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 Mangalam Cement Ltd.

Mar 31, 2025

4 Terms/rights attached to Equity Shares

The Company has one class of equity shares having a par value of ? 10 per share. Each fully paid up share carries one vote. Dividend, if any, proposed by the Board of Directors is subject to approval of shareholders in an annual general meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets ofthe Company after distribution ofall preferential payments.

5 In preceding five (5) years, there was no issue of bonus, buy back, cancellation and issue of shares for consideration other than cash except following :

- In FY 2021-22, 8,03,518 Equity Shares having face value of ?10 each were allotted to eligible shareholders as on the record date of January 06, 2022 of erstwhile Mangalam Timber Products Limited, in share entitlement ratio of 1:22, pursuant to the Scheme of Arrangement of Mangalam Timber Products Limited with the Company.

Note No. 42.2. Contingent Liabilities and Commitments :		(f in Lakhs)
Particulars	As at March 31,	As at March 31,
	2025	2024
i. Contingent Liabilities (not provided for) in respect of:
a. Claims against the Company not acknowledged as debts
- Demands raised/ show cause notices issued by IncomeTax Department for various matters	5,825.11	8,543.29
- Demands raised/ show cause notices issued by Excise Department for various matters	3,446.68	3,851.48
- Demands raised/ show cause notices issued for Land Tax	-	1,290.78
- Demand for Differential Price of Fly-Ash lifted from KSTPS	1,872.96	1,872.96
- Demand against land lease matter from UPSIDC	1,002.79	1,002.79
- Demands raised/ show cause notices issued for Differential Royalty on Lime Stone	1,978.59	851.81
- Demands raised/ show cause notices issued for Sales Tax and VAT	356.34	356.34
- Demands raised/ show cause notices issued for GST	1,021.09	261.03
- Demand for Electricity Duty	-	227.14
- Demand for Shortlifting of Flyash	129.38	-
- Demand for Water Cess	192.80	-
- Demand against various matters otherthan above	169.06	180.99

b. The Jute Packaging (Compulsory use in Packing Commodities) Act, 1987 was stayed bythe Rajasthan High Court in 1997. However, the Jute Commissioner issued a show cause notice on 14.08.2002 for non-use of Jute Packaging Material. This has been challenged by the Company and the amount involved is not quantifiable.

c. In accordance with the license granted by the Government of Odisha in the year 1986, the erstwhile Mangalam Timber Products Limited ("MTPL") had undertaken plantation on certain Government land. Despite consistent follow up, the Government did not allow the MTPL to harvest the plantation on the pretext that the certain Special Leave Petition filed by the Government of Odisha was pending before the Hon''ble Supreme Court. Hon''ble Supreme Court had dismissed the Special Leave Petition filed bythe Government of Odisha. Since the Government of Odisha had not allowed to harvest the plantation done even after the dismissal of Special Leave Petition filed by the Government of Odisha, the MTPL had no alternative but to file a writ petition before the Hon''ble High Court of Odisha seeking direction to allow harvesting of plantations at its own cost by MTPL and also other stipulations regarding rate of royalty and weighment norms. Hon''ble High Court of Odisha vide order dated 8th July, 2004, had disposed off

the petition with a direction to the Government of Odisha to settle the representations made to them strictly in accordance with law within a period of six months. In compliance with the direction, the Government of Odisha has reiterated its claim for recovering cost (amount involved is not quantifiable) of plantation on 244.825 hectares. MTPL has denied its liability to any such claim.

d. Pursuant to Rehabilitation Scheme Sanctioned by the Board of Industrial & Financial Reconstruction (BIFR), the erstwhile Mangalam Timber Products Limited ("MTPL") was exempted from payment of electricity duty on power consumed for a period of 10 years from the date of sanction of the scheme. BIFRhas discharged the MTPL from the purview of Sick Industrial Companies (Special Provision) Act, 1985. Accordingly, f 197.75 Lakhs against demand notice, has been paid under protest against electricity duty for the periods from 1st April, 2000 to31st March, 2008 which has been shown as Other Advance under "Other Non Current Assets" and the Company has considered good for recovery.

The Company is hopeful of favourable decisions and expect no outflow of resources, hence no provision is made in the books of accounts.

ii. Commitments:		(f in Lakhs)
Particulars	For the Year ended	For the Year ended
	March 31, 2025	March 31,2024
a. Estimated amount of Contracts remaining to be executed on Capital Account (Net of advances) not provided for	28,573.42	590.65
b. Estimated amount against purchase of equity shares to be executed on Investment not provided	659.87

c. Company has availed certain government subsidies. As per the terms and conditions, the Company has to comply with certain conditions failing which the Company has to refund amount of subsidies availed along with interest and penalty.

B. Defined Benefit Plans

The most recent actuarial valuation of plan assets and the present value ofthe defined benefit obligation for gratuity were carried out as at 31 March 2025. The present value ofthe defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

XI. Description of Risk Exposures :

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such the Company is exposed to various risks as follow -

A) Salary Increases- Higher than expected increase in salary will increase the defined benefit obligation.

B) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan''s liability.

C) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumption in the valuation can impact the liabilities.

D) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

There are no separate reportable segments under Ind AS 108 "Operating Segments" notified under the Companies (Accounting Standard) Rules, 2015. Further, according to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for making decisions about allocating resources to the segment and assessing its performance. The business activity of the company falls within one broad business segment viz. "Cement" and substantially sale of the product is within the country. Hence, the disclosure requirement of IndAS108 of ''Segment Reporting'' is not considered applicable.

There is no revenue of 10% or more of total revenue from a single customer in current year and previous year.

IV. Terms and conditions of transactions with related parties

a. All related party transactions entered during the year were in ordinary course of business. Outstanding balances at the year-end is unsecured and settlement occurs in cash.

b. Transactions during the years have been disclosed excluding GST, where applicable.

Note No. 42.8. Capital Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company''s capital management is to maximize the shareholder value. The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company''s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost ofcapital. No changes were made in the objectives, policies or processes during the year ended March 31,2025 and March 31,2024.

For the purpose of the Company''s capital management, capital includes issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents. The Company monitors capital using gearing ratio, which is net debt divided by total capital as under:

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

B. FairValueHierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are:

a. Recognised and measured at fair value and

b. measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1 : Hierarchy includes financial instruments measured using quoted prices. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2 : The fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all 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 is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

There are no transfers between level 1 and level 2 during the year.

(iv) Valuation technique used to determine fair value

The following methods and assumptions were used to estimate the fair values

a. The fair value of the unquoted investments included in level 2 has been determined using valuation techniques with market observable inputs. The model incorporate various inputs including prevailing market value of investments in listed company.

b. The fair value of the quoted /unquoted investments included in level 3 are based on the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a range of possible fair value measurements and the cost represents estimate of fair value within that range.

c. The fair value of forward foreign exchange contracts is calculated as the present value determined using forward exchange rates and interest rate curve ofthe respective currencies.

d. The fair value of currency swap is calculated as the present value determined using forward exchange rates, currency basis spreads between the respective currencies and interest rate curves.

e. Fair value of cash and bank and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities ofthese instruments.

f. Fair value of borrowings from banks and other financial liabilities, are estimated by discounting future cash flows using rates currently available for debt on similar terms and remaining maturities.

g. Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the use of net assets value for investments in unquoted mutual funds and equity securities

- the fair value of forward foreign exchange contracts is determined as per valuation provided by the bank

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

" The above investment has been classified under Level 3 of the fair value hierarchy due to the absence of observable market inputs. However, as the investee entity is yet to commence its operations and no active market exists for such instruments, the investment has been measured at cost. Accordingly, no fair value gain or loss has been recognised in the financial statements. Further, since the valuation is based on cost therefore sensitivity analysis is not significant.

(vi) Valuation Process

The Company has valued investments in equity shares (unlisted) based on net assets value.

Changes in level 2 and 3 fair values are analysed at the end of each reporting period.

Note No. 42.10. Financial risk management objective and policies Risk Management Framework

The Company''s board ofdirectors has overall responsibility forthe establishment and oversight ofthe Company''s riskmanagement framework. The board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company''s Audit Committee oversees compliance with the Company''s risk management policies and procedures, and reviews the adequacy ofthe risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk; and

- Market risk

Credit risk arises when a customer or counterparty does not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing / investing activities, including deposits with banks, mutual fund investments and foreign exchange transactions. The Company has no significant concentration of credit risk with any counterparty.

Trade receivables

The Company''sexposureto credit riskis influenced mainly bythe individual characteristicsofeach customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry. Trade receivables are consisting of a large number of customers. The Management has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes market check, industry feedback, past financials and external ratings, if they are available. Sale limits are established for each customer and reviewed periodically.

In monitoring customer credit risk, customers are reviewed according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of previous financial difficulties. The ageing analysis of the receivables has been considered from the date the invoice falls due.

During the year, the Company has made no write-offs oftrade receivables and it does not expect to receive future cash flows or recoveries from collection of cash flows previously written off. The Company management also pursue all legal option for recovery of dues wherever necessary based on its internal assessment.

Investments

Investments are reviewed for any fair valuation loss on a periodic basis and necessary provision/fair valuation adjustments have been made based on the valuation carried by the management to the extent of available sources and the management does not expect any investee entities to fail to meet its obligations. Investments of surplus funds are made primarily in units of mutual funds. These mutual funds have low credit risk.

Cash and bank balances

Credit Risk on cash and cash equivalent, deposits with the banks is generally low as the said deposits have been made with the banks who have been assigned high credit rating by international and domestic rating agencies.

Others

Other than trade receivables and others reported above, the Company has no other material financial assets which carries any significant credit risk.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected future cash flows. This is generally carried out in accordance with practice and limits set by the Company. These limits vary by location to take into account requirement, future cash flow and the liquidity in which the entity operates. In addition, the Company''s liquidity management strategy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in Indian Rupee and have an average maturity within a year.

Market risk is the riskthatthe fair value offuture cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade receivables, borrowings, etc. (i) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EURO. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the ? cash flows of highly probable forecast transactions by hedging the foreign exchange inflows on regular basis. The Company also take help from external consultants who for views on the currency rates in volatile foreign exchange markets.

Currency risks related to theprincipal amounts of the Company''s foreign currency payables are generally hedged using derivative contracts taken by the Company.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Company''s policy is to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address shortterm imbalances.

The summary ofquantitative data about the Company''s exposure where the Company has taken option contact to mitigate currency risk as reported to the management of the Company is as follows :

(ii) Interest rate risk

The Company''s exposureto the riskofchanges in market interest rates relates primarilyto debts. To protect itselffrom the volatility prevailing, the Company maintain its long term borrowing on fixed interest rate through derivative instruments for borrowings in foreign currency, in which it agrees to exchange at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount.

Commodity price riskforthe Company is mainly related to fluctuations in coal and pet coke prices linked to various external factors, which can affect the production cost of the Company. Since the Energy costs is one of the primary costs drivers, any adverse fluctuation in fuel prices can lead to dropin operating margin. To manage this risk, the Company identifying new sources of supply etc. There are no derivatives available forpetcoke, in the absence, hasto be procured at spot prices. Additionally, processes and policies related to such risks are reviewed and controlled by senior management and fuel requirement are monitored by the procurement team.

Note No. 42.11. Leases

a. The Company recognizes the expenses of short-term leases on a straight-line basis over the lease term. During the year, expenses of ? 496.8 lakhs (previous year ? 432.68 lakhs) related to short-term and low value leases were recognised.

b. On March 31, 2025, lease liabilities were ? 1239.77 lakhs (Previous Year: ? 806.43 lakhs). The corresponding interest expense forthe year ended March 31,2025 was ? 96.98 lakhs (Previous Year ? 79.74 lakhs). The portion ofthe lease payments recognized as a reduction ofthe lease liabilities and as a cash outflow from financing activities amounted to ? 481.15 lakhs forthe year ended March 31,2025 (Previous Year ? 320.08 lakhs).

d. There are no income from subleasing right-of-use assets nor any gains or losses from sales and leaseback for the year ended March 31,2025 and March 31,2024.

e. The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due

Note No. 42.12. Contract with customers (Ind AS115)

a. The Company is primarily in the business of manufacture and sale of Cement and MDF Boards. All sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/ delivery. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give significant credit period resulting in no significant financing component. The Company, however, has a policy for replacement of the damaged goods. However, the Company has no significant replacement track record.

Note No. 42.13. Events occurring after Balance Sheet Date :

Proposed Dividend

The Board of Directors has proposed a dividend of ? 1.50 (Full value) (Previous year ? 1.50) (Full value) per equity share of ? 10 each and the total proposed dividend amounts to ? 412.46 Lakhs (Previous year ? 412.46 Lakhs) and same is subject to approval of shareholders at the ensuing Annual General Meeting.

Note No.42.14 Relationship with struck off Companies [to that extent identified by the management]

The following table depicts the details of balances outstanding in respect of transactions undertaken with a company struck-off under section 248 ofthe Companies Act, 2013:

Current Year

The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies as on March 31,2025.

Previous Year

The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies as on March 31,2024.

Note No. 42.16: Audit Trail

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the accounting software and the audit trail feature has not been tampered with. However, the feature of recording of audit trail (edit log) facility was not enabled at database level to log any direct data changes forthe accounting software used for maintaining the books of account in accounting software. The audit trail has been preserved bythe Company as perthe statutory requirements for record retention.

Note.No.42.17Code on Social Security

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The draft rules for the Code on Social Security, 2020 have been released by the Ministry of Labour and Employment on November 13,2020. The Company is in the process of assessing the additional impact on Provident Fund contributions and on Gratuity liability contributions and will complete their evaluation and give appropriate impact in the financial statements in the period in which the rules that are notified become effective.

Note No. 42.19 : Disclosure of investments in subsidiaries / associates

The Company hold 26 % of the equity shares in Suryadeep Rj1 Project Private Limited, incorporated in India. However, in accordance with Ind AS 28 - Investment in Associates and Joint ventures, Suryadeep Rj 1 Project Private Limited is not considered an "Associate" of the Company, as the Company does not have significant influence over its financial and operating policies despite the level of shareholding.

Note No. 43 : Impairment

At each reporting date, the Company evaluate whether there is objective evidence that the property, plant and machinery of the Cash generating unit "CGIT is impaired in terms of IND AS - 36 "Impairment ofAssets". Ifthere is such evidence, the carrying amount is tested for impairment by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount and impairment, if any, is recognized in the financial statement ofthe Company.

Due to competitive pressure and unfavorable market conditions and higher cost of raw wood, the Mangalam Timber unit (the "CGU") incurred losses. The Company conducted an impairment assessment of the CGU using the fair value less cost to sell model, based on the replacement value of plant and machinery and the market value of land and building. The fair valuation was calculated using certain assumptions, including prevailing market dynamics. The Company also engaged an independent valuer to reassess the fair valuation of the property, plant, and equipment, which was performed. Based on this assessment, no impairment is required to be recognized in the statement of profit and loss.

Note No. 45

a Utilisation of Borrowed funds and share premium

During the financial year ended March 31,2025 and March 31, 2024, otherthan the transactions undertaken in the normal course of business and in accordance with extant regulatory guidelines as applicable.

(i) No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) during the year by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding during the year, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalfofthe Funding Party ("Ultimate Beneficiaries") or provide anyguarantee,security orthe like on behalfofthe Ultimate Beneficiaries.

b Undisclosed Income

The Company does not have any transactions not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments underthe IncomeTaxAct, 1961 during the current and in previous year (such as, search or survey or any other relevant provisionsofthe IncomeTaxAct, 1961). Also,there are nil previously unrecorded income and related assets. c Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the current and previous financial year. d Core Investment Company (CIC)

The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. The Group has no CICs as part of the Group.

e Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current and previous financial year.

f Details of Benami Property held

There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami PropertiesTransactions Act, 1988 and rules made thereunder. g Wilful Defaulter

The Company is not declared wilful defaulter by any bank or financial institution or Government or any Government authority. h Compliance with number of layers of companies

The Company has no subsidiary, therefore clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable on the Company.

Mar 31, 2024

Note No. 39.1

Internal clinker transportation freight of ? 3389.97 lakhs of year ending March 31,2023 has been regrouped / reclassified from ''''Cost of Material Consumed" to "Freight & Forwarding etc." for better presentation in line with disclosure made by other companies in the industry.

Legal and professional. Donation and Sundry balance written off were earlier classified under Miscellaneous. In order to give more appropriate presentation, the Company has reclassified previous year expenses to conform current year classification.

In the previous year, the Company has applied under Amnesty Scheme - 2022 (âthe Scheme¹) of Government of Rajasthan against the Rajasthan Sales Tax and VAT demand of ? 3890.17 lakhs related to the financial year 200304 to 200708. The impact of ? 1945.09 lakhs being amount payable under the scheme has been provided and disclosed as an exceptional item.

Note No. 42.2. Contingent Liabilities and Commitments:
i. Contingent Liabilities (not provided for) in respect of:		(? in Lakhs)
Particulars As at	March 31,	As at March 31,
	2024	2023
a. Claims against the Com pany not acknowledged as debts
-Demands raised/ show cause notices issued by Income Tax Department for various matters	8,543.29	2,217.91
- Demands raised/ show cause notices issued by Excise Department for various matters	3.851.48	3,851.48
- Demands raised/ show cause notices issued for Land Tax	1,290.78	1,135.67
- Demand for Differential Price of Fly-Ash lifted from KSTPS	1,872.96	1,872.96
-Demand against land lease matter from UPSIDC	1,002.79	1,002.79
- Demands raised/ show cause notices issued for Differential Royalty on Lime Stone	851.81	851.81
- Demands raised/ show cause notices issued for Sales Tax and VAT	356.34	356.34
- Demands raised/ show cause notices issued for GST	261.03	267.55
- Demand for Electricity Duty	227.14	-
- Demand against various matters other than above	180.99	198.79

b. The Jute Packaging (Compulsory use in Packing Commodities) Act, 1987 was stayed by the Rajasthan High Court in 1997, However, the Jute Commissioner issued a show cause notice on 14.08.2002 for non-use of Jute Packaging Material. This has been challenged by the Company and the amount involved is not quantifiable.

c. In accordance with the license granted by the Government of Odisha in the year 1986, the erstwhile Mangalam Timber Products Limited (''MTPL) had undertaken plantation on certain Government land. Despite consistent follow up, the Government did not allow the MTPL to harvest the plantation on the pretext that the certain Special Leave Petition filed by the Government of Odisha was pending before the Hon''ble Supreme Court. Hon''ble Supreme Court had dismissed the Special Leave Petition filed by the Government of Odisha. Since the Government of Odisha had not allowed to harvest the plantation done even after the dismissal of Special Leave Petition filed by the Government of Odisha, the MTPL had no alternative but to file a writ petition before the Hon''ble High Court of Odisha seeking direction to allow harvesting of plantations at its own cost by MTPL and also other stipulations regarding rate of royalty and weighment norms. Hon''ble High Court of Odisha vide order dated 8th July, 2004, had disposed off the petition with a direction to the Government of Odisha to settle the representations made to them strictly in accordance with law within a period of six months. In compliance with the direction, the Government of Odisha has reiterated its claim for recovering cost (amount involved is not quantifiable) of plantation on 244.825 hectares. MTPL has denied its liability to any such claim.

d. Pursuant to Rehabilitation Scheme Sanctioned by the Board of Industrial & Financial Reconstruction (BIFR), the erstwhile Mangalam Timber Products Limited ("MTPL'') was exempted from payment of electricity duty on power consumed for a period of 10 years from the date of sanction of the scheme. BIFR has discharged the MTPL from the purview of Sick Industrial Companies (Special Provision) Act, f 985. Accordingly, ? 197.75 Lakhs against demand notice, has been paid under protest against electricity duty for the periods from 1 st April, 2000 to 31 st March, 2008 which has been shown as Other Advance under TJther Non Current Assets" and the Company has considered good for recovery.

The Company is hopeful of favourable decisions and expect no outflow of resources, hence no provision is made in the books of accounts.

ii. Commitments:		(? in Lakhs)
	For the Year ended	For the Year ended
	March 31, 2024	March 31,2023
(a) Estimated amount of Contracts remaining to be executed on Capital Account (Net of advances) not provided for	590.65	683.97

(b) The Company has availed certain government subsidies. As per the terms and conditions, the Company has to comply with certain conditions failing which the Company has to refund amount of subsidies availed along with interest and penalty.

B. Defined Benefit Plans

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. 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. Gratuity liability is being partly contributed to the gratuity fund formed by the Company.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31 March 2024. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Note No. 42.6. Other Operating income

The income includes investment subsidy ? NIL (Previous year ? 941.00 Lakhs).

Note No. 42.7. Segment Reporting

There are no separate reportable segments under Ind AS 108 â''Operating Segments" notified under the Companies (Accounting Standard) Rules, 2015. Further, according to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for making decisions about allocating resources to the segment and assessing its performance. The business activity of the company falls within one broad business segment viz. âCement" and substantially sale of the product is within the country. Hence, the disclosure requirement of Ind AS 108 of âSegment Reportingâ is not considered applicable.

There is no revenue of 10% or more of total revenue from a single customer in current year and previous year.

Note No. 42.9. Capital Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company''s capital management is to maximize the shareholder value. The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company''s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31,2024 and March 31,2023. For the purpose of the Company''s capital management, capital includes Issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents. The Company monitors capital using gearing ratio, which is net debt divided by total capital as under

Note No. 42.10. Financial Instrument - Fair Value and Risk Management

B. Fair Value Hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are:

a. Recognised and measured at fair value and

b. measured at amortised cost and for which fair values are disclosed in the financial statements.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

There are no transfers between level 1 and level 2 during the year.

(iv) Valuation technique used to determine fair value

The following methods and assumptions were used to estimate the fair values

a. Fair value of cash and bank and other financial assets and liabilities approximate their carrying amounts largely due to the shortterm maturities of these instruments.

b. Fair value of borrowings from banks and other financial liabilities, are estimated by discounting future cash flows using rates currently available for debt on similar terms and remaining maturities.

c. Specific valuation techniques used to value financial instruments include:

-the use of quoted market prices or dealer quotes for similar instruments

-the use of net assets value for investments in unquoted mutual funds and equity securities - the fair value of forward foreign exchange contracts is determined as per valuation provided by the bank -the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(vi) Valuation Process

The Company has valued investments in equity shares (unlisted) based on net assets value.

Changes in level 2 and 3 fair values are analysed at the end of each reporting period.

Note No. 42.11. Financial risk management objective and policies Risk Management Framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined framework.

The Companyâs risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company''s Audit Committee oversees compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk; and

- Market risk a. Credit Risk

Trade receivables

Trade receivables are consisting of a large number of customers. The Management has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes market check, industry feedback, past financials and external ratings, if they are available. Sale limits are established for each customer and reviewed periodically.

The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables. In monitoring customer credit risk, customers are reviewed according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of previous financial difficulties. The ageing analysis of the receivables has been considered from the date the invoice falls due.

Against old outstanding, the Company has provision for expected credit loss of ? 285.77 Lakhs (previous year ? 287.00 Lakhs). During the year, the Company has made no write-offs of trade receivables and it does not expect to receive future cash flows or recoveries from collection of cash flows previously written off. The Company management also pursue all legal option for recovery of dues wherever necessary based on its internal assessment.

Investments

Cash and bank balances

Credit Risk on cash and cash equivalent deposits with the banks is generally low as the said deposits have been made with the banks who have been assigned high credit rating by international and domestic rating agencies.

Others

Other than trade receivables and others reported above, the Company has no other material financial assets which carries any significant credit risk.

Management monitors rolling forecasts of the Companyâs liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected future cash flows. This is generally carried out in accordance with practice and limits set by the Company. These limits vary by location to take into account requirement future cash flow and the liquidity in which the entity operates. In addition, the Company''s liquidity management strategy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Maturity profile of Financial Liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments (excluding transaction cost on borrowings).

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade receivables, borrowings, etc.

(i) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EURO. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the companyâs functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the ? cash flows of highly probable forecast transactions by hedging the foreign exchange inflows on regular basis. The Company also take help from external consultants who for views on the currency rates in volatile foreign exchange markets.

Currency risks related to the principal amounts of the Company''s foreign currency payables are generally hedged using derivative contracts taken by the Company.

The summary of quantitative data about the Company''s exposure where the Company has taken option contact to mitigate currency risk as reported to the management of the Company is as follows:

(ii) Interest rate risk

The Company''s exposure to the risk of changes in market interest rates relates primarily to debts. To protect itself from the volatility prevailing, the Company maintain its long term borrowing on fixed interest rate through derivative instruments for borrowings in foreign currency, in which it agrees to exchange at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount.

(iii) Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations in coal and pet coke prices linked to various external factors, which can affect the production cost of the Company. Since the Energy costs is one of the primary costs drivers, any adverse fluctuation in fuel prices can lead to drop in operating margin. To manage this risk, the Company identifying new sources of supply etc. There are no derivatives available for pet coke, in the absence, has to be procured at spot prices. Additionally, processes and policies related to such risks are reviewed and controlled by senior management and fuel requirement are monitored by the procurement team.

Note No. 42.12. Leases

a. The Company recognizes the expenses of short-term leases on a straight-line basis over the lease term. During the year, expenses of 7 432.68 lakhs (previous year 7438.09 lakhs) related to short-term and low value leases were recognised.

b. On March 31, 2024, lease liabilities were 7 806.43 lakhs (Previous Year: 7 993.55 lakhs). The corresponding interest expense for the year ended March 31, 2024 was 7 79.74 lakhs (Previous Year 7 53.59 lakhs). The portion of the lease payments recognized as a reduction of the lease liabilities and as a cash outflow from financing activities amounted to 7 320.08 lakhs for the year ended March 31,2024 (Previous Year 7 296.84 lakhs).

Note No. 42.13. Contract with customers (Ind AS 115)

Note No. 42.14. Events occurring after Balance Sheet Date:

Proposed Dividend

The Board of Directors has proposed a dividend of ? 1.50 (Full value) (Previous year ? 1.50) (Full value) per equity share of ? 10 each and the total proposed dividend amounts to ? 412.45 Lakhs (Previous year ? 412.46 Lakhs) and same is subject to approval of shareholders at the ensuing Annual General Meeting.

Note No.42.15 Relationship with struck off Companies [to that extent identified by the management]

The following table depicts the details of balances outstanding in respect of transactions undertaken with a company struck-off under section 248 of the Companies Act, 2013:

Note No.42.16 Registration of charge or satisfation with Registrar of Companies Current Year

The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies as on March 31,2024.

Previous Year

The Amendment in Charge Modification and Security term, seeking a ''First Pari Passu Charge'' designation over the Immoveable Fixed Asset (IMFA) of the Company located at Kota (Rajasthan), as well as a ''First Pari Passu Charge'' over the entire Moveable Fixed Assets (MFA) of the Company, both present and future (excluding Mangalam Timber Unit Assets), and a ''Second Pari Passu Charge'' on the Current Assets of the company, both present and future (excluding Mangalam Timber Unit Assets), is currently pending registration as the execution of the Joint Deed of Hypothecation (DOH) is yet to be completed.

Note No. 43: Impairment

At each reporting date, the Company evaluate whether there is objective evidence that the property, plant and machinery of the Cash generating unit ''CGU" is impaired in terms of IND AS - 36 Impairment of Assetsâ. If there is such evidence, the carrying amount is tested for impairment by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount and impairment, if any, is recognized in the financial statement of the Company.

Due to competitive pressure and unfavorable market conditions and higher cost of raw wood, the Mangalam Timber unit (the âCGU¹) incurred losses. The Company conducted an impairment assessment of the CGU using the fair value less cost to sell model, based on the replacement value of plant and machinery and the market value of land and building. The fair valuation was calculated using certain assumptions, including prevailing market dynamics. The Company also engaged an independent valuer to reassess the fair valuation of the property, plant, and equipment, which was performed. Based on this assessment, no impairment is required to be recognized in the statement of profit and loss.

Note No. 45

a Utilisation of Borrowed funds and share premium

During the financial year ended March 31. 2024 and March 31, 2023, other than the transactions undertaken in the normal course of business and in accordance with extant regulatory guidelines as applicable.

(i) No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) during the year by the Company to or in any other person or entity, including foreign entity (Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (funding Parties''), with the understanding during the year, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b Undisclosed Income

The Company does not have any transactions not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the current and in previous year (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Also, there are nil previously unrecorded income and related assets, c Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the current and previous financial year, d Core Investment Company (CIC)

The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. The Group has no CICs as part of the Group.

e Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current and previous financial year, f Details of Benami Property held

There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Properties Transactions Act 1988 and rules made thereunder, g Wilful Defaulter

The Company is not declared wilful defaulter by any bank or financial institution or Government or any Government authority, h Compliance with number of layers of companies

The Company has no subsidiary, therefore clause (87) of section 2 of the Companies Act 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable on the Company.

Mar 31, 2023

p) Provisions, contingent liabilities and contingent assets

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event 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. Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.

All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

In those cases where the outflow of economic resources as

a result of present obligations is considered improbable or remote, no liability is recognised.

Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events but is not recognised because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of contingent liabilities in other notes to financial statements.

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits. Contingent assets are not recognised. However, when inflow of economic benefits is probable, related asset is disclosed.

q) Earnings per share

''Basic earnings per equity share is computed by dividing net profit or loss for the year attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per share is computed by dividing net profit or loss for the year attributable to the equity shareholders of the Company and weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares).â

r) Cash and cash equivalents

Cash and cash equivalent comprise cash at banks and on hand, cheques on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

s) Fair value measurement

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value

include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability, if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1,2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices /net asset value (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability,

t) Government grants

Grants from the Government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions. The benefit of a Government loan at a below-market rate of interest is treated as a Government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates and is being recognised in the Statement of Profit and Loss.

Government grants that compensate the Company for expenses incurred are recognised in the Statement of Profit and Loss, as income or deduction from the relevant expense, on a systematic basis in the periods in which the expense is recognised.

Government grant relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to Statement of Profit and Loss on a systematic basis over the expected lives of the related

assets to match them with the cost for which they are intended to compensate and presented within other income.

u) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting done to the chief operating decision maker. The chief operating decision maker regularly monitors and reviews the operating result of the Company in a single operating segment and geographical segment.

v) Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument. Financial instrument (except trade receivables) are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value. Trade receivables are measured at their transaction price unless it contains a significant financing component in accordance with Ind AS 115 for pricing adjustments embedded in the contract. Subsequent measurement of financial assets and financial liabilities is described below:

Non-derivative financial assets

Subsequent measurement

i) Financial assets carried at amortised cost

A financial asset is measured at the amortised cost, if both

the following conditions are met:

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

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

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.

ii. Investments in equity instruments

Investments in equity instruments, where the Company has opted to classify such instruments at fair value through other comprehensive income (FVOCI) are measured at fair value through other comprehensive income. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

iii. Financial assets at fair value through Profit & Loss (FVTPL)

Financial assets, which does not meet the criteria for

categorization as at amortized cost or as FVOCI, are classified as at FVTPL

Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit & Loss,

w) Compound Financial Instrument The component parts of compound instruments issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company''s own equity instruments is an equity instrument.

At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument''s maturity date.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. The conversion option classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognised in equity will be transferred to other component of equity. When the conversion option remains unexercised at the maturity date of the convertible note, the balance recognised in equity will be transferred to retained earnings. No gain or loss is recognised in profit or loss upon conversion or expiration of the conversion option.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets. ECL is the weighted-average of difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider

â¢ All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.

â¢ Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. Trade receivables : In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal

to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

Other financial assets: In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12-month expected credit losses, else at an amount equal to the lifetime expected credit losses.

When making this assessment the Company uses the change in the risk of a default occurring over the expected life of the financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.

De-recognition of financial assets : A financial asset is primarily de-recognised when the contractual rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset. Derivative financial instruments: In the ordinary course of business, the Company uses derivative financial instruments to reduce business risks which arise from its exposure to foreign exchange. The instruments are confined principally to forward foreign exchange contracts and these contracts do not generally extend beyond six months.

Derivatives are initially accounted for and measured at fair value from the date the derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period.

Non-derivative financial liabilities Subsequent measurement: Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the effective interest method.

De-recognition of financial liabilities: A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification

is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

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

x) Standards issued but not yet effective

Ministry of Corporate Affairs (''MCA'') notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,2023, as below:

i. Ind AS 1 - Material accounting policies - The amendments mainly related to shifting of disclosure of erstwhile âSignificant accounting policies" in the notes to the financial statements to material accounting policy information requiring companies

to reframe their accounting policies to make them more â(entity specific. This amendment aligns with the âtnaterialâ concept already required under International Financial Reporting Standards (IFRS).

ii. Ind AS 8 - Definition of accounting estimates - The

amendments specify definition of âchange in accounting estimate'' replaced with the definition of âaccounting estimates''."

iii. Ind AS 12 - Income taxes - Annual Improvements to Ind AS (2021) - The amendment clarifies that in cases of transactions where equal amounts of assets and liabilities are recognised on initial recognition, the initial recognition exemption does not apply. Also, If a company has not yet recognised deferred tax asset and deferred tax liability on right-of-use assets and lease liabilities or has recognised deferred tax asset or deferred tax liability on net basis, that company shall have to recognise deferred tax assets and deferred tax liabilities on gross basis based on the carrying amount of right-of-use assets and lease liabilities existing a the beginning of 1 April 2022.

The Company does not expect aforesaid amendments to have significant impact on aforesaid financial statements.

b. The Jute Packaging (Compulsory use in Packing Commodities) Act 1987 was stayed by the Rajasthan High Court in 1997. However, the Jute Commissioner issued a show cause notice on 14.08.2002 for non-use of Jute Packaging Material. This has been challenged by the Company and the amount involved is not quantifiable.

c. In accordance with the license granted by the Government of Odisha in the year 1986, the erstwhile Mangalam Timber Products Limited (''MTPL'') had undertaken plantation on certain Government land. Despite consistent follow up, the Government did not allow the MTPL to harvest the plantation on the pretext that the certain Special Leave Petition filed by the Government of Odisha was pending before the Hon''ble Supreme Court. Hon''ble Supreme Court had dismissed the Special Leave Petition filed by the Government of Odisha. Since the Government of Odisha had not allowed to harvest the plantation done even after the dismissal of Special Leave Petition filed by the Government of Odisha, the MTPL had no alternative but to file a writ petition before the Hon''ble High Court of Odisha seeking direction to allow harvesting of plantations at its own cost by MTPL and also other stipulations regarding rate of royalty and weighment norms. Hon''ble High Court of Odisha vide order dated 8th July, 2004, had disposed off the petition with a direction to the Government of Odisha to settle the representations made to them strictly in accordance with law within a period of six months. In compliance with the direction, the Government of Odisha has reiterated its claim for recovering cost (amount involved is not quantifiable) of plantation on 244.825 hectares. MTPL has denied its liability to any such claim.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

There are no transfers between level 1 and level 2 during the year.

(iv) Valuation technique used to determine fair value

The following methods and assumptions were used to estimate the fair values

a. Fair value of cash and bank, loans and other financial assets and liabilities approximate their carrying amounts largely due to the shorHerm maturities of these instruments.

c. Specific valuation techniques used to value financial instruments include:

-the use of quoted market prices or dealer quotes for similar instruments

-the use of net assets value for investments in unquoted mutual funds and equity securities

-the fair value of forward foreign exchange contracts is determined as per valuation provided by the bank

-the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

All of the resulting fair value estimates are included in level 2 except for unlisted equity securities and preference shares, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.

(vi) Valuation Process

The Company has valued investments in equity shares (unlisted) based on net assets value.

Changes in level 2 and 3 fair values are analysed at the end of each reporting period.

Note No. 42.11. Financial risk management objective and policies Risk Management Framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined framework.

The Company''s Audit Committee oversees compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Company has exposure to the following risks arising from financial instruments:

-Credit risk;

- Liquidity risk; and

- Market risk

a. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in securities.

The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very closely both in domestic market. The Management impact analysis shows credit risk and impact assessment as low.

Trade receivables

The management has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes market check, industry feedback past financials and external ratings, if they are available. Sale limits are established for each customer and reviewed periodically.

The ageing analysis of the receivables has been considered from the date the invoice falls due

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade receivables, borrowings, etc.

(i) Foreign currency risk

Currency risks related to the principal amounts of the Company''s foreign currency payables, have been partially hedged using forward contracts taken by the Company.

The summary of quantitative data about the Companyâs exposure (Unhedged) to currency risk as reported to the management of the Company is as follows:

Note No. 43: Business Combination - Amalgamation of Mangalam Timber Products Limited with the Company In the previous year National Company Law Tribunal (NCL.T) of Judicature at Jaipur Bench vide their order dated November 03,2021 sanctioned the Scheme of Arrangement between Mangalam Timber Products Limited (''Transferor Company'') with Mangalam Cement Limited (''Transferree Company¹) and their respective shareholders and creditors, pursuant to the provisions of section 230 to 232 and other provisions of the Companies Act, 2013 ("the Scheme) for the amalgamation of the transferor with the transferee. The Scheme became effective upon filing of certified copies of the Orders of the National Company Law Tribunal of Judicature at Jaipur Bench to Registrar of Companies, Jaipur on November 11,2021.

The Scheme has appointed date i.e. April 01, 2019 which, inter alia, provides for the amalgamation of Transferor Company and Transferee Company and upon the Scheme becoming effective, the business of the transferor stand transferred to and vested in the Transferee Company with effect from appointed date as a going concern, without any further deed or act, together with all the properties, assets, rights, liabilities, benefits and interest therein, subject to any existing lien or lis pendens, which shall be deemed to be modified subject to the provisions of the Scheme.

Accordingly, in the previous year effect of Scheme of Arrangement has been given with effect from appointed date.

Further, in terms of the scheme, with effect from the appointed date till the effective date, the business of the transferor company has been carried out by the transferee company in and on account of M/s Mangalam Timber Products Limited.

The accounting effect of this Arrangement in the financial statements has been given as under:

(a) the Company has issued and allotted 8,03,518 equity shares of 710/-each to members existing as on the record date, in the ratio of 1 (one) equity share of ? 10/- each of the Company fully paid up for every 22 (twenty two) equity shares of ? 10/- each held by the members of the transferor company.

(b) The Company has recorded all assets and liabilities of the transferor company vested in it pursuant to the scheme, at the fair values thereof, as valued by the registered value as of the appointed date, in accordance with applicable Ind AS.

A summary of the assets and liabilities duly adjusted for applicable Ind AS and transferred to the company as at appointed date (i.e April 01, 2019) is as follows:

Note No. 45

a Utilisation of Borrowed funds and share premium

During the financial year ended March 31,2023, other than the transactions undertaken in the normal course of business and in accordance with extant regulatory guidelines as applicable.

Q No funds (which are material either individually or in the aggregate) 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 or entity, including foreign entity (Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (''Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, b Undisclosed Income

''The Company does not have any transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Also, there are nil previously unrecorded income and related assets, c Details of Crypto Currency or Virtual Currency

''The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year, d Core Investment Company (CIC)

The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. The Group has no CICs as part of the Group.

e Compliance with approved Scheme(s) of Arrangements

There was no Scheme of Arrangement approved by the appropriate authority were approved during the year. However, in previous year the Scheme of Arrangement was approved as detail given in note 43. f Details of Benami Property held

''There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Properties Transactions Act 1988 and rules made thereunder, g Wilful Defaulter

The Company has not been declared as wilful defaulter by any bank or financial institution or other Lender, h Compliance with number of layers of companies

The Company has no subsidiary, therefore clause (87) of section 2 of the Companies Act 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable on the Company.

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

As per our report of even date.

As per our report of even date attached FÂ°^{r ar|}d on behalf of Board of Directors

FOR SINGHI & CO Anshuman Vikram Jalan, Chairman (DIN : 01455782)

Chartered Accountants Aruna Makhan, Director (DIN : 00025727)

Firm Reg No 302049E ^ Â® Khaitan, Director (DIN : 00020588)

Bimal Kumar Sipani ^{Gaurav Goel}- ^Direc,^tor (^{DIN : 00076111} >

p_artner K C Jain, Director (DIN : 00029985)

M.No. 088926

Date: May 27,2023 Yaswant Mishra Manoj Kumar

Place: Noida (Delhi - NCR) ^President (^CorPÂ°^rate)^{&CF0 Com}P^a"y Secretary

Mar 31, 2018

Note No. 1

Events occurring after Balance Sheet Date:

Proposed Dividend

The Board of Directors has proposed a dividend of Rs. 0.50 (Full value) (previous year Rs. 0.75) (Full value) per equity shares of Rs. 10 each and the total proposed dividend amounts to Rs. 133.47 Lacs (previous year Rs. 200.20 Lacs) and corporate dividend tax to be Rs. 27.44 Lacs (previous year Rs. 40.76 Lacs) and same is subject to approval of shareholders at the ensuing Annual General Meeting.

Note No.2

Inventory includes coal valuing Rs. 1512.64 Lacs (previous year Rs. 1512.64 Lacs) sent for processing lying with a vendor for long time. Due to financial difficulty, vendor could not supply the material but the Company is hopeful of recovery.

Note No. 3

Revenue expenditure on Research and Development amounting to Rs. Nil (Previous year Rs. 65.87 lacs) is shown in the Statement of Profit & Loss.

Note No. 4

Other operating Revenue includes investment subsidy and employment generation subsidy aggregating Rs. 391.34 Lacs (Previous Year Rs. 386.84 Lacs).

Note No. 5

Employee Defined Benefits:

A. Defined Contribution Plans

The Company makes contributions towards provident fund and superannuation fund to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.

B. Defined Benifit Plans

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. 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. Gratuity liabilty is being contributed to Group Gratuity cum Life Assurance Schemes administered by the LIC of India. The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31 March 2018. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

IX. Description of Risk Exposures:

"Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follow -

A) Salary Increases - Higher than expected increase in salary will increase the defined benefit obligation.

B) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan''s liability.

C) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumption in the valuation can impact the liabilities.

D) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

Note No. 6Segment Reporting

According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for making decisions about allocating resources to the segment and assessing its performance. The business activity of the company falls within one broad business segment viz. âCement" and substantially sale of the product is within the country. Hence, the disclosure requirement of Ind AS 108 of ''Segment Reporting'' is not considered applicable.

Note No. 7 Capital Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company''s capital management is to maximize the shareholder value. The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company''s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31,2018 and March 31,2017.

For the purpose of the Company''s capital management, capital includes issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short term deposits.

The Company monitors capital using gearing ratio, which is net debt divided by total capital as under:

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 of the financial covenants of any interest bearing loans and borrowing for reported periods.

Note No. 8

Financial Instrument - Fair Value and Risk Management

I. Fair Value Measurement

A. Financial Instrument by category

B. Fair Value Hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are:

a. Recognised and measured at fair value and

b. measured at amortised cost and for which fair values are disclosed in the financial statements.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all 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 is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

There are no transfers between level 1 and level 2 during the year.

Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of forward foreign exchange contracts is determined as per valuation provided by the bank

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

Valuation Process

The Company gets the valuations performed from an independent valuer, required for financial reporting purposes, including level 3 fair values.

The main level 3 inputs for unlisted preference shares used by the Company are derived and evaluated as follows:

- Risk adjusted discount rates are estimated based on expected cash inflows arising from the instrument and the entity''s knowledge of the business and how the current economic environment is likely to impact it.

Changes in level 2 and 3 fair values are analysed at the end of each reporting period.

Note No. 32.14

Financial risk management objective and policies

"The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk; and

- Market riskâ

Risk Management Framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined framework.

The Company''s Audit Committee oversees compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obi ligations, and arises principally from the Company''s receivables from customers and investments in debt securities. The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very closely both in domestic market. The Management impact analysis shows credit risk and impact assessment as low. Trade receivables

The Management has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes market check, industry feedback, past financials and external ratings, if they are available. Sale limits are established for each customer and reviewed periodically.

During the year, the Company has made no write-offs of trade receivables, it does not expect to receive future cash flows or recoveries from collection of cash flows previously written off. The Company management also pursue all legal option for recovery of dues wherever necessary based on its internal assessment.

Liquidity risk

Maturity profile of Financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade receivables, borrowings, etc.

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and small exposure in EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the Rs. cash flows of highly probable forecast transactions by hedging the foreign exchange inflows on regular basis. The Company also take help from external consultants who for views on the currency rates in volatile foreign exchange markets.

Currency risks related to the principal amounts of the Company''s foreign currency payables, have been partially hedged using forward contracts taken by the Company.

Interest rate risk

The Company''s exposure to the risk of changes in market interest rates relates primarily to long term debt. To protect itself from the volatility prevailing, the Company maintain its long term borrowing on fixed interest rate through interest rate swap instrument for borrowings in foreign currency, in which it agrees to exchange at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows.

Note No.9

Operating Leases

The Company''s significant leasing arrangements are in respect of operating leases of premises for warehouse. These leasing arrangements, which are cancellable, are typically for a period of 11 months or are usually renewable on mutually agreeable terms. The Company has recognized expense amounting to Rs. 495.93 lacs (Previous year Rs. 355.67 lacs).

Note No. 10Borrowing costs

During the year, the Company has capitalized borrowing cost amounting to Rs. 60.00 Lacs (Previous year Rs. 266.90 Lacs). The capitalized rate used to determine the amount of borrowing cost to be capitalized is weighted average interest rate applicable to the borrowing during the year is 9.15% (Previous year 9.69%).

Note No.11

Other Disclosures

a. Disclosure as specified in Schedule V of SEBI (Listing Obligation & Disclosure Requirements) Regulation, 2015.

Note No. 12

Previous year''s figures have been regrouped and rearranged wherever necessary.

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

Mar 31, 2017

1 Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of ''10 each. Each holder of one equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. The Board of Directors has proposed a dividend of Rs. 0.75 per equity shares of Rs.10 each for the year ended 31st March 2017 and the total proposed dividend amounts to Rs.200.20 lacs and corporate dividend tax to be Rs.40.76 lacs.

(b) The Jute Packaging (Compulsory use in Packing Commodities) Act 1987 was stayed by the Rajasthan High Court in 1997. However, the Jute Commissioner issued a show cause notice on 14.08.2002 for non-use of Jute Packaging Material. This has been challenged by the Company and the amount involved is not quantifiable.

The Company has engaged competent professional advisors to defend its positions against all disputed claims/notices and based on advice received no liabilities are expected to materialize.

3. Revenue expenditure on Research and Development amounting to Rs.65.87 lacs (Previous year Rs.99.30 lacs) is shown in the Statement of Profit & Loss. Capital expenditure relating to Research and Development amounting to Rs. Nil (Previous year Rs.10.42 lacs) has been included in fixed assets.

4. Other operating revenue includes investment subsidy and employment generation subsidy aggregating to Rs.386.74 lacs (Previous Year Rs.318.14 lacs).

5. The Company is engaged only in the cement business and there are no separate reportable segments.

6. Related Party information as per Ind AS 24.

Note : The amount related to gratuity cannot be ascertained separately since they are included in the contribution in respect made to the insurance company on a group basis for all employees together. As the liability for leave encashment are provided on actuarial basis for the Company as a whole. Hence not included as above.

Fair Value Hierachy

Level-1 Quoted Price (unadjusted) is active markets for identical assets or liabilities

Level-2 Inputs other than quoted prices included within Level-1 that are observable for the asset or liability, either directly (i.e as prices) or indirectly (i.e. derived from prices)

Level-3 Inputs other than quoted prices included within Level-1 that are based on non-observable market data.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 :

7. Financial risk management objective and policies

The Company''s Financial liabilities include Loan and borrowing, security deposits, retention money and Trade & other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include investments, trade & other receivables, deposits and cash & cash equivalents.

The Company''s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company''s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes.

The Company is exposed to market risk, credit risk and liquidity risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate financial risk governance framework for the Company. The Risk management committee provides assurance to the Company''s management that the Company''s risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade receivables, borrowings, etc.

Interest rate risk

The Company''s exposure to the risk of changes in market interest rates relates primarily to long term debt. To protect itself from the volatility prevailing, the Company maintain its long term borrowing on fixed interest rate through interest rate swap instrument, in which it agrees to exchange at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount.

Interest rate sensitivity

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 Company has hedged its foreign currency borrowing through forward cover to protect itself from the foreign currency volatility. However, the Company''s exposure to the risk of changes in foreign exchange rates are not significant.

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. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade receivables

Customer credit risk is managed by the respective department subject to Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on individual credit limits as defined by the Company. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on historical data of credit losses.

The ageing analysis of the receivables (gross of provision) has been considered from the date the invoice falls due.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations or at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

Maturity profile of Financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

8. Capital management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company''s capital management is to maximize the shareholder value. The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company''s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31, 2017 and March 31, 2016.

For the purpose of the Company''s capital management, capital includes issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short term deposits.

The Company monitors capital using gearing ratio, which is net debt divided by total capital as under:

9. Corporate Social Responsibilities

As per section 135 of Companies Act, 2013, Company meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three years on corporate social responsibility. A CSR committee has been formed by the company as per the Act The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of The Companies Act,2013.

(a) Gross amount required to be spent by Company during the year is Rs. 52.15 lacs

(b) Amount Spent during the year on :

10. Disclosure on Specified Bank Notes (SBN)

During the year, the Company has specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308 (E) dated 30th March, 2017 on the details of specified Bank Notes (SBN) held and transaction during the period from November 8, 2016 to December 30, 2016 is given below :

11. First Time Adoption of Ind AS

As these accounts are the first financial statements prepared in accordance with Indian Accounting Standards (Ind AS), Ind AS 101, (First-time Adoption of Indian Accounting Standards) has been applied. An explanation of how the transition from previous GAAP to Ind AS has affected the previously reported financial position, financial performance and cash flows of the Company.

(a) Exemption on first time adoption of Ind AS availed in accordance with Ind AS 101

The Company has elected to measure items of PPE at the date of transition to Ind AS at their Carrying Value. Company has used the Carrying Value of assets at the date of transition as at 01.04.2015, which is considered as deemed cost on transition

(e) Foot Note

The Company has made following reclassification as per the requirements of Ind-AS:

A. Reclassifications

i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

ii) Re-Measurement gains/(losses) on defined benefit plans on long term employee benefit plans are re-classified from profit and loss to OCI.

B. Property, plant & equipment and Intangible Assets

(i) Under previous GAAP, company was carrying assets on at revaluation assessed 01.04.1987, to fair value assets with corresponding increase in revaluation reserve. On the date of transition, the Company has elected to measure items of Property, Plant & Equipment and Intangible Assets at the date of transition to Ind AS at their carrying value as deemed cost. Consequently, revaluation reserve carrying value Rs. 471.61 lacs has been adjusted against retained earnings.

(ii) The Company has measured the liability relating to Site Restoration cost in accordance with Ind AS 37 on the date of transition viz. 1st April, 2015 and has capitalized the obligation as a separate component under Intangible Assets together with the accumulated depreciation from the date the obligation was incurred to the transition date. The amount to be capitalized as part of the cost of the asset has been calculated by discounting the liability back to the date the obligation initially arose using the best estimate of historical discount rates, with the associated accumulated depreciation having been calculated by applying the current estimate of the useful life of the asset, using the entity''s depreciation policy for the asset.

C. Derivative financial instruments

Under Ind AS, derivative contracts are measured at fair value at each balance sheet date to the extent of any reduction/gain in fair value, recognized in Statement of Profit and Loss as finance expense or finance income. Under Indian GAAP premium on forward contract is amortized over the contract period.

D. Fair valuation of financial assets and liabilities

(i) Under Indian GAAP, receivables and payables were measured at transaction cost Under Ind AS, these financial assets and liabilities are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less allowance for impairment, if any. The resulting gain /loss recognized in the Statement of Profit and Loss for financial liabilities as Finance Cost or Finance Income.

(ii) Under Ind AS investments are designated as fair value through other comprehensive income (FVOCI), fair value through profit and loss (FVTPL) and carried at amortized cost. For investment designated as FVOCI, difference between the fair value and carrying value is recognized in OCI. For investment designated as FVTPL, difference between the fair value and carrying value is recognized in profit and loss. For investment designated as amortized cost, accrual of interest is recognized in profit and loss with which value of investment will be equal to maturity date contractual cash flows which includes solely payments of interest and principal.

E. Proposed Dividend

Under Indian GAAP, proposed dividends are recognized as liability in the period to which they relate irrespective of the approval by shareholders. Under Ind AS a proposed dividend is recognized as liability in the period in which it is declared (on approval of shareholders in a general meeting) or paid. Therefore, the proposed dividend and dividend distribution tax of Rs. 642.55 lacs on March 31, 2015 has been derecognized and recognized during 2015-16 on payment. Similarly proposed dividend and dividend distribution tax of Rs.160.64 lacs on March 31, 2016 has been derecognized and recognized during 2016-17.

F. Deferred tax

The Company has accounted for deferred tax on the various adjustments between Indian GAAP and Ind AS at the tax rate at which they are expected to be reversed.

MAT entitlement credit being of the nature of deferred tax, on transition to IND AS MAT credit entitlement of Rs. 1584.35 lacs and Rs. 905.00 lacs for April 1, 2015 and March 31, 2016 respectively has been regrouped under deferred tax assets from Current tax assets (net).

G. The impact of change in actuarial assumption and experience adjustments for defined benefit obligation towards gratuity liability and Leave Encashment is accounted in the Statement of Other Comprehensive Income and responding tax impact on the same. Due to this Rs. 12.95 lacs and Rs. 467.00 lacs for the period ended March 31, 2016 and March 31, 2017 respectively, tax credit there on is shown in OCI and reversal in Statement of Profit and loss.

H. Profit on reinstatement of loan given is shown under finance income, Loss on reinstatement with respect to borrowings and regarded as an adjustment to borrowing cost are shown under finance expense.

I. In case of operating lease, the carrying amount of Leasehold Land shown as a prepayment under Non-Financial Assets and amortized as lease rent over a period of Lease.

12. Previous year''s figures have been regrouped and rearranged wherever necessary.

Mar 31, 2016

B. NOTES ON ACCOUNTS

1. The Company has componentized its fixed assets and has separately assessed the life of the major components forming part of the main assets. Consequently, the depreciation charge for the year ended 31.03.2016 is higher by Rs. 89.57 Lacs. Depreciation for the year includes Rs. 8.91 lacs (Previous year Rs. 8.91 lacs) being depreciation on the increased amount of assets due to revaluation and an equivalent amount has been transferred from the Revaluation Reserve to the Statement of Profit & Loss..

2. Exceptional items of Rs. Nil (Previous Year Rs. 343.21 Lacs) represent interest on disputed U.P. entry tax for earlier year charged and collected by the commercial taxes department, U.P.

4. The Board of Directors has proposed a dividend of Rs. 0.50 per equity shares of Rs. 10 each for the year ended 31st March 2016 and the total proposed dividend amounts to Rs. 133.47 lacs and corporate dividend tax to be Rs. 27.17 lacs.

5. Revenue expenditure on Research and Development amounting to Rs. 99.30 lacs (Previous year Rs. 105.60 lacs) is shown in the Statement of Profit & Loss. Capital expenditure relating to Research and Development amounting to Rs. 10.42 lacs (Previous year Rs. Nil) has been included in fixed assets.

6. Other operating revenue includes investment subsidy and employment generation subsidy aggregating to Rs. 318.14 lacs (Previous Year Nil).

7. (a) All Raw Materials consumed are indigenous.

8. Previous year''s figures have been regrouped and rearranged wherever necessary.

Mar 31, 2015

NOTE 1

Accounting Policies and Notes on Accounts for the year ended 31st March 2015.

1. (a) Pursuant to the enactment of Company

Act 2013, the Company revised its policy of providing depreciation in fixed assests effective from April 1, 2014 by depreciating carrying amount of fixed assets as on April 1, 2014 over the remaining useful life of the assets as per Schedule II as against at the rate and in the manner specified in Schedule XIV to the Companies Act 1956. Consequently,-

(i) Where the useful life is nil as on 1st April 2014 depreciation of Rs. 128.42 Lacs (Rs. 84.77 Lacs net of deffered tax) has been deducted from retained earnings.

(ii) Depreciation for the year is lower by Rs. 917.23 Lacs

(b) Depreciation for the year includes Rs. 8.91 Lacs (Previous year Rs. 8.91 Lacs) being depreciation on the increased amount of assets due to revaluation and an equivalent amount has been transferred from the Revaluation Reserve to the Statement of Profit & Loss.

2. Exceptional items of Rs. 343.21 Lacs represent interest on disputed U.P. entry tax for earlier year charged and collected by the commercial taxes department, U.P.

3. Contingent Liabilities and Commitments (to the extent not provided for)-

i. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debts - (Rs. in Lacs) 31st March, 31st March, 2015 2014

Taxation Matters

- Direct tax 1949.26 1120.69

- Indirect tax 6360.44 6520.85

Others 1013.39 344.23

(b) The Jute Packaging (Compulsory use in Packing Commodities) Act 1987 was stayed by the Rajasthan High Court in 1997. However, the Jute Commissioner issued a show cause notice on 14.08.2002 for non- use of Jute Packaging Material. This has been challenged by the Company and the amount involved is not quantifiable.

4. The Board of Directors has proposed a dividend of Rs. 2 per equity shares of Rs. 10 each for the year ended 31st March 2015 and the total proposed dividend amounts to Rs. 533.88 Lacs and corporate dividend tax to be Rs. 108.68 Lacs.

5. Revenue expenditure on Research and Development amounting to Rs. 105.60 Lacs (Previous Year Rs. 317.35 Lacs) is shown in the Statement of Profit & Loss. Capital expenditure relating to Research and Development amounting to Rs. Nil (Previous Year Rs. 14.92 Lacs) has been included in fixed assets.

6. The Company is engaged only in the cement business and there are no separate reportable segments.

7. Previous year's figures have been regrouped and rearranged wherever necessary.

Mar 31, 2014

1. Depreciation for the year includes Rs. 8.91 lacs (Previous year Rs. 8.91 lacs) being depreciation on the increased amount of assets due to revaluation and an equivalent amount has been transferred from the Revaluation Reserve to the Statement of Profit & Loss.

2. Contingent Liabilities and Commitments (to the extent not provided for) -

i. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debts -

(Rs in lacs) Particulars As at As at 31st March, 31st March, 2014 2013

Taxation patters

- Direct tax 1120.69 1628.55

- Indirect tax 6520.85 2685.05

Others 544.25 211.64

(b) The Jute Packaging (Compulsory use in Packing Commodities) Act 1987 was stayed by the Rajasthan High Court in 1997. However, the Jute Commissioner issued a show cause notice on 14.08.2002 for non-use of Jute Packaging (V^aterial. This has been challenged by the Company and the amount involved is not quantifiable.

3. The Board of Directors has proposed a dividend ofRs. 3 per equity shares ofRs. 10 each for the year ended 31st |V|ar 2014 and the total proposed dividend amounts to Rs. 800.81 lacs and corporate dividend tax to be Rs. 136.10 lacs.

4. Revenue expenditure on Research and Development amounting to Rs. 317.35 lacs (Previous year Rs. 284.27 lacs) is shown in the Statement of Profit & Loss. Capital expenditure relating to Research and Development amounting to Rs. 14.92 lacs (Previous yearRs. 40.06 lacs) has been included in fixed assets.

5. Employee Defined Benefits:

(a) Defined Contribution Plans

The Company has Recognised expenses towards the defined contribution plans as under:

6. Related party information:

Particulars

I- List of related parties

(a) Key Management Personnel

(b) Enterprise in which Key Management Personnel is able to exercise significant influence 31st March, 2014

(1) Shri A.V. Jalan

(2) Smt.Vidula Jalan

(1) Pilani Investment & Industrial Corporation Ltd.

(2) Vidula Consultancy Service Ltd.

(3) |V|angalam Timber Products Ltd.

(4) Aditya Marketing & Manufacturing Ltd.

31st March, 2013

(1) Shri A.V. Jalan

(2) Smt.Vidula Jalan

(1) Pilani Investments Industrial Corporation Ltd.

(2) Vidula Consultancy Service Ltd.

(3) Man9a^arn Timber Products Ltd.

(4) Aditya Marketing & Manufacturing Ltd.

Note: the amounts related to gratuity cannot be ascertained separately since they are included in the contribution in this respect made to the insurance company on a group basis for all the employees together. inclusive of service tax amounting to Current yearRs. 3.23 lacs, (Previous yearRs. 4.33 lacs)

7. (a) All Raw Materials consumed are indigenous, (b) Stores and spare parts consumed:

Mar 31, 2013

1. Depreciation for the year includes Rs. 8.91 lacs (Previous year Rs. 8.91 lacs) being depreciation on the increased amount of assets due to revaluation and an equivalent amount has been transferred from the Revaluation Reserve to the Statement of Profit & Loss.

2. Contingent Liabilities and Commitments (to the extent not provided for)-

i. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debts - Differential of royalty on limestone Rs. 159.83 lacs (previous year Rs. 159.83 lacs), Disputed Cenvat and other excise claims Rs. 1483.38 lacs (previous year Rs. 1330.56 lacs), Disallowance of credit notes & differential tax on raw material (Sales Tax) etc. Rs. 4.08 lacs (previous year Rs. 4.08 lacs), Claims by customers and others Rs. 51.81 lacs (previous year Rs. 54.21 lacs), Income Tax matters Rs. 1628.55 lacs (previous year Rs. 531.95 lacs), Differential of Central Sales Tax Rs. 733.34 lacs (previous year Rs. 686.28 lacs), Haryana VAT matters Rs. 0.68 lacs (previous year Rs. 0.68 lacs), UP sales tax Rs. 0.43 lacs (previous year Rs. 0.43 lacs), UP Entry tax Rs. 450 lacs (previous year Rs. Nil), Interest Demanded on Deferment of VAT (Raj.) Rs. 11.12 lacs (previous year Rs. Nil).

(b) The Jute Packaging (Compulsory use in Packing Commodities) Act 1987 was stayed by the Rajasthan High Court in 1997.

However, the Jute Commissioner issued a show cause notice on 14th August, 2002 for non-use of Jute Packaging Material. This has been challenged by the Company and the amount involved is not quantifiable.

The Company has engaged competent professional advisors to defend its positions against all disputed claims/ notices and based on advice received no liabilities are expected to materialise.

3. The Board of Directors has proposed a dividend of Rs. 6 per equity shares of Rs. 10 each for the year ended 31st March, 2013 and the total proposed dividend amounts to Rs. 1601.63 lacs and corporate dividend tax to be Rs. 272.20 lacs.

4. Revenue Expenditure on Research and Development amounted to Rs. 284.27 lacs (Previous year Rs. 191.76 lacs) is shown in statement of Profit & Loss. Capital Expenditure relating to Research and Development amounting to Rs. 40.06 lacs (Previous year Rs. 76.64 lacs) has been included in fixed assets.

5. It is not possible to ascertain the quantum of accrual with reasonable certainty in respect of insurance, other claims and performance guarantees, the same are continued to be accounted on settlement basis.

6. (a) Capital work-in-progress includes machinery under installation and building and other assets under erection.

7. Previous year''s figures have been regrouped and rearranged wherever necessary.

Mar 31, 2012

1. Depreciation for the year includes Rs. 8.91 lacs (Previous year Rs. 9.10 lacs ) being depreciation on the increased amount of assets due to revaluation and an equivalent amount has been transferred from Revaluation Reserve to the Profit and Loss Account.

2. In view of the long delay in obtaining approval of Hon'ble High Court of Orissa and uncertainty, all essential and vital parameters considered in approving the scheme of amalgamation including fair basis, now resulting in unfavourable share exchange ratio, the scheme of amalgamation of Mangalam Timber Products Ltd (MTPL) with the company has been withdrawn.

3. Consequent to withdrawal of scheme of amalgamation interest free loan of Rs. 30 Crores advanced to MTPL has been converted into Inter-Corporate deposit repayable on demand with interest @12.5% p.a.

4. Contingent Liabilities and Commitments (to the extent not provided for)

i. Contingent Liabilities

(a) Claims against the Company not acknowledged as debts - Differential of royalty on limestone Rs. 159.83 lacs

(previous year Rs. 180.34 lacs), Disputed Cenvat and other excise claims Rs. 1330.56 lacs (previous year Rs. 1157.12 lacs), Disallowance of credit notes & differential tax on raw material (Sales Tax) etc. Rs. 4.08 lacs (previous year Rs. 9.72 lacs), Turnover tax Rs. Nil (previous year Rs. 3.13 lacs), Claims by customers and others Rs. 54.21 lacs (previous year Rs. 50.51 lacs), Income Tax matters Rs. 531.95 lacs (previous year Rs. 542.86 lacs), Differential of CST Rs. 686.28 lacs (previous year Rs. 639.22 lacs), Haryana VAT matters Rs. 0.68 lacs (previous year Rs. 0.68 lacs), UP sales tax Rs. 0.43 lacs (previous year Rs. Nil).

(b) Other money for which the company is contingently liable- The Jute Commissioner has issued a show cause notice dated 14th August, 2002 for non use of Jute Packaging Material as stipulated under the Jute Packaging Material (Compulsory use in Packing Commodities) Act 1987, which has been stayed by the Honorable Rajasthan High Court, Jodhpur. Liabilities on this account upto 30.06.1997 are presently not quantifiable.

5. Board of director has proposed a dividend of Rs. 6 per equity shares of Rs. 10 each for the year ended 31st May 2012 and total proposed dividend will be Rs. 1601.63 lacs and corporate dividend tax will be Rs. 259.82 lacs.

6. (a) During the year Rs. 6 lacs (Previous year Rs. Nil) has been received as Government Grant in the nature of "Grants Related to Specific Fixed Assets". This amount has been reduced from the cost of concerned Fixed Assets.

(b) Government grant received in the nature of "Grants related to Revenue" Rs. 1.58 lacs (Previous year Rs.2.49 lacs) reduced from the related expenditure.

7. Revenue Expenditure on Research and Development amounting to Rs. 191.76 lacs (Previous year Rs. 131.53 lacs) is shown under the head Research and Development Account (under relevant heads in the previous year). Capital Expenditure relating to Research and Development amounting to Rs. 76.64 lacs (Previous year Rs. 2.66 lacs) has been included in fixed assets.

8. (i) Pursuant the order dated 30th November, 2007 of the Hon'ble Rajasthan High Court reversal of deferred tax liability for the year Rs. 28.39 lacs (previous year Rs. 1164 lacs has been adjusted from securities premium account) has been credited to against Securities Premium Account.

9. It is not possible to ascertain the quantum of accrual with reasonable certainty in respect of insurance, other claims and performance guarantees, the same are continued to be accounted on settlement basis.

10. (a) Capital work-in-progress includes machinery under installation and building and other assets under erection.

11. Previous year's figures have been regrouped and rearranged wherever necessary.

Mar 31, 2011

1. Buildings, Plant and Machinery and Railway siding were revalued as on 1st January, 1988 by the valuer after considering useful life, quotations and R.B.I. indices, etc. As a result net book value of such assets was increased by Rs.2355.16 lacs which was transferred to revaluation reserve. Depreciation for the year includes Rs.9.10 lacs (Previous year Rs.9.17 lacs) being depreciation on the increased amount of assets due to revaluation and an equivalent amount has been transferred from Revaluation Reserve to the Profit and Loss Account.

2. The merger of Mangalam Timber Products Ltd (MTPL) with the company through the judicial process is in progress. The Honble High Court of Rajasthan, Jaipur, has directed convening of the meeting of unsecured creditors and Share holders of the company which is scheduled for Saturday the 21st May, 2011 at the Registered Office of the Company. The merger, on approval by Honble High Court of Rajasthan, Jaipur and Honble High Court of Orissa, Cuttack, will be effective from 1st April 2010.

3. Contingent liabilities not provided for:

(i) Claims against the Company not acknowledged as debts: Differential of royalty on limestone Rs.180.34 lacs (previous year Rs.180.34 lacs), Disputed Cenvat and other excise claims Rs.1157.12 lacs (previous year Rs.1100.60 lacs), differential tax on raw material (Sales Tax) etc. Rs.9.72 lacs (previous year Rs.9.72 lacs), Turnover tax Rs.3.13 lacs (previous year Rs.3.13 lacs), Claims by customers and others Rs.50.51 lacs (previous year Rs.50.81 lacs), Income Tax matters Rs.542.86 lacs (previous year Rs.76.26 lacs), Differential of CST Rs.639.22 lacs (previous year Rs.592.16 lacs), Haryana VAT matters Rs.0.68 lacs (previous year Rs.0.68 lacs).

(ii) The Jute Commissioner has issued a show cause notice dated 14.08.2002 for non use of Jute Packaging Material as stipulated under the Jute Packaging Material (Compulsory use in Packing Commodities) Act 1987, which has been stayed by the Honorable Rajasthan High Court, Jodhpur. Liabilities on this account upto 30.06.1997 are presently not quantifiable.

4. In accordance with the proposed Scheme of Amalgamation, the Company has advanced interest free loan of Rs.3 crores to Mangalam Timber Products Ltd. (MTPL) on 18.01.2011, which has since been received back. However, in case the merger is not effected, interest @11.5% p.a. will be paid by MTPL to the Company on the said loan.

5. Provision for current tax for the current year 2010-11 is net of MAT credit of Rs.805 lacs (2009-10 Rs.Nil) as the company is confident to generate sufficient taxable income in the next few years available for set off of the aforesaid credit within the stipulated time.

6. Estimated capital commitments outstanding Rs.425.77 lacs (previous year Rs.9457.70 lacs) against which advance paid Rs.78.21 lacs (Previous year Rs.4542.51 lacs).

7. (i) Pursunt the order dated 30th November, 2007 of the Honble Rajasthan High Court deferred tax liability for the year Rs.1164 lacs (previous year Rs.585 lacs) has been adjusted against Securities Premium Account.

8. It is not possible to ascertain the quantum of accrual with reasonable certainty in respect of insurance, other claims and performance guarantees, the same are continued to be accounted on settlement basis.

9. Maximum amount due at any time during the year from an officer of the Company under the head ÃLoans and AdvancesÃ is Rs.2.05 lacs (Previous year Rs.0. 77 lac).

10. (a) Capital work-in-progress includes advance against capital orders, machinery under installation and building and other assets under erection.

11 Employee Defined Benefits

(b) Defined Benefit Plans as per Actuarial Valuation as on 31st March, 2011 and recognised in the financial statements in respect of Employee Benefit Schemes:

12. The company is engaged only in cement business and there are no separate reportable segments as per Accounting Standard 17.

13 Related Party Information 2010-11

I. List of Related Parties

(a) Key Management Personnel Shri KC Jain (Managing Director)

(b) Enterprise in which Key Management personnel is able (1) Kesoram Industries to exercise significant influence Ltd.

(2) Kamal C Jain & Co.

(c) Other Related Parties #

(1) Shri A.V. Jalan

(2) Smt.Vidula Jalan

(3) Pilani Investment & Industrial Corporation Ltd.

(4) Vidula Consultancy Service Ltd.

(5) Mangalam Timber Products Ltd.

2009-10

I. List of Related Parties

(a) Key Management Personnel Shri KC Jain (Managing Director)

(b) Enterprise in which Key Management personnel is able to exercise significant influence (1) Kesoram Industries Ltd.

(2) Kamal C Jain & Co.

(c) Other Related Parties # (1) Shri A.V. Jalan

(2) Smt.Vidula Jalan

(3) Pilani Investment & Industrial Corporation Ltd.

(4) Vidula Consultancy Service Ltd.

(5) Mangalam Timber Products Ltd.

# The parties stated in (c) above are Related Parties in the broader sense of the term and are included for making the financial statements more transparent.

14 (a) Information for class of goods manufactured, sold and stocks- Portland cement

(b) All Raw Materials consumed are indigenous.

(c) Stores and spare parts consumed.

15. Previous years figures have been regrouped and rearranged wherever necessary.

Mar 31, 2010

1. Buildings, Plant and Machinery and Railway siding were revalued as on 1st January, 1988 by the valuer after considering useful life, quotations and R.B.I, indices, etc. As a result net book value of such assets was increased by Rs.2355.16 lacs which was transferred to revaluation reserve. Depreciation for the year" includes Rs. 9.17 lacs (Previous year Rs. 9.19 lacs) being depreciation on the increased amount of assets due to revaluation and an equivalent amount has been transferred from Revaluation Reserve to the Profit and Loss Account.

2. Contingent liabilities not provided for:

(i) Claims against the Company not acknowledged as debts:

(a) Differential of royalty on limestone Rs. 180.34 lacs (previous year Rs.180.34 lacs), (b) Disputed Cenvat and other excise claims Rs. 1100.60 lacs (previous year Rs.1017.53 lacs).

(c) differential tax on raw material (Sales Tax) etc. Rs. 9.72 lacs (previous year Rs. 9.72 lacs).

(d) Turnover tax Rs. 3.13 lacs (previous year Rs. 3.13 lacs), (e) Claims by customers and others Rs. 50.81 lacs (previous year Rs.87.79 lacs) (f) Income Tax matters Rs. 76.26 lacs (previous year Rs. 76.26 lacs), (g) Differential of CST Rs. 592.16 lacs (previous year Rs. 545.11 lacs), (h) Haryana VAT matters Rs. 0.68 lacs (previous year Nil).

(ii) The Jute Commissioner has issued a show cause notice dated 14.08.2002 for non use of Jute Packaging Material as stipulated under the Jute Packaging Material (Compulsory use in Packing Commodities) Act 1987, which has been stayed by the Honorable Rajasthan High Court, Jodhpur. Liabilities on this account upto 30.06.1997 are presently not quantifiable.

3. Estimated capital commitments outstanding Rs. 9457.70 lacs (previousyear Rs. 475.78 lacs) against which advance paid Rs. 4542.51 lacs (Previous year Rs. 115.15 lacs).

4. It is not possible to ascertain the quantum of accrual with reasonable certainty in respect of insurance, other claims and performance guarantees, the same are continued to be accounted on settlement basis.

5 (i) During the year the company has bought back 13,39,418 equity shares at value of Rs.1003.90 lacs (previous year 213560 equity shares at value of Rs.114.69 lacs) out of General Reserve till closure of the scheme on 30.07.2009. The shares bought back were extinguished and the share capital has been reduced to this extent and total nominal value of equity shares purchased Rs.133.94 lacs (Previous year Rs.21.36 lacs) have been transferred to Capital Redemption Reserve.

(ii) Consequent to above 1339418 equity shares which were bought back during the period 1st April 2009 to the date of record date did not carry dividend and provision of Rs.73.67 lacs for dividend and corporate dividend tax of Rs.12.52 lacs made as on 31.03.2009 on these shares has been written back during the year.

6, Maximum amount due at any time during the year from an officer of the Company under the head "Loans and Advances" is Rs. 0.77 lac (Previous year Rs.0.36 lac).

7. (i) Capital work-in-progress includes advance against capital orders, machinery under installation and building and other assets under erection.

8 The company is engaged only in cement business and there are no separate reportable segments as pei Accounting Standard 17.

9. Previous years figures have been regrouped and rearranged wherever necessary.

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