms. P.
Parvathi, Chairperson and Managing Director.
The company has taken corporate credit card from HDFC Bank Ltd.
The company has availed corporate bill discounting facility from Receivables Exchange of India Ltd for
making payments to the suppliers with a credit period of upto 90 days. For the Company''s exposure to the
interest rate risk and liquidity risk, refer note no.34 to the standalone financial statements.
26. Exceptional items
During the previous year 2023-24, the Company was paying 1/3 rd (Rs.3.33) per tonne of Limestone
produced from the mines, and remaining 2/3 rd (Rs.6.67) per tonne was disclosed as contingent liability in
the Notes to Accounts as per the interim order passed in view of the writ petition filed before the Hon''ble
High Court. On 25-04-2024, the Hon''ble High Court passed their final order dismissing the batch of writ
petitions filed by different parties, including WP No. 26340 of 2010 filed by the Company, challenging the
validity of the GOMs No.35 dated 06-02-2010. Accordingly, the provision for the same is made in books
of accounts during FY 2023-24.
(iii) Post- employment obligations
a) Gratuity
The company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The
amount of gratuity payable on retirement/termination is the employees last drawn basic salary
plus Dearness allowance per month computed proportionately for 15 days salary multiplied with
the number of years of service. The company operates post retirement gratuity plan with LIC
of India. The present value of obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognises each period of service giving rise to additional
unit of employee benefit entitlement and measures each unit separately to build up the final
obligation.
The above sensitivity analysis is based on a change in each assumption while holding all other
assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions
may be correlated. When calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions, the same method (present value of the defined benefit obligation calculated
with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the defined benefit liability recognised in the balance sheet.
v) Risk exposure
Through its defined benefit plans, the company is exposed to a number of risks, the most significant
of which are detailed below:
Interest rate risk:
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond
yields fall, the defined benefit obligation will tend to increase.
Salary inflation risk:
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality,
withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation
is not straight forward and depends upon the combination of salary increase, discount rate and
vesting criteria. It is important not to overstate withdrawals because in the financial analysis the
retirement benefit of a short career employee typically costs less per year as compared to a long
service employee.
34. Financial instruments and risk management
Fair values
1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current),
lease liabilities, trade receivables, cash and cash equivalents, other bank balances, other financial
assets and loans are considered to be the same as fair value due to their short term nature.
The fair value of financial assets and liabilities is included at the amount at which the instrument could
be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale.
Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s
financial instruments, other than those with carrying amounts that are reasonable approximation of
fair values:
*Fair value of instruments is classified in various fair value hierarchies based on the following
three levels:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined
using valuation techniques, which maximise the use of observable market data and rely
as little as possible on entity specific estimates. If significant inputs required to fair value
an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the
instruments are included in Level 3.
Management uses its best judgement in estimating the fair value of its financial instruments.
However, there are inherent limitations in any estimation technique. Therefore, for substantially
all financial instruments, the fair value estimates presented above are not necessarily indicative
of the amounts that the Company could have realized or paid in sale transactions as of respective
dates. As such, the fair value of financial instruments subsequent to the reporting dates may be
different from the amounts reported at each reporting date.
The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price
and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its
financial instruments. The Company assesses the unpredictability of the financial environment
and seeks to mitigate potential adverse effects on the financial performance of the Company.
(A) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises of currency risk, interest rate risk
and price risk. Financial instruments affected by market risk include loans and borrowings, trade
receivables and trade payables involving foreign currency exposure. The sensitivity analyses
in the following sections relate to the position as at March 31, 2025 and March 31, 2024. The
analysis excludes the impact of movements in market variables on the carrying values of
financial assets and liabilties. The sensitivity of the relevant profit or loss item is the effect of the
assumed changes in respective market risks. This is based on the financial assets and financial
liabilities held at 31 March 2025 and 31 March 2024.
(i) Foreign currency exchange rate risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure
will fluctuate because of changes in foreign exchange rates. The Company''s exposure
to the risk of changes in foreign exchange rates relates primarily to the capital advances.
The risks primarily relate to fluctuations in Euros against the functional currencies of the
Company. The Company''s exposure to foreign currency changes for all other currencies is
not material. The Company evaluates the impact of foreign exchange rate fluctuations by
assessing its exposure to exchange rate risks.
The following tables demonstrate the sensitivity to a reasonably possible change in Euros
exchange rates, with all other variables held constant. The impact on the Company''s profit
before tax is due to changes in the fair value of monetary assets and liabilities.
(ii) Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign
currency denominated financial instruments and from foreign forward exchange contracts:
The movement in the pre-tax effect is a result of a change in the fair value of monetary
assets and liabilities denominated in Euros, where the functional currency of the entity is a
currency other than Euros.
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of change in market interest rates. The Company''s exposure to the
risk of changes in market interest rates relates primarily to the Company''s debt obligations
with floating interest rates. As the Company has certain debt obligations with floating
interest rates, exposure to the risk of changes in market interest rates are dependent
of changes in market interest rates. As the Company has no significant interest bearing
assets, the income and operating cash flows are substantially independent of changes in
market interest rates.
(B) Credit Risk
Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held
with banks and current and non-current held-to financial assets of the Company include trade
receivables, employee advances, security deposits held with government authorities and bank
deposits which represents Company''s maximum exposure to the credit risk.
With respect to credit exposure from customers, the Company has a procedure in place aiming
to minimise collection losses. Credit Control team assesses the credit quality of the customers,
their financial position, past experience in payments and other relevant factors. The Company''s
exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its
customer base, including default risk associate with the industry and country in which customers
operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard
and individual credit limits are defined in accordance with this assessment. With respect to other
financial assets viz., loans & advances, deposits with government and banks, the credit risk is
insignificant since the loans & advances are given to employees only and deposits are held with
government bodies and reputable banks. The credit quality of the financial assets is satisfactory,
taking into account the allowance for credit losses.
(iii) Significant estimates and judgements
Impairment of financial assets:
The impairment provisions for financial assets disclosed above are based on assumptions
about risk of default and expected loss rates. The company uses judgement in making
these assumptions and selecting the inputs to the impairment calculation, based on the
company''s past history, existing market conditions as well as forward looking estimates at
the end of each reporting period.
(C) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of
funding to meet obligations when due and to close out market positions. Company''s treasury
maintains flexibility in funding by maintaining availability under deposits in banks.
Management monitors cash and cash equivalents on the basis of expected cash flows.
35. Capital management
A. Capital management and gearing ratio
For the purpose of the Company''s capital management, capital includes issued equity capital, share
premium and all other equity reserves attributable to the equity holders. The primary objective of the
company''s capital management is to maximise the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. The company monitors capital using
a gearing ratio, which is debt divided by total capital. The company includes within debt, interest
bearing loans and borrowings.
36. Segment information:
a) The Company''s Executive Chairman, Managing Director and Chief Financial Officer examine the
Company''s performance from a product perspective and have identified two operating segments viz.,
Cement Division and Power Division. Operations of both the segments are based in India. As per the
threshold limits prescribed under Ind AS 108 âOperating Segmentsâ, the management has identified
one reportable segment âCement Divisionâ. Other segment âPower Divisionâ is below the threshold
limits prescribed under Ind AS 108. Hence, segment reporting is not given.
b) Information about products:
Revenue from external customers - Sale of Cement : Rs. 52021.06 Lakhs (PY: 79651.59 Lakhs)
Revenue from external customers - Sale of Power: Rs. 575.45 Lakhs (PY: 192.46 Lakhs)
Revenue from external customers - Sale of Tile adhesives: Rs. 57.04 Lakhs (PY: Nil)
c) The Company has not made external sales to a single customer meeting the criteria of 10% or more
of the entity''s revenue.
39. The Board of Directors approved the standalone financial statements for the year ended March 31, 2025 and
authorised for issue on May 27, 2025.
40. Code on Social Security
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions
by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released
draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from
stakeholders which are under active consideration by the Ministry. The Company will assess the impact and
its evaluation once the subject rules are notified and will give appropriate impact in its standalone financial
statements in the period in which, the Code becomes effective and the related rules to determine the financial
impact are published.
41. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(âIntermediariesâ) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not
received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company
(âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
42. The Company has used accounting software for maintaining its books of account, which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software impacting books of account at application level. Also, the audit
trail is not disabled/tampered. Further, the audit trail (edit log) is preserved as per the provisions of the
Companies Act. However, the feature of recording audit trail (edit log) facility at database level is not
enabled.
The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date On behalf of Board of Directors
For M.Anandam & Co.,
Chartered Accountants
(Firm Registration Number: 000125S)
Sd/- Sd/- Sd/-
B.V.Suresh Kumar P.Parvathi S.Venkateswarlu
Partner Chairperson & Managing Director Whole-time Director
Membership Number: 212187 DIN : 00016597 DIN : 08602254
Sd/- Sd/-
D. Raghava Chary Bikram Keshari Prusty
Chief Financial Officer Company Secretary
Place: Hyderabad PAN: ABKPD6101E PAN: AOCPP6191F
Date: 27.05.2025
Mar 31, 2024
xiii) Provisions, Contingent Liabilities and Contingent Assets :
The Company recognises provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent Liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company.
Contingent assets are not recognized in financial statements since this may result in the recognition of income that may never be realised.
xiv) Financial instruments:
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
(ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in case where the company has made an irrevocable selection based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.
(iv) The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in statement of profit or loss.
Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial Liabilities
Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, using the effective interest rate method where the time value of money is significant.
Interest bearing bank loans, overdrafts and unsecured loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in the statement of profit and loss.
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.
Fair value of financial instruments
In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may or may not be realized.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
xv) Earnings Per Share :
The basic earnings per share is computed by dividing the profit/(loss) for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, profit/(loss) for the year attributable to the equity shareholders and the weighted average number of the equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
xvi) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
xvii) Government Grants:
Grants from the government are recognised at fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.
Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs they are intended to compensate and presented within other income.
Government grants relating to the purchase of property, plant and equipment are included in noncurrent liabilities as deferred income and are credited to profit and loss on a straight line basis over the expected lives of the related assets and presented within other income.
The benefit of a government loan at below current market rate of interest is treated as a government grant.
xviii) Leases
As a lessee:
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the company assesses whether:
(1) The Contract involves the use of an identified asset;
(2) The Company has substantially all the economic benefits from use of the asset through the period of the lease and
(3) The Company has the right to direct the use of the asset.
The Company recognizes a right-of-use asset (âROUâ) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the balance lease term of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease liabilities are re-measured with a corresponding adjustment to the related right of use asset if the company changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset shall be separately presented in the Balance Sheet and lease payments shall be classified as financing cash flows.
xix) Dividend Distribution
Dividends paid (including income tax thereon) is recognised in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.
xx) Rounding off amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as per the requirement of Schedule III, unless otherwise stated.
xxi) Standards issued but not yet effective
There is no such notification is applicable from April 1, 2024.
i) Term loans from banks:
The company has availed term loans from HDFC Bank and Bank of Bahrain & Kuwait (BBK). The loan from HDFC is repayable in 16 equal quarterly installments starting from June 2020 and from Bank of Bahrain & Kuwait is repayable in 20 equal quarterly installments starting from Feb 2022.
The loans from HDFC Bank and Bank of Bahrain & Kuwait are availed for the purchase of dumpers and machinery.
During the financial year 2022-23, company was sanctioned a term loan of Rs. 73000.00 lacs for setting up of clinker production unit (1.2 million tonnes per annum), Cement Grinding Unit (0.8 million tonnes per annum) and a split grinding unit (1 million tonnes per annum) at different locations, from State Bank of India, IDBI Bank Limited, Canara Bank and IndusInd Bank Ltd. The term loan is repayable in 28 equal quarterly instalments starting from the quarter June''25 and ending March''32 to all the bankers. Out of total loan sanctioned, the company has drawn an amount of Rs. 37292.30 lacs upto 31st March''24.
ii) Security:
The term loans from HDFC Bank Ltd, State Bank of India, IDBI Bank Limited, Canara Bank and IndusInd Bank Limited are secured by paripassu first charge on Property, Plant and Equipment and second charge (pari passu) on the current assets. The term loan from Bank of Bharain & Kuwait is secured by exclusive charge on equipments and dumpers purchased out of loan proceeds.
The cash credit facilities/working capital loans which are obtained from various banks, are secured by hypothecation of stocks of raw materials, stock in process, finished goods , spares and book debts and second charge on property, plant and equipment and further secured by the personal guarantee of Ms. P. Parvathi, Chairperson and Managing Director.
The company has taken corporate credit card from HDFC Bank Ltd.
During the current financial year, the company has availed corporate bill discounting facility from South Indian Bank and from Receivables Exchange of India Ltd for making payments to the suppliers with a credit period of upto 90 days. For the Company''s exposure to the interest rate risk and liquidity risk, refer note no.34 to the financial statements.
27. Exceptional items:
The Company was paying 1/3rd (Rs.3.33) per tonne of Limestone produced from the mines, and remaining 2/3 rd (Rs.6.67) per tonne was disclosed as contingent liability in the Notes to Accounts as per the interim order passed in view of the writ petition filed before the Hon''ble High Court. On 25-04-2024, the Hon''ble High Court passed their final order dismissing the batch of writ petitions filed by different parties, including WP No. 26340 of 2010 filed by the Company, challenging the validity of the GOMs No.35 dated 06-022010. Accordingly, the provision for the same is made in books of accounts.
28. Reconciliation of tax expenses and the accounting profit multiplied by tax rate
30. Notes forming part of the financial statements for the year ended 31st March 2024
(i) Leave obligations
The leave obligation covers the company''s liability for earned leave which is unfunded.
The company has defined contribution plans namely provident fund. Contributions are made to provident fund at the rate of 12% of basic salary plus DA as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plan is as follows:(ii) Defined contribution plans
(iii) Post- employment obligations a) Gratuity
The company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary plus Dearness allowance per month computed proportionately for 15 days salary multiplied with the number of years of service. The company operates post retirement gratuity plan with LIC of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The following table sets out the amounts recognised in the financial statements in respect of gratuity plan
v) Risk exposure
Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:
Interest rate risk:
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Salary inflation risk:
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.
35. Financial instruments and risk management Fair values
1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current), lease liabilities, trade receivables, cash and cash equivalents, other bank balances, other financial assets and loans are considered to be the same as fair value due to their short term nature.
The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximation of fair values:
*Fair value of instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instruments are included in Level 3.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
(A) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analyses in the following sections relate to the position as at March 31, 2024 and March 31, 2023.
The analysis excludes the impact of movements in market variables on the carrying values of financial assets and liabilties .
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31st March 2024 and 31st March 2023.
(i) Foreign currency exchange rate risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the capital advances. The risks primarily relate to fluctuations in Euros against the functional currencies of the Company. The Company''s exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The following tables demonstrate the sensitivity to a reasonably possible change in Euros exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.
(ii) Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments and from foreign forward exchange contracts:
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates.
As the Company has no significant interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:
(B) Credit Risk
Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to financial assets of the Company include trade receivables, employee advances, security deposits held with government authorities and bank deposits which represents Company''s maximum exposure to the credit risk.
With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. With respect to other financial assets viz., loans & advances, deposits with government and banks, the credit risk is insignificant since the loans & advances are given to employees only and deposits are held with government bodies and reputable banks. The credit quality of the financial assets is satisfactory, taking into account the allowance for credit losses.
(iii) Significant estimates and judgements Impairment of financial assets:
The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
(C) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Company''s treasury maintains flexibility in funding by maintaining availability under deposits in banks.
Management monitors cash and cash equivalents on the basis of expected cash flows.
(i) Financing arrangements:
The company had access to the following undrawn borrowing facilities at the end of the reporting period
36. Capital management
A. Capital management and gearing ratio
For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the company''s capital management is to maximise the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company monitors capital using a gearing ratio, which is debt divided by total capital. The company includes within debt, interest bearing loans and borrowings.
37. Segment information:
a) The Company''s Executive Chairperson & Managing Director and Chief Financial Officer examine the Company''s performance from a product perspective and have identified two operating segments viz., Cement Division and Power Division. Operations of both the segments are based in India. As per the threshold limits prescribed under Ind AS 108 âOperating Segmentsâ, the management has identified one reportable segment âCement Divisionâ. Other segment âPower Divisionâ is below the threshold limits prescribed under Ind AS 108. Hence, segment reporting is not given.
40. The Board of Directors approved the financial statements for the year ended March 31st, 2024 and authorised for issue on May 28th, 2024.
41. As the wholly owned subsidiary was incorporated on 13th March 2024 and is in existence for less than 15 months, there is no requirement of publishing consolidated financial statements for the financial year ended 31st March, 2024.
42. Code on Social Security
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
43. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
44. The Company has used accounting software for maintaining its books of account, which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software impacting books of account at application level. Further, the audit trail is not disabled. The feature of recording audit trail (edit log) facility at database level is not enabled.
The accompanying notes are an integral part of the financial statements.
As per our report of even date On behalf of Board of Directors
For M.Anandam & Co.,
Chartered Accountants
(Firm Registration Number: 000125S)
Sd/- Sd/- Sd/-
M.V.Ranganath P.Parvathi S.Venkateswarlu
Partner Chairperson & Managing Director Whole-time Director
Membership Number: 028031 DIN : 00016597 DIN : 08602254
Sd/- Sd/-
Place: Hyderabad D. Raghava Chary Bikram Keshari Prusty
Date: 28th May, 2024 Chief Financial Officer Company Secretary
PAN: ABKPD6101E PAN: AOCPP6191F
Mar 31, 2023
Terms/Rights attached to equity shares
The company has only one class of equity shares having a face value of Rs. 5/- each (P.Y Rs. 5/-each). Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Nature and purpose of other reserves
(i) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilized in accordance with the provisions of the Companies Act, 2013.
(ii) General reserve
General reserve is used for strengthening the financial position and meeting future contingencies and losses.
(iii) Retained earnings
Retained earnings represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This reserve can be utilized in accordance with the provisions of the Companies Act, 2013.
The company has availed term loans from HDFC Bank and Bank of Bahrain & Kuwait (BBK). The loan from HDFC is repayable in 16 equal quarterly installments starting from June 2020 and from Bank of Bahrain & Kuwait is repayable in 20 equal quarterly installments starting from Feb 2022.
The loan from HDFC and Bank of Bahrain & Kuwait is availed for the purchase of dumpers and machinery.
During the current financial year, company was sanctioned a term loan of Rs. 73,000.00 lacs for setting up of clinker production unit (1.2 million tonnes per annum), Cement Grinding Unit (0.8 million tonnes per annum) and a split grinding unit (1 million tonnes per annum) at different locations, from State Bank of India, IDBI Bank, Canara Bank and IndusInd Bank. The term loan is repayable in 28 equal quarterly instalments starting from the quarter June''25 and ending March''32 to all the bankers. Out of total loan sanctioned, the company has drawn an amount of Rs. 14,214.06 Lakhs upto 31st March''23
ii) Security:
The term loan from HDFC Bank Ltd, State Bank of India, IDBI Bank, Canara Bank and IndusInd Bank is secured by paripassu first charge on Property, Plant and Equipment and second charge (pari passu) on the current assets. The term loan from Bank of Bharain & Kuwait is secured by exclusive charge on equipments and dumpers purchased out of loan proceeds.
The Company has availed unsecured loans from the directors and the enterprises in which the key management personnel are interested and interest is paid at monthly floating rate of the bank.
Deferred payment liabilities:
The Company in earlier years availed interest free sales tax deferred loan aggregating to Rs.1,631.54 lakhs under a scheme of the State Government, for its enhanced capacity implemented in 2000-01. The balance loan is repayable upto the financial year 2024-25 as per VAT assessment orders completed.
The cash credit facilities/working capital loans which are obtained from various banks, are secured by hypothecation of stocks of raw materials, stock in process, finished goods , spares and book debts and second charge on property, plant and equipment and further secured by the personal guarantee of Mr. M.B. Raju, Executive Chairman and Ms. P. Parvathi, Managing Director.
The company has taken corporate credit card from HDFC Bank Ltd.
For the company''s exposure to the interest rate risk and liquidity risk, refer note no. 34 to the financial statements.
a Amount excess spent will be utilized for set-off against CSR Obligation for FY 2023-24 and has been disclosed under Prepaid expenses in Note 9.
Exceptional Item of Rs. 1,863.64 Lakhs for the year ended 31st March, 2022 represents Compensatory charges levied by the Department of Mines and Geology, Government of Telangana.
The amounts receivable from customers become due after expiry of credit period which on an average is 30 to 120 days. There is no significant financing component in any transaction with the customers.
The Company does not provide performance warranty for products, therefore there is no liability towards performance.
The Company does not have any material performance obligations which are outstanding as at the year end as the contracts entered for sale of goods are for short term in nature.
The leave obligation covers the company''s liability for earned leave which is unfunded.
(ii) Defined contribution plans
The company has defined contribution plans namely provident fund. Contributions are made to provident fund at the rate of 12% of basic salary plus DA as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plan is as follows
(iii) Post- employment obligations:
a) Gratuity:
The company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The company operates post retirement gratuity plan with LIC of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The above sensitivity analysis is based on a change in each assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Higher than expected increases in salary will increase the defined benefit obligation.
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.
Other money for which the company is contingently liabile.
|
Rs. in Lakhs |
|||
|
Particulars |
As at 31.03.2023 |
As at 31.03.2022 |
|
|
(i) |
Sales tax: |
||
|
a) |
Sales tax demand with respect to packing materials in the Asst Year 1993-94 for which the company had filed TREVC 50/2008 before the Hon''ble Telangana High Court and obtained stay on payment of 50% of the disputed demand. An amount of Rs.5,84,554/- was paid under protest. As per OTS the Company has paid (Rs.2,26,403) 40% of the disputed amount and withdrawn the matter, and matter is closed. |
Nil |
11.52 |
|
Rs. in Lakhs |
|||
|
Particulars |
As at 31.03.2023 |
As at 31.03.2022 |
|
|
b) |
Sales tax demand for the deemed excess production based on the Energy audit for the years 1999-2000 & 2000-01. Stay has been granted by the High court of Telangana in SPLA 1/2007 and SPLA 2/2007, matters are pending for hearing. |
85.68 |
85.68 |
|
c) |
Sales tax demand for interest of Rs.1,37,24,338/- on alleged excess utilisation of sales tax incentive. Stay was granted by Additional Commissioner (CT) (Legal) subject to 50% payment of disputed amount. An amount of Rs.68,62,169/- had been paid under protest. Appeal (TA 240/2014) was pending before the Appellate Tribunal. As per OTS the Company has paid (Rs.10,29,325) 15% of the disputed amount and withdrawn the matter, and matter is closed. |
Nil |
137.24 |
|
d) |
Sales tax demand for Rs.51,60,765/- recovery on excess paid interest for the assessment years 2002-03 to 2004-05. Appeal (SPLA 2/2013) was pending before the Telangana Hon''ble High Court. As per OTS the Company has paid (Rs.7,74,115) 15% of the disputed amount and withdrawn the matter, and matter is closed. |
Nil |
51.61 |
|
(ii) |
VAT demand for 25% penalty of the disputed tax for the year 201415. Appeal (TA 83/2019) was pending before the VAT Appellate Tribunal, Hyderabad. 50% of the disputed amount i.e., Rs.81,035/-was paid for filing the appeals. As per OTS the Company has paid (Rs.12,115) 15% of the disputed amount and withdrawn the matter, and matter is closed. |
Nil |
1.62 |
|
(iii) |
Water Usage Rate: The A.P Government has issued a G.O. Ms.No 39, levying water cess on the quantum of water used in the generation of power and demanded payment of Rs.723.29 Lakhs for the period 1997 to February 2008. Company has filed Writ Petition 2816/2003 before the Hon''ble Andhra Pradesh, and the matter is pending. An amount of Rs.39,16,506/- has been paid out of Total demand of Rs.7,62,45,560. |
723.29 |
723.29 |
|
(iv) |
Electricity Duty: Duty on electricity generated and consumed was levied by the AP Govt at 25 paise per unit from 17-07-2003 to 23-5-2013. As per the directions of Hon''ble Supreme Court, subject to outcome of the SLP 18363/2016 (WP 6340/2004), the company has paid 15 paisa per unit generated and consumed out of total duty of 25 paisa per unit. |
230.00 |
230.00 |
|
Rs. in Lakhs |
|||
|
Particulars |
As at 31.03.2023 |
As at 31.03.2022 |
|
|
(v) |
Forest Transit Fees: Government of Andhra Pradesh issued G.O. Ms. No. 35 dated 06.02.2010 enhancing the rate of transit permit fee from Rs.500/-per 100 permits to Rs.10/- per ton/cmt for limestone, levied under Rule 5 of Andhra Pradesh forest Produce Rules, 1970. The company has filed Writ Petition 26340/2010 and obtained interim stay from the Hon''ble Telangana High Court and is paying one-third of revised fee till final order. |
1,476.58 |
1,347.67 |
|
(vi) |
Entry Tax: Levy of entry tax on the purchase of certain goods from financial year 2012-13 to financial year 2016-17. Appeals are pending before Appellate Tribunal. 50% of the disputed amount has been paid before filing the appeals. |
18.38 |
18.38 |
|
(vii) |
Voltage Surcharge Matter: Difference in the voltage surcharge charged by AP Transco for the period from Jan 1999 to Mar 2000 for which the company has filed WP 25326/1999, WP 595/2000, WP 2635/2000, WP 6802/2000 before the Hon''ble Telangana High Court, wherein the Hon''ble single judge bench passed the order favouring to APTRANSCO. Accordingly, the Company has paid entire demand of Rs.109.94 Lakhs and filed Writ Appeals. After hearing the Writ Appeals the division bench of Hon''ble Telangana High Court has set aside the order of single judge and remanded the matter for fresh adjudication. Accordingly, the Writ Petitions are active and pending for hearing. As the entire demand of Rs.109.94 lakhs has already been paid under protest, there is no contingent liabilities. |
Nil |
Nil |
|
(viii) |
Wheeling and Transmission Charges: |
||
|
Consequent to the judgement passed by the Hon''ble Supreme court, the Company had made a provision of Rs.962.41 Lakhs towards wheeling charges during the financial year 2019-2020. (A) The company has received demand notice from TSSPDCL for Rs.2,336.05 Lakhs (including interest of Rs. 1,725.76 Lakhs). The Company has filed Writ Petition 31170/2021 challenging the levy of interest. The Hon''ble High Court of Telangana put a stay on the interest portion of Rs.1,725.76 Lakhs till further order, whereas, as per the directions of the Hon''ble High Court of Telangana, the Company has paid the entire differential Wheeling Charges of Rs.726.64 Lakhs to TSSPDCL. |
|||
|
Rs. in Lakhs |
|||
|
Particulars |
As at 31.03.2023 |
As at 31.03.2022 |
|
|
(viii) |
(B) The Company had received demand of Rs.101.62 Lakhs from APCPDCL for differential Wheeling Charges for the period 201415 to 2018-19. However, on the representation of the Company, APCPDCL revised the demand to Rs.22.04 Lakhs, subject to verification/reconciliation. Accordingly, the Company has paid Rs.22.04 Lakhs to APCPDCL on 18.09.2020. (C) The Company had received demand of Rs.10.03 Lakhs from APSPDCL for the differential Wheeling Charges for FY 2015-16. The Company has paid the said amount on 11.11.2022. (D) APTRANSCO has issued an Invoice for Rs.138.19 Lakhs towards Transmission Charges from 2004-14. The dispute is on method of calculation of Transmission Charges. APTRANSCO has filed an application (OP 33/2022) before the Hon''ble APERC to decide on method of calculation. Matter is pending. |
723.64 |
723.64 |
|
(ix) |
Wheel Loader Matter: |
24.12 |
Nil |
|
The Joint Commissioner, Office of the Commissioner of Customs, Chennai-II (Imports) in their adjudication order F.No.ADJ/ ADC/677/2022-GR 5 DATE:09-03-2023, have confirmed the demand of differential duty amounting to Rs.14,35,420/-, confirmed the accrued interest of Rs.2,76,659/-, imposed redemption fine of Rs.5,00,000/- in terms of provisions of 125(1) of the Customs Act, 1962, and imposed a penalty of Rs.17,12,079/- under section 114A of the Customs Act, 1962, and imposed a penalty of Rs.2,00,000/- in terms of 114AA of the Customs Act, 1962, and appropriated of the amount of Rs.17,12,079/- paid vide TR-6 Challan No. MCM 1001810 dated 10.01.2022 deposited by the Company towards differential duty and interest. The Company has filed an appeal before the Commissioner of Customs (Appeals-II) against the order passed by the Commissioner. |
|||
|
33. Commitments: |
||
|
Capital and Other commitments |
Rs. in Lakhs |
|
|
Particulars |
As at |
As at |
|
31st March 2023 |
31st March 2022 |
|
|
Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances) |
22,402.77 |
22,228.07 |
|
Other commitments |
- |
- |
36. Financial instruments and risk management Fair values
1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current),trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short term nature.
2. Borrowings (non-current) consists of loans from banks and government authorities, other financial liabilities (current) consists of security deposits from stockists.
The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximation of fair values:
*Fair value of instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instruments are included in Level 3.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analyses in the following sections relate to the position as at March 31, 2023 and March 31,2022.
The analysis exclude the impact of movements in market variables on the carrying values of financial assets and liabilties .
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2023 and 31 March 2022.
(i) Foreign currency exchange rate risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the capital advances. The risks primarily relate to fluctuations in Euros against the functional currencies of the Company. The Company''s exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The following tables demonstrate the sensitivity to a reasonably possible change in Euros exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments and from foreign forward exchange contracts:
The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in Euros, where the functional currency of the entity is a currency other than Euros.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates.
As the Company has no significant interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:
The assumed increase/decrease in interest rate for sensitivity analysis is based on the currently observable market environment.
Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to financial assets of the Company include trade receivables, employee advances, security deposits held with government authorities and bank deposits which represents Company''s maximum exposure to the credit risk.
With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. With respect to other financial assets viz., loans & advances, deposits with government and banks, the credit risk is insignificant since the loans & advances are given to employees only and deposits are held with government bodies and reputable banks. The credit quality of the financial assets is satisfactory, taking into account the allowance for credit losses.
(iii) Significant estimates and judgements Impairment of financial assets:
The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
(C) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Company''s treasury maintains flexibility in funding by maintaining availability under deposits in banks.
(iii) Management expects finance cost to be incurred for the year ending 31 March 2024 is Rs. 1,216.94 Lakhs.
A. Capital management and gearing ratio
For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the company''s capital management is to maximise the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company monitors capital using a gearing ratio, which is debt divided by total capital. The company includes within debt, interest bearing loans and borrowings.
In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2023 and 31 March 2022.
a) The Company''s Executive Chairman, Managing Director and Chief Financial Officer examine the Company''s performance from a product perspective and have identified two operating segments viz., Cement Division and Power Division. Operations of both the segments are based in India. As per the threshold limits prescribed under Ind AS 108 "Operating Segments", the management has identified one reportable segment "Cement Division". Other segment "Power Division" is below the threshold limits prescribed under Ind AS 108. Hence, segment reporting is not given.
b) Information about products:
Revenue from external customers - Sale of Cement : Rs. 77,270.51 Lakhs (PY: Rs. 78048.08 Lakhs) Revenue from external customers - Sale of Power: Rs. 745.98 Lakhs (PY: Rs. 939.12 Lakhs)
c) The Company has not made external sales to a single customer meeting the criteria of 10% or more of the entity''s revenue.
39. Impact assessment of the global health pandemic COVID - 19 and related estimation uncertainty:
The Company has considered the possible effects that may result from the pandemic relating to Covid-19 in the preparation of the financial statements including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of Covid-19 on the Company''s financial statements may differ from that estimated as at the date of approval of these financial statements.
b. The Company has borrowings from banks on the basis of security of current assets. The quarterly statements of current assets filed by the Company with banks are in agreement with the books of accounts.
c. Registration of charges or satisfaction with Registrar of Companies : As on 31st March 2023, there are no charges that are to be created or satisfied.
41. Previous year figures are regrouped and rearranged wherever necessary
42. The Board of Directors approved the financial statements for the year ended March 31,2023 and authorised for issue on May 27, 2023.
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
The accompanying notes are an integral part of the financial statements.
Mar 31, 2018
D. Notes to first-time adoption of Ind AS:
1) Borrowings
The benefit of a government loan at below current market rate of interest is treated as a government grant. The loan is recognised and measured in accordance with Ind AS 109. The benefit of the below market rate of interest is measured as the difference between the initial carrying value of the loan determined in accordance with Ind AS 109 (at fair value) and the proceeds received. Government grant is recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses, the related costs for which the grants are intended to compensate. As a result other income has increased by Rs.96.70 Lakhs towards government grant amortisation and finance cost has increased by Rs 77.18 lakhs towards interest expense on government loan and accordingly the overall net profit has increased by Rs 19.52 lakhs for the year ended 31 March 2017. Consequently the borrowings have been restated to Rs.4501.37 lakhs and Rs 2618.19 lakhs as at 1 April 2016 and 31 March 2017 respectively.
2) Expenses directly attributable to revenue
Under the previous GAAP, cash discounts, sales promotion expenses and breakages and damages amounting to Rs 6241.66 lakhs directly attributable to sales were recognized as part of other expenses which have been adjusted against the revenue from sale of goods under Ind AS during the year ended 31 March 2017 . There is no impact on the total equity and profit.
3) Excise duty
Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 by Rs 9047.92 lakhs. There is no impact on the total equity and profit.
4) Remeasurements of post-employment benefit obligations
Under Ind AS, remeasurements i.e. Actuarial gains and losses and the return on plan assets , excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. There is no impact on the total equity as at 31 March 2017.
5) Proposed Dividend
Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as an adjusting event. Accordingly, provision for proposed dividend and corporate dividend tax was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend and corporate dividend tax of Rs 505.78 lakhs included under provisions as at 31 March 2017 has been reversed with corresponding adjustments to retained earnings. Consequently the total equity increased by an equivalent amount.
6) Other equity
Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments on the date of transition.
The company has transferred on April 1,2016 an amount of Rs 99.28 lakhs from power subsidy to general reserve and Rs 40.24 lakhs from other current liabilities to general reserve as the conditions attached to it are fulfilled as at the date of transition. However there is impact on other equity on account of the adjustment of other current liabilities(capital subsidy) of Rs 40.24 lakhs.
7) Other comprehensive income
Under Ind AS, all items of income and expense recognized in a period should be included in the profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit or loss as ''other comprehensive income'' includes remeasurements of defined benefit plans. The concept of ''other comprehensive income'' did not exist under previous GAAP.
8) Cash flow from financing activities
Other bank balances (disclosed under Note 7.3) and financial assets( disclosed under Note 4.2) are not considered as part of cash and cash equivalents under Ind AS and their movement amounting to Rs 30.68 lakhs is the variance in net increase/decrease in cash and cash equivalents as at 31 March 2017.
9) Investment properties:
Under previous GAAP, investment in land of Rs. 8.12 lakhs is shown in investments. As on transition date, the Company has identified land & Buildings of Rs. 199.73 Lakhs which was grouped under property .plant and equipment in previous GAAP. These two amounts are classified as investment properties on the face of the balance sheet as per Ind AS 40- Investment properties.
10) Investments
Under Ind AS, the financial assets and liabilities have to be shown at fair value. Accordingly, the company has restated the investments in equity instruments of TCS at fair value.
11) Trade receivables
Under Ind AS, trade receivables have to be adjusted for the effect of expected credit loss. Accordingly, the company has made a provision for the doubtful debts of ?11.92 lakhs and ? 2.06 lakhs as on 01.04.2016 and 31.03.2017 respectively.
The accompanying notes are an integral part of the financial statements.
|
As per our report of even date |
For and on behalf of the Board |
|
|
for M. Anandam & Co., |
||
|
Chartered Accountants |
||
|
Firm Registration Number: 000125S |
||
|
M.V. Ranganath Partner Membership Number: 028031 |
M B Raju Executive Chairman DIN: 00016652 |
P Parvathi Managing Director DIN: 00016597 |
|
Place : Hyderabad |
R V A Narasimha Rao |
S K Mishra |
|
Date : 29.05.201 8 |
Chief Financial Officer |
Company Secretary |
|
FCS 8555 |
||
Mar 31, 2017
1. Corporate Information
Deccan Cements Limited (âThe Companyâ) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacturing and selling of cement.
(A) Term Loans from Banks (i) Security :
The above Loans from banks are secured through Joint Deed of Hypothecation dated 25.09.07 entered into by the Company with the consortium of term loan lenders. Pursuant to the said agreement, the term loans are secured by way of first pari passu charge by means of equitable mortgage of the certain immovable assets and hypothecation of the movable assets of the Company, present and future in favour of the Consortium of banks comprising of State Bank of India, State Bank of Hyderabad, State Bank of Mysore, Andhra Bank and Indian Bank except the current assets specifically charged to working capital lenders in respect of which second charge is created.
(B) Deferred Payment Liabilities: (Unsecured)
The company in earlier years availed Sales tax deferral loan aggregating to Rs.1631.54 lakhs (balance outstanding as at 31.03.17 was Rs.1309.69 lakhs) under a scheme of the State Government, for its enhanced capacity implemented in 2000-01. Balance loan, is repayable upto the financial year 2024-25 as per VAT assessment orders completed.
2. Employee Benefits:
(i) Defined Benefit Plan
a) Liability for retiring gratuity as on 31st March 2017 is Rs.328.40 Lakhs (31.03.2016: Rs.291.58 Lakhs) of which Rs.45.29 Lakhs (31.03.2016: Rs.53.55 Lakhs) is funded with the Life Insurance Corporation of India and the balance of Rs.328.40 Lakhs (31.03.2016: Rs.238.03 Lakhs) is included in provision for Gratuity.
b) Liability for cost of compensated absences as on 31st March 2017 of Rs.87.68 Lakhs (31.03.2016: Rs.65.37 Lakhs) is unfunded and has been actuarially determined and provided for in the books.
c) The details of the Companyâs post - retirement benefit plans for its employees including whole time directors are given below which are certified by the actuary.
(ii) Defined contribution plans
The Company made Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.91.16 Lakhs (31.03.2016: Rs.85.22 Lakhs) for Provident Fund contributions, Rs.7.94 Lakhs (31.03.2016: Rs.7.81 Lakhs) for Superannuation Fund contributions and Rs.5.29 Lakhs (31.03.2016: Rs.Nil) for National pension Scheme (NPS) in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
3. Segment Reporting
The Company is primarily engaged in manufacturing and marketing of cement. Based on risk - return profile, the other identified reportable segment of the Company is generation and sale of power.
The Segment revenue, segment result and segment assets relating to power segment is less than the 10% of the total Segment revenue, result and assets. Hence, no segment reporting, as per the Accounting Standard 17 (AS 17), is required at present.
During the year under report the Companyâs business has been carried out in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.
4. The Company has not received any intimation from âsuppliersâ regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.
5. Expenditure in Foreign Currency : Rs.2.74 Lakhs ( Previous Year - Rs.51.72 Lakhs )
6. Value of Imported, Indigenous Raw Materials, Spare Parts and Packing materials consumed
7. Details of âSpecified Bank Notesâ (SBN) held and transacted during the period 08.11.2016 to 31.12.2016.
8. Previous Yearâs figures have been, re-grouped /reclassified wherever necessary to conform to the current year classification / disclosure.
9. Figures are rounded off to the nearest rupee. Figures in brackets represent credits / deductions to the extent applicable.
Mar 31, 2016
b. Terms / Rights attached
The Company has only one class of shares - Equity shares having a par value of Rs, 10/-. Each holder of equity shares is entitled to one vote per share.
During the year ended 31st March 2016, the company, pursuant to the approval by the Board of Directors in their meeting held on 16th March 2016, has paid an interim dividend of Rs, 5/- per share to the equity shareholders as on 24th March 2016 being the record date. The dividend paid is excluding tax on distributed profits.
During the year ended 31st March 2015, the amount of per share dividend recognized as distribution to equity shareholders was Rs, 2.50/- excluding tax on distributed profits.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(C) Term Loans from Banks
(i) Security
The above loans from banks are secured through Joint Deed of Hypothecation dated 25.09.07 entered into by the Company with the consortium of term loan lenders. Pursuant to the said agreement, the term loans are secured by way of first pari passu charge by means of equitable mortgage of the certain immovable assets and hypothecation of the movable assets of the Company, present and future in favour of the Consortium of banks comprising of State Bank of India, State Bank of Hyderabad, State Bank of Mysore, Andhra Bank and Indian Bank except the current assets specifically charged to working capital lenders in respect of which second charge is created.
(iii) Equipment and Vehicle loans are secured by the respective equipment and vehicles purchased out of the proceeds of the said loan.
(D) Deferred Payment Liabilities :(Unsecured )
The company in earlier years availed Sales tax deferral loan aggregating to Rs, 1631.54 lakhs (balance outstanding as at 31.03.16 was Rs, 1309.69 lakhs) under a scheme of the State Government, for its enhanced capacity implemented in 2000-01. Balance loan, is repayable upto the financial year 2024-25 as per VAT assessment orders completed.
(Above cash credit facilities are secured by hypothecation of stocks of raw materials, stock in process, finished goods, spares and book debts and second charge on fixed assets and further secured by the personal guarantee of Mr. M.B. Raju, Executive Chairman and Ms. P. Parvathi, Managing Director).
1. Employee Benefits
(i) Defined Benefit Plan
a) Liability for retiring gratuity as on 31st March 2016 is Rs, 291.58 Lakhs (31.03.2015; Rs, 222.38 Lakhs) of which Rs, 53.55 Lakhs (31.03.2015 Rs, 66.87 Lakhs) is funded with the Life Insurance Corporation of India and the balance of Rs, 238.03 Lakhs (31.03.2015: Rs, 155.51 Lakhs) is included in provision for Gratuity.
b) Liability for cost of compensated absences as on 31st March 2016 of Rs, 65.37 Lakhs (31.03.2015: Rs, 39.51 Lakhs) is unfunded and has been actuarially determined and provided for in the books.
c) The details of the Company''s post - retirement benefit plans for its employees including whole time directors are given below which are certified by the actuary.
(ii) Defined contribution plans
The Company made Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs, 85.22 Lakhs (31.03.2015: Rs, 82.78 Lakhs) for Provident Fund contributions and Rs, 7.81 Lakhs (31.03.2015: Rs, 8.07 Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
2. Segment Reporting
The Company is primarily engaged in manufacturing and marketing of cement. Based on risk - return profile, the other identified reportable segment of the company is generation and sale of power.
The Segment revenue, segment result and segment assets relating to power segment is less than the 10 % of the total Segment revenue, result and assets. Hence, no segment reporting, as per the Accounting Standard 17 (AS 17), is required at present.
During the year under report the Companyâs business has been carried out in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.
3. Accounting Standard 18 - Related Party Disclosure (i) Names of related parties and description of relationships Sl. No. Nature of Relationship Names of the Person
(i) Key Management Personnel (KMP) a) Mr. M B Raju, Executive Chairman
b) Ms. P Parvathi, Managing Director
c) Mr. RVA Narasimha Rao, Chief Financial Officer
d) Mr. S K Mishra, Company Secretary
(ii) Relatives of KMP a) Ms. M Lakshmi
b) Ms. P Aishwarya
c) Mr. P Anirudh Raju
(iii) Directors a) Mr. Umesh Shrivastava
b) Dr. S A Dave
c) Mr. K P Singh
d) Mr. J Narayanamurty
e) Mr. P Venugopal Raju
f) Mr. R. Gopalakrishnan
(iv) Enterprises in which KMP or relatives a) DCL Exim Private Limited
having significant influence b) Satyasai Investments and Leasing Limited
c) Melvillie Finvest Limited
d) DCL Information Technologies Limited
4. The Company has not received any intimation from ''suppliersâ regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid / payable as required under the said Act have not been given.
5. Expenditure in Foreign Currency : Rs, 51.72 Lakhs (Previous Year - Rs, 147.51 Lakhs)
6. Value of Imported, Indigenous Raw Materials, Spare Parts and Packing materials consumed
7. Derivative Instruments
The following table gives details in respect of outstanding foreign exchange forward contracts:
Numbers in bracket represent previous year figures.
8. Previous Year''s figures have been, re -grouped /reclassified wherever necessary to conform to the current year classification / disclosure.
9. Figures are rounded off to the nearest rupee. Figures in brackets represent credits / deductions to the extent applicable.
Mar 31, 2015
1. Corporate Information
Deccan Cements Limited ("The Company") is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two stock exchanges in
India. The Company is engaged in the manufacturing and selling of
cement.
b. Terms / Rights attached
The Company has only one class of shares - Equity shares having a par
value of Rs. 10/-. Each holder of equity shares is entitled to one vote
per share.
The dividend proposed by Board of Directors is subject to approval of
shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2015, the amount of per share dividend
recognised as distribution to equity shareholders was Rs. 2.50 /- (31st
March 2014Rs.1.20 /-) excluding tax on distributed profits.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
2.(a)Term Loans from Banks (i) Security
The above loans from banks are secured through Joint Deed of
Hypothecation dated 25.09.07 entered into by the Company with the
consortium of term loan lenders. Pursuant to the said agreement, the
term loans are secured by way of first pari passu charge by means of
equitable mortgage of the immovable assets and hypothecation of the
movable assets of the Company, present and future in favour of the
Consortium of banks comprising of State Bank of India, State Bank of
Hyderabad, State Bank of Mysore, Andhra Bank and Indian Bank except the
current assets specifically charged to working capital lenders in
respect of which second charge is created .
3.(a) Deferred Payment Liabilities (Unsecured)
The company in earlier years availed Sales Tax deferral loan
aggregating to Rs. 1631.54 Lakh (balance outstanding as at 31.03.15 was
Rs.1510.33 Lakh) under a scheme of the State Government, for its enhanced
capacity implemented in 2000-01. Balance loan, is repayable as per
Schedule given below.
4. Contingent Liabilities and Commitments (not provided for)
(Rs. in Lakh)
(A) Contingent Liabilities Current Year Previous Year
(a) Claims against the Company not
acknowledged as Debt
(i) Counter Guarantees to banks 656.62 577.30
(ii) Claims for difference in prices for
the year 1994 - 95 filed by Metropolitan 6.83 6.83
Transport Project, Chennai, matter pending
with High Court of Chennai.
(b) Other Money for which the company is
contingently liable
(i) Income Tax
For the Asst Year 1997-98 towards disallowances
of debenture issue ex- 6.46 6.46
penses and bad debts. Matter pending in appeal
before the Income Tax Appellate Tribunal.
(ii) Sales Tax
a) Regarding sales tax on packing materials
in respect of Asst Year 11.52 11.52
1993-94 for which the company filed writ
petition in the High Court of Andhra Pradesh
and obtained stay on payment of 50% of the disputed
demand.
b) Sales Tax Demand for the deemed excess
production based on the Energy Audit for the
years 1999 - 2000 & 2000 - 01. 85.68 85.68
c) Sales Tax Demand for interest of
Rs. 1,37, 24,338 /- on alleged excess utilization
of Sales tax incentive.Stay was granted by
Additional Com- missioner (CT) (Legal) subject
to 50 % payment of disputed amount. 137.24 137.24
d) Sales Tax Demand for Rs. 51,60,765/-recovery
of excess paid interest for the Assessment
years 2002 -03 to 2004 -05. Appeal was filed by 51.61 51.61
the company before the High Court of A.P.
(iii) The A.P. Government has issued a G.O.
Ms. No 391 levying Water Rates 723.29 723.29
on the quantum of water used in the generation
of power and demanded payment of Rs. 723.29 Lakh
for the period 1997 to February 2008. Appeal
is pending in the High Court of Andhra Pradesh.
(iv) Duty on Electricity generated and consumed
was levied by the A.P. Govt. 316.23 316.23
at 25 paise per unit for the years 2003 -04
to 2008 -09. The High court of A.P. has stayed
the operation of AP Electricity Duty Amendment
Act, 2003 but asked to submit monthly returns
of generation of power.
(v) Seigniorage Fee on Sand, Metal& Gravel
used for expansion project. 23.59 23.59
(vi) Central Excise 412.64 412.64
Disallowance of Cenvat credit availed on
MS Angles, MS Plates, MS Sheets; HR Coils.
Pre deposited Rs. 1 Crore as per the order
of appellate authority - CESTAT, Bangalore.
(B) Commitments
Estimated amount of contracts remaining
to be executed on capital account and Nil Nil
not provided for: (net of advances)
5. Employee Benefits
(i) Defined Benefit Plan
a) Liability for retiring gratuity as on 31st March 2015 is Rs. 222.38
Lakh (31.03.2014; Rs. 247.63 Lakh) of which Rs. 66.87 Lakh (31.03.14 Rs.
79.38 Lakh) is funded with the Life Insurance Corporation of India and
the balance of Rs. 155.51 Lakh (31.03.2014: Rs. 168.25 Lakh) is included in
provision for Gratuity.
b) Liability for cost of compensated absences as on 31st March 2015 of
Rs. 39.51 Lakh (31.03.2014: Rs. 103.15 Lakh) is unfunded and has been
actuarially determined and provided for in the books.
c) The details of the Company's post - retirement benefit plans for
its employees including whole time directors are given below which are
certified by the actuary:
(ii) Defined contribution plans
The Company made Provident Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognized
Rs.150.85 Lakh (31.03.2014: Rs.93.24 Lakh) for Provident Fund contributions
and Rs. 8.07 Lakh (31.03.2014: Rs.7.86 Lakh) for Superannuation Fund
contributions in the Statement of Profit and Loss. The contributions
payable to these plans by the Company are at rates specified in the
rules of the schemes.
6. Segment Reporting
The Company is primarily engaged in manufacturing and marketing of
cement. Based on risk - return profile, the other identified reportable
segment of the company is generation and sale of power.
The Segment revenue, segment result and segment assets relating to
power segment is less than the 10% of the total Segment revenue, result
and assets. Hence, no segment reporting, as per the Accounting Standard
17 (AS 17), is required at present.
During the year under report the Company's business has been carried
out in India. The conditions prevailing in India being uniform, no
separate geographical disclosures are considered necessary.
* The Company has no dilutive instruments during the year ended 31st
March 2015. Hence, the Diluted Earnings per share equals to Basic
Earnings per share
32. The Company has not received any intimation from 'suppliers'
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as at the year end together with interest paid / payable
as required under the said Act have not been given.
As at the Balance Sheet date, the Company's net foreign currency
exposures that are not hedged by a derivative instrument or otherwise
is Nil (31.03.2014: Nil). The foreign exchange contract matures later
than three months and not later than one year as on the Balance Sheet
date.
The Company has recognized a gain of Rs. 8.31 Lakh on the derivative
instrument during the year ended 31st March 2015 (31.03.2014: Nil),
which is included in other income.
38. Change in Accounting Policy
Until 31st March 2014, depreciation on tangible fixed assets other than
Buildings and Plant & Machinery was provided on Written Down Value
Method as per the rates of depreciation prescribed in Schedule XIV to
the Companies Act, 1956. With effect from 1st April 2014 to align with
the useful life specified in the Schedule II of the Companies Act,
2013, the management changed the method of providing depreciation for
these assets from written down method to straight line method.
Consequent to the change in the method, the depreciation on these
tangible fixed assets was recomputed from the date they were first put
to use / capitalized and the resultant excess depreciation of Rs. 55.66
Lakh has been adjusted in current year's depreciation charge.
39. Pursuant to Schedule II of the Companies Act, 2013, with effect
from 1st April 2014, the Company has adopted revised useful life of the
assets aligning the same with those specified in Schedule II. The
Company has fully depreciated the carrying value of assets, net of
residual value, where the remaining useful life of the asset was
determined to be Nil as on 1st April 2014 and has adjusted an amount of
Rs.252.26 Lakh (net of deferred tax) from the opening surplus in the
Statement of Profit and Loss under Reserves and Surplus. Consequent to
the change in the useful life of the other assets, the impact on the
depreciation expense for the current year is lower by Rs. 472.69 Lakh.
40. Pursuant to GO no 328 Dt. 31.12.2005, issued by Industries and
Commerce (IP)Department , Government of Andhra Pradesh , Commissioner
of Industries , Andhra Pradesh, the Company is entitled to receive an
amount of Rs. 100 Lakh as financial assistance for setting up and
erection of 132 KV Bay extension at 132 /33 KV Wadapally substation and
erection of 32 KVDC SC Line. As against the entitlement amount of Rs. 100
Lakh , the company has received an amount of Rs. 56.36 Lakh during 2013
-14 and Rs. 24 Lakh during 2014 -15 leaving balance of Rs. 19.64 Lakh.
Balance assistance receivable along with the amounts received have been
recognized as Capital Reserve. The proportionate annual amortization
charge has been adjusted against depreciation and amortization expense.
42. Previous Year's figures have been, re-grouped /reclassified
wherever necessary to conform to the current year classification /
disclosure.
43. Figures are rounded off to the nearest rupee. Figures in brackets
represent credits / deductions to the extent applicable.
Mar 31, 2013
1. Corporate Information
Deccan Cements Limited ("the Company") is a public company domiciled in
India and incorporated under the provisions of the Companies Act, 1956.
Its shares are listed on two stock exchanges in India. The Company is
engaged in manufacturing and selling of cement.
2: Employee Benefits
(i) Defined Benefit Plan
a) Liability for retiring gratuity as on 31st March 2013 is Rs. 249.75
Lakhs (31.03.2012; Rs. 198.92 Lakhs) of which Rs. 64.02 Lakhs
(31.03.2012; Rs. 87.63 Lakhs) is funded with Life Insurance Corporation
of India and the balance is included in provision for Gratuity.
Liability for Gratuity and Cost of Compensated absences has been
actuarially determined and provided for in the books.
b) The details of the Company''s post-retirement benefit plans for its
employees including whole time directors are given below which are
certified by the actuary.
(ii) Defined contribution plan
Amount recognized as an expense and included in Note No 25 under the
head "Contribution to Provident and other funds" Rs. 195.10 Lakhs
(Previous year Rs. 112.77 Lakhs).
3: The amount of borrowing cost capitalized during the year is Rs. Nil
(Previous Year Rs. Nil).
4: Segment Reporting
The Company''s main business segment is manufacturing of Cement, hence
there is no separate reportable segment as per "Segment Reporting -
Accounting Standard - 17".
5: The Company has not received any intimation from ''suppliers''
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as at the year end together with interest paid / payable
as required under the said Act have not been given.
6: Balances of debtors, loans and advances and creditors are subject
to confirmations.
7: Previous Year''s figures have been recast, re-grouped and
reclassified wherever necessary to conform to the current year''s
classification.
8: Figures are rounded off to the nearest rupee. Figures in brackets
represent credits / deductions to the extent applicable.
Mar 31, 2012
1. Corporate Information:
Deccan Cements Limited ("The Company") is a public company domiciled in
India and incorporated under the provisions of the Companies Act, 1956
in India. Its shares are listed on two stock exchanges in India. The
Company is engaged in the manufacturing and selling of cement.
2.a. Terms/ Rights attached :
The Company has one class of shares- Equity shares having a par value
of Rs 10/-. Each holder of equity shares is entitled to one vote per
share
The dividend proposed by Board of Directors is subject to approval of
shareholders in the ensuing Annual General Meeting.
During the year ended 31 st March 2012, the amount of per share
dividend recognized as distribution to equity shareholders was Rs 3 /- (
31 st March 2011 Rs 1.2)excluding tax on distributed profits.
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
3.a Term Loans from Banks :
(i) Security
The above loans from banks are secured through Joint Deed of
Hypothecation entered into by the Company dated 25.09.2007 with the
consortium of term loan lenders. Pursuant to the said agreement, the
term loans are secured by way of first pari passu charge by way of
equitable mortgage of the immovable assets and hypothecation of the
movable assets of the company, present and future in favor of
Consortium of banks comprising of State Bank of India, State Bank of
Hyderabad , State Bank of Mysore , State Bank of Saurashtra , Andhra
Bank and Indian Bank except the current assets specifically charged to
working capital lenders in respect of which second charge is created .
(ii) Personal Guarantees :
The above term loans are further secured by the personal guarantee of
Mr. M.B. Raju , Chairman and Ms. P. Parvathi, Managing Director. These
personal guarantees exist till the additional mining rights are
obtained by the company to the satisfaction of the lenders.
(iii) Rate of Interest(As at the yearend) : 15 % ( Previous year 13.
50 % )
4.a Deposits (Un Secured)
(i) Rate of Interest : Range from 9.06% to 13.29%
4.b Deferred Payment Liabilities :( Unsecured )
(i) Sales Tax Deferral scheme (vide Proceedings No 10 / 3 / 2000 / 0886
/ ID, dt.06.06.2000) pursuant to the Sales Tax attributable to the
sales effected out of the production from the expansion pertaining to
cement division from 600 TPD to 900 TPD is deferred (interest free) for
a period of 14 years from 2000-01 or Rs 1631.54 Lacs (whichever is
earlier), and the deferred sales tax of each year is repayable after
the expiry of 14 years subject to fulfillment of conditions specified in
the proceedings. The Sales Tax so deferred aggregating to Rs 1631.54
Lacs. Repayment of this deferred liability will commence during 2014-15
and ends in 2024 -25
(ii) Sales tax exemption scheme vide letter No.30/ 2 /2002 / 0788 /1357
/ FD dated 23.10.2002 issued by Commissioner ate of Industries ,
Hyderabad pertaining to the sales effected out of production from the
Slag Cement Division which is exempted for a period of 7 years or Rs
3634.94 Lacs (whichever is earlier). With the implementation of VAT
w.e.f. 01.04.2005 the said exemption amounting to Rs 745.98 Lacs has
been converted into deferment and the balance period has also been
doubled. The company has availed this deferment amount of Rs 745.98 Lacs
upto the years of 2006 -07.Repayment of this deferred liability will
commence during 2013 - 14 and ends in 2014 - 15
5. Contingent Liabilities and Commitments (inLacs)
(A) Contingent Liabilities Current Year Previous Year
(a) Claims against the Company
not acknowledged as Debt:
(i) Counter Guarantees 1013.21 553.12
(ii) Claims for non supply of cement
by company's agent for the year 5.52 5.52
1995-96 pending in High Court
of Andhra Pradesh
(iii) Claims for difference in prices
for the year1994 - 95 filed by 6.83 6.83
Metropolitan Transport Project,
Chennai, matter pending with
High
Court of Chennai
(b) Other Money for which the company
is contingently liable
(i) Income Tax:
a) For the Asst Year 97-98 towards
disallowances of debenture 6.46 6.46
issue expenses and bad debts. Matter
pending in appeal before the
Income Tax Appellate Tribunal
(ii) Sales Tax:
a) Regarding sales tax on packing
materials in respect 11.52 11.52
of Asst Year 1993-94 for which the
company filed writ petition in the
High Court of Andhra Pradesh and
obtained stay on payment of 50% of the
disputed demand
b) Regarding sales tax on transfer
of clinker from cement division 315.44 315.44
to slag division
for the years 2001 -02 & 2005 -06
The matter is pending in appeal
before High Court of Andhra Pradesh.
(iii) Sales Tax Deferment for the
year 2001 -02 on the additional 168.97 168.97
products manufactured, amounting to
Rs. 168.97 Lacs stayed by the AP
High Court.
Sales Tax Demand for the deemed
excess production based on the 85.68 85.68
Energy Audit for the years 1999 - 2000
& 2000 - 01
(iv) The A.P. Government has issued
a G.O. Ms. No 391 levying water 723.29 723.29
Rates on the quantum
of water used in the generation of
power
and demanded payment of Rs. 723.29
Lacs for the period 1997 to February
2008. Appeal is pending in the High
Court of Andhra Pradesh.
(v) Duty on Electricity generated and
consumed was levied by the AP 316.23 316.23
Govt.at 25 paise per
unit for the years 2003 -04 to 2008
-09. The
High court of A.P. has stayed the
operation of AP Electricity Duty
Amendment Act, 2003 but asked to
submit monthly returns of generation
of power.
(B) Estimated amount of contracts
to be executed on capital account and
not 293.00 150.62
provided for: (net of advances)
6. Employee Benefits:
(i) Defined Benefit Plan
a) Liability for retiring gratuity as on March 31st ,2012 is Rs 198.92
Lacs (31.03.2011; Rs 177.67 Lacs) of which Rs 87.63 Lacs (31.03.11 Rs
83.60 Lacs) is funded with the Life Insurance Corporation of India and
the balance is included in provision for Gratuity . Liability for
Gratuity and Cost of Compensated absences has been actuarially
determined and provided for in the books.
b) The details of the Company's post - retirement benefit plans for its
employees including whole time directors are given below which are
certified by the actuary.
(ii) Defined contribution plan
Amount recognized as an expense and included in Note No 24 under the
head "Contribution to Provident and other funds" Rs 112.77 Lacs
(Previous year Rs 107.82 Lacs).
7 The amount of borrowing cost capitalized during the year is Rs Nil .(
Previous Year Rs Nil)
8 Segment Reporting: The Company's main business segment is
manufacturing of Cement, hence there is no separate reportable segment
as per "Segment Reporting - Accounting Standard - 17 "
9. The Company has not received any intimation from ' suppliers '
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as at the yearend together with interest paid / payable
as required under the said Act have not been given.
10. Balances of debtors, loans and advances and creditors are subject
to confirmations.
11. Previous Year's figures have been recast, re-grouped and
reclassified wherever necessary to conform to the current year's
classification.
12. Figures are rounded off to the nearest rupee. Figures in brackets
represent credits / deductions to the extent applicable.
Mar 31, 2011
1. Contingent Liabilities :
Rs. in Lacs
Current Year Previous Year
a) Monies for which the company is
contingently Liable:
i) Counter Guarantee 553.12 716.41
ii) Claims for non supply of cement by
companys agent for the year 1995-96
Pending in High Court of Andhra Pradesh 5.52 5.52
iii) Claims for difference in prices
for the year 1994 - 95 filed by
Metropolitan Transport Project,
Chennai, matter pending with High
Court of Chennai 6.83 6.83
b) Income Tax:
i) For the Asst Year 97-98 towards
disallowances of debenture issue
expenses and bad debts. Matter pending
in appeal before the Income Tax
Appeallate Tribunal, Hyderabad 6.46 6.46
ii) For the Asst. Year 06 - 07 towards
disallowance of deduction claimed u/s
80 I (A). Matter pending with CIT
(appeals). 359.03 359.03
c) Sales Tax:
i) Regarding sales tax on packing
materials in respect of Asst Year
1993-94 for which the company
filed writ petition in the High
Court of Andhra Pradesh and obtained
stay on payment of 50% of the disputed
demand 11.52 11.52
ii) Regarding sales tax on transfer of
clinker from cement division to slag
division for the years 2001-02 & 2005-
06 The matter is pending in appeal
before High Court of Andhra Pradesh. 315.44 315.44
d) Sales Tax Deferment for the year
2001 -02 on the additional products
manufactured, amounting to Rs.
168.97 Lacs stayed by the AP High Court. 168.97 168.97
e) Sales Tax Demand for the deemed
excess production based on the Energy
Audit for the years 1999 - 2000 &
2000 - 01 85.68 85.68
f) The A.P. Government has issued a
G.0. Ms. No 391 levying water Rates
on the guantum of water used in the
generation of power and demanded payment
of Rs. 723.29 lacs for the period 1997
to February 2008. Appeal is pending
in the High Court. 723.29 723.29
g) Duty on Electricity generated and
consumed was levied by the AP Govt, at
25 paise per unit for the years 2003-04
to 2008 - 09. The High court has
stayed the operation of AP Electricity
Duty Amendment Act, 2003 but asked
to submit monthly returns of
generation of power. 316.23 316.23
h) Singareni Collieries Company Ltd
raised Debit Note however the company
has made representation to waive
the same. 231.66 -
2. Secured Loans:
A) Term Loans:
i) The Term Loans from Banks are secured by hypothecation of present
and future immovable assets in favour of consortium of banks comprising
of State Bank of India, State Bank of Hyderabad, State Bank of Mysore,
State Bank of Saurashtra, Andhra bank and Indian Bank ranking pari
passu charge except the current assets specifically charged to working
capital lenders in respect of which second charge is created.
ii) The Term Loans are further secured by the personal guarantee of Mr.
M.B. Raju, Chairman and Ms. P. Parvathi, Managing Director till the
additional mining rights are obtained to the satisfaction of the
lenders.
B) Working Capital:
Cash Credit facility with State Bank of India and Andhra Bank is
secured by hypothecation of stocks of raw materials, stock in process,
finished goods, spares and book debts and second charge on Fixed Assets
and further secured by the personal guarantee of Mr. M.B. Raju,
Chairman and Ms. P. Parvathi, Managing Director.
3. Unsecured Loans:
The Government of Andhra Pradesh has extended to the company the
incentive of:
(a) Sales Tax Deferral Scheme (vide proceedings No. 10/3/2000/0886/ID,
dt.6.6.2000,) pursuant to the Sales Tax attributable to the sales
effected out of the production from the expansion pertaining to Cement
Division from 600 TPD to 900 TPD is deferred (interest free) for a
period of 14 years from 2000-01 or Rs. 1631.54 lacs (whichever is
earlier), and the Deferred Sales Tax of each year is repayable after
the expiry of 14 years subject to fulfillment of conditions specified
in the proceedings. Based on the Sales Tax returns, the company has
availed deferment of Sales Tax during the year Rs. 354.37 lacs (Previous
year Rs. 168.37 lacs). The Sales Tax so deferred aggregating to Rs. 1631.54
lacs (previous year Rs. 1277.17 lacs)
(b) Sales tax exemption scheme vide letter No.30/2/2002/0788/1357/FD
dated 23.10.2002 issued by Commissionarate of Industries, Hyderabad
pertaining to the sales effected out of production from the new Slag
Cement Division which is exempted for a period of 7 years or Rs. 3634.94
lacs (whichever is earlier). With the implementation of VAT w.e.f
01.04.2005 the said exemption amounting to Rs. 745.98 lacs has been
converted into deferment and the balance period has also been doubled.
The Company has availed this deferment amount of Rs. 745.98 lacs upto the
years of 2006-07.
4. The amount of borrowing cost capitalized during the year is Rs. Nil
(Previous Year Rs. 158.21)
5. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as at the year end together with interest paid/payable
as required under the said Act have not been given.
6. Employee Benefits:
A) Defined Benefit Plan
a) Liability for retiring gratuity as on March 31st, 2011 is Rs. 156.26
Lacs (31.03.2010; Rs. 166.30 Lacs) of which Rs. 78.83 lacs (31.03.09 - Rs.
76.75 lacs) is funded with the Life Insurance Corporation of India
(LIC) and the balance is included in provision for Gratuity. Liability
for Gratuity and Cost of Compensated absences has been actuarially
determined and provided for in the books.
7. Accounting Standard 18 - Related Party Disclosure.
i) Names of related parties and description of relationships
(i) Key Management Personnel (KMP)
a) Mr. M.B.Raju
b) Ms. P.Parvathi
(ii) Relatives of KMP
a) Ms. M.Lakshmi
b) Miss. P.Aishwarya
c) Mr. P.Anirudh
(iii) Directors
a) Mr. Umesh Shrivastava
b) Mr. K.P.Singh
c) Mr. P.Venugopal Raju
d) Mr. R.S.Agarwal
e) Mr. J.Narayana Murthy
(iv) Enterprises in which KMP or relatives having significant
influence.
a) DCL Exim Limited.
b) Satya Sai Investments and Leasing Limited
c) MelviUie Finvest Limited
d) DCL Information Technologies Limited
8. Segment Reporting: The companys main business segment is
manufacturing of Cement, hence there is no separate reportable segment
as per "Segment reporting - Accounting Standard - 17 "
9. Balances of debtors, loans and advances and creditors are
subjected to confirmations.
10. Previous Years figures have been recast, re - grouped and
reclassified wherever necessary to conform to the current years
classification.
11. Figures are rounded off to the nearest rupee. Figures in brackets
represent credits/deductions to the extent applicable.
Mar 31, 2010
1. Contingent Liabilities :
Rs. in Lacs
Current Year Previous Year
a) Monies for which the company is
contingently Liable:
i) Counter Guarantee 716.41 963.33
ii) Claims for non supply of cement by
companys agent
for the year 1995-96 pending in High
Court of Andhra Pradesh 5.52 5.52
iii) Claims for difference in prices for
the year 1994-95 filed by Metropolitan
Transport Project, Chennai, matter
pending with High Court of Chennai 6.83 6.83
b) Income Tax:
i) For the Asst. Year 97-98 towards disa-
llowance of Debenture issue expenses
and bad debts. Matter pending in appeal
before the Income Tax Appellate
Tribunal, Hyderabad 6.46 6.46
ii) For the Asst. Year 06 - 07 towards disa-
llowance of deduction claimed u/s 80 I
(A). Matter pending with
CIT (appeals). 359.03 359.03
c) Sales Tax:
i) Regarding sales tax on packing materials
in respect of Asst Year 1993-94 for which
the company filed writ petition in the
High Court of Andhra Pradesh and obtained
stay on payment of 50% of the disputed
demand 11.52 11.52
ii) Regarding sales tax on transfer of clinker
from cement division to slag division for
the years 2001-02 & 2005-06 The matter is
pending in appeal before the Sales Tax
Tribunal and stay has been obtained on
payment of 50% of the disputed demand. 315.44 315.44
d) Difference in voltage surcharge charged
by AP Transco Rs.42.33 lacs
for the year 1999-2000 for which writ
petition filed in the High Court of
Andhra Pradesh and stay obtained. 42.33 42.33
(Total Liability Rs. 84.66 Lacs)
e) Input tax Credit on coal for the year
2004 -05 was withdrawn by the AP Govt,
with retrospective effect which was
challenged by the company in A P High
Court. 50 % of the amount demanded was
deposited by the company.
(Total Liability Rs. 32.27 Lacs) 16.13 16.13
f) Sales Tax Deferment for the year 2001-02
on the additional products manufactured,
amounting to Rs. 168.97 Lacs
stayed by the AP High Court. 168.97 168.97
g) Sales Tax Demand for the deemed excess
production based on the Energy Audit for
the years 1999-2000 & 2000-2001 85.68 85.68
h) The A.P. Government has issued a G.0. Ms.
No 391 levying Water Rates on the quantum
of water used in the generation of power
and demanded payment of Rs. 723.29 lacs
for the period 1997 to February 2008.
Appeal is pending in the High Court. 723.29 723.29
i) Duty on Electricity generated and consumed
was levied by the AP Govt, at 25 paise
per unit for the years 2003-04 to
2008-09. The High court has stayed the
operation of AP Electricity Duty
Amendment Act,2003 316.23 316.23
2. Estimated amount of contracts to be
executed on capital account not provided
for (net of advances) : 406.00 466.00
3. Secured Loans:
A) Term Loans:
i) The Term Loans from Banks are secured by hypothecation of present
and future immovable assets in favour of consortium of banks comprising
of State Bank of India, State Bank of Hyderabad, State Bank of Mysore,
State Bank of Saurashtra, Andhra bank and Indian Bank ranking pari
passu charge except the current assets specifically charged to working
capital lenders in respect of which second charge is created.
ii) The Term Loans are further secured by the personal guarantee of Mr.
M B Raju, Chairman and Ms. P Parvathi, Managing Director till the
additional mining rights are obtained to the satisfaction of the
lenders.
B) Working Capital:
Cash Credit facility with State Bank of India and Andhra Bank is
secured by hypothecation of stocks of raw materials, stock in process,
finished goods, spares and book debts and second charge on Fixed Assets
and further secured by the personal guarantee of Mr. M B Raju, Chairman
and Ms. P. Parvathi, Managing Director.
4. Unsecured Loans:
The Government of Andhra Pradesh has extended to the company the
incentive of: (a) Sales Tax Deferral Scheme vide their proceedings No.
10/3/2000/0886/ID dt.6.6.2000, pursuant to which the Sales Tax
attributable to the sales effected out of the production from the
expansion pertaining to Cement Division from 600 TPD to 900 TPD is
deferred (interest free) for a period of 14 years from 2000-01 or
Rs.1631.54 lacs (whichever is earlier), and the Deferred Sales Tax of
each year is repayable after the expiry of 14 years subject to
fulfillment of conditions specified in the proceedings. Based on the
Sales Tax returns, the company has availed deferment of Sales Tax
during the year Rs.168.37 lacs (Previous year Rs.108.95 lacs). The
Sales Tax so deferred aggregates to Rs.1277.17 lacs (previous year
Rs.1108.80 lacs)
(f) Sales tax exemption scheme vide letter No.30/2/2002/0788/1357/FD
dated 23.10.2002 issued by Commissionarate of Industries, Hyderabad
pertaining to the sales effected out of production from the new Slag
Cement Division which is exempted for a period of 7 years or Rs.3634.94
lacs (whichever is earlier). With the implementation of VAI w.e.t
01.04.2005 the said exemption amounting to Ks.745.98 Lacs has been
converted into deferment and the balance period has also been doubled.
The Company has fully availed this deferment amount of Rs.745.98 lacs
upto the year of 2006-07.
5. The amount of borrowing cost capitalized during the year is
Rs.158.22 lacs (Land Nil, Buildings Rs. Nil lacs, Plant & Machinery Rs.
158.21 lacs and Others Rs.Nil lacs) (Previous year Rs. 2814.92).
6. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as at the year end together with interest paid / payable
as required under the said Act have not been given.
7. Employee Benefits:
A) Defined Benefit Plan
a) Liability for retiring gratuity as on March 31st ,2010 is Rs.156.26
Lacs (31.03.2009; Rs.166.30 Lacs) of which Rs. 78.83 lacs (31.03.09 Rs.
76.75 lacs) is funded with the Life Insurance Corporation of India and
the balance is included in provision for Gratuity. Liability for
Gratuity and Cost of Compensated absences has been actuarially
determined and provided for in the books.
b) The details of the Companys post-retirement benefit plans for its
employees including whole time Directors are given below which are
certified by the actuary.
8.Segment Reporting :The companys main business segment is manufac
-turing of Cement,hence there is no separate reportable segment as
per "Segment reporting -Accounting Standard -17".
9.Balances of debtors,loans and advances and creditors are subject
to confirmations.
10.Previous Years figures have been recast re-grouped and reclassified
wherever necessary to conform to the current years classification.
11.Figures are rounded off to the nearest rupee.Figures in brackets
represent credits /deductions to the extent applicable.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Deccan Cements Ltd.
-
Deccan Cements Ltd. Tools
- Bulk Deals
- Block Deals
-
Deccan Cements Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Rights
- BSE Price History
- NSE Price History
-
Deccan Cements Ltd. Key Financial Ratios
- Ratios
-
Deccan Cements Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Deccan Cements Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Deccan Cements Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Deccan Cements Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
-
Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
-
Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+