Get Updates

Get notified about market trends, financial advice, and investment tips!

A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Kakatiya Cement Sugar & Industries Ltd.

Mar 31, 2025

13.3 Terms/Rights attached to equity shares

The Company has only one class of equity shares having a face value of ?10 /- each. Each holder of equity share 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 distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserves:

1. Security premium will be utilised in accordance with the provisions of the Companies Act, 2013.

2. General reserve will be utilised for strengthing financial position and meeting the future contigencies and losses.

3. Amalgamation reserve which was created at the time of amalgamation, will be utilised as per the Companies Act, 2013.

4. The retained earnings represent the cumulative profits of the Company and effects of the remeasurement of defined benefit obligations. This reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

31 Notes to employee benefits Defined benefit plans

(i) leave Obligations

The leave obligation covers the company''s liability for earned leave which is unfunded.

(ii) Defined contribution plan

The company has defined contribution plan 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) Gratuity:

Each employee rendering continuous service of 5 years or more is entitled to receive gratuity amount equal to 15/26 of the monthly emoluments for every completed year of service subject to maximum of ? 20 Lakhs at the time of separation from the company.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the fund status and amounts recognised in the balance sheet for the respective plans:

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.

32 Contingent Liabilities: All amount X in lakhs, unless otherwise stated
	Particulars		As at 31^st March, 2025	As at 31^st March, 2024
	1	Appeal pending before the Hon''ble High Court of Telangana questioning levy of NPV by the Special Secretary Environment, Forests, Sicence & Technology Department Govt of A.P. for the forest land diverted to KCSIL for the purpose of Mining Lime Stone under Forest (Conservation) Act, 1980.	755.22	755.22
	2	The appeal No.72/2014 dated 05.06.2014 and.73/2014 dated 25.06.2014 for the year 2012-13 is pending before the ''Addl.Commissioner of Customs''. On 03.06.2020, the Commissioner (Appeals), Guntur passed orders remanding back the appeal to the adjudicating authority for denovo consideration as per the directions given by the Supreme Court in a case pertaining to Maruti Ispat and Energy Pvt Ltd & Others pending with the Hon''ble Supreme Court. Further in the Order the Department was directed not to enforce any demand from the Appellant -KCSIL vice versa the Appellant was directed not to make any claim for refund (if any) that accrued during the intervening period. The said case is yet to be adjudicated by the Supreme Court.	65.77	65.77
	3	For the Asst. years 1999-00 (ITTA No.464/2010), 2000-01(ITTA No.34/2011) and 2001-02 (ITTA No.33/2011) Income tax paid x 123.98 lakhs under protest against the demand of X 136.40 lakhs towards disallowance of un-absorbed depreciation / losses. The matter is pending in appeal before the Hon''ble High Court of Telangana. KCSIL with an intention to settle the pending disputes under Direct Taxes Vivadh Se Vishwas Scheme 2024 of IncomeTax Department, filed Form 1 with the Department on 27.02.2025 and the necessary procedutures are to be completed for the closue of these files.	12.42	12.42
	4	For AY 2007-08 (ITTA No.345/2013), the ITAT in the Appeal partly disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed Appeal ( ITTA No. 345/2013) before the Hon''ble Hight Court of Telangana. The same is pending for adjudication.	1,156.46	-
	5	For AY 2008-09. The ITAT in the Appeal partly disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed Appeal ( ITTA No. 488/2015) before the Hon''ble Hight Court of Telangana. The same is pending for adjudication.	930.42	-
	6	For AY 2009-10. The ITATin the Appeal partly disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed Appeal ( ITTA No. 748/2014) before the Hon''ble High Court of Telangana. The same is pending for adjudication.	2,581.75	2,581.75

7	For the Asst.Year 2014-15. The CIT(A) disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed a petion with The Hon''ble High Court of Telangana after the dismissal of the case by the ITAT, Hyderabad. However the effectual consequential order u/s 154 is pending with the department for disposal.	427.94	427.94
8	For the A.Y.2016-17 (ITAT No.66/2021), the company has filed an appeal before the CIT(A) against the orders passed by the Assessing Officer disallowing 80IA deduction under IT Act. The CIT(A) as well as ITAT, Hyderabad disposed of the case in favour of the company allowing 80IA deduction, against which the IT department had filed an appeal before The Hon''ble High Court of Telangana and the effectual condequential order u/s 154 is pending with the department for disposal.	969.26	969.26
9	The Company has received Demand notices dated 07.01.2021, 11.02.2021 from TSNPDCL, Warangal directing the Company to pay a sum of X 2053.86 lakhs towards Grid Support Charges for the period commencing from 12.04.2002 and ending with 31.03.2009. The Original Petition (OP.NO. 35/2023) filed by KCSIL before TGERC, questioning the demand of Grid Support by TGNPDCL was dismissed by the TGERC on 28.10.2024. Company filed a Review Petition ( R.P. No. 1 of 2025) before TGERC. Counter Affidavit filed by TGNPDCL for which KCSIL filed its rejoinder. The Review Petition is posted to 17.05.2025.	2,053.86	2,053.86
10	Under Protest KCSIL has paid the crystalised Principal sum of ? 11,95,82,966/- claimed by TGSPDCL towards differential wheeling charges in two parts i.e. ? 8,00,00,000/- on 24.03.2022 and X 3,95,82,966/- on 27.10.2022 and KCSIL has disputed the levy of interest and surcharge amounting to ? 42,36,86,659/- levied by TGSPDCL through its notice dated 07.07.2023 by way of filing a Original Petition (O.P.No.36/2023) before Telangana Electricity Regulatory Commission (TGERC). The O.P. was dismissed by TGERC on 28.10.2024. Company filed an Appeal before the Appellate Tribunal for Electricity (APTEL) - New-Delhi (D.F.R.No, 4/2025). The Appeal is now posted to 26.05.2025 for Counter of TGSPDCL. Till that time APTEL directed TGSPDCL not to initiate any coercive action such as disconnection of power to its Service Connection No. SPT 427.	4,236.87	4,236.87
11	On 03.07.2023, KCSIL has paid the revised differential wheeling charges of ^ 55,15,496/- determined by APCPDCL in respect of VJA-489 for the period from Fy.2002-09 to Fy.2014-15 vide its letter dated 13.06.2013. But thereafter the CMD of APCPDCL, vide his letter dated 05.12.2013 levied an amount of ? 30,61,100/- towards surcharge on differential wheeling charges calculated w.e.f. 07.07.2020. KCSIL has disputed levy of Surcharge by way of filing an O.P. No. 05/2023 before the Andhra Pradesh Electricity Commission (APERC). The O.P. filed by KCSIL was allowed by APERC on 19.06.2024 by setting aside the surcharge of ? 30,61,100/- imposed by APCPDCL vide its Notice dated 05.12.2013.	30.61	30.61

12	The Joint Commissioner of Sale Tax vide is Order dated 09.01.2024 revised the proceedings issued by the Assistant Commissioner of Sale Tax for the Assessment Year by levying tax of ? 4,35,60,832. Questioning the revisional Order of Joint Commissioner of Sale Tax, KCSIL filed W.P.No.3148/2024 before the High Court of Telangana. The Hon''ble High Court vide its Orders dated 22.07.2024 disposed off the Writ Petiton filed by KCSIL by directing the Company to avail the alternate remedies available to it. Accordingly KCSIL filed Appeal before VAT Appellate Tribunal, Hyderabad, registered as Tribunal Appeal No. 4/2025 by paying 25% of disputed tax under protest. The Appeal is admitted and posted to 04.08.2025 for hearing.	435.61	435.61
13	A demand notice on 07.01.2021 was received from TGSPDCL, Suryapet, Telangana towards differential C.C. charges commencing from April 2014 and ending with February 2020. The Company vide its reply dated 22.01.2021 stated that it had entered into an HT agreement with TGSPDCL wherein it has declared its CMD as 4980 KVA for obtaining supply under 132 KV voltage category. TGSPDCL having agreed for the same in the agreement cannot revise the CC Bills. Hence, the Company requested the authority to withdraw the said letter. But till date no further developments took place by TSSPDCL.	425.91	425.91
14	On 23.05.2024, TGTRANSCO further issued a demand notice claiming an amount of ^ 7,37,30,713/- towards Transmission Charges from 01.04.2004 to 11.04.2022 the Company disputed the said charges till 21.07.2020 are time barred.	737.31	737.31
15	"The Company has received a notice dated 26.04.2024 from the Superintending Engineer, Operation Circle, TGSPDCL, Suryapet to HT Service No. SPT 427 attached to its Cement Factory, demanding an amount of ? 14,10,82,724/- towards Grid Support Charges caluclated from Fy.2002-03 to Fy.2008-09. The Company vide its reply dated 09.05.2024 denied its liability and stated that the Cliam towards Grid Support Charges are time barred . Further the Cement Factory does not have any Captive Power Plant (CPP) in parallel with the Grid. APERC vide its order dated 07.12.2002 in OP.No.742/2000 approved KCSIL cement Factory for using the available D.G. Sets for standby operation without integration with the grid. On 04.07.2024 TGSPDCL further issued a notice revising the Grid Support Charges to ?1,36,74,069 restricting the period from 01.04.2002 to 07.12.2002. KCSIL disputed the same on the ground of Limitation and issued a letter dated 20.07.2024. No further developments. "	1,410.83	1,410.83


16	"The Company has received a notice dated 29.05.2024 from the Chief General Manager, IPC&RAC, TGNPDCL, Warangal demanding an amount of X 8,09,27,403/- towards Grid Support Charges for 3125 KVA TGSET caluclated from Fy. 2002-03 to 2008-09. The Company vide its reply dated 05.06.2024 stated that the Cliam is barred by limitation, further as per the order dated 07.12.2002 passed by APERC, the 3125 KVA TG Set in the sugar factory was derailed from operations w.e.f 2002 itself. On 28.09.2024 TGNPDCL further issued a notice revising the Grid Support Charges to X 1,22,15,435/-only for the period from March 2002 to 17.03.2003 and with interest up to 31.08.2024. KCSIL has furnished yet another reply dated 15.10.2024. No further developments happened."	122.15	-
17	KCSIL has questioned the levy of Electricity duty @0.25 paise per unit on Captive Consumption w.e.f 17.07.2013 in W.P. No.20536/2009 & Batch filed before Hon''ble High Court of Telangana. The Hon''ble High Court dismissed our W.P. on 19.05.2016. Thereafter the Company preferred SLP before the Hon''ble Supreme Court of India. As per the Interim Orders dated 14.09.16 & 27.09.16, the Company has paid an amount of X 0.6 paise per unit and X 0.9 Paise per unit respectively out of the demand of X 0.25 paise per unit. Depending on the outcome of the Order, the Company may have to pay the balance 0.10 paise per unit aggregating to X3,21,75,024/- towards Elecl Duty. Hence provision is being provided for the balance amount.	321.75	321.75
18	"W.P. No.13571/2010 KCSIL Vs. Govt. of A.P. GO.No. 35/2010, dated. 06.05.10 was issued by Govt of A.P. fixing the permit fee as f 10/- per Tonne for transporting the lime stone. Questioning the same KCSIL filed the present Writ Petition. Interim Order granted on 28.02.11 directing KCSIL to pay x 3 33 per tonne till the disposal of the W.P. as permit fee to the Govt. Counter affidavit was filed by the D.F.O for which Reply affidavit filed by KCSIL. As the permit fee levy is made by the A.P.Government, and the mines are situated at Andhra Pradesh, the High Court of Telangana has transferred the present W.P. to Andhra Pradesh. Not listed till date."	164.28	164.28
	33 Capital and other commitments X Nil (P.Y X Nil)

35. Fair values

The carrying amounts of Trade Payables, Other Financial Liabilities (Current), Borrowings (Current), Trade Receivables, Cash & Cash equivalents,Other Bank Balances, Other Financial Assets and loans are considered to be the same as fair value due their short term nature.

The fair value of financial assets and liabilities is incuded at the amount at which the instrument could be exchanged in a current transactions between willilng 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 approximations of fair values:

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.

36 Financial risk management objectives and policies Financial Risk Management Framework

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed primarily to Credit Risk, Liquidity Risk and Market risk ( interest rate), 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. Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

Trade receivables:

Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of statements of financial position whether a financial asset or a Company of financial assets is impaired. Expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. The company is not expecting any credit loss allowance which is calculated on life time expected credit losses for trade receivables. Credit loss provision on security deposits is taken as 12 months expected credit loss and no loss is expected as at 31^st March, 2025, 31^st March, 2024

(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 judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, existing marketing conditions as well as forward looking estimates at the end of each reporting report.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company''s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the authorised person. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

B. Liquidity Risk

Prudent liquidity risk manangement 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 availabililty under deposits in banks.

Management monitors cash and cash equivalents on the basis of expecte cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowng facility at the end of the reporting facilities.

C. 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 three types of risk: interest rate risk and other price risk, such financial instruments affected by market risk include loans and borrowings, deposits etc.

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 changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term and short term borrowings. The company has borrowed funds on fixed rate of interest, there is no impact on the entity due to any interest fuluctuations.

37 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. The primary objective of the Company''s capital management is to maximise the shareholder value.

Capital includes equity attributable to the equity holders. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

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. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

41 Segment information

The Company''s activities are organised into three operating segments namely Cement, Sugar and Power. The Segments are the basis on which the company reports its segment information

Cement division - produce, manufacture, refine and prepare the portland cement Sugar division - It deals mainly with the crushing of sugar-cane Power division - It generates and distributes the power

They primarily uses a measure of profit before tax to assess the performance of the operating segments.

Information about Products:

Revenue from external customers- sale of cement : ? 4,786.05 lakhs (P.Y: ^ 9,783.96 lakhs)

Revenue from external customers- sale of sugar : X 4,136.23 lakhs (P.Y: X 5,811.29 lakhs)

Revenue from external customers- sale of power : ? Nil (P.Y: ? Nil)

The company has not made external sales to a single customer meeting the criteria of 10% or more of the entity''s revenue.

Segment revenue and expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

Inter segment transfers:

The Company accounts for inter segment sales and transfer at average Market price.

42 âCode on Security, 2020":

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 The Financial Statements were approved and authorised by the Board of Directors of the Company on 23^rd May, 2025.

44 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 lent 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 the persons or entities identified by or on behalf of the funding party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

45 The accounting software that is being used by the Company for maintaining its books of account does not have the feature of audit trail (edit log) facility both at the application level and database.

Mar 31, 2024

1.10 Provisions, Contingent Liabilities and Contingent Assets

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

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation.

- a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are neither recognised nor disclosed in the Financial Statements.

1.11 Equity, Reserves and Dividend Payments

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in eq u ity as a d ed u cti on, net of tax, fro m th e proceeds.

Retained earnings include current and prior period retained profits. All transactions with owners of the Company are recorded separately within equity.

Dividend distributions payable to equity shareholders is included in other liabilities when the dividends have been approved in a general meeting priorto the reporting date.

1.12 Earnings PerShare

Basic earnings per equity share is calculated by dividing the net profit after tax for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted earnings per equity share is computed by dividing adjusted net profit aftertax by the aggregate of weighted average number of equity shares and dilutive potential equity shares during the year.

1.13 Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks and other shortterm highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value where original maturity is three months or less.

1.14 Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease transaction. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company as a lessee:

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease.

Finance leases that transfer substantially all of the risks and benefits incidental to ownership of the leased item, are capitalised at the commencement ofthe lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and a reduction ofthe lease liability so as to achieve a constant rate of interest on the remaining balance ofthe liability. Finance charges are recognised in Finance Costs in the Statement of Profit and Loss.

A leased asset is depreciated over the useful life ofthe asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end ofthe lease term, the asset is depreciated over the shorter of the estimated useful life ofthe asset and the lease term.

Company as a lessor:

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term ofthe relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount ofthe leased asset and recognised over the lease term on the same basis as rental income.

1.15 Standards issued but not yet effective. There is no such notification applicable from 1 â''April, 2024.

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:

37 Financial risk management objectives and policies Financial Risk Management Framework

The Company''s principal financial liabilities, otherthan derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed primarily to Credit Risk, Liquidity Risk and Market risk (interest rate), 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. Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, bank deposits and otherfinancial assets. None of the financial instruments of the Company result in material concentration of credit risk.

Exposure to credit risk:

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is as follows:

Trade receivables:

Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of statements of financial position whether a financial asset or a Company of financial assets is impaired. Expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses ifthe credit risk on the financial asset has increased significantly since initial recognition. The company is not expecting any credit loss allowance which is calculated on life time expected credit losses for trade receivables. Credit loss provision on security deposits is taken as 12 months expected credit loss and no loss is expected as at 31â March, 2024,31â March, 2023

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Companyâs Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the authorised person. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterpartyâs potential failure to make payments.

B. Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments

C. Market Risk

Market risk is the risk that the fair value orfuture cash flows ofafinancial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk and other price risk, such financial instruments affected by market risk include loans and borrowings, deposits etc.

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 changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Companyâs long term and short term borrowings. The company has borrowed funds on fixed rate of interest, there is no impact on the entity due to any interest fuluctuations.

38 Capital Management

A. Capital Management and gearing Ratio:

For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the Company''s capital management is to maximise the shareholder value.

Segment revenue and expenses:

Segment assets and liabilities:

Inter segment transfers:

The Company accounts for inter segment sales and transfer at average Market price.

43 Code on Security, 2020:

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.

44 The Financial Statements were approved and authorised for issue by the Board of Directors of the Company on 23^rd May, 2024.

45 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 ("Intermediariesâ) 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 funding party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46 The accounting software that is being used by the Company for maintaining its books of account does not have the feature of audit trail (edit log) facility both at the application level and database level.

The accompanying notes are an integral part of the financial statements.

As per our Report of even date on behalf of the Board of Directors

For M. ANANDAM & CO.

Chartered Accountants P.Veeraiah

(Firm Registration Number: 000125S) Chairman & Managing Director

A.V. Sadasiva DIN: 00276769

Partner

Membership Number:018404 M.Bhavani Dattu V. Sesha Sayee

Chief Financial Officer Company Secretary

Place: Hyderabad (PAN:AECPM1280L) (M.No.: A9827)

Date : 23.05.2024

Mar 31, 2019

1. Background

Kakatiya Cement, Sugar and Industries Limited (the âCompanyâ) was incorporated in 1979 having itâs Registered office in Hyderabad. The Companyâs activities are organized into three operating divisions namely Cement, Sugar and Power. The major activity of the company is to produce, manufacture, refine, sell and generally to deal in all kinds of Portland Cement, sugar, generation and distribution of power.

â2.1 Terms/Rights attached to equity shares The Company has only one class of equity shares having a face value of Rs. 10 /-each. Each holder of equity share 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 distribution will be in proportion to the number of equity shares held by the shareholders.â

1. Security premium reserve is utilised in accordance with the provisions of the Act.

2. General reserve is used for strenthening the financial position and meeting the future contigencies and losses.

3. Amalgamation reserve is created in the process of amalgamation of the company. This reserve is used in accordance with the provisions of the Act.

4. The reserves represent the cumulative profits of the Company and effects of the remeasurement of defined benefit obligations. This Reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

Interest free loan from Andhra Bank to meet timely settlement of cane price for crushing sugar season (2013-14) relating to the fair and remunerative price fixed by the Central Government to the sugar cane growers. Loan is secured by first charge on the fixed assets of sugar division and collatteral security of fixed deposits of Rs.795 lakhs of the company. Repayment Schedule as under:

Note 3.1 : The Company had filed a Writ Petition registered as W.P. No. 20536 of 2009 before the Honâble High Court of Telangana questioning levy of Electricy Duty @ 0.25 per unit by the State Government on captive consumption of the electricity generated by the Company. The Writ Petition was dismissed by the Honâble High Court on 19.05.2016. The Company preferred a Special Leave Petition before the Supreme Court of India registered as SLP No. 22936 of 2016. As per the Interim Orders of the Supreme Court the Company had paid an amount of Rs.481.32 lakhs to the Credit of Government of Telangana & Andhra Pradesh.

The Appeal before the Supreme Court is yet to come up for hearing and accordingly a provision of Rs.909.54 lakhs (Previous Year Rs.867.22 lakhs) is included in the statutory liabilities.

4 Earnings Per share

Basic and Diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

5 Notes to Employee Benefits

Defined Benefit Plans Gratuity:

Each employee rendering a continuous service of 5 years or more is entitled to receive gratuity amount equal to 15/26 of the monthly emoluments for every completed year of service at the time of separation from the company subject to the provisions of the Gratuity Act.

Estimates of future compensation increases considered taking into account the inflation, seniority, promotion and other relevant factors.

Discount rate is based on the prevailing market yields of Indian Government securities as at 31^st March 2019 for the estimated term of the obligations.

"The sensitivity analysis above have been determined based on a method that extrapolate the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period."

Note.6 Provisions, Contingent Liabilities and Contingent Assets:

Disclosures required by AS-29 âProvisions, Contingent Liabilities & Contingent Assetsâ

i) The Company had appeated to Appellate Tribunal (CT) against order of ADC on restriction of ITC for the Year 2012-13 of Rs.29,52,639 and for the year 2013-14 of Rs.27,52,164 pending with Appeallate Tribunal. For the year 2014-15 the Assessing Officer had raised a demand for an amount of Rs.198.09 Lakhs for non submission of C-Forms and Way Bills against which the company filed an appeal against the demand before AJC(A) and paid an amount of Rs.24.76 Laks being 12.5% on the disputed Tax.

ii) The Company had filed a Writ Petition registered as W.P. No. 20536 of 2009 before the Honâble High Court of Telangana questioning levy of Electricy Duty @ 0.25 per unit by the State Government on captive consumption of the electricity generated by the Company. The Writ Petition was dismissed by the Honâble High Court on 19.05.2016. The Company preferred a Special Leave Petition before the Supreme Court of India registered as SLP. No. 22936 of 2016. As per the Interim Orders of the Supreme Court the Company had paid an amount of Rs.481.32 lakhs to the Credit of Government of Telangana & Andhra Pradesh. The Appeal before the Supreme Court is yet to come up for hearing and accordingly a provision of Rs.909.54 lakhs (Previous Year Rs.867.22 lakhs) has been made.

iii) For the Asst. years 1999-00, 2000-01 and 2001-02 Income tax paid was for a sum of Rs.123.98 lakhs under protest against the demand of Rs.136.40 lakhs towards disallowance of un-absorbed depreciation / losses. The matter has been pending in appeal before the High Court of Telangana.

iv) For the Asst. Year 2012-13 there was a demand of Rs.120.68 lakhs towards denial of exemption u/s. 80-IA to Companyâs Power Division and the same was adjusted against refund due. The matter has been pending before ITAT, Hyderabad.

v) For the Asst.Year 2009-10 penalty has been imposed and the same was adjusted against the refund due and pending in ITAT Hyderabad. For the Asst.Year 2014-15, CIT (A) disposed off the case in favour of the company allowing 80IA deduction, against which the IT department had filed an appeal in ITAT, Hyderabad, which is pending.

vi) Sales tax paid under protest for the Asst. years 2001-02,2002-03 of Rs.188.56 lakhs against a demand of Rs.188.56 lakhs regarding disputed sales tax on Molasses sales. The matter has been under appeal before the High Court of Telangana.

vii) The Company had paid Rs.1.00 crore as per the directions of Honâble High Court against demand of Rs.850.22 lakhs from the forest department towards Net Present Value (NPV) in respect of diverted forest land for renewal of Mining lease under Forest (Conservation) Act, 1980. The matter has been pending in appeal before the High Court of Telangana.

viii) Company had appealed to Addl.Commissioner of Customs vide appeal no.72/2014 dated 05/06/2014 and 28/2014 dated 25/06/2014 against the demand of the department amounting to Rs.65.77 Lakhs excluding interest and Penaltyfor the year 2012-13.

ix) For the A.Y.2016-17, the company had filed an appeal before the CIT(A) against the orders passed by the Assessing Officer disallowing 80IA deduction under IT Act. The tax amount in dispute is Rs.969.26 Lakhs

Note :7 Capital and other commitments Rs Nil (P.Y Rs Nil)

8 Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Companyâs financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The management assessed that fair value of financial assets and liabilities significantly approximate their carrying amounts largely due to the shortterm maturities of these instruments. The fair value ofthe 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.

The Company determines fair values of financial assets or liabilities by discounting the contractual cash inflows / outflows using prevailing interest rates of financial instruments with similar terms. The initial measurement of financial assets and financial liabilities is at fair value. . Further, the subsequent measurements of all assets and liabilities is at amortised cost, using effective interest rate method.

The following methods and assumptions were used to estimate fair values:-

-The fair value ofthe Companyâs interest bearings borrowings are determined using discount rate that reflects the entityâs discount rate at the end ofthe reporting period. The own non-performance risk as at the reporting period is assessed to be insignificant.

For other non-current financial assets and liabilities the fair value is the same as the amortized cost, measured using the discount rate at the time of initial recognition of financial assets and liabilities

A one percent change in the unobserved inputs used in fair valuation of level 3 Assets and liabilities does not have a significant impact in its Fair value of financial assets and financial liabilities

The carrying value of the current financial assets and current financial liabilities are considered to be same as their values, due to their short-term nature. The non-current borrowings and securities deposits are carried at amortized cost which is considered as their fair value.

9 Financial risk management objectives and policies Financial Risk Management Framework

The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed primarily to Credit Risk, Liquidity Risk and Market risk (fluctuations in foreign currency exchange rates and interest rate), 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. Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

Trade receivables:

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the Companyâs policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Companyâs Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the authorised person. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterpartyâs potential failure to make payments.

B. Liquidity Risk

The table below summarises the maturity profile of the Companyâs financial liabilities based on contractual undiscounted payments

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Companyâs performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Companyâs policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly. Selective hedging is used within the Company to manage risk concentrations at both the relationship and industry levels.

Collateral : Nil

C. 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 three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits etc.

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 changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long term and short term borrowings. The company has borrowed funds on fixed rate of interest, there is no impact on the entity due to any interest fuluctuations.

Foreign currency 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 Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs operating activities (when revenue or expense is denominated in a foreign currency). The exposure of entity to foreign currency risk is very limited on account of limited transactions in foreign currency.

10 Capital Management

For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Companyâs capital management is to maximise the shareholder value. Capital includes equity attributable to the equity holders of the Parent. The primary objective of the Companies capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

In order to achieve this overall objective, the Companyâs 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. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2019 and 31st March, 2018.

11 Dues to Micro and Small Enterprises

The dues to Micro and Small Enterprises as required under the Micro, Small and Medium Enterprises Development Act, 2006 to the extent information available with the company is given below:

12. Segment information

The Companyâs activities are organised into three operating segments namely Cement, Sugar and Power. The Segments are the basis on which the company reports its segment information Cement division - produce, manufacture, refine and prepare the portland cement Sugar division - It deals mainly with the crushing of sugar-cane Power division - It generates and distributes the power

They primarily use a measure of profit before tax to assess the performance of the operating segments. Information about Products:

Revenue from external customers- sale of cement sugar and Power is Rs.11,061.43 lakhs

The company has not made external sales to the customers inexcess of 10% or more of the entities revenue.

Segment revenue and expenses:

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments.Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

Inter segment transfers:

The Company accounts for inter segment sales and transfer at average Market price

Mar 31, 2018

1. Background

Kakatiya Cement, Sugar and Industries Limited was incorporated in 1979 having itâs registered office in Hyderabad. The Companyâs activities are organized into three operating divisions namely Cement, Sugar and Power. The major activity of the company is to produce, manufacture, refine, prepare,sell and generally to deal in all kinds of Portland Cement, sugar, generation and distribution of power.

Note 2.1: The Company has taken overdraft facilities from Andhra bank and state bank of India against pledge of fixed deposits valuing INR 10781.21 lakhs (Previous year INR 4948.39 lakhs) of the company at an average rate of 8.25%

3.1 There are no transactions with Micro, small and Medium Enterprises, Hence no disclosures are made under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Note 4.1: The Company filed an appeal before the Hon,ble High Court of Andhra Pradesh vide W.P.no. 20536 of 2009 for levy of Duty @0.25 per unit of captive consumption of the electricity generated by the company. The appeal was dismissed by the hon,ble High Court of judicature of Telangana and Andhra Pradesh on 19.05.2016 and accordingly a provision of Rs. 867.22(Previ-ous year Rs. 834.05 lakhs) is included in the Statutory liabilities.

Note 5.1: Interest Income represents Interest on Fixed Deposits and Interest on Electricity Deposits

Note.6 Provisions, Contingent Liabilities and Contingent Assets:

Disclosures required by AS-29 âProvisions, Contingent Liabilities & Contingent Assetsâ

i) The Company has filed an appeal to Appellate Tribunal (CT) against order of ADC on restriction of ITC for the Year 2012-13 of Rs. 29,52,639 and for the year 2013-14 of Rs. 27,52,164 pending with Appeallate Tribunal.

ii) Claims against the company by APCPDCL/APSPDCL amounting to â907.41 lakhs towards wheeling charges for energy wheeled from companyâs bagasse based co-generation unit to cement division for which writ petition filed in the High court of Andhra Pradesh and stay obtained.

iii) For the Asst. years 1999-00, 2000-01 and 2001-02 Income tax paid Rs. 123.98 lakhs under protest against the demand of Rs.136.40 lakhs towards disallowance of un-absorbed depreciation / losses. The matter is pending in appeal before the High Court of Andhra Pradesh.

iv) For the Asst. Year 2012-13 there was a demand of Rs. 120.68 lakhs towards denial of exemption u/s. 80-IA to Companyâs Power Division and the same was adjusted against refund due. The matter is pending before CIT (Appeals).

v) For the Asst.Year 2009-10 penalty has been imposed and the same was adjusted against the refund due and pending with Appeal CIT(A). And asst.year there was appeal with CIT(A) against the order of DCIT against disallowance of deduction U/s 80IA for the Asst.Year 2014-15 and the same was pending with CIT(A)

vi) Sales tax paid under protest for the Asst. years 2001-02,2002-03 of Rs.188.56 lakhs against a demand of Rs.188.56 lakhs regarding disputed sales tax on Molasses sales. The matter is under appeal before the High Court of Andhra Pradesh.

vii) The Company has paid Rs.1.00 crore as per the directions of Honâble High Court against demand of Rs. 850.22 lakhs from the forest department towards Net Present Value (NPV) in respect of diverted forest land for renewal of Mining lease under Forest (Conservation) Act, 1980. The matter is pending in appeal before the High Court of Andhra Pradesh.

viii) Company had appealed to Addl.Commissioner of Customs vide appeal no.72/2014 dated 05/06/2014 and 28/2014 dated 25/06/2014 against the demand of the department amonting to Rs. 65.77 Lakhs excluding interest and Penaltyfor the year 2012-13.

Note :7 Capital and other commitments Rs. Nil (P.Y Rs. Nil)

8. 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(non-current) consists of interest accrued but not due on deposits other financial assets consists of employee advances where the fair value is considered based on the discounted cash flow.

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 comparision by class of the carrying amounts and fair value of the Companyâs 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 instruments 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 is 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. In respect of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years of operations obtaining necessary regulatory approvals to commence their business.

9. Financial risk management

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, 2018 and March 31, 2017.

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 2018 and 31 March 2017.

(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 maturity financial assets.

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. Cash and other collaterals are obtained from customers when considered necessary under the circumstances.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents companyâs maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

The Companyâs 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.

An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk.

i. Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally invest in deposits with banks with high credit ratings assigned by external agencies.

ii. Credit risk on trade receivables and other financial assets is evaluated as follows:

presentation requirements for the purposes of this note. ended 31 March 2017. Reconciliation of total comprehensive income for the year

(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 companyâs 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. Companyâs 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

10. Capital management

A. Capital management and Gearing Ratio

For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the companyâs 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.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2018 and 31 March 2017.

11. First-time adoption of Ind AS Transition to Ind AS

These are the Companyâs first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet as at 01 April 2016 (date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting standards) Rules, 2006 (as amended) and other relevant provisions of the Act(previous GAAP or Indian GAAP). An explanation on how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and Exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Ind AS optional exemptions

(i) Deemed cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant & Equipment as recognised in the Financial Statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition, after making necessary adjustments for decommissioning liabilities. This exemption can also be used for Intangible Assets covered by Ind AS 38.

Accordingly, the Company has elected to measure all of its Property, Plant & Equipment and Intangible Assets at their previous GAAP carrying value.

(ii) Impairment of financial assets

An entity shall apply requirements of Ind AS 109 relating to impairment of Financial Assets retrospectively. However, if at the date of transition, determining whether there is significant increase in credit risk from initial recognition requires undue cost and effort, an entity shall recognise lifetime expected credit losses at each reporting date.

The Company has recognised allowance for credit loss at the date of transition to Ind AS for trade receivables based on lifetime expected credit loss.

B. Ind AS mandatory exceptions

(i) Estimates

An entityâs estimates in accordance with Ind ASs at the date of transition to Ind As shall be consistent with the estimates made for the same date in accordance with previous GAAP(after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following item in accordance with Ind AS at the date of transition as these were not required under previous GAAP: -Impairment of financial asset based on expected credit loss model.

(ii) Classification and measurement of Financial Assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

The Company has calculated fair value of financial assets as the date of transition to Ind AS.

C. Reconciliation between previous GAAP and Ind AS ( as at 31 March 2017 and 1 April 2016)

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods.

The following tables represent the reconciliations from previous GAAP to Ind AS.

D. Notes to first-time adoption:

1) Deferred tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS12 requires entities to account for deferred taxes using the Balance Sheet approach, which focuses on differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. It requires recognition of tax consequences of differences between the carrying amounts of assets and liabilities and their tax base. As a result Deferred tax liability has been increased by Rs. 1096.4 lakhs as at 1 April 2016 and Rs. 1096.9 lakhs as at 31st March 2017 with a corresponding decrease in retained earnings and net profit respectively.

2) 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 31st March 2017 by Rs. 2259.97 lakhs. There is no impact on the total equity and profit.

3) 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 31st March 2017.

4) 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. 252.62 lakhs included under provisions as at 1 April 2016 has been reversed with corresponding adjustments to retained earnings. Consequently the total equity increased by an equivalent amount.

5) Other equity

Retained earnings as at April 1, 2016 has been adjusted cons quent to the above Ind AS transition adjustments on the date of transition.

6) 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 âother comprehensive incomeâ includes remeasurements of defined benefit plans. The concept of âother comprehensive incomeâ did not exist under previous GAAP

11. Segment information

The Companyâs activities are organised into three operating segments namely Cement, Sugar and Power. The Segments are the basis on ehich the company reports its segment information Cement division - produce, manufacture, refine and prepare the portland cement Sugar division - It deals mainly with the crushing of sugar-cane Power division - It generates and distributes the power They primarily uses a measure of profit before tax to assess the performance of the operating segments.

Segment revenue and expenses:

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments.Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

Inter segment transfers:

The Company accounts for inter segment sales and transfer at average Market price

(i) Leave obligations

The leave obligation covers the Companyâs 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 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:

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 obligation of leave encashment is recognised in the same manner as gratuity.

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:

The accompanying notes are an integral part of the financial statements.

Mar 31, 2016

1 : The company has only one class of equity shares having face value of Rs. 10 each. Each shareholder of Equity share entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by Board of directors is subject to approval of shareholders in ensuing Annual general meeting. During the year ended 31st March,2016, dividend per share recognized as distribution to equity shareholders is Rs. 2.70/- per share (Previous Year Rs. 2.70 per share)

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.

2. Statutory liabilities represent amounts payable towards Excise Duty, Service Tax, Sales tax/VAT and Tax Deducted at Source.

3. The Company filed an appeal before the Hon''ble High Court of Judicature of Telangana and Andhra Pradesh vide W.P. no.20536 of 2009 for levy of Duty at Rs. 0.25 per unit of captive consumption of the electricity generated by the company. The appeal was dismissed by the Hon''ble High Court of Judicature of Telangana and Andhra Pradesh. Hence, a provision of Rs. 1265 lakhs is made in the books of accounts during the year forming part of Statutory Liabilities.

Note: 4. Provisions, Contingent Liabilities and Contingent Assets:

Disclosures required by AS-29 âProvisions, Contingent Liabilities & Contingent Assetsâ

i) Disputes with regard to Power purchase Tariff and PLF with regard to sale of power to APTRANSCO amounting to Rs. 1772.05 lakhs, out of which Rs. 1042.27 lakhs was considered as income, matter is pending before APERC.

ii) Claims against the company by APCPDCL/APSPDCL amounting to Rs. 907.41 lakhs towards wheeling charges for energy wheeled from companyâs bagasse based co-generation unit to cement division for which writ petition was filed in the High Court of Judicature of Telangana and Andhra Pradesh and the stay was obtained.

iii) For the Asst. years 1999-00, 2000-01 and 2001-02 Income tax paid Rs. 123.98 lakhs under protest against the demand of Rs. 136.40 lakhs towards disallowance of un-absorbed depreciation / losses. The matter is pending in appeal before the High Court of Judicature of Telangana and Andhra Pradesh.

iv) For the Asst. Year 2010-11 and 2011-12 there was a demand of Rs. 64.45 lakhs and Rs. 120.68 lakhs towards denial of exemption u/s. 80-IA to Companyâs Power Division and other disallowances in Sugar and Cement Divisions. The matter is pending before CIT (Appeals).

v) Sales tax paid under protest for the Asst. years 2001-02, 2002-03 of Rs. 188.56 lakhs against a demand of Rs. 188.56 lakhs regarding disputed sales tax on Molasses sales. The matter is under appeal before the High Court of Andhra Pradesh.

vi) The Company has paid Rs. 1.00 crore as per the directions of Honâble High Court against demand of Rs. 850.22 lakhs from the forest department towards Net Present Value (NPV) in respect of diverted forest land for renewal of Mining lease under Forest (Conservation) Act, 1980. The matter is pending in appeal before the High Court of Andhra Pradesh.

Note 5 : CLASSIFICATION

Previous Year figures have been regrouped wherever necessary to conform to current Year''s groupings / classification.

Mar 31, 2014

1.1 Equity Shares of 1,46,862 of Rs.10 each to be alloted to Shareholders of Sree Kailash Sugars and Chemicals Limited based on the outcome of the case pending with the Honorable Andhra Pradesh High Court.

2.1. Other Liabilites repesents liability to Sri S.R Kailash .The Company has filed a Petition in AP High Court against Arbitration award amounting to Rs.129.25 given in favour of Sri S. R. Kailash and pending decision of the AP High court and the same is retained in Fixed deposit with Andhra bank.

3.1 Statutory & Other liabilites represent amounts payable towards Excise Duty, Service Tax, Sales tax VAT and Tax Deducted at Source.

4.1: Other Advances include Income tax paid under protest for AY 2007-08 amounting to Rs. 602.10 Lacs and Sales tax paid under protest amounting to Rs. 200.54 Lakhs.

Note.5.1 : Interest income represents Interest on Fixed Deposits and Interest on eletricity deposits

Note 6 : EMPLOYEE BENEFITS

As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below:

Defined Benefit plans:

The company operates post retirement gratuity plan with LIC. 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 Company has determined the leave encashment provision based on independent actuary.

Note: 7. Provisions, Contingent Liabilities and Contingent Assets:

Disclosures required by AS-29 "Provisions, Contingent Liabilities & Contingent Assets"

i) Disputes with regard to Power purchase Tariff and PLF with regard to sale of power to APTRANSCO amounting to Rs. 1772.05 lakhs, out of which Rs. 1042.27 lakhs was considered as income, matter is pending before APERC.

ii) Claims against the company by APCPDCL/APSPDCL amounting to Rs.907.41 lakhs towards wheeling charges for energy wheeled from company''s bagasse based co-generation unit to cement division for which writ petition filed in the High court of Andhra Pradesh and stay obtained.

iii) Duty on Electricity generated and consumed was levied by the A.P.Govt. at Rs.0.25 paise per unit from 17.07.2003. The High Court has stayed the operation of A.P. Electricity Duty Amendment Act, but asked to submit monthly returns of generation. The duty amount as on 31.03.2014 was Rs.1106.90 lakhs.

iv) For the Asst. years 1999-00, 2000-01 and 2001-02 Income tax paid Rs. 123.98 lakhs under protest against the demand of Rs.136.40 lakhs towards disallowance of un-absorbed depreciation / losses. The matter pending in appeal before the High Court of Andhra Pradesh.

v) For the Asst. Year 2010-11 and 2011-12 there was a demand of Rs.52.92 and 64.45 lakhs respectively towards denial of exemption u/s. 80-IA to Company''s Power Division and other disallowances in Sugar and Cement Divisions. The matter is pending before CIT (Appeals).

vi) Sales tax paid under protest for the Asst. years 2001-02,2002-03 of Rs.188.56 lakhs against a demand of Rs.188.56 lakhs regarding disputed sales tax on Molasses sales. The matter is under appeal before the High Court of Andhra Pradesh.

vii) The Company has paid Rs.1.00 crore as per the directions of Hon''ble High Court against demand of Rs.850.22 lakhs from the forest department towards Net Present Value (NPV) in respect of diverted forest land for renewal of Mining lease under Forest (Conservation) Act, 1980. The matter is pending in appeal before the High Court of Andhra Pradesh.

The Company accounts for intersegment sales and transfer at average Market Price.

Note 8 : CLASSIFICATION

Previous Year figures have been regrouped wherever necessary to conform to current Year''s groupings / classification.

Mar 31, 2013

Note 1.1 : The company has only one class of equity shares having face value of RS. 10 each. Each shareholder of Equity share entitled to one vote per share. The company delcared and pays dividend in Indian rupees the dividend proposed by board of directors is subject to approval of shareholders in ensuing Annual general meeting.

2.1 Equity Shares of 1,46,862 of RS. 10 each to be alloted to Shareholders of Sree Kailash Sugars and Chemicals Limited based on the outcome of the case pending with the Honorable Andhra Pradesh High Court.

3.1. Other Liabilites repesents liability to Sri S.R Kailash .The Company has filed a Petition in AP High Court against Arbitration award amounting to RS. 129.25 given in favour of Sri S. R. Kailash and pending decision of the AP High court and the same is retained in Fixed deposit with Andhra bank.

Note 4 : RELATED PARTY DISCLOSURES

i) Key management personnel:

P.Venkateswarlu. P.Veeraiah.

ii) Relatives of key management personnel:

P.Samrajyam. P.Radha.

iii) Enterprise in which key management personnel and their relatives have control:

Standard Construction Co. (Partnership Company). Kakatiya Finance and Leasing Company Pvt Limited.

Note 5 : EMPLOYEE BENEFITS

As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below

Defined Benefit plans:

The company operates post retirement gratuity plan with LIC. 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 Company has determined the leave encashment provision based on independent actuary.

Note.6. Provisions, Contingent Liabilities and Contingent Assets:

Disclosures required by AS-29 "Provisions, Contingent Liabilities & Contingent AssetsÂ

i) Disputes with regard to Power purchase Tariff and PLF with regard to sale of power to APTRANSCO amounting to RS. 1387.57 lakhs, out of which RS. 1215.04 lakhs was considered as income, matter is pending before APERC.

ii) Claims against the company by APCPDCL/APSPDCL amounting to RS. 902.97 lakhs towards wheeling charges for energy wheeled from company''s bagasse based co-generation unit to cement division for which writ petition filed in the High court of Andhra Pradesh and stay obtained.

iii) Duty on Electricity generated and consumed was levied by the A.P.Govt. at RS. 0.25 paise per unit from 17.07.2003. The High Court has stayed the operation of A.P. Electricity Duty Amendment Act, but asked to submit monthly returns of generation. The duty amount as on 31.03.2013 was RS. 979.86 lakhs.

iv) For the Asst. years 1999-00, 2000-01 and 2001-02 Income tax paid RS. 123.98 lakhs under protest against the demand of RS. 136.40 lakhs towards disallowance of un-absorbed depreciation/losses. The matter pending in appeal before the High Court of Andhra Pradesh.

v) For the Asst. Year 2010-11 there was a demand of RS. 90.78 lakhs towards denial of exemption u/s. 80-IA to Company''s Power Division and other disallowances in Sugar and Cement Divisions. The matter is pending before CIT (Appeals).

iv) Sales tax paid under protest for the Asst. years 2001-02,2002-03 of RS. 188.56 lakhs against a demand of RS. 188.56 lakhs regarding disputed sales tax on Molasses sales. The matter is under appeal before the High Court of Andhra Pradesh.

vii) The Company has paid RS. 1.00 crore as per the directions of Hon''ble High Court against demand of RS. 850.22 lakhs from the forest department towards Net Present Value (NPV) in respect of diverted forest land for renewal of Mining lease under Forest (Conservation) Act, 1980. The matter is pending in appeal before the High Court of Andhra Pradesh.

Note 7 : CLASSIFICATION

Previous Year figures have been regrouped wherever necessary to conform to current Year''s groupings /classification.

Mar 31, 2012

Note 1.1 : The company has only one class of equity shares having face value of Rs. 10 each. Each shareholder of Equity share entitled to one vote per share. The company declared and pays dividend in Indian rupees. The dividend proposed by board of directors is subject to approval of shareholders in ensuring Annual general meeting .

2.1 Equity Shares of 146862 of Rs. 10 each to be allotted to Shareholders of Sree Kailash Sugars and Chemicals Limited based on the outcome of the case pending with the Honorable Andhra Pradesh High Court.

3.1. Other Liabilities represents liability to Sri S.R. Kailash. The Company has filed a Petition in AP High Court against Arbitration award amounting to Rs. 129.25 given in favour of Sri S.R. Kailash and pending decision of the AP High Court. The same is retained in Fixed Deposit with Andhra Bank.

4.1. The Rupee Term Loans are secured by joint equitable mortgage by way of deposit of title deeds of the Company's all Immovable properties both present and future and by way of hypothecation of all movable assets (Other than book debts), ranking pari-pasu interest, subject to prior charges on movable assets in favor of the company's Bankers for Working Capital facility. There are no amounts repayable outstanding beyond 12 months from the balance sheet date.

4.2. Statutory & other liabilites represent amounts payable towards Excise Duty Service Tax Sales tax and TDS.

Note 12.1 : Aggregate market value of Quoted Investments Rs. 6.33 Lakhs as against (P.Y 8.48Lakhs)

5.1. Deposits Others includes amount retained in Fixed deposit with Andhra Bank amounting to Rs. 129.25 liable to Sri S.R. Kailash against the orders of AP High Court (Refer Note No. 6.1).

6.1: Other Advances include Income tax paid under protest AY 2007-08 amounting to Rs. 602.10 Lacs (PY 27.98 Lacs) and Sales tax paid under protest amounting to Rs. 200.54 Lakhs (PY 200.54 Lacs)

Note.19.1 : Interest income represents Interest on Fixed Deposits and Interest on eletricity deposits

Note 7 : RELATED PARTY DISCLOSURES

i) Key management personnel:

P.Venkateswarlu.

P.Veeraiah.

ii) Relatives of key management personnel:

P.Samrajyam.

P.Radha.

iii) Enterprise in which key management personnel and their relatives have control:

Standard Construction Co. (Partnership Company).

Kakatiya Finance and Leasing Company Pvt Limited.

*Figures in bracket represents previous year.

* As company taken Group Gratuity Policy for the first time comparative figures are not given.

Note 6 : PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Disclosures required by AS-29 "Provisions, Contingent Liabilities & Contingent Assets"

i) Disputes with regard to Power purchase Tariff and PLF with regard to sale of power to APTRANSCO amounting to Rs. 1245.28 lakhs, out of which Rs. 1038.89 lakhs was considered as income, matter is pending before APERC.

ii) Claims against the company by APCPDCL/APSPDCL amounting to Rs. 651.58 lakhs towards wheeling charges for energy wheeled from company's bagasse based co-generation unit to cement division for which writ petition filed in the High court of Andhra Pradesh and stay obtained.

iii) Duty on Electricity generated and consumed was levied by the A.P.Govt. at Rs. 0.25 paise per unit from 17.07.2003. The High Court has stayed the operation of A.P. Electricity Duty Amendment Act, but asked to submit monthly returns of generation. The duty amount as on 31.03.2012 was Rs. 873.56 lakhs.

iv) For the Asst. years 1999-00, 2000-01 and 2001-02 Income tax paid Rs. 123.98 lakhs under protest against the demand of Rs. 136.40 lakhs towards disallowance of un-absorbed depreciation / losses. The matter pending in appeal before the High Court of Andhra Pradesh.

v) For the Asst. Year 2009-10 there was a demand of Rs. 456.45 lakhs towards denial of exemption u/s. 80-IA to Company's Power Division and other disallowances in Sugar and Cement Divisions. The matter is pending before CIT (Appeals).

iv) Sales tax paid under protest for the Asst. years 2001-02,2002-03 of Rs. 188.56 lakhs against a demand of Rs. 188.56 lakhs regarding disputed sales tax on Molasses sales. The matter pis under appeal before the High Court of Andhra Pradesh.

vii) The Company has paid Rs. 1.00 crore as per the directions of Hon'ble High Court against demand of Rs. 850.22 lakhs from the forest department towards Net Present Value (NPV) in respect of diverted forest land for renewal of Mining lease under Forest (Conservation) Act, 1980. The matter is pending

Segment liabilities in respect of secured loans are allocated by the management to each of the segment on a reasonable basis having relation to the utilisation of the loans to the particular segment.

Note 7 : CLASSIFICATION

Previous Year figures have been regrouped wherever necessary to conform to current Year's groupings / classification.

Mar 31, 2011

1. Sugar sales include Rs 336.04 lakhs of bagasse sale by sugar division to power division. Power Division sales includes, sale of power to cement division amounting to Rs 812.85 lakhs and to sugar division amounting to Rs 172.12 lakhs and sale of Steam to Sugar Division amounting to Rs 241.26 lakhs. Cost of inter division transfers were included in power and fuel expenses.

2. Share Capital Suspense represents the outstanding amount earmarked for allotment of shares in the ratio of 1:25, to the holders of shares of Sree Kailas Sugars and Chemicals Limited (SKSCL), which has been merged with the Company pursuant to the Scheme of Rehabilitation sanctioned by the BIFR.

3. The Excise Duty payable on the Closing Stocks of Cement Division, Sugar Division is Rs 2.59 lakhs and Rs 131.08 lakhs respectively is included in the value of closing stocks. There is no impact on Profit of the Company.

4. The liability in respect of Gratuity has been arrived at as on 31st March 2011 for Rs 309.96 lakhs on accrual basis.

5. The Rupee Term loans are secured by joint equitable mortgage by way of deposit of title deeds of the Company's all immovable properties both present and future and hypothecation of all movable assets (other than book debts) ranking pari-passu interse, subject to prior charge on movable assets in favour of Company's bankers for securing working capital facility.

6. Working Capital facilities sanctioned by 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, second charge on all immovable properties both present and future and also by the personal guarantee of the Managing Director and Jt. Managing Director.

7. As per the information available with the company as on date there are no outstandings to MSMED units.

8. Additional information pursuant to the provisions of paragraph 3,4-C and 4-D of Part II of Schedule VI of the Companies Act, 1956 (as certified by the Management).

(Value - Rs In Lakhs)

The details of the Managerial Remuneration are mentioned in Note No. 6 (a) of the Notes to the Accounts. Sri P. Veeraiah, Jt. Managing Director is related to Sri P. Venkateswarlu, Chairman & Managing Director.

9. ACCOUNTING FOR TAXES:

Deferred Ta x Asset of Rs 135.90 lakhs is recognized as attributable to the timing difference between depreciation as per Companies Act and Income Tax Act.

Income tax comprises Current Tax determined in accordance with the Income Tax Law. Deferred Ta x charged or credited reflecting the tax effect of timing difference between accounting income and Taxable Income for the year.

10. Other Liabilities includes a sum of Rs 129.25 lakhs being balance out of the gross amount of Rs 310.61 lakhs received under an arbitration award. The amount is kept under Fixed Deposit, pending resolution of the outstanding disputes.

11. Contingent Liabilities:

i) Disputes with regard to Power purchase Tariff and PLF with regard to sale of power to APTRANSCO amounting to Rs 1245.28 lakhs, out of which Rs 1038.89 lakhs was considered as income, matter is pending before APERC.

ii) Claims against the company by APCPDCL/APSPDCL amounting to Rs 548.89 lakhs towards wheeling charges for energy wheeled from company's bagasse based co-generation unit to cement division for which writ petition filed in the High court of Andhra Pradesh and stay obtained.

iii) Duty on Electricity generated and consumed was levied by the A.P.Govt. at Rs 0.25 paise per unit from 17.07.2003. The High Court has stayed the operation of A.P. Electricity Duty Amendment Act, but asked to submit monthly returns of generation. The duty amount as on 31.03.2011 was Rs 770.87 lakhs.

iv) For the Asst. years 1999-00,2000-01 and 2001-02 Income tax paid Rs 123.98 lakhs under protest against the demand of Rs 136.40 lakhs towards disallowance of un-absorbed depreciation/ losses. The matter pending in appeal before the High Court of Andhra Pradesh.

v) For the Asst. Year 2007-08 Income Tax paid Rs 301.50 lakhs under protest against demand of Rs 737.68 lakhs towards denial of exemption u/s. 80-IA to Company's Power Division and other disallowances in Sugar and Cement Divisions. The matter is pending before ITAT,Hyderabad.

vi) For the Asst. Year 2008-09 there was a demand of Rs 319.92 lakhs towards denial of exemption u/s. 80-IA to Company's Power Division and other disallowances in Sugar and Cement Divisions. The matter is pending before CIT(Appeals).

vii) Sales tax paid under protest for the Asst. years 2001-02,2002-03 of Rs 188.56 lakhs against a demand of Rs 188.56 lakhs regarding disputed sales tax on Molasses sales. The matter is under appeal before the High Court of Andhra Pradesh.

viii) The Company has paid Rs 1.00 crore as per the directions of Hon'ble High Court against demand of Rs 850.22 lakhs from the forest department towards Net Present Value (NPV) in respect of diverted forest land for renewal of Mining lease under Forest (Conservation) Act, 1980. The matter is pending in appeal before the High Court of Andhra Pradesh.

12. Certain Sundry Debtors and Creditors are subject to confirmation and reconciliation.

13. Previous Year figures have been regrouped wherever necessary to conform to current Year's groupings / classifications.

14. Figures have been rounded-off to the nearest thousand.

Mar 31, 2010

1. Sales include Rs.116.89 lakhs of bagasse sale by sugar division to power division. Sale of Power Division includes, sale of power to cement division amounting to Rs.831.32 lakhs and to sugar division amounting to Rs.59.39 lakhs and sale of Steam to Sugar Division amounting to Rs.118.55 lakhs. Cost of inter division transfers were included in power and fuel expenses.

2. Share Capital Suspense represents the outstanding amount earmarked for allotment of shares in the ratio of 1:25, to the holders of shares of Sree Kailas Sugars and Chemicals Limited (SKSCL), which has been merged with the Company pursuant to the Scheme of Rehabilitation sanctioned by the BIFR.

3. The Excise Duty payable on the Closing Stocks of Cement Division, Sugar Division is Rs.2.89 lakhs and Rs.23.60 lakhs respectively is included in the value of closing stocks. There is no impact on Profit of the Company.

4. The liability in respect of Gratuity has been arrived at as on 31st March 2010 for Rs.279.24 lakhs on accrual basis.

5. The Rupee Term loans are secured by joint equitable mortgage by way of deposit of title deeds of the Companys all immovable properties both present and future and hypothecation of all movable assets (other than book debts) ranking pari-passu interse, subject to prior charge on movable assets in favour of Companys bankers for securing working capital facility.

6. Working Capital facilities sanctioned by 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, second charge on all immovable properties both present and future and also by the personal guarantee of the Managing Director and Jt. Managing Director.

7. As per the information available with the company as on date there are no outstandings to MSMED units.

8. ACCOUNTING FOR TAXES:

Deferred Tax Asset of Rs.157.16 lakhs is recognized as attributable to the timing difference between depreciation as per Companies Act and Income Tax Act.

Income tax comprises Current Tax and Fringe Benefit Tax for the period, determined in accordance with the Income Tax Law. Deferred Tax charged or credited reflecting the tax effect of timing difference between accounting income and Taxable Income for the year.

9. Other Liabilities includes a sum of Rs.173.17 lakhs being balance out of the gross amount of Rs.310.61 lakhs received under an arbitration award. The amount of Rs.173.17 lakhs is kept under Fixed Deposit, pending resolution of the outstanding disputes.

10. Contingent Liabilities:

i) Disputes with regard to Power purchase Tariff and PLF with regard to sale of power to APTRANSCO amounting to Rs.1057.40 lakhs, out of which Rs.851.01 lakhs was considered as income, matter is pending before Apex court.

ii) Claims against the company by APCPDCL/APSPDCL amounting to Rs.548.89 lakhs as on 31.03.2010 towards wheeling charges for energy wheeled from companys bagasse based co-generation unit to cement division for which writ petition filed in the High court of Andhra Pradesh and stay obtained.

iii) Claims against the company by Electrical Inspectorate GOVT. of Andhra Pradesh amounting to Rs.676.43 lakhs as on 31.03.2010 towards Electricity Duty on captive consumption w.e.f.17.07.2003 @ Rs.0.25 per unit.

iv) For the Asst. years 1999-00,2000-01 and 2001-02 Income tax paid Rs.123.98 lakhs under protest against the demand of Rs.136.40 lakhs towards disallowance of un-absorbed depreciation / losses. The matter pending in appeal before the High Court of Andhra Pradesh.

v) For the Asst. Year 2007-08 Income Tax paid Rs.150.00 lakhs under protest against demand of 523.92 lakhs towards denial of exemption u/s. 80-IA to Companys Power Division and other disallowances in Sugar and Cement Divisions. The matter is pending before CIT (Appeals).

vi) Sales tax paid under protest for the Asst. years 2001-02,2002-03 and 2005-06 of Rs.200.54 lakhs against a demand of Rs.212.52 lakhs regarding disputed sales tax and input tax credit availed on coal purchases for the period Apr05 to Dec05. The matter is under appeal before the High Court of Andhra Pradesh.

vii) The Company has paid Rs.1.00 crore as per the directions of Honble High Court against demand of Rs.850.22 lakhs from the forest department towards Net Present Value (NPV) in respect of diverted forest land for renewal of Mining lease under Forest (Conservation) Act, 1980. The matter is pending in appeal before the High Court of Andhra Pradesh.

11. Certain Sundry Debtors and Creditors are subject to confirmation and reconciliation.

12. Previous Year figures have been regrouped wherever necessary to conform to current Years groupings / classifications.

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