Notes to Accounts of KCP Ltd.

Mar 31, 2025

XVII. Provisions, Contingent Liabilities and
Contingent Assets

Provision:

A provision is recorded when the company has a
present legal or constructive obligation as a result
of past events, it is probable that an outflow of
resources will be required to settle the obligation and
the amount can be reasonably estimated. Provisions
will be reviewed at the end of each reporting period
and adjusted to reflect the current best estimate. If
it is no longer probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation, the provision shall be reversed. The
estimated liability for product warranties is recorded
when products are sold based on technical evaluation.
Provisions are measured at the present value of
management’s best estimate of the expenditure
required to settle the present obligation at the end of
the reporting period. Provisions are discounted when
time value of money is material. The discount rate
used to determine the present value is a pre-tax rate
that reflects current market assessments of the time
value of money and the risks specific to the liability.
The increase in the provision due to the passage of
time is recognized as interest expenses.

Contingent liabilities:

Contingent liability is recognised when it is not
probable that an outflow of economic benefits will
be required, or the amount cannot be estimated
reliably, the obligation is disclosed as a contingent
liability, unless the probability of outflow of economic
benefits is remote. Possible obligations, whose
existence will only be confirmed by the occurrence
or non-occurrence of one or more future uncertain
events not wholly within the control of the company,
are also disclosed as contingent liabilities unless the
probability of outflow of economic benefits is remote.

Onerous contracts:

Onerous contract is a contract in which the
unavoidable cost of meeting the obligations under
the contract exceed the economic benefits expected
to be received under it. Company estimates and
provides provision at the lower of the following for
onerous contracts.

• Net Cost of fulfilling the contract; or

• Compensation, penalties arising from the failure
to fulfil it i.e. Cost of terminating the contract.

Contingent assets:

Contingent assets are not recognised in financial
statements since this may result in the recognition of
income that may never be realised. A contingent asset
is disclosed when the inflow of economic benefit is
probable.

XVIII. Leases

The Company’s lease asset consists of lease for
Land and buildings. The Company assesses whether
a contract is or contains a lease, at inception of
a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the
Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and

(iii) the Company has the right to direct the use of the
asset.

At the date of commencement of the lease, the
Company recognises a right-of-use asset (“ROU”)
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short¬
term leases) and leases of low value assets.

The right-of-use assets are initially recognised at
cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus
any initial direct costs less any lease incentives. They
are subsequently measured at cost less accumulated
depreciation and impairment losses, if any. Right-of-
use assets are depreciated from the commencement
date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset.

The lease liability is initially measured at the present
value of the future lease payments. The lease
payments are discounted using the interest rate
implicit in the lease or, if not readily determinable,
using the incremental borrowing rates. The lease
liability is subsequently remeasured by increasing
the carrying amount to reflect interest on the lease
liability, reducing the carrying amount to reflect the
lease payments made.

A lease liability is re-measured upon the occurrence
of certain events such as a change in the lease term
or a change in an index or rate used to determine
lease payments. The re-measurement normally also
adjusts the leased assets.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

XIX. Segment Reporting

The company publishes this financial statement
along with the consolidated financial statements. In
accordance with IND AS 108, Operating segments,
the company has disclosed the segment information
in the consolidated financial statements.

XX. Dividend Distribution

Dividends paid are recognised in the period in which
the interim dividends are approved by the Board of
Directors, or in respect of the final dividend when
approved by shareholders.

-> General Reserve: This is used from time to time to transfer profits from retained earnings for appropriation
purposes.

-> Investment Revaluation Reserve : This reserve represents the cumulative gain or loss arising on
revaluation of equity instruments measured at fair value through OCI net of amounts reclassified if any to
retained earnings when those investments are disposed off.

-> Actuarial Gain/Loss Reserve : This reserve represents the cumulative gain or loss on account of
remeasurement of defined benefit plans net of amounts reclassified if any to retained earnings.

-> Capital Redemption Reserve: This is created on redemption of redeemable preference shares issued. This can
be utilised for issuing fully paid bonus shares in accordance with the provisions of Companies Act, 2013.

-> Retained Earnings: This represents the accumulated earnings net of losses if any made by the company
over the years. This reserves can be utilised for the payment of dividend and other purposes in accordance
with the provisions of the Companies Act, 2013.

Capital Management: Equity share capital and other equity are considered for the purpose of Company''s
capital management. The Company manages its capital so as to safeguard its ability to continue as a
going concern and to optimise returns to shareholders. The capital structure of the Company is based on
management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain
investor, creditors and market confidence. The management and the Board of Directors monitors the return on
capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to
maintain, or if necessary adjust, its capital structure.

Note 34A. Exceptional Item

a) In December 2023, the Engineering unit at Tiruvuttiyur was affected due to Cyclone Michaung. During
the year, the company has incurred restoration expenses of Rs. 6.05 Crores (Previous Year- Rs. 8.13 Crores)
against which the comapany received insurance claim of Rs. 4.58 Crores (Previous Year-Rs. 7.50 Crores) and
asset capitalised (Net of Insurance claim of Rs. 7.48 Crores) of Rs. 0.39 Crores and the remaining amount of Rs.
1.08 Crores (Previous Year-Rs. 0.63 Crores) shown as exceptional item.

b) On account of Fuel & Power Purchase Cost Adjustment Charges pertaining to the financial year 2022-2023 &
2023-2024, levied by APERC during the month of October 24 & November 24 respectively, the company has
recognised the amount of Rs.24.40 Crores as exceptional item.

The total exceptional item recognized during the year amounts to Rs. 25.48 Crores (Rs. 0.63 Crores in previous year)

35. Income Tax Reconciliation

The major components of income tax expense for the years ended 31-03-2025

Note: For the purpose of the above details, of the status of the supplier’s under the Act has been determined,
to the extent of and based on information furnished by the respective parties and has accordingly, been relied
upon by the company and its auditors.

Note 46 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act 2013, a company, meeting the applicability thershold , needs to
spend atleast 2% of its average net profit for the immediately preceeding three financial years on Corporate
Social Responsibility(CSR) activities. A CSR committee has been formed by the company as per the Act. The
areas of CSR activities are education, health care, women empowerment and rural development. The funds
were utilised through the year on these activities which are specified in Schedule VII of the Comapnies Act,
2013 :

Note 50. Details on Statements of Current Assets submitted to the Banks:

The Company has to submit the monthly statements on stock and debtors'' positions to the bankers. During
the current year, the variation between the statements submitted by the company to bank and actual balance
on quarterly basis has been disclosed hereunder.i) With respect to Raw Materials (incl. stores&spares),
the variations are Rs.1.89 crores, Rs.0.73 Crores, Rs.0.98 Crores, Rs.0.04 Crores in Q1, Q2, Q3 and Q4
respectively. ii) With respect to Work-in-Progress, the variations are Rs.-0.07 Crores, 0.45 Crores, Rs.-
0.34 Crores, Rs.-2.19 Crores in Q1, Q2, Q3 and Q4 respectively. iii) With respect to Finished Goods, the
variations are Rs.0.24 Crores, Rs.-0.21 Crores in Q2 and Q4 respectively. iv) With respect to Debtors (incl.
Creditor Advances), the variations are Rs.-3.83 Crores, Rs.-1.57 Crores, Rs.-0.93 Crores, Rs.-1.50 Crores
in Q1, Q2, Q3 and Q4 respectively. v) With respect to Creditors (incl. Debtor Advances), the variations are
Rs.0.50 Crores, Rs.0.83 Crores, Rs.2.02 Crores, Rs.0.06 Crores in Q1, Q2, Q3 and Q4 respectively.These
variations are due to the adjustments considered in the books post submission of statements to the bankers.
Note: The Negative sign denotes that the amount submitted to bank is higher than the amount as per books
of accounts.

Note 54. Financial instruments - Fair values and risk management

(as per Annexure-II enclosed)

Figures for the previous have been regrouped, wherever necessary to make them comparable.

As per our report annexed

(FOR AND ON BEHALF OF THE BOARD) ^{p p}

Dr. V.L. INDIRA DUTT V. KAVITHA DUTT _Ch°^>!r_t^l<.SH^FA^(V<:> & Ct^:C>t

Chairperson & Managing Director Joint Managing Director pCrmR!™ A^mnfmQ

DIN: 00139883 DIN: 00139274 ^{Firm Regn No}'' ^003109S

K VAMSI KRISHNA

ANIS TYEBALI HYDERI Y VIJAYAKUMAR Partner

Chief Financial Officer Company Secretary ICAI Mem No: 238809

ACS: 16353

---

Mar 31, 2024

XVII. Provisions, Contingent Liabilities and Contingent Assets

Provision:

A provision is recorded when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated. Provisions will be reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision shall be reversed. The estimated liability for product warranties is recorded when products are sold based on technical evaluation. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. Provisions are discounted when time value of money is material. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expenses.

Contingent liabilities:

Contingent liability is recognised when it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future uncertain events not wholly within the control of the company, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.

Onerous contracts:

Onerous contract is a contract in which the unavoidable cost of meeting the obligations under the contract exceed the economic benefits expected to be received under it. Company estimates and provides provision at the lower of the following for onerous contracts.

a) Net Cost of fulfilling the contract; or

b) Compensation, penalties arising from the failure to fulfil it i.e. Cost of terminating the contract.

Contingent assets:

Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. A contingent asset is disclosed when the inflow of economic benefit is probable.

XVIII. Leases

The Company’s lease asset consists of lease for Land, buildings and vehicles. The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and

(iii) ''the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (shortterm leases) and leases of low value assets.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

A lease liability is re-measured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The re-measurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

XIX. Segment Reporting

The company publishes this financial statement along with the consolidated financial statements. In accordance with IND AS 108, Operating segments, the company has disclosed the segment information in the consolidated financial statements.

XX. Dividend Distribution

Dividends paid are recognised in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.

Note 50. Details on Statements of Current Assets submitted to the Banks:

The Company has to submit the monthly statements on stock and debtors'' positions to the bankers. During the current year in one of the segments of the Company, i) Debtors balance which were submitted to the bank in 2nd quarter are lower than the balance as per books of accounts by Rs.1.17 crores; ii) With respect to creditors balances the details submitted to bank are higher to an extent of Rs.0.04 crores, Rs.0.52 crores, Rs.0.04 crores , Rs.0.07 crores in Q1, Q2, Q3 and Q4 respectively. These variations are due to the adjustments considered in the books post submission of statements to the bankers.

Note 51. Registration/Satisfaction of Charges:

The charges detailed in the table given below, are appearing in INDEX of Charges in Ministry of Corporate Affairs (MCA) website. These were already satisfied and relevant forms were filed with the Registrar of Companies.

The company represented before the Registrar of Companies for rectification/correction of the Index of Charges in MCA website.

As no Form 17 filed for satisfaction of Charge The Registrar of Companies, Tamilnadu, Chennai has suggested to file fresh Form CHG 4 for satisfaction of the Charge.

Note 54. Financial instruments - Fair values and risk management

(as per Annexure-II enclosed)

Figures for the previous have been regrouped, wherever necessary to make them comparable.

As per our report annexed

(FOR AND ON BEHALF OF THE BOARD) ^{K K}

Dr. V.L. INDIRA DUTT V. KAVITHA DUTT ^rt^SdRA⁰ & C°_t

Chairperson & Managing Director Joint Managing Director ^"^60 Ac⁰™??^

DIN: 00139883 DIN: 00139274 ^{Firm Regn No 003109S}

K VAMSI KRISHNA

ANIS TYEBALI HYDERI Y VIJAYAKUMAR Partner

Chief Financial Officer Company Secretary ICAI Mem No: 238809

ACS: 16353

Place: Chennai Date : May 20, 2024

---

Mar 31, 2022

Note 37. CONTINGENT LIABILITIES	As at 31st March, 2022	As at 31st March, 2021
A Claims against the company not acknowledged as debt
A.1) In respect of Statutory levies	6,527.00	2,452.62
A.2) In respect of Contractual levies	30.47	13.41
A.3) In respect of Others	430.93	591.42
B Guarantees issued by the Bankers on behalf of the Company
B.1) Against Advances obtained	1,793.04	2,467.79
B.2) Towards Performance Guarantees	4,118.79	2,782.04
Note 38. COMMITMENTS	As at 31st March, 2022	As at 31st March, 2021
A Estimated amount of contracts remaining to be executed on capital account and not provided for	11.41	1,349.53
B Uncalled liability pertaining to Investments	-	-
C Other commitments - Sale contracts	17,385.38	10,261.58
- Export Obligation under EPCG Scheme	179.78	179.78
Note 39. VALUE OF IMPORTS ON CIF BASIS	As at 31st March, 2022	As at 31st March, 2021
a) Raw Materials and Stock-in-Trade	-	-
b) Components ,Spares parts , Consumables & Coal	3,720.62	5,977.66
c) Tools	0.61	1.97
d) Capital goods	-	-
	3,721.23	5,979.63

Note 53. PROPOSED DIVIDEND

In repect of the year ended March 31,2022 the Directors proposed a dividend of Re.1/- per share on equity share of Re.1/- each. This equity dividend is subject to approval by shareholders at the Annual General meeting. The Proposed Equity Dividend payable to all holders of fully paid equity shares and the total estimated equity dividend to be paid is Rs.1289.21 lakhs excluding Dividend Distribution Tax.

Note 55. Details on Statements of Current Assets submitted to the Banks:

The Company is to submit the monthly statements on Stock and Debtors positions to the Bankers. During the current year , Debtors balance were submitted to the Bank considering the balances upto 120 days instead of 90 days as per the margin requirement mentioned in the sanction letter from the said banker. The discrepancy is for an amount of Rs. 1,323.15 Lakhs and Rs. 19.43 lakhs for June 2021 and September 2021 months respectively. The Company had utilised only 22% of the drawing power of the said loan during the current financial year.

In another instance, ther is a variance in ageing analysis submitted to the two different bankers, which is on accouont of considering the debtors balances into different ageing groups. The said variance is to the extent of Rs. 78.47 lakhs.

Note 56. Registration/Satisfaction of Charges:

The charges detailed in the table given below, are appearing in INDEX of Charges in Ministry of Corporate Affairs (MCA) website. These were already satisfied and relevant forms were filed with the Registrar of Companies.

The company represented before the Registrar of Companies for rectification/correction of the Index of Charges in MCA website.

The company is in the process of filing Form CHG 8 with the Registrar of Companies with prior approval of the Board of Directors.

Note 59. Financial instruments - Fair values and risk management

(as per separate annexure-II enclosed)

Note 60. Figures in brackets indicate those for the previous year.

Figures for the previous have been regrouped, wherever necessary to make them comparable.

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Mar 31, 2017

A). List of Related parties

Subsidiary Company KCP Vietnam Industries Limited

Joint Venture Company Fives Cail KCP Limited

Key Managerial Personnel Dr. V.L. Dutt - Chairman and Managing Director

Smt. V.L. Indira Dutt - Joint Managing Director Smt. Kavitha D Chitturi - Executive Director Sri V.Gandhi - Technical Director Sri. G. N. Murty - Chief Financial Officer Sri. Y Vijaya Kumar - Company Secretary

Relatives of Key Managerial Personnel (KMP) Dr. V.L. Dutt -

Smt. Rajeswary Ramakrishanan - Sister Smt. V.L. Indira Dutt -Smt. S.R.V. Rajyalakshmamma - Mother Sri. V. Chandra Kumar - Brother Smt. Uma S Vallabhaneni - Sister Smt.V. Rama Kumari - Sister Smt. Kavitha D Chitturi -Kum.Shivani Dutt Chitturi - Daughter Sri. Ravi Chitturi - Husband Sri. V.Gandhi -Smt. V. Kamala Devi - Wife Sri. V. Praveen Kumar - Son Smt. V. Anupama - Daughter

Companies controlled by Key Management KCP Technologies Limited ^Per^sonne^l/Re^lative^s V. Ramakrishna Sons Private Limited

The Jeypore Sugar Company Ltd.

BGE Engineering (India) Private Limited VRK Grandsons Investment (Private) Limited V. Ramakrishna Charitable Trust A Trust in the name of Bala Tripurasundari Ammavaru

Fives Combustion Systems Pvt.Ltd

1) Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act 2013, the CSR committee has been formed by the company. The areas of CSR activities are eradication of hunger and malnutrition promoting education, Art and Culture, Health care, destitute care and rehabilitation and Rural development projects.

2) As per section 143(3)(j) of the Companies Act, 2013 and rule 11 of the Companies (Audit & Auditors) Rules, 2014, the Company estimated material foreseeable loses on long term contracts at its Engineering Unit and made provision for an amount of Rs.51.02 Lakhs (Previous Year : Rs. 82.90 lakhs)

3) Extra-ordinary item

An expenditure of Rs. 576 lakhs (Net of Tax of Rs. 453 lakhs) incurred by Engineering Unit on account of Chennai floods has been accounted as Extra-ordinary Expenses subject to the settlement of the insurance claim.

4) During the year , the Company has Specified Bank Notes or other denomination notes as defined in the MCA notification G.S.R 308(E) dated March 31,2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8,2016 to December 30,2016.

5) Proposed Dividend:

Proposed dividend Rs.2/- per share amounting to Rs. 2578.42 lakhs (excluding Dividend Distribution Tax) is not recognized as liability for the year under report in accordance with revised AS-4 and there would be cash out flow of Rs. 2578.42 lakhs, in the financial year 2017-2018 on account of dividend payments.

6) Figures for the previous have been regrouped, wherever necessary to make them comparable.

---

Mar 31, 2016

1) Corporate Social Responsibility (CSR)

Pursuant to Section 135 of the Companies Act 2013 and rules made there under the CSR committee has been constituted by the
company. The major areas of CSR activities are Eradication of hunger and malnutrition, promoting Education, Art and Culture,
Health care and Rural development projects.

2) As per section 143(3)(j) of the Companies Act, 2013 and rule 11 of the Companies (Audit & Auditors) Rules, 2014, the Company
estimated material foreseeable loses on long term contracts at its Engineering Unit and made provision for an amount of Rs.168.20
lakhs (Previous Year : Rs.40.26 lakhs)

3) Extra-ordinary item

Pending finalization of insurance claims on account of Chennai floods, expenditure incurred up to 31.03.2016 on restoration works
of Rs.584.31 lakhs has been accounted as Extra-ordinary Expenses and the adhoc amount Rs.500 lakhs received from Insurance
company has been deducted there from.

4) * Amounts have been rounded off to nearest Rs. Lakhs.

* Figures in brackets indicate those for the previous year.

* Figures for the previous have been regrouped, wherever necessary to make them comparable

---

Mar 31, 2014

1. GENERAL

The fi nancial statements of the company have been prepared in accordance with generally accepted accounting principles in India ( Indian GAAP). The company has prepared these fi nancial statements to comply in all material respects with the accounting standards notifi ed under the Companies (Accounting Standards) Rules, 2006, and the relevant provisions of the Companies Act, 1956.

2. a ) Term loans from banks for Cement plant at Muktyala are Secured by Paripassu First Charge on the Fixed Assets, paripassu Second charge on the current assets and charge on the leasehold rights of the leased Lands of the Muktyala Cement Division. The rate of interest of the abovesaid loan ranges between Base Rate plus margin 2%to 3%

b) The long Terms loans obtained for Cement Plant at Muktyala are repayable in 28 Quarterly Installments of Rs. 7.26 crores each with effect from 30th June 2011.

2.1 a) Term loan obtained for Hotel project at Hyderabad is secured by First charge on the land, building and other assets of the company at Somajiguda Hyderabad. The rate of interest of the abovesaid loan is Base Rate plus margin 2%.

b) The long term loan obtained for Hotel project is repayable in 28 quarterely instalments of Rs. 1.61 crores with last instalment being Rs. 1.53 crores with holiday period of 39 months which includes construction period of 15 months and 24 months of gestation period.

c) Additional Term loan of Rs.14.73 crores obtained for Hotel Project is repayable in 28 quarterly instalments of Rs.0.53 crores after holiday period of 18 months. First instalment of both the loans for Hotel Project falls due in June 2015.

2.2 a) Term Loan obtained for the Captive Power Plant Muktyala is secured by the First Charge on the fi xed Assets of the Captive Power Plant Muktyala. The rate of interest of the abovesaid loan is Base Rate plus margin 1.75%

b) The long Term loans obtained Captive Power Plant Muktyala are repayable in 32 Quarterly Instalments of Rs 2.49 crores with the last instalment being Rs 2.45 crores each with an initial moratorium peroid of two years from the date of fi rst disbursement. First instalment falls due on March''2015.

2.3 a) Term Loan obtained for the Cement Plant Macherla is secured by the First Charge on the fi xed Assets (both present and proposed out of the loan) and second charge on the current assets of the Cement Division at Macherla. The rate of interest of the abovesaid loan is Base Rate plus margin 2%.

b) The long Term loans obtained for Cement Plant at Macherla are repayable in 28 Quarterly Installments of Rs 0.75 crores each with an initial moratorium peroid of two years from the date of fi rst disbursement. First instalment falls due in December 2014.

2.4 a) Term Loan of Rs.12 crores obtained for working capital and business operations is secured by Equitable Mortgage on properties at Visakhapatnam, Mumbai and Hyderabad. The rate of interest of this loan is Base Rate plus margin 2%.

b) This loan is repayable in 4 equal half yearly instalments of Rs. 3 crores after 1 year moratorium.

2.5 a) Term Loan of Rs.56 crores obtained for shoring up working capital is secured by Exclusive charge on land near Chennai. The rate of interest of the abovesaid loan is Base Rate plus margin 2%.

b) This loan is repayable in 20 quarterly instalments of Rs. 2.80 crores after 2 years moratorium.

3) Fixed Assets: Lands include Rs. 4,62,475/- being the value of land measuring 14.23 acres of Magazine land at Macherla assigned and notifi ed in Revenue records vide Dist. Collector, Guntur order No. RC No. 3567/2000-E 1, dated 23-10-2002 in favour of company.

4) JOINT VENTURE DISCLOSURE

The company has a 40% interest in its joint venture entity Fives Cail KCP Limited a company incorporated in India.

The Company''s share (at 40%) of the contingent liabilities of Fives Cail KCP Limited at the Balance Sheet date works out to Rs. 11,54,272/-(Rs.29,32,993)

The Company''s share (at 40%) of the capital commitments of Fives Cail KCP limited at the Balance sheet date works out to Rs. Nil (Rs.Nil).

The interest of the company (at 40%) in the aggregate amount of the assets, income and expenses of Fives KCP Limited was as follows:

5) Discontinued Operations

The Company has entered into an agreement for sale of the fi xed assets of its Bio-Tech Division. Accordingly, the operations of that Unit were discontinued with effect from 31st March, 2014. Consequently, the WDV of the assets was transferred to Inventories under the head "Assets held for Sale". The loss incurred by this Unit during the fi nancial year 2013-14 was Rs. 1,31,89,541 (2012-13 : Rs.1,31,53,331).

6) PARTICULARS DISCLOSED PURSUANT TO "AS-18 RELATED PARTY DISCLOSURES"

A). List of Related parties

Subsidiary Company KCP Vietnam Industries Limited

Joint Venture Company Fives Cail KCP Limited

Key Management Personnel (KMP)

Dr. V.L. Dutt - Chairman and Managing Director Smt. V.L. Indira Dutt - Joint Managing Director Smt. Kavitha D Chitturi - Executive Director Sri. V. Gandhi - Technical Director

Relatives of Key Management Personnel

Dr. V.L. Dutt -

Smt. Rajeswary Ramakrishanan - Sister

Smt. V.L. Indira Dutt -

Smt. S.R.V. Rajyalakshmamma - Mother Sri. V. Chandra Kumar - Brother Smt. Uma S Vallabhaneni - Sister Smt.V. Rama Kumari - Sister

Smt. Kavitha D Chitturi -

Kum.Shivani Dutt Chitturi - Daughter Sri. Ravi Chitturi - Husband

Sri. V.Gandhi -

Smt. V. Kamala Devi - Wife

Sri. V. Praveen Kumar - Son

Smt. V. Swapna - Son''s wife

Master Nishant Sai - Son''s son

Smt. V. Anupama - Daughter

Sri. N. Seshubabu - Daughter''s Husband

Companies/Trusts controlled by Key Management Personnel/Relatives

KCP Technologies Limited

V. Ramakrishna Sons Private Limited

The Jeypore Sugar Company Ltd.

VRK Grandsons Investment (P) Limited V. Ramakrishna Charitable Trust

A Trust in the name of Bala Tripurasundari Ammavaru

7) * Paise have been rounded off.

* Figures in brackets indicate those for the previous year.

* Figures for the previous year have been regrouped, wherever necessary.

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Mar 31, 2013

1. GENERAL

The fi nancial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these fi nan- cial statements to comply in all material respects with the accounting standards notifi ed under the Companies (Accounting Standards) Rules, 2006, and the relevant provisions of the Companies Act, 1956.

2.1) a) Term loan obtained for Hotel project at Hyderabad is secured by First charge on the Land, Building and other Assets of the Company located at Somajiguda Hyderabad. The rate of interest of the abovesaid loan is Base Rate plus margin 2%.

b) The long term loan obtained for Hotel project is repayable in 28 quarterely instalments of Rs. 1,61,00,000/- with last instalment being Rs. 1,53,00,000/-, with holiday period of 39 months which includes construction period of 15 months and 24 months of gestation period. First instalment falls due in March, 2015.

2.2) a) Term Loan obtained for the Captive Power Plant, Muktyala is secured by the First Charge on the fixed Assets of the Captive Power Plant, Muktyala. The rate of interest of the abovesaid loan is Base Rate plus margin 1.75%.

b) The long Terms loan obtained Captive Power Plant, Muktyala is repayable in 32 Quarterly Instalments of Rs 2,49,00,000 with the last instalment being Rs 2,45,00,000 each with an initial moratorium peroid of two years from the date of fi rst disbursement.First instalment falls due on January, 2015.

2.3) a) Term Loan obtained for the Cement Plant, Macherla is Secured by the First Charge on the Fixed

Assets (both present and proposed out of the loan) and second charge on the Current Assets of the Cement Division at Macherla The rate of interest of the abovesaid loan is Base Rate plus margin 2%.

b) The long Terms loans obtained for Cement Plant at Macherla are repayable in 28 Quarterly Installments of Rs 75,00,000 each with an initial moratorium peroid of two years from the date of fi rst disbursement.First instalment falls due in December 2014.

2.4) Details of deposits held by Directors of the company

a) Dr. V. L. Dutt 33,50,000

b) Smt. Kavitha D. Chitturi 1,53,000

The rate of interest is within the limits specifi ed under Section 58 A of the Companies Act, 1956 and Rules made thereunder.

3) Fixed Assets: Lands include Rs. 4,62,475/- being the value of land measuring 14.23 Acres of Magazine land at Macherla assigned and notifi ed in Revenue records vide Dist. Collector, Guntur order No. RC No. 3567/2000-E 1, dated 23-10-2002 in favour of Company.

4) JOINT VENTURE DISCLOSURE

The company has 40% interest in its joint venture entity Fives Cail KCP Limited a company incorporated in India.

The Company''s share (at 40%) of the contingent liabilities of Fives Cail KCP Limited at the Balance Sheet date works out to Rs. NIL/-(Rs.29,32,993)

The Company''s share (at 40%) of the capital commitments of Fives Cail KCP Limited at the Balance sheet date works out to Rs. Nil (Rs. Nil).

The interest of the company (at 40%) in the aggregate amount of the Assets, Income and Expenses of Fives Cail KCP Limited was as follows:

5) PARTICULARS DISCLOSED PURSUANT TO "AS-18 RELATED PARTY DISCLOSURES"

A). List of Related parties

Subsidiary Company KCP Vietnam Industries Limited

Joint Venture Company Fives Cail KCP Limited

Key Management Personnel (KMP) Dr. V.L. Dutt - Chairman and Managing Director

Smt. V.L. Indira Dutt - Joint Managing Director Smt. Kavitha D Chitturi - Executive Director Sri. V. Gandhi - Technical Director

Relatives of Key Management Personnel Dr. V.L. Dutt -

Smt. Rajeswary Ramakrishanan - Sister

Smt. V.L. Indira Dutt -

Smt. S.R.V. Rajyalakshmamma - Mother Sri. V. Chandra Kumar - Brother Smt. Uma S Vallabhaneni - Sister Smt.V. Rama Kumari - Sister

Smt. Kavitha D Chitturi -

Kum.Shivani Dutt Chitturi - Daughter Sri. Ravi Chitturi - Husband

Sri. V.Gandhi -

Smt. V. Kamala Devi - Wife

Sri. V. Praveen Kumar - Son

Smt. V. Swapna - Son''s wife

Master Nishant Sai - Son''s son

Smt. V. Anupama - Daughter

Sri. N. Seshubabu - Daughter''s Husband

Companies/Trusts controlled by Key Management Personnel/Relatives

KCP Technologies Limited

V. Ramakrishna Sons Private Limited

The Jeypore Sugar Company Ltd.

VRK Grandsons Investment (P) Limited V. Ramakrishna Charitable Trust

A Trust in the name of Bala Tripurasundari Ammavaru

6) DERIVATIVE INSTRUMENTS FOR HEDGING PURPOSE

The Company has entered into the following Derivative instruments for Hedging purpose associated with foreign currency fl uctuations related to certain fi rm commitments and is not intended for trading or speculation.The period end foreign exchange exposures that have been hedged by a derivative instruments are stated below.

7) The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act 1956, subject to fulfi llment of conditions stipulated in the circular. The Company has satisfi ed the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

General:

* Paise have been rounded off.

* Figures in brackets indicate those for the previous year.

* Figures for the previous year have been regrouped, wherever necessary.

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Mar 31, 2012

1 . GENERAL

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India ( Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, and the relevant provisions of the Companies Act, 1956.

2.1) Details of shareholders holding more than 5% share in the company: 1. M/s. V. Ramakrishna Sons Pvt Ltd - 3,87,70,000 (3,87,44,950) equity shares of Re. 1/- each fully paid - 30.07%(30.03%); 2. M/s. V.R.K. Grandsons Investments Pvt Ltd - 95,78,330(95,78,330) equity shares of Re. 1/- each fully paid- 7.43% (7.43%). 3. M/s. Tata Capital Ltd. - 2,00,00,000(2,00,00,000) Preference shares of Rs. 10/- each fully paid - 100%(100%).

2.2) The Opening and closing balance of the Subscribed and Paid-up equity shares of the company are same, hence, the reconciliation between opening number and closing number of shares does not arise.

3.4) a ) Term loans from banks for Cement plant at Muktyala are Secured by Paripassu First Charge on the Fixed Assets, paripassu Second charge on the current assets and charge on the leasehold rights of the leased Lands of the Muktyala Cement Division.

b) Foreign Currency Loan-Buyers Credit from a bank is Secured by paripassu First charge along with other Lenders on the existing and Proposed Assets of the existing and proposed Assets of the Engineering division at Tiruvottiyur Chennai and Cement Division at Muktyala.

c ) The long Terms loans obtained for Cement Plant at Muktyala are repayable in 28 Quarterly Installments of Rs. 7,26,00,000/- each with effect from 30th June 2011.

3.5) a) Term loan obtained for Hotel project at Hyderabad is secured by First charge on the land, building and other assets of the company at Somajiguda, Hyderabad.

b) The long term loan obtained for Hotel project is repayable in 28 quarterly installments of Rs.1,61,00,000/- with last installment being Rs. 1,53,00,000/-, with holiday period of 39 months which includes construction period of 15 months and 24 months of gestation period. First installment falls due in March 2015.

4) CONTINGENT LIABILITIES

PARTICULARS As at As at 31st March,2012 31st March,2011 Rs Rs A.Claims against the Company / disputed liabilities not acknowledged

a) In respect of Statutory levies 5,90,50,710 3,56,39,801

b) In respect of Contractual levies Nil Nil

c) In respect of others 15,16,73,133 11,94,56,352

B. Guarantees

a) Guarantees to Banks and Financial Institutions against 11 02 91 81 14,92,02,033 credit facilities extended to third parties

b) Performance Bank Guarantees 4,35,23,666 9,97,57,639

5) The Income Tax assessments of the Company have been completed up to Assessment Year 2009-10. The disputed demand outstanding up to the said Assessment year is Rs.1,11,72,135/-. Based on the decision of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

6) No provision has been made in accounts towards probable liability up to Jute year ended 30th June 1998, if any, that may arise as a result of non-compliance with the requirements of Jute Packaging materials (Compulsory Use of Packaging Commodities) Act, 1987, consequent to differring decisions of different courts and also the representations of Industry before the Government, since the same is not ascertainable at this stage.

7) Fixed Assets: Lands include Rs. 4,62,475/- being the value of land measuring 14.23 acres of Magazine land at Macherla assigned and notified in Revenue records vide Dist. Collector, Guntur Order No. RC No. 3567/2000-E 1, dated 23-10-2002 in favour of the Company.

8) JOINT VENTURE DISCLOSURE

The company has a 40% interest in its joint venture entity Fives Cail KCP Limited a company incorporated in India.

The Company's share (at 40%) of the contingent liabilities of Fives Cail KCP Limited at the Balance Sheet date works out to Rs.29,32,993/-(Rs.29,32,993)

The Company's share (at 40%) of the capital commitments of Fives Cail KCP limited at the Balance sheet date works out to Rs. Nil (Rs.Nil).

The interest of the company (at 40%) in the aggregate amount of the assets, income and expenses of Fives KCP Limited was as follows:

9) The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 & 3 dated 8th February 2011 and 21st Frebruary 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

General:

- Paise have been rounded off.

- Figures in brackets indicate those for the previous year.

- Figures for the previous year have been regrouped, wherever necessary.

---

Mar 31, 2011

1. No provision has been made in accounts towards probable liability upto Jute year ended 30th June, 1998, if any, that may arise as a result of non-compliance with the requirements of Jute Packaging Materials (Compulsory Use of Packaging Commodities) Act,1987, consequent to differring decisions of different courts and also the representations of industry before the Government, since the same is not ascertainable at this stage.

2. Fixed Assets : Lands includes Rs. 4,62,475/- being the value of Land measuring 14.23 Acres of Magazine Land at Macherla assigned and notifi ed in Revenue records vide Dist. Collector, Guntur order No. Rc No. 3567/2000-E1, dt. 23.10.2002 in favour of company.

3. Cash and Bank balances include

a). Rs.1,50,000/- (Rs.1,50,000/-) on account of Staff Security Deposit.

b). Rs.1,33,43,083 /- (Rs.1,14,36,780/-) towards Unclaimed Dividends.

c). Rs.6,09,88,031 /- (Rs.9,40,02,895/-) representing Fixed Deposit Receipts lodged with Bankers as securities against Guarantees issued by them.

d). Rs.5,46,00,000/- (Rs.2,30,06,320/-) deposited as per provisions of 58A of the Companies Act 1956 and the Rules made there under.

Note: (a) Sale of Products includes:

(1) Machinery and components valued at Rs.8,42,00,750/- (Rs.9,14,97,995/- ) supplied by Engineering Unit to the other units of the Company.

(2) Cement Quantity 7,537MT (22,015 MT) valued at Rs.1,65,94,191/- (Rs.4,19,42,013/-) used internally.

(3) Excise Duty Rs.45,42,60,466 /-(Rs.39,63,63,125/-) and Service Tax Rs.14,93,502 /- (Rs.16,38,348/-).

(4) Electrical energy 14,61,060KWH (14,86,032 KWH) valued at Rs. 52,14,369/- (Rs.47,56,219/-) adjusted towards wheeling and banking charges, by the buyer Electricity Company.

(b) Sale of products does not include:

(i) Elecrical Energy generated by Hydel unit 3,14,53,799 KWH (3,54,74,979 KWH) valued at Rs. 9,25,53,714/- (Rs.9,61,11,615/-), Wind Power Unit situated at Thirunelveli (Uthumalai village), 74,96,557 KWH [81,17,120 KWH) valued at Rs.3,13,75,931 /- [Rs. 3,07,52,081/-] and Power generated from Waste Heat Recovery Plant 1,60,03,400 KWH[1,32,89,600 KWH] valued at Rs4,60,55,413/- [Rs. 3,58,81,920/-] used internally.

(ii) 28,507 tons of clinker valued at Rs. 5,64,54,217/- produced at Muktyala Cement Plant and consumed at Macherla Cement Plant internally.

Note: (1) Commission provided to the Managing Director and Joint Managing Director represents the balance amount of aggregate remuneration payable to them not exceeding 2.5% each, on the Profits computed above, in accordance with the terms of their appointments. Commission provided to the Executive Director and Technical Director represents the balance amount of aggregate remunertion payable to them not exceeding 1% each upto 24th January 2011 and from thereon at the rate of 1.5% each, on the Profits computed above, in accordance with the terms of their appointments.

(2) The cost to the company of the non-monetary perquisites allowed during the year to the Whole Time Directors in addition to the remuneration paid above works out to Rs. 70,519/-. The value of the said perquisite computed in accordance with Income Tax Rules 1962 ,works out to Rs.7,89,502 /-.

4 . a). The Company has a 40% interest in its joint venture entity Fives Cail KCP Ltd a company incorporated in India.

b). The Companys share (at 40%) of the contingent liablities of Fives Cail KCP Ltd at the Balance Sheet date works out to Rs. 29,32,993/- (Rs.94,54,117/-)

c). The Companys share (at 40%) of the capital commitments of Fives Cail KCP Ltd at the Balance Sheet date works out to Rs. Nil/- (Rs.9,20,072/-)

d). The Interest of the Company (at 40%) in the aggregate amount of the assets, income and expenses of Fives Cail KCP Ltd was as follows:

5. Paise have been rounded off.

Figures in brackets indicate those for the previous year. Figures for the previous year have been regrouped, wherever necessary.

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Mar 31, 2010

1. No provision has been made in accounts towards probable liability upto Jute year ended 30th June, 1998, if any, that may arise as a result of non-compliance with the requirements of Jute Packaging Materials (Compulsory Use of Packaging Commodities) Act, 1987, consequent to differring decisions of different courts and also the representations of industry before the Government, since the same is not ascertainable at this stage.

2. Fixed Assets : Lands includes Rs. 4,62,475/- being the value of Land measuring 14.23 Acres of Magazine Land at Macherla assigned and notified in Revenue records vide Dist. Collector, Guntur order No. Re No. 3567/2000-E1, dt. 23.10.2002 in favour of company.

3. Advances include Rs. 7,01,370/- (8,22,675) being the value of Land measuring 62.56 Acres (73.38 Acres) registered in the name of the company, for exchange to the Andhra Pradesh State Government under the re-afforestation programme in compensation for getting the mining lands in favour of Company.

4. Cash and Bank balances include

a. Rs. 1,50,000/- (Rs. 1,50,000/-) on account of Staff Security Deposit.

b. Rs.1,14,36,780/- (Rs. 1,02,52,198/-) towards Unclaimed Dividends.

c. Rs.9,40,02,895 /- (Rs. 1,56,55,187/-) representing Fixed Deposit Receipts lodged with Bankers as securities against Guarantees issued by them.

d. Rs.2,30,06,320/- (Rs. 1,63,93,546/-) deposited as per provisions of 58Aof the Companies Act 1956 and the Rules made there under.

5. Particulars disclosed pursuant to "AS-18 Related Party Disclosures" :- A. List of Related parties

Subsidiary Company

KCP Vietnam Industries Limited

Joint Venture Company

Fives Cail KCP Limited

Key Management Personnel (KMP)

Dr. V.L. Dutt - Chairman and Managing Director Smt. V.L. Indira Dutt - Joint Managing Director Smt. Kavitha D Chitturi - Executive Director Sri V Gandhi - Technical Director

Relatives of Key Management Personnel

Dr. V.L. Dutt -

Smt. Rajeswary Ramakrishanan - Sister Smt. V.L. Indira Dutt - Smt. S.R.V Rajyalakshmamma - Mother Sri. V. Chandra Kumar - Brother Smt. Uma S Vallabhaneni - Sister Smt.V Rama Kumari - Sister Smt. Kavitha D Chitturi - Kum.Shivani Dutt Chitturi - Daughter Sri. Ravi Chitturi - Husband Sri. V.Gandhi -

Smt. V Kamala Devi - Wife

Sri. V. Praveen Kumar - Son

Smt. V. Anupama - Daughter

Sri. N. Seshubabu - Daughters Husband

Companies controlled by Key Management Personnel/Relatives

KCP Technologies Limited

V Ramakrishna Sons Private Limited The Jeypore Sugar Company Ltd.

VRK Grandsons Investment (P) Limited

V Ramakrishna Charitable Trust

6. Paise have been rounded off.

Figures in brackets indicate those for the previous year. Figures for the previous year have been regrouped, wherever necessary.