Notes to Accounts of Orient Cement Ltd.

Mar 31, 2025

(m) Provisions

A provision is recognised when the Company has a
present obligation as a result of past event, it is probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the
obligation. If the effect of the time value of money
is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognised as a finance cost. These estimates
are reviewed at each reporting date and adjusted to
reflect the current best estimates.

Mines Restoration Provision

An obligation for restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or ongoing
extraction from mines. Costs arising from restoration
at closure of the mines and other site preparation
work are provided for based on their discounted net
present value, with a corresponding amount being
capitalised at the start of each project. The amount
provided for is recognised, as soon as the obligation
to incur such costs arises. These costs are charged
to the Statement of Profit and Loss over the life
of the operation through the depreciation of the
asset and the unwinding of the discount on the
provision. The costs are reviewed periodically and
are adjusted to reflect known developments which
may have an impact on the cost or life of operations.
The cost of the related asset is adjusted for changes
in the provision due to factors such as updated cost
estimates, new disturbance and revisions to discount
rates. The adjusted cost of the asset is depreciated
prospectively over the lives of the assets to which they
relate. The unwinding of the discount is shown as a
finance cost in the Statement of Profit and Loss.

(n) Contingent liabilities and Contingent Assets

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed

by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognised
because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where
there is a liability that cannot be recognised because
it cannot be measured reliably. The Company does
not recognise a contingent liability but discloses its
existence in the financial statements. It is reviewed at
each balance sheet date.

Contingent assets are not recognised in financial
statements since this may result in the recognition
of income that may never be realised. However, when
the realisation of income is virtually certain, then
the related asset is not a contingent asset and is
recognised. A contingent asset is disclosed, in financial
statements, where an inflow of economic benefits is
probable. It is reviewed at each balance sheet date.

A provision for onerous contracts is measured at the
present value of the lower of the expected cost of
terminating the contract and the expected net cost
of continuing with the contract, which is determined
based on the incremental costs of fulfilling the
obligation under the contract and an allocation of
other costs directly related to fulfilling the contract.
Before a provision is established, the Company
recognises any impairment loss on the assets
associated with that contract

(o) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank
and in hand and short-term deposits with an original
maturity of three months or less, which are subject to
an insignificant risk of changes in value and are also
used for the purpose of Statement of Cash Flows, as
these are considered an integral part of the Company''s
cash management.

(p) Employee stock options

Certain employees of the Company receive
remuneration in the form of share-based payments,
whereby employees render services as consideration
for equity instruments (equity-settled transactions).

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. The cost is
recognised, together with a corresponding increase

in reserves, over the period in which the performance
and/or service conditions are fulfilled in employee
benefits expense.

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part
of the Company''s best estimate of the number
of equity instruments that will ultimately vest.
Market performance conditions are reflected within
the grant date fair value.

When the terms of an equity-settled award are
modified, the minimum expense recognised is the
expense had the terms had not been modified, if the
original terms of the award are met. An additional
expense is recognised for any modification that
increases the total fair value of the share-based
payment transaction, or is otherwise beneficial to the
employee as measured at the date of modification.
Where an award is cancelled by the entity or by
the counterparty, any remaining element of the fair
value of the award is expensed immediately through
profit or loss.

The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

(q) Financial instruments

i. Recognition and initial measurement

Trade receivables and debt securities issued are
initially recognised when they are originated.
Trade receivables that do not contain a
significant financing component are measured at
transaction price (net of variable consideration).
All other financial assets and liabilities are
recognised are initially recognised when the
Company becomes a party to the contractual
provisions of the instrument.

A Financial asset (unless it is a trade receivable
without a significant financing component)
or financial liability is initially measured at fair
value plus or minus, for an item not at FVTPL,
transaction costs that are directly attributable
to its acquisition or issue. A trade receivable
without a significant financing component is
initially measured at the transaction price.

ii. Financial assets - classification and
subsequent measurement:

Financial assets at amortised cost

Financial assets are subsequently measured at
amortised cost if these financial assets are held
within a business whose objective is to hold
these assets in order to collect contractual cash
flows and the contractual terms of the financial
asset give rise on specified dates to cash flows
that are solely payments of principal and interest
on the principal amount outstanding.

Financial assets at fair value through other
comprehensive income

Financial assets are measured at fair value
through other comprehensive income if these
financial assets are held within a business
whose objective is achieved by both collecting
contractual cash flows and selling financial
assets and the contractual terms of the financial
asset give rise on specified dates to cash flows
that are solely payments of principal and interest
on the principal amount outstanding.

Financial assets at fair value through profit
or loss

Financial assets are measured at fair value
through profit or loss unless it is measured at
amortised cost or at fair value through other
comprehensive income on initial recognition.
The transaction costs directly attributable to the
acquisition of financial assets and liabilities at
fair value through profit or loss are immediately
recognised in the statement of profit and loss.

iii. Financial liabilities - classification and
subsequent measurement:

Financial liabilities are classified as either financial
liabilities at FVTPL or other financial liabilities.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL
when the financial liability is held for trading or
are designated upon initial recognition as FVTPL.
Gains or losses on liabilities held for trading are
recognised in the statement of profit and loss.

Other financial liabilities

Other financial liabilities (including borrowings
and trade and other payables) are subsequently
measured at amortised cost using the effective
interest method.

The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense over
the relevant period. The effective interest rate
is the rate that exactly discounts estimated
future cash payments (including all fees and
points paid or received that form an integral part
of the effective interest rate, transaction costs
and other premiums or discounts) through the
expected life of the financial liability, or (where
appropriate) a shorter period, to the net carrying
amount on initial recognition.

iv. De-recognition of financial instruments
Financial asset

The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers the
right to receive the contractual cash flows in a
transaction in which substantially all of the risks
and rewards of ownership of the financial asset
are transferred or in which the Company neither
transfers nor retains substantially all of the risks
and rewards of ownership and does not retain
control of the financial asset.

I f the Company enters transaction whereby it
transfers assets recognised on its balance sheet
but retains either all or substantially all the
risks and rewards of the transferred assets, the
transferred assets are not derecognised.

Financial liability

The Company derecognises a financial liability
when its contractual obligations are discharged
or cancelled or the same expires.

The Company also derecognise a financial
liability when its terms are modified and the cash
flows under the modified terms are substantially
different. In this case, a new financial liability
based on the modified terms is recognised at

fair value. The difference between the carrying
amount of the financial liability extinguished and
the new financial liability with modified terms is
recognised in the statement of profit and loss.

v. Offsetting

Financial assets and financial liabilities are offset
and the net amount is presented in the Balance
Sheet when, and only when, the Company has a
legally enforceable right to set off the amount and
intends to settle them on a net basis or to realise
the asset and settle the liability simultaneously.

vi. Fair value of financial instruments

I n determining the fair value of its financial
instruments, the Company uses following
hierarchy and assumptions that are based on
market conditions and risks existing at each
reporting date. All assets and liabilities for which
fair value is measured or disclosed in the financial
statements are categorised within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair
value measurement as a whole:

Level 1: Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

Level 2: Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable.

Level 3: Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.

For assets and liabilities that are recognised in
the financial statements on a recurring basis,
the Company determines whether transfers
have occurred between levels in the hierarchy
by re-assessing categorisation (based on the
lowest level input that is significant to the fair
value measurement as a whole) at the end of
each reporting period.

When the fair values of financial assets and
financial liabilities recorded in the financial
statements cannot be measured based on
quoted prices in active markets, their fair value
is measured using valuation techniques including

the discounted cash flow model. The inputs to
these models are taken from observable markets
where possible, but where this is not feasible, a
degree of judgements is required in establishing
fair values. Judgements include considerations of
inputs such as liquidity risk, credit risk volatility
and discount rates. Changes in assumptions
about these factors could affect the reported
fair value of financial instruments.

vii. Impairment

Financial assets (other than at fair value)

The Company assesses at each date of the
balance sheet whether a financial asset or a
group of financial assets is impaired. Ind AS
109 requires expected credit losses (''ECL) to be
measured through a loss allowance. The Company
recognises lifetime expected losses for trade
receivables and contract assets that do not
constitute a financing transaction. For all other
financial assets, expected credit losses are
measured at an amount equal to the 12-month
expected credit losses or at an amount equal to
the lifetime expected credit losses if the credit risk
on the financial asset has increased significantly
since initial recognition. The Company write-off''s
the receivables only on completion of the legal
proceedings or if it is certain that the balance
will not be recoverable.

(r) Statement of Cash Flows

Cash flows are reported using the indirect method,
whereby the net profit before tax is adjusted for
the effects of transactions of a non-cash nature,
any deferrals or accruals of past or future operating
cash receipts or payments and item of income or
expenses associated with investing or financing cash
flows. The cash flows from operating, investing and
financing activities of the Company are segregated.

(s) Other income

I nterest income or expense is recognised using the
effective interest method.

The ''effective interest rate'' is the rate that exactly
discounts estimated future cash payments or receipts
through the expected life of the financial instrument to:

¦ the gross carrying amount of the financial asset; or

¦ the amortised cost of the financial liability.

In calculating interest income and expense, the effective
interest rate is applied to the gross carrying amount
of the asset (when the asset is not credit-impaired)
or to the amortised cost of the liability. However, for
financial assets that have become credit-impaired
subsequent to initial recognition, interest income is
calculated by applying the effective interest rate to
the amortised cost of the financial asset. If the asset
is no longer credit-impaired, then the calculation of
interest income reverts to the gross basis.

(t) Events after reporting date

Where events occurring after the balance sheet
date provide evidence of conditions that existed at
the end of the reporting period, the impact of such
events is adjusted within the consolidated financial
statements. Otherwise, events after the balance sheet
date of material size or nature are only disclosed.

(u) Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
March 31,2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1, 2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.

Notes:

a. Deposits for H 2,143.48 lacs (March 31, 2024: H 1,137.72 lacs) are pledged with Government Departments/
Banks as security.

b. Claims include H 1,299.56 lacs (March 31, 2024 : Nil) receivable towards Liquidated damages for delay in commercial
operations of Solar power plant, H 262.32 lacs (March 31, 2024 : H 576.75 lacs) receivable towards reimbursement
of Sales Tax under Industrial Investment Promotion Policy (IIPP 2005-2010) Scheme of Andhra Pradesh.
Other receivables are in the nature of discount receivable on fuels etc.

c. Information about the Company''s exposure to credit risk, market risk and fair value measurement is included in
Notes 42 and 48.

Notes :

a. The purpose of investment in AMP Solar Systems Private Limited ("SPV") was to set up a solar power plant in
Maharashtra under Captive Scheme for Company''s grinding unit at Jalgaon. The Company had paid an investment
consideration of H 4.16 lacs to acquire 41,624 equity shares of AMP Solar Systems Private Limited at H 10.00 (Face
Value of H 10.00) each constituting 26.00% stake of the SPV''s equity share capital.

b. The Company has paid an investment consideration of H 412.33 lacs to acquire 41,233, 0.01% Compulsorily convertible
debentures (CCDs) of AMP Solar Systems Private Limited at H 1,000 ( Face value H 1,000) each constituting 26.00%
stake of the SPV''s debenture Capital. These debenture will convert into 100 equity shares (Face value of H 10/- each)
of the SPV at the conversion date in accordance with the terms of the investment agreement.

c. The Company has entered into a Share Subscription and Shareholders'' Agreement (SSSHA) with Cleantech Solar
India OA2 Pte. Ltd and Ardeur Renewables Private Limited ("SPV”) for the purpose of setting up solar power plant
with a capacity of 16 MWdc for Chittapur plant in the state of Karnataka and 3.7 MWdc for Jalgaon plant in the
state of Maharashtra under Captive Scheme. The Company has paid an investment consideration of H 866.80 lacs
to acquire 10,83,500 equity shares of Ardeur Renewables Private Limited at H 80.00 (Face Value of H 10.00) each
constituting 28.52% stake of the SPV''s equity share capital.

d. Information about the Company''s exposure to credit risk, market risk and fair value measurement is included in
Notes 42 and 48.

* As per the terms of the agreement and in-line with the guidance under the applicable accounting standards, these
investments would not be a subsidiary or associate of the Company.

Notes :

a. Trade receivables are pledged against the borrowings of the Company as referred in Note 17.

b. For ageing analysis of trade receivables, refer Note 43(a).

c. No trade or other receivable are due from directors or other officers of the Company either severally or jointly with
any other person nor any trade or other receivable are due from firms or private companies respectively in which
any director is a partner, a director or a member.

d. Information about the Company''s exposure to credit risk, market risk and fair value measurement is included in
Notes 42 and 48.

* The above unsecured trade receivables include receivables considered good in respect of which the Company holds
guarantees from banks amounting to H 2,567.47 lacs (March 31, 2024: H 2,063.75 lacs).

a) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of H 1 per share. Each holder of equity shares
is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed
by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of
the Company after distribution of all preferential amounts, in proportion to their shareholding.

During the year ended March 31,2025, final dividend of H 1.50 per share (March 31,2024: H 1 per share) and Interim dividend
of Nil per share (March 31, 2024: H 0.75 per share) was recognised for distribution to equity shareholders respectively.
The Board of Directors, at its meeting on April 13, 2025, have proposed a dividend of H 0.50 per equity share for the
financial year ended March 31, 2025. The proposal is subject to the approval of shareholders at the forthcoming
Annual General Meeting and if approved would result in a cash outflow of approximately H 1,025.55 lacs. The dividend
is accounted for in the year in which it is approved by the shareholders. The proposed dividend is inclusive of Tax
deducted at source.

During the five years period ended March 31, 2025, no shares have been bought back or issued for consideration
other than cash and no bonus shares have been issued.

The Description of the nature and purpose of each reserve is as follows -

General Reserve: The General reserve is created by a transfer from one component of other equity to another and is not
an item of other comprehensive income, items included in the General reserve will not be reclassified subsequently to
the Statement of Profit and Loss.

Securities Premium : Securities premium is used to record the premium on issue of shares. It is utilised in accordance
with the provisions of the Companies Act 2013.

Employee Stock Options Outstanding Reserve: The Company has share option schemes under which options to subscribe
for the Company''s shares have been granted to certain executives and senior employees. The employee stock options
outstanding reserve is used to recognise the value of equity-settled share-based payments provided to employees,
including key management personnel, as part of their remuneration. Refer to Note 35 for further details of these plans.

Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general
reserve, dividends paid to shareholders. Retained earnings includes re-measurement gain/(loss) on defined benefit plans,
net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available
to the Company.

Provision for mining restoration costs

The activities of the Company involve mining of land taken under lease. In terms of relevant statutes, the mining areas
would require restoration at the end of the mining lease. The future restoration expenses are affected by a number of
uncertainties, such as, technology, timing etc. Because of the long-term nature of the liability, the greatest uncertainty in
estimating the provision is the costs that will be incurred. In particular, the Company has assumed that the mine will be
restored using technology and materials that are currently available. The provision has been calculated using a discount
rate of 8.50% p.a. (March 31, 2024: 8.50% p.a), which is the risk-free rate. As per the requirement of Ind AS 37, the
management has estimated such future expenses on a best judgment basis and provision thereof has been made in the
accounts at their present value. The table below gives information about movement in mining restoration cost provisions.

Provision for rehabilitation and resettlement obligation relating to mines

In terms of Environment clearance given by Ministry of Environment, Forest and Climate Change (MOEF) for the
Company''s integrated plant at Chittapur, Karnataka, the Company is required to spend H 7,261.62 lacs on socio economic
welfare measures by 2025. Further, the Company got an extension letter from the Government of Karnataka to spend
the remaining liability by September, 2028. There are no uncertainties in the projected cash flows. The provision has
been calculated using a discount rate of 8.5% p.a (March 31, 2024: 8.50% p.a), which is the risk-free rate As per the
requirement of Ind AS 37, provision thereof has been made in the accounts at their present value. The table below gives
information about movement in rehabilitation and resettlement cost provisions.

35. Employee stock option scheme

The Company provides share-based payment schemes to its employees. The Company had formulated an employee
stock option scheme, namely Employee Stock Option Scheme 2015 (ESOP) in an earlier year. The relevant details of the
scheme and grant are as below:

(a) On May 8, 2015, the Board of Directors approved the Employee Stock Option Scheme 2015 for issue of stock
options to the key employees of the Company. According to the scheme, the employee selected by the remuneration
committee from time to time will be entitled to options, subject to satisfaction of the prescribed vesting conditions
viz, continuing employment on the roll of the Company as on April 01, 2015 as well as new employees who replaces
the old eligible employee and joins the employment of the Company before June 30, 2017 and continuing employment
till grant date.

These defined benefit plans expose the Company to actuarial risks, such as Interest rate risk, Liquidated risk, Salary
Escalation risk, Demographic risk and Regulatory risk.

Asset Liability matching strategy: The money contributed by the Company to the Gratuity fund to finance the liabilities
of the plan has to be invested. The trustees of the plan have outsourced the investment management of the fund to an
insurance Company. The insurance Company in turn manages these funds as per the mandate provided to them by the
trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to
the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset
liability matching strategy. There is no compulsion on the part of the Company to fully refund the liability of the Plan.
The Company''s philosophy is to fund these benefits based on its own liquidity and the level of underfunding of the plan.

The exercise period for the aforesaid Employee stock options was lapsed on 04 August 2023 without any options
being exercised. Accordingly, the Company reversed the amount accumulated in Employee stock option outstanding
reserve for the aforesaid grant to Retained Earnings in the respective year.

(b) On November 09, 2022, the Board of Directors, granted 310,099 stock options under Employee Stock Option Scheme
2015 out of which award letters for 241,137 stock options have been issued to the Eligible Employees. According to
the scheme, the employee selected by the remuneration committee from time to time will be entitled to options,
subject to satisfaction of the prescribed vesting conditions.

The weighted average remaining contractual life of the stock options is Nil years (March 31, 2024: 0.97 years).

The Employee Stock Option Allotment committee in its meeting held on 27 November 2024 had approved for
allotment of the grant of 241,137 stock options under the existing Orient Cement Employee Stock Option Scheme
- 2015 ("Plan”) to eligible employees of the Company. The exercise period for the aforesaid Employee stock options
was exercised on 08 November 2024.

(c) On November 09, 2023, the Board of Directors, additionally, granted 349,976 stock options under Employee Stock
Option Scheme 2015 to the Eligible Employees. According to the scheme, the employee selected by the remuneration
committee from time to time will be entitled to options, subject to satisfaction of the prescribed vesting conditions.
The fair value of the employee stock option plan has been measured using the Black Scholes formula. Service and

Note :

a. The plea by the Company challenging the constitutional validity of Electricity duty demand of H 1,691.31 lacs had
been dismissed by the Hon''ble High Court, Hyderabad in an earlier year. The Company, along with other industry
members, had appealed the matter before Hon''ble Supreme Court of India by paying a protest money of H 1,005.76
lacs, where the hearing is pending. Based on management''s internal assessment and also considering advice of an
external legal counsel, the Company believes that the demand shall not sustain under law.

b. Based on discussions with the solicitors/ favourable decisions in similar cases/legal opinions taken by the Company,
the management believes that the Company has a good chance of success in above-mentioned cases and hence,
no provision there against is considered necessary. The timing of outflow of resources in not ascertainable.

c. The amounts assessed as contingent liability do not include interest that could be claimed by counter parties.

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 Company does not have higher concentration of
credit risks since no single customer accounted for
10% or more of the Company''s net sales.

Expected credit loss assessment

The Company has used a practical expedient by
computing the expected loss allowance for financial
assets based on historical credit loss experience and
adjustments for forward looking information. As per
simplified approach, the Company makes provision
of expected credit losses on trade receivables using
a provision matrix to mitigate the risk of default
payments and makes appropriate provision at each
reporting date wherever outstanding is for longer
period and involves higher risk. - Quantitative disclosure
of trade receivables bucket wise along with ECL has
been provided in Note 43(a). Ageing Schedule."

Financial assets other than trade receivables

Credit Risk on cash and cash equivalent and term
deposits is generally low as these are kept with
banks who have been assigned high credit rating
by international and domestic rating agencies.
Investments of surplus funds are made only with
Financial Institutions approved by Reserve Bank India.

Balances with banks were not past due or impaired
as at year end. Other than the details disclosed
below, other financial assets are not past due and
not impaired, there were no indications of default in
repayment as at year end.

Loans: All of the Company''s loans at amortised cost
are considered to have low credit risk, and the loss
allowance, if any, is limited to 12 months'' expected
losses. Management considers instruments to be low
credit risk when they have a low risk of default and the
borrower has a strong capacity to meet its contractual
cash flow obligations in the near term.

Investments : The Company has investments in
special purpose vehicles incorporated for the purpose
of setting up solar power plant for supply of power
over the term of power purchase agreement (i.e.,
15-25 years) and mutual funds, thereby limiting the
exposure to credit risk. All the counterparties have
sound financial position with positive net worth.
The Company does not expect any losses from
non-performance by these counter parties.

Liquidity risk

Liquidity risk is defined as the risk that the Company
will not be able to settle or meet its obligations 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.

The Company''s objective is to maintain a balance
between continuity of funding and flexibility through
the use of cash credits, bank loans among others.

44. Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders and issue new shares. The Company monitors capital
using debt-equity ratio, which is total debt less cash and cash equivalents and current investments divided by total equity.

48. Fair Value

Accounting classification and fair values

Set out below, is the comparison of the fair values of the financial assets and liabilities included at the amount at
which the instrument could be exchanged in an orderly transaction in the principal (or most advantageous) market at
measurement date under the current market condition regardless of whether that price is directly observable or estimated
using other valuation techniques.

The Company has established the following fair value hierarchy that categorises the values into 3 levels. The inputs to
valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value
of all securities which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the
reporting date. The mutual fund units are valued using the closing Net Asset Value.

Level 2: The fair value of financial instruments that are not traded in an active market (For example traded bonds, over
the counter derivatives) is determined using valuation techniques which maximise the use of observable market data
and rely as little as possible on company 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.

The fair value of the financial assets and liabilities approximates their carrying amounts as at the balance sheet date.
Accordingly, They are present together below:

50. Other Statutory Information:

i. The Company do not have any Benami property and neither any proceedings have been initiated or is pending against
the Company for holding any Benami property.

ii. The Company do not have any transactions with companies struck off except as given below -

49. The Indian Parliament has approved the Code on Social
Security, 2020 which would impact the contributions
by the company towards Provident Fund and Gratuity.
The Ministry of Labour and Employment had released
draft rules for the Code on Social Security, 2020 on
November 13, 2020. The Company will assess the

impact and its evaluation once the subject rules are
notified. The Company will give appropriate impact
in its financial statements in the period in which,
the Code becomes effective and the related rules to
determine the financial impact are published.

the 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.

xii. The Company has complied with the number of layers
prescribed under the Companies Act, 2013.

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

xiv. Details of loans or investments covered under the
provisions of Section 186 of the Companies Act, 2013,
as applicable are provided in Note 11.

51. Ambuja Cements Limited (the "Acquirer"), entered
into Share Purchase Agreements ("Agreements") with
the promoter group and certain other shareholders
on October 22, 2024 pursuant to which, the Acquirer
shall obtain 46.80% of the shareholding of the
Company subject to the terms and conditions as set
out in the Agreements. The Acquirer received the
approval from the Competition Commission of India
(CCI) on March 04, 2025.

As on the date of approval of these audited financial
statements by the Board, the promoter group
continues to be the existing shareholders, pending
consummation of the underlying transaction and the
completion of Open offer.

iii. The Company do not have any charges or satisfaction
which is yet to be registered with ROC beyond the
statutory period.

iv. The Company has not been declared a wilful defaulter
by any bank or financial institution or government or
any government authority or any other lender during
the current period.

v. The Company have not advanced or loaned or
invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the
understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or
on behalf of the Ultimate Beneficiaries

vi. The Company has not received any fund from
any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that
the Company shall:

a. 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

b. provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

vii. All quarterly returns or statements of current
assets are filed by the Company with banks or
financial institutions and are in agreement with the
books of accounts.

viii. The loan has been utilised for the purpose for which it
was obtained and no short term funds have been used
for long term purpose.

ix. The Company has not revalued its property, plant and
equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

x. The Company has not traded or invested in Crypto
currency or Virtual Currency during the financial year.

xi. The Company does not have any such transaction
which is not recorded in the books of accounts that
has been surrendered or disclosed as income during

As per our report of even date attached

For B S R & Associates LLP For and on behalf of Board of Directors

Chartered Accountants

ICAI firm registration number: 116231W/W-100024

Balkishan Kabra CK Birla D.D. Khetrapal

Partner Chairman Managing Director & CEO

Membership No.: 221202 (DIN 00118473) (DIN 02362633)

Place: New Delhi Place: New Delhi

P.C. Jain Diksha Singh

Chief Financial Officer Company Secretary

(FCA 079601) (ACS 44999)

Place: Hyderabad Place: Hyderabad Place: New Delhi

Date: April 13, 2025 Date: April 13, 2025

---

Mar 31, 2024

a. The purpose of investment in AMPSolar Systems Private Limited ("AMP Solar") was to set up a solar power plant in Maharashtra under Captive Scheme for Company''s grinding unit at Jalgaon.

b. During the year, The Company has entered into a Share Subscription and Shareholders'' Agreement (SSSHA) with Cleantech Solar India OA2 Pte. Ltd and Ardeur Renewables Private Limited (“SPV”) for the purpose of setting up solar power plant with a capacity of 16 MWdc for Chittapur plant in the state of Karnataka and 3.7 MWdc for Jalgaon plant in the state of Maharashtra under Captive Scheme. The Company has paid an investment consideration of H 731.00 lakhs to acquire 913,750 equity shares of Ardeur Renewables Private Limited at H 80.00 (Face Value of H 10.00) each constituting 29.13% stake of the SPV''s equity share capital.

c. Information about the Company''s exposure to credit risk, market risk and fair value measurement is included in Notes 42 and 48.

As per the terms of the agreement and in-line with the guidance under the standards, These investments would not be a subsidiary or associate of the Company.

a. Trade receivables are pledged against the borrowings of the Company as referred in Note 17.

b. For ageing analysis of trade receivables, refer Note 43(a).

c. No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

d. Information about the Company''s exposure to credit risk, market risk and fair value measurement is included in Notes 42 and 48.

There is no change in the number of shares in current year and corresponding previous year.

a) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of H 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

During the year ended March 31,2024, final dividend of H 1 per share (March 31,2023: H 1.75 per share) and Interim dividend of H 0.75 per share (March 31,2023: H 0.50 per share) was recognised for distribution to equity shareholders respectively.

The Board of Directors, at its meeting on May 01,2024, have proposed a final dividend of H 1.50 per equity share for the financial year ended March 31,2024. The proposal is subject to the approval of shareholders at the forthcoming Annual General Meeting and if approved would result in a cash outflow of approximately H 3,073.04 lacs. Final dividend is accounted for in the year in which it is approved by the shareholders.The proposed dividend is inclusive of Tax deducted at source.

During the five years period ended March 31,2024, no shares have been bought back or issued for consideration other than cash and no bonus shares have been issued.

The Description of the nature and purpose of each reserve is as follows -

General Reserve: The General reserve is created by a transfer from one component of other equity to another and is not an item of other comprehensive income, items included in the General reserve will not be reclassified subsequently to the Statement of Profit and Loss.

Employee Stock Options Outstanding: The Company has share option schemes under which options to subscribe for the Company''s shares have been granted to certain executives and senior employees. The share based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration. Refer to Note 35 for further details of these plans.

Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends paid to shareholders. Retained earnings includes re-measurement gain/(loss) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

The activities of the Company involve mining of land taken under lease. In terms of relevant statutes, the mining areas would require restoration at the end of the mining lease. The future restoration expenses are affected by a number of uncertainties, such as, technology, timing etc. Because of the long-term nature of the liability, the greatest uncertainty in estimating the provision is the costs that will be incurred. In particular, the Company has assumed that the mine will be restored using technology and materials that are currently available. The provision has been calculated using a discount rate of 8.50% p.a, which is the risk-free rate. As per the requirement of Ind AS 37, the management has estimated such future expenses on a best judgment basis and provision thereof has been made in the accounts at their present value. The table below gives information about movement in mining restoration cost provisions.

In terms of Environment clearance given by Ministry of Environment, Forest and Climate Change (MOEF) for the Company''s integrated plant at Chittapur, Karnataka, the Company is required to spend H 7,261.62 lacs on socio economic welfare measures by 2025. In the current year, the Company got an extension letter from the Government of Karnataka to spend the remaining liability by September, 2028. There are no uncertainties in the Cash flows.The provision has been calculated using a discount rate of 8.50% p.a, which is the risk-free rate As per the requirement of Ind AS 37, provision thereof has been made in the accounts at their present value. The table below gives information about movement in rehabilitation and resettlement cost provisions.

The Company, based on assessment and evaluations carried out by the management, continues to pay income tax under older tax regime during the year ended March 31, 2024. The Company did not opt for lower tax rate of 25.17% (inclusive of surcharge and cess) under section 115BAA of the Income Tax Act, 1961 pursuant to Taxation Law (Amendment) Ordinance, 2019, considering accumulated MAT credit, and other benefits under the Income Tax Act, 1961.

a. The Company is primarily in the business of manufacture and sale of cement. The product shelf life being short, all sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/delivery. There is no significant financing component in any transaction with the customers.

b. The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration.

c. The Company does not provide performance warranty for products, therefore there is no liability towards performance warranty.

d. The management determines that there is only one business segment viz. Manufacturing and Sales of Cement as per the segment information reported under Note 34 Segment reporting, hence there is no requirement to disclose disaggregation of revenue under Ind AS 115 Revenue from contract with Customers separately.

34. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Payment of Gratuity Act, 1972, employee who has completed five years of service is entitled to specific benefit. The scheme is funded with insurance companies in the form of qualifying insurance policy for own employees and unfunded for contractor and school employees.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the plan.

These defined benefit plans expose the Company to actuarial risks, such as Interest rate risk, Liquidated risk, Salary Escalation risk, Demographic risk and Regulatory Risk.

Asset Liability matching strategy: The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested. The trustees of the plan have outsourced the investment management of the fund to an insurance Company. The insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy. There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company''s philosophy is to fund these benefits based on its own liquidity and the level of underfunding of the plan.

35. Employee stock option scheme

The Company provides share-based payment schemes to its employees. The Company had formulated an employee stock option scheme, namely Employee Stock Option Scheme 2015 (ESOP) in an earlier year. The relevant details of the scheme and grant are as below:

(a). On May 8, 2015, the Board of Directors approved the Employee Stock Option Scheme 2015 for issue of stock options to the key employees of the Company. According to the scheme, the employee selected by the remuneration committee from time to time will be entitled to options, subject to satisfaction of the prescribed vesting conditions viz, continuing employment on the roll of the Company as on April 01,2015 as well as new employees who replaces the old eligible employee and joins the employment of the Company before June 30, 2017 and continuing employment till grant date.

The exercise period for the aforesaid Employee stock options was lapsed on 04 August 2023 without any options being exercised. Accordingly, the Company reversed the amount accumulated in Employee stock option outstanding reserve for the aforesaid grant to Retained Earnings.

(b). On November 09, 2022, the Board of Directors, additionally, granted 310,099 stock options under Employee Stock Option Scheme 2015 out of which award letters for 241,137 stock options have been issued to the Eligible Employees. According to the scheme, the employee selected by the remuneration committee from time to time will be entitled to options, subject to satisfaction of the prescribed vesting conditions.

The fair value of the employee stock option plan has been measured using the Black Scholes formula. Service and non-market conditions attached to the arrangements were not taken into account in measuring fair value. The inputs used in the measurement of the fair value at the grant date is as follows:

Expected volatility has been based on an evaluation of the historical volatility of the Company''s share price, particularly over the historical period commensurate with the expected term. The expected term of the instrument has been based on historical experience and general option holder behaviour.

The weighted average remaining contractual life of the stock options is 0.97 years (March 31,2023: 1.97 years).

(c). On November 09, 2023, the Board of Directors, additionally, granted 349,976 stock options under Employee Stock Option Scheme 2015 to the Eligible Employees. According to the scheme, the employee selected by the remuneration committee from time to time will be entitled to options, subject to satisfaction of the prescribed vesting conditions.

The fair value of the employee stock option plan has been measured using the Black Scholes formula. Service and non-market conditions attached to the arrangements were not taken into account in measuring fair value. The inputs used in the measurement of the fair value at the grant date is as follows:

The weighted average remaining contractual life of the stock options is 3 years (March 31,2023: Nil).

Effect of Employee Stock Option Plans on the Company''s profit and loss for the year and on it financial position:

- For details of the related employee benefits expense, see Note 29.

- For details of the related Employee stock option outstanding reserve, see Note 16.

36.Leases

The Company has lease contracts for various items of plant and machinery, Computers and buildings used in its operations with lease terms between 1 and 16 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. The Company is restricted from assigning and subleasing the leased assets.

The Company also has certain leases of machinery with lease terms of 12 months or less and leases of office equipment with low value. The Company applies the ‘short-term lease'' and ‘lease of low-value assets'' recognition exemptions for these leases.

a. The plea by the Company challenging the constitutional validity of Electricity duty demand of H 1,691.31 lacs had been dismissed by the Hon''ble High Court, Hyderabad in an earlier year. The Company, along with other industry members, had appealed the matter before Hon''ble Supreme Court of India by paying a protest money of H 1,005.76 lacs, where the hearing is pending. Based on management’s internal assessment and also considering advice of an external legal counsel, the Company believes that the demand shall not sustain under law.

b. Based on discussions with the solicitors/ favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary. The timing of outflow of resources in not ascertainable.

(a). The basis of the provision made for the gratuity and compensated absences to the key managerial personnel are determined on the acturial report obtained by the Company.

* Accounted as per Indian Accounting Standard 116 (‘Ind AS 116’)

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash and cash equivalents. There has been no guarantees provided or received for any related party receivables or payables. For the year ended March 31,2024 and March 31,2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

41. The management has considered that the Company has a single reportable segment based on nature of products, production process, regulatory environment, customers and distribution methods. Further, the Company is engaged in single product line of manufacturing and selling cement and its customers and non-current assets are located in India only. No customer individually accounted for more than 10% of the revenues during the year ended March 31,2024 and March 31,2023.

42. Financial risk management objectives and policies

The Company''s financial liabilities primarily comprise borrowings, lease liabilies, security deposits, and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets primarily include trade and other receivables, cash and cash equivalents and Investments.

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 summarised 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.

Commodity Price Risk

The Company is exposed to commodity price risk arising out of fluctuation in prices of raw materials (flyash, gypsum and laterite) and fuel (coal and pet coke). Such price movements, mostly linked to external factors, can affect the production cost of the Company. To manage this risk, the Company take steps such as monitoring of prices, optimising fuel mix and pursue longer and fixed price contracts, where considered necessary. Additionally, processes and policies related to such risks are controlled by central procurement team and reviewed by the senior management.

Interest rate risk

The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s borrowing with floating interest rates. [March 31,2024: Rs 10,271.55 lakhs (March 31,2023: Rs 36,651.51 lakhs)]. The Company has not used any interest rate derivatives. Further, the Company has exposure to risk of changes in market interest rates on fixed instruments such as bank deposits and security deposits from dealers. However, these are not considered to be material. Accordingly, no separate disclosure is made.

Foreign currency risk

The Company''s exposure to the risk of changes in foreign exchange rates is not significant.

Credit 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 and investments in equity and debt securities. The Company has no significant concentration of credit risk with any counterparty.

Trade receivables

Customer credit risk is managed by the respective department subject to Company''s 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 Company does not have higher concentration of credit risks since no single customer accounted for 10% or more of the Company''s net sales.

Expected credit loss assessment

The Company has used a practical expedient by computing the expected loss allowance for financial assets based on historical credit loss experience and adjustments for forward looking information. As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk. Quantitative disclosure of trade receivables bucket wise along with ECL has been provided in Note 43(a). Ageing Schedule.

Financial assets other than trade receivables

Credit Risk on cash and cash equivalent and term deposits is generally low as these are kept with banks who have been assigned high credit rating by international and domestic rating agencies. Investments of surplus funds are made only with approved Financial Institutions approved by Reserve Bank India.

Balances with banks were not past due or impaired as at year end. Other than the details disclosed below, other financial assets are not past due and not impaired, there were no indications of default in repayment as at year end.

Loans: All of the Company''s loans at amortised cost are considered to have low credit risk, and the loss allowance, if any, is limited to 12 months'' expected losses. Management considers instruments to be low credit risk when they have a low risk of default and the borrower has a strong capacity to meet its contractual cash flow obligations in the near term.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations 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.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, bank loans among others.

44. Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders and issue new shares. The Company monitors capital using debt-equity ratio, which is total debt less cash and cash equivalents and current investments divided by total equity.

1) . The amount remained unspent as at the year end March 31,2024 and March 31,2023 due to delay in receiving certain administrative

approvals from authorities in relation to the on-going school project. The entire unspent amount has been deposited into an "Unspent CSR account" within the due dates as mentioned in the Section 135 of the Companies Act, 2013.

2) . In view of the ongoing CSR commitments of the Company towards promoting education, healthcare and rural development, vis a

vis, the statutory CSR obligations of the Company calculated as per the provisions of Section 135 of the Companies Act, 2013, it is likely that the amount available for set off would be utilised by the Company during the succeeding three financial years.

48. Fair Value

Accounting classification and fair values

Set out below, is the comparison of the fair values of the financial assets and liabilities included at the amount at which the instrument could be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition regardless of whether that price is directly observable or estimated using other valuation techniques.

The Company has established the following fair value hierarchy that categorises the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all securities which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (For example traded bonds, over the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on company specific estimates. The mutual fund units are valued using the closing Net Asset Value. 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.

Investments in Equity and debt instruments, which are classified as FVTPL are measured using Discounted Cash flow method at the reporting date. The discount rates used is based on management estimates.

Valuation techniques and significant unobservable inputs:

The following tables show the valuation techniques used in measuring Level 3 fair values for financial instruments in the Balance sheet, as well as the significant unobservable input used in measuring Level 3 fair values for financial instruments:

49. The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

50. Other Statutory Information:

i. The Company do not have any Benami property and neither any proceedings have been initiated or is pending against the Company for holding any Benami property.

ii. The Company do not have any transactions with companies struck off.

iii. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv. The Company has not been declared a willful defaulter by any bank or financial institution or government or any government authority or any other lender during the current period.

v. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vi. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii. All quarterly returns or statements of current assets are filed by the Company with banks or financial institutions and are in agreement with the books of accounts.

viii. The loan has been utilised for the purpose for which it was obtained and no short term funds have been used for long term purpose.

ix. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during

the current or previous year.

x. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

xi. The Company has not any such transaction which is 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

xii. The Company has complied with the number of layers prescribed under the Companies Act, 2013.

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

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Mar 31, 2023

a. Information about the Company''s exposure to credit risk, market risk and fair value measurement is included in Note 43 and 49.

b. No loans are due from directors or other officers of the Company either severally or jointly with any other person nor any loans are due from firms or private companies respectively in which any director is a partner, a director or a member.

#Receipts for H 1,110.31 lacs (March 31, 2022: H 950.13 lacs) are lodged with Government Departments/Banks as security.

*Includes H 576.75 lacs (March 31, 2022 : H 576.75 lacs) receivable towards reimbursement of sales tax under Industrial Investment Promotion Policy (IIPP 2005-2010) Scheme of Andhra Pradesh. Other receivables include REC receivable, discount receivable on fuels, etc. Information about the Company''s exposure to credit risk, market risk and fair value measurement is included in Note 43 and 49.

a. Trade receivables are pledged against the borrowings of the Company as referred in Note 17.

b. For ageing analysis, credit risk and market risk of trade receivables, refer Note 43 & 44.

c. No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person nor

any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

a) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of H 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

During the year ended March 31, 2023, final dividend of H 1.75 per share (March 31, 2022: H 1.50 per share) and Interim dividend of H 0.50 per share (March 31, 2022: H 0.75 per share) was recognised for distribution to equity shareholders respectively.

The Board of Directors, at its meeting on April 28, 2023, have proposed a final dividend of H 1 per equity share for the financial year ended March 31, 2023. The proposal is subject to the approval of shareholders at the forthcoming Annual General Meeting and if approved would result in a cash outflow of approximately H 2048.69 lacs. Final dividend is accounted for in the year in which it is approved by the shareholders.

During the five years period ended March 31, 2023, no shares have been bought back/ issued for consideration other than Cash and no bonus shares have been issued.

General Reserve: The General reserve is created by a transfer from one component of other equity to another and is not an item of other comprehensive income, items included in the General reserve will not be reclassified subsequently to the Statement of Profit and Loss.

Employee Stock Options Outstanding: The Company has share option schemes under which options to subscribe for the Company''s shares have been granted to certain executives and senior employees. The share based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration. Refer to Note 36 for further details of these plans.

Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends paid to shareholders. Retained earnings includes re-measurement gain/(loss) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

During the year, the Department of Industries and Commerce, Government of Karnataka, disbursed an interest-free loan of H 3,798.51 lacs in September 2022 and H 1,793.35 lacs in March 2023, under the Karnataka Industrial Policy (2009-2014), for the investment made by the Company in its integrated plant at Chittapur. The loan amount pertains to VAT and SGST paid during the period 2015-22 and is to be repaid in four equal annual payments beginning September 2032 and March 2033 respectively. The bank guarantee of equivalent amount has been furnished to the Government of Karnataka as a security. On disbursement, borrowing was recognised at its fair value of H 2,432.58 lacs and carried at amortised cost, and the balance proceeds of H 3,159.28 lacs have been categorised as deferred income of government grant under other current and non-current liabilities.

Provision for mining restoration costs

The activities of the Company involve mining of land taken under lease. In terms of relevant statutes, the mining areas would require restoration at the end of the mining lease. The future restoration expenses are affected by a number of uncertainties, such as, technology, timing etc. As per the requirement of Ind AS 37, the management has estimated such future expenses on best judgment basis and provision there of has been made in the accounts at their present value. The table below gives information about movement in mining restoration cost provisions.

Provision for rehabilitation & resettlement obligation relating to mines

In terms of Environment clearance given by Ministry of Environment, Forest and Climate Change (MOEF) for the Company''s integrated plant at Chittapur, Karnataka, the Company is required to spend H 7,261.62 lacs on socio economic welfare measures. As per the requirement of Ind AS 37, provision thereof has been made in the accounts at their present value. The table below gives information about movement in rehabilitation & resettlement cost provisions.

The applicable Indian statutory tax rate for fiscal year 2023 is 34.94% and fiscal year 2022 is 34.94%.

The Company, based on assessment and evaluations carried out by the management, continues to pay income tax under older tax regime during the year ended March 31, 2023. The Company did not opt for lower tax rate of 25.17% (inclusive of surcharge and cess) under section 115BAA of the Income Tax Act, 1961 pursuant to Taxation Law (Amendment) Ordinance, 2019, considering accumulated MAT credit, and other benefits under the Income Tax Act, 1961.

Disaggregated revenue information

a. The Company is primarily in the business of manufacture and sale of cement. The product shelf life being short, all sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/delivery. There is no significant financing component in any transaction with the customers.

b. The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration.

c. The Company does not provide performance warranty for products, therefore there is no liability towards performance warranty.

d. The management determines that the segment information reported in Note 42 is sufficient to meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115 Revenue from contract with customers.

35. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Payment of Gratuity Act, 1972, employee who has completed five years of service is entitled to specific benefit. The scheme is funded with insurance companies in the form of qualifying insurance policy for own employees and unfunded for contractor and school employees.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the plan.

The estimates of future salary increases, considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

36. Employee stock option scheme

(a). The Company provides share-based payment schemes to its employees. The Company had formulated an employee stock option scheme, namely Employee Stock Option Scheme 2015 (ESOP) in an earlier year. The relevant details of the scheme and grant are as below:

On May 8, 2015, the Board of Directors approved the Employee Stock Option Scheme 2015 for issue of stock options to the key employees of the Company. According to the scheme, the employee selected by the remuneration committee from time to time will be entitled to options, subject to satisfaction of the prescribed vesting conditions viz, continuing employment on the roll of the Company as on April 01, 2015 as well as new employees who replaces the old eligible employee and joins the employment of the Company before June 30, 2017 and continuing employment till grant date. The other relevant terms of the grant are as below:

No option has been exercised as on the year end under the above scheme.

The weighted average remaining contractual life of the stock options is 0.34 years (March 31, 2022: 1.34 years)

The weighted average fair value of the stock options granted was H 105.64 (March 31, 2022 H 105.64).

The expected life of the stock is based on current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

(b). On November 09, 2022, the Board of Directors,additionally, granted 310,099 stock options under Employee Stock Option Scheme 2015 out of which award letters for 241,137 stock options have been issued to the Eligible Employees. According to the scheme, the employee selected by the remuneration committee from time to time will be entitled to options, subject to satisfaction of the prescribed vesting conditions. The relevant terms of the grant are as below:

Date of Grant November 9, 2022

Vesting Period 100% vest after 2 years

Exercise Period (In Years) 0.71

Expected Life (In Years) 2.36

Exercise Price (H) 1 36.75

Market price as on November 9, 2022 (H) 1 36.75

The weighted average remaining contractual life of the stock options is 2.36 years.

The expected life of the stock is based on current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

The weighted average fair value of stock options granted was H 38.14. The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs :

March 31,2023

Dividend yield (%) 1.83%

Expected volatility 40.33%

Risk-free Interest rate 7%

Weighted average share price (H) 1 83.50

Exercise price (H) 1 36.75

Expected life of options granted in years 2.36

37. Leases

The Company has lease contracts for various items of plant, machinery, vehicles and other equipment used in its operations. Leases of buldings, computers and other equipment generally have lease terms between 1 and 5 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets.

The Company also has certain leases of machinery with lease terms of 12 months or less and leases of office equipment with low value. The Company applies the ''short-term lease'' and ''lease of low-value assets'' recognition exemptions for these leases.

39. Contingent liabilities (H in Lacs)
Particulars	Brief Description of Matter	March 31, 2023	March 31, 2022
Claims against the Company not acknowledged as debt :
Excise Duty and Customs Related to CENVAT credit on Structural Steel and Differential Custom Duty on Steam Coal.		768.87	780.15
Sales Tax (including Entry Tax) Related to levy of Sales Tax on Debit Note issued to Customers towards Railway Freight Reimbursement and levy of Entry Tax and Penalty thereon on Diesel and Lubricants etc purchased from outside Telangana State which is consumed for other than notified purpose.		809.20	1,060.37

(H in Lacs)
Particulars	Brief Description of Matter	March 31, 2023	March 31, 2022
Income Tax Related to income tax appeals on disallowance of ESOP expenses, depreciation and others.		1,038.19	1,137.12
Electricity Duty Refer note ''a'' below.		1,691.31	1,691.31
Others Related to power fuel surcharge adjustment, deduction of liquidatory damages and others.		1,710.45	1,683.25
		6,018.02	6,352.20

Note :

a. The plea by the Company challenging the constitutional validity of Electricity duty demand of H 1,691.31 lacs had been dismissed by the Hon''ble High Court, Hyderabad in an earlier year. The Company, along with other industry members, had appealed the matter before Hon''ble Supreme Court of India by paying a protest money of H 1,005.76 lacs, where the hearing is pending. Based on management''s internal assessment and also considering advice of an external legal counsel, the Company believes that the demand shall not sustain under law.

b. Based on discussions with the solicitors/favourable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary. The timing of outflow of resources in not ascertainable.

Note:(a).The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.

(b).The above amounts are presented net of GST.

* Accounted as per Indian Accounting Standard 116 (''Ind AS 116'')

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash and cash equivalents. There has been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

42. The management has considered that the Company has a single reportable segment based on nature of products, production process, regulatory environment, customers and distribution methods. Further, the Company is engaged in single product line of manufacturing and selling cement and its customers and non-current assets are located in India only.

No customer individually accounted for more than 10% of the revenues from external customers during the year ended March 31, 2023 and March 31, 2022.

43. Financial risk management objectives and policies

The Company''s financial liabilities primarily comprise borrowings, lease liabilies, security deposits, and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets primarily include trade and other receivables, cash and cash equivalents and Investments.

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 summarised 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.

Commodity Price Risk

The Company is exposed to commodity price risk arising out of fluctuation in prices of raw materials (flyash, gypsum and laterite) and fuel (coal and pet coke). Such price movements, mostly linked to external factors, can affect the production cost of the Company. To manage this risk, the Company take steps such as monitoring of prices, optimising fuel mix and pursue longer and fixed price contracts, where considered necessary. Additionally, processes and policies related to such risks are controlled by central procurement team and reviewed by the senior management.

Interest rate risk

The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

Foreign currency risk

The Company''s exposure to the risk of changes in foreign exchange rates is 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 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 Company does not have higher concentration of credit risks since no single customer accounted for 10% or more of the Company''s net sales.

Expected credit loss assessment

The Company has used a practical expedient by computing the expected loss allowance for financial assets based on historical credit loss experience and adjustments for forward looking information. As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Financial assets other than trade receivables

Credit Risk on cash and cash equivalent and term deposits is generally low as these are kept with banks who have been assigned high credit rating by international and domestic rating agencies. Investments of surplus funds are made only with approved Financial Institutions approved by Reserve Bank India.

Investments primarily include investment in units of liquid mutual funds (debt market) and fixed deposits with banks having low credit risk.

Total non-current investments (other than subsidiaries and joint arrangements) and investments in liquid mutual funds as on March 31, 2023 are H 416.49 Lacs and H Nil (March 31, 2022: H 416.49 lacs and H 1001.31 lacs) respectively.

Balances with banks were not past due or impaired as at year end. Other than the details disclosed below, other financial assets are not past due and not impaired, there were no indications of default in repayment as at year end.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations 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.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, bank loans among others.

45. Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders and issue new shares. The Company monitors capital using debt-equity ratio, which is total debt less cash and cash equivalents and current investments divided by total equity.

49. Fair Value

Accounting classification and fair values

Set out below, is the comparison of the fair values of the financial assets and liabilities included at the amount at which the instrument could be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition regardless of whether that price is directly observable or estimated using other valuation techniques.

The Company has established the following fair value hierarchy that categorises the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all securities which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (For example traded bonds, over the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on company specific estimates. The mutual fund units are valued using the closing Net Asset Value. 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.

The fair value of the financial assets and liabilities approximates their carrying amounts as at the balance sheet date.

The fair value of investments in other securities, trade receivables, loans, other financial assets, cash and cash equivalents, other bank balances, borrowings, trade payables, lease liabilities and other financial liabilities approximate their carrying amount largely due to short-term nature of these instruments.Investments in mutual funds, which are classified as FVTPL are measured using net assets value at the reporting date multiplied by the quantity held.

50 .The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

51. Other Statutory Information:

i. The Company do not have any Benami property and neither any proceedings have been initiated or is pending against the Company for holding any Benami property.

ii. The Company do not have any transactions with companies struck off.

iii. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv. The Company has not been declared a wilful defaulter by any bank or financial institution or any other lender during the current period.

v. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vi. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the

understanding (whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii. All quarterly returns or statements of current assets are filed by the Company with banks or financial institutions and are in agreement with the books of accounts.

viii. The loan has been utilised for the purpose for which it was obtained and no short term funds have been used for long term purpose.

ix. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the

current or previous year.

x. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

xi. The Company has not any such transaction which is 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

xii. The Company has complied with the number of layers prescribed under the Companies Act, 2013.

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

---

Mar 31, 2022

a) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of H 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

During the year ended March 31,2022, final dividend of H 1.50 per share (March 31,2021: H 0.75 per share) and Interim dividend of H 0.75 per share (March 31,2021: H 0.50 per share) was recognised for distribution to equity shareholders respectively.

The Board of Directors, at its meeting on May 11,2022, have proposed a final dividend of H 1.75 per equity share for the financial year ended March 31,2022. The proposal is subject to the approval of shareholders at the forthcoming Annual General Meeting and if approved would result in a cash outflow of approximately H 3,585.20 lacs. Final dividend is accounted for in the year in which it is approved by the shareholders.

During the five years period ended March 31,2022, no shares have been bought back/ issued for consideration other than Cash and no bonus shares have been issued.

General Reserve: The General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General reserve will not be reclassified subsequently to the statement of profit and loss. As per Companies Act 2013, transfer of profits to General reserve is not mandatory.

Employee Stock Options Outstanding: The Company has share option schemes under which options to subscribe for the Company''s shares have been granted to certain executives and senior employees. The share based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration. Refer to Note 36 for further details of these plans.

Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends paid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

1. The loan is secured by way of first charge on entire immovable fixed assets of the Chittapur taluka unit at Gulbarga District both present and future, entire movable fixed assets, both present and future, and second charge on Current Assets of the said unit.

The above loans were repayable in 56 quarterly instalments ranging from 1% to 2.5% of the loan amount and repayment starting from June 30, 2017 and ending on March 31,2031. The above loans carried coupon interest @ 7.50% to 8.90% p.a. (March 31, 2021: 7.50% to 8.90% p.a.).

During the year ended 31 March 2022, the Company has refinanced the outstanding loan amount by obtaining fresh loan amounting to H 41,500.00 lacs (Drawn as at 31 March 22: H 39,949.89 lacs). These loans are repayable in 8 equal quarterly instalments starting from June 2022 repayable till March 31,2024. The above loan carry a coupon rate @ 5.65% to 5.94% p.a.

On account of the above refinancing of loan, the Company has charged off the entire amortization cost of the earlier loan.

During the year, the Company has made repayment of term loans amounting to H 47,817.83 lacs which includes prepayment of H Nil lacs in respect of instalments due till March 2022 and additional instalments of H 47,817.83 lacs in respect of loans due in future periods.

2. Sales Tax deferrment loan granted under State Investment Promotion Scheme has been considered as a government grant, however the Company has not applied Ind AS 20 "Accounting for Govt. Grants and Disclosure of Govt. Assistance" retrospectively and has used its previous GAAP carrying amount of deferred sales tax loan at the date of transition to Ind AS as carrying amount on deferred sales tax loan in the balance sheet as at 1st April 2015. It is interest free and is payable in 26 unequal instalments, starting from February 2012 and ending on January 2023.

The applicable Indian statutory tax rate for fiscal year 2022 is 34.94% and fiscal year 2021 is 34.94%.

The Company, based on assessment and evaluations carried out by the management, continues to pay income tax under older tax regime during the year ended March 31, 2022. The Company did not opt for lower tax rate of 25.17% (inclusive of surcharge and cess) under section 115BAA of the Income Tax Act, 1961 pursuant to Taxation Law (Amendment) Ordinance, 2019, considering accumulated MAT credit, unabsorbed additional depreciation losses and other benefits under the Income Tax Act, 1961.

Disaggregated revenue information

a. The Company is primarily in the business of manufacture and sale of cement. The product shelf life being short, all sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/delivery. There is no significant financing component in any transaction with the customers.

b. The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration.

c. The Company does not provide performance warranty for products, therefore there is no liability towards performance warranty.

d. The management determines that the segment information reported in Note 42 is sufficient to meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115 Revenue from contract with customers.

35. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan. The gratuity plan is governed by The Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The scheme is funded with insurance companies in the form of qualifying insurance policy for own employees and unfunded for contractor and school employees.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the plan.

36. Employee stock option scheme

The Company provides share-based payment schemes to its employees. The Company had formulated an employee stock option scheme, namely Employee Stock Option Scheme 2015 (ESOP) in an earlier year. The relevant details of the scheme and grant are as below:

On May 8, 2015, the Board of Directors approved the Employee Stock Option Scheme 2015 for issue of stock options to the key employees of the Company. According to the scheme, the employee selected by the remuneration committee from time to time will be entitled to options, subject to satisfaction of the prescribed vesting conditions viz, continuing employment on the roll of the Company as on April 01,2015 as well as new employees who replaces the old eligible employee and joins the employment of the Company before June 30, 2017 and continuing employment till grant date. The other relevant terms of the grant are as below:

Date of Grant August 04, 2015

Vesting Period 40% vest after 3 years

60% vest after 4 years

Exercise Period 4 Years

Expected Life 5.6 Years

Exercise Price (H) 135

Market price as on August 4, 2015 (H) 183.25

The weighted average fair value of the stock options granted was H 105.64.

The expected life of the stock is based on current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

37.Leases

The Company has lease contracts for various items of plant, machinery, vehicles and other equipment used in its operations. Leases of plant and machinery, motor vehicles and other equipment generally have lease terms between 1 and 5 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets and some contracts require the Company to maintain certain financial ratios.

The Company also has certain leases of machinery with lease terms of 12 months or less and leases of office equipment with low value. The Company applies the ''short-term lease'' and ''lease of low-value assets'' recognition exemptions for these leases.

39. Contingent liabilities			(H in Lacs)
Particulars	Brief Description of Matter	March 31, 2022	March 31, 2021
Claims against the Company not acknowledged as debt :
Excise Duty and Customs	Related to CENVAT credit on Structural Steel and Differential Custom Duty on Steam Coal.	780.15	730.62
Sales Tax (including Entry Tax)	Related to levy of Sales Tax on Debit Note issued to Customers towards Railway Freight Reimbursement and levy of Entry Tax and Penalty thereon on Diesel and Lubricants etc purchased from outside Telangana State which is consumed for other than notified purpose.	1,060.37	1,060.37
Income Tax	Related to income tax appeals on disallowance of ESOP expenses, depreciation and others.	1,137.12	1,137.12
Electricity Duty	Refer note ''a'' below.	1,691.31	1,691.31
Others	Related to power fuel surcharge adjustment, deduction of liquidatory damages and others.	1,683.25	1,580.36
		6,352.20	6,199.78

Note :

a. The plea by the Company challenging the constitutional validity of Electricity duty demand of H 1,691.31 lacs had been dismissed by the Hon''ble High Court, Hyderabad in an earlier year. The Company, along with other industry members, had appealed the matter before Hon''ble Supreme Court of India by paying a protest money of H 1,005.76 lacs, where the hearing is pending. Based on management''s internal assessment and also considering advice of an external legal counsel, the Company believes that the demand shall not sustain under law.

b. Based on discussions with the solicitors/ favourable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary. The timing of outflow of resources in not ascertainable.

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There has been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2022, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

42. The mamgement has considered that the Company has a single reportable segment based on nature of products, production process, regulatory environment, customers and distribution methods. Further, the Company is engaged in single product line of manufacturing and selling cement and its customers and non-current assets are located in India only.

No customer individually accounted for more than 10% of the revenues from external customers during the year ended March 31,2022 and March 31,2021.

43. Financial risk management objectives and policies

The Company''s financial liabilities comprise borrowings, security deposits, and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include trade and other receivables, cash and cash equivalents and Investments.

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 summarised 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.

Commodity Price Risk

The Company is exposed to commodity price risk arising out of fluctuation in prices of raw materials (flyash, gypsum and laterite) and fuel (coal and pet coke). Such price movements, mostly linked to external factors, can affect the production cost of the Company. To manage this risk, the Company take steps such as monitoring of prices, optimising fuel mix and pursue longer and fixed price contracts, where considered necessary. Additionally, processes and policies related to such risks are controlled by central procurement team and reviewed by the senior management.

Interest rate risk

The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

Foreign currency risk

The Company''s exposure to the risk of changes in foreign exchange rates is 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 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 Company does not have higher concentration of credit risks since no single customer accounted for 10% or more of the Company''s net sales.

Expected credit loss assessment

The Company has used a practical expedient by computing the expected loss allowance for financial assets based on historical credit loss experience and adjustments for forward looking information. As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

As per policy receivables are classified into different buckets based on the overdue period ranging from 6 months - one year to more than two years. There are different provisioning norms for each bucket which are ranging from 25% to 100%.

Financial assets other than trade receivables

Credit Risk on cash and cash equivalent, deposits with the banks / financial institutions is generally low as the said deposits have been made with the banks / financial institutions who have been assigned high credit rating by international and domestic rating agencies. Investments of surplus funds are made only with approved Financial Institutions.

Investments primarily include investment in units of liquid mutual funds (debt market) and fixed deposits with banks having low credit risk.

Total non-current investments (other than subsidiaries and joint arrangements) and investments in liquid mutual funds as on March 31,2022 are H 416.49 Lacs and H 1,001.31 Lacs (March 31,2021: H Nil and H 11,507.03 lacs) respectively.

Balances with banks were not past due or impaired as at year end. Other than the details disclosed below, other financial assets are not past due and not impaired, there were no indications of default in repayment as at year end.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations 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.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, bank loans among others.

49. Fair Value

Accounting classification and fair values

Set out below, is the comparison of the fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition regardless of whether that price is directly observable or estimated using other valuation techniques.

The Company has established the following fair value hierarchy that categorises the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all bonds which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (For example traded bonds, over the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on company specific estimates. The mutual fund units are valued using the closing Net Asset Value. 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. The fair value of the financial assets and liabilities approximates their carrying amounts as at the balance sheet date.

The fair value of investments in other securities, trade receivables, loans, other financial assets, cash and cash equivalents, other bank balances, borrowings, trade payables, lease liabilities and other financial liabilities approximate their carrying amount largely due to short-term nature of these instruments. Investments in mutual funds, which are classified as FVTPL are measured using net assets value at the reporting date multiplied by the quantity held.

Please refer note 2.1 (s) on Fair Value Measurement for disclosure on Valuation techniques and inputs considered.

50. During the previous year ended 31 March 2021, the Company had entered into Share Purchase, Subscription and Shareholder''s Agreement and Options Agreement with AMPSolar Technology Private Limited and AMPSolar Systems Private Limited for acquisition of 26% stake in the share capital of AMPSolar Systems Private Limited through a combination of equity shares and compulsory convertible debentures (CCD) on December 03, 2020, with total cost of acquisition of H 416.49 lacs. The purpose of acquisition was to set up a solar power plant in Maharashtra under Captive Scheme for Company''s grinding unit at Jalgaon. As on March 31,2022, the Company has completed the acquisition of equity share and CCD (Refer note 11).

As per the terms of the agreement and in-line with the guidance under the standards, AMPSolar would not be a subsidiary or associate of the Company. Pursuant to the aforesaid agreement, AMPSolar has completed the set-up of the above mentioned solar power plant and has also started generation and supply of power to the Company at Jalgaon, Maharashtra.

51. COVID 19 impact on business operations of the Company

The Company has considered internal and external sources of information up to the date of approval of the financial statements in evaluating the possible impact that may result from the pandemic relating to COVID-19 on the carrying amounts of property, plant and equipment, intangible assets, inventories, receivables, investments and other financial assets. The Company has applied prudence in arriving at the estimates and assumptions and also performed sensitivity analysis on the assumptions used. The Company is confident about the recoverability of these assets.

However, the impact of the global health pandemic may be different from that estimated as at the date of approval of the above financial results. Considering the continuing uncertainties, the Company will continue to closely monitor any material changes to future economic conditions. The management will be able to meet the liabilities of the Company as and when they fall due.

52. The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

53. The MCA vide notification dated March 24, 2021 has amended Schedule III to the Companies Act, 2013 in respect of certain disclosures. Amendments are applicable from April 1, 2021. The Company has incorporated the changes as per the said amendment in the financial statements and has also changed comparative numbers wherever applicable. There are no material regroupings in the comparative numbers except for advances from customers which is regrouped from contract liabilities presented under current liabilities of balance sheet to other current liabilities (Refer note 24).

Other Statutory Information:

i. The Company do not have any Benami property and neither any proceedings have been initiated or is pending against the Company for holding any Benami property.

ii. The Company do not have any transactions with companies struck off.

iii. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv. The Company has not been declared a wilful defaulter by any bank or financial institution or any other lender during the current period.

v. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vi. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii. All quarterly returns or statements of current assets are filed by the company with banks or financial institutions and are in agreement with the books of accounts.

viii. The loan has been utilised for the purpose for which it was obtained and no short term funds have been used for long term purpose.

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Mar 31, 2018

1. Corporate Information

Orient Cement Limited (“the Company”) is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on National and Bombay Stock exchanges in India. The cement undertaking of Orient Paper & Industries Limited (OPIL) had been transferred to the Company on a going concern basis w.e.f. 1st April, 2012, pursuant to the scheme of arrangement approved by the Hon’ble Orissa High Court.

The Company is primarily engaged in the manufacture and sale of Cement and its manufacturing facilities at present are located at Devapur in Telangana, Chittapur in Karnataka and Jalgaon in Maharashtra.

The financial statements were authorised for issue in accordance with a resolution of the board of directors on 3rd May, 2018.

2. Basis Of Preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).

These financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

a) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of RS.1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

During the year ended 31st March, 2018, the amount of per share dividend recognised as distribution to equity shareholders was RS.0.50 per share (31st March, 2017: RS.1.00 per share).

The Board of Directors, at its meeting on 3rd May 2018, have proposed a final dividend of RS.0.75 per equity share for the financial year ended 31st March, 2018. The proposal is subject to the approval of shareholders at the forthcoming Annual General Meeting and if approved would result in a cash outflow of approximately RS.1852.36 lacs including corporate dividend tax. Proposed dividend is accounted for in the year in which it is approved by the shareholderes.

1. Term Loans from Banks are secured by way of a first ranking pari passu mortgage on all the immovable properties both present and future of Chittapur taluka unit at Gulbarga District and first ranking pari passu charge on all the movable fixed assets of the aforesaid unit.

The above loans are repayable in 56 quarterly installments ranging from 1% to 2.5% of the loan amount and repayment starting from 30th June, 2017 and ending on 31st March, 2031. The above loans carry coupon interest @ 8.60% to 8.70% p.a (31st March, 2017: 9.55% to 9.65%).

2. Deferred sales tax loan is interest free and payable in 26 unequal installments, starting from February, 2012 and ending on January, 2023.

3. Cash credit from banks is secured by way of first charge on all the stock and book debts of the Company. The cash credit is repayable on demand and carries interest @ 8.15% to 8.35% p.a.(31st March, 2017: 8.35% to 9.50%).

4. Commercial papers from a bank are availed for periods ranging from 90 to 180 days and carries interest @ 6.70% to 6.95% p.a (31st March, 2017:6.50% to 7.70%).

Provision for Mining Restoration Costs

The activities of the Company involve mining of land taken under lease. In terms of relevant statutes, the mining areas would require restoration at the end of the mining lease. The future restoration expenses are affected by a number of uncertainties, such as, technology, timing etc. As per the requirement of IND AS 37, the management has estimated such future expenses on best judgment basis and provision thereof has been made in the accounts at their present value. The table below gives information about movement in mining restoration cost provisions.

Provision for Rehabilitation & Resettlement obligation relating to mines

In terms of Environment clearance given by Ministry of Environment, Forest and Climate Change (MOEF) for the Company’s integrated plant at Chittapur, Karnataka, the Company is required to spend RS.7,261.62 lacs on socio economic welfare measures. As per the requirement of Ind AS 37, provision thereof has been made in the accounts at their present value. The table below gives information about movement in rehabilitation & resettlement cost provisions.

Entire deferred income tax for the year ended 31st March, 2018 and 31st March, 2017 relates to origination and reversal of temporary differences.

A reconciliation of the income tax provision to the amount computed by applying the statutory income tax rate to the income before income taxes is summarised below:

The applicable Indian statutory tax rate for fiscal 2018 and fiscal 2017 is 34.61%.

The significant temporary differences that resulted in deferred income tax assets and liabilities are as follows:

3. Significant accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

There are no significant areas involving a high degree of judgement or complexity.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans

The cost of defined benefit gratuity plan and its present value of the obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, an employee benefit obligation is highly sensitive to changes in these assumptions particularly the discount rate and estimate of future salary increase. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 32.

Share-based payments

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 33.

4. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan. The gratuity plan is governed by The Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the plan.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

5. Employee stock option scheme

The Company provides share-based payment schemes to its employees. The Company had formulated an employee stock option scheme, namely Employee Stock Option Scheme 2015 (ESOP) during the year ended 31st March, 2015 for grant of ESOP. The relevant details of the scheme and grant are as below:

On 8th May 2015, the Board of Directors approved the Employee Stock Option Scheme 2015 for issue of stock options to the key employees of the Company. According to the scheme, the employee selected by the remuneration committee from time to time will be entitled to options, subject to satisfaction of the prescribed vesting conditions viz, continuing employment on the rolls of the Company as on 1st April 2015 as well as new employees who replaces the old eligible employee and joins the employment of the Company before 30th June 2017 and continuing employment till grant date. The other relevant terms of the grant are as below:

Vesting Period 40% vest after 3 years

60% vest after 4 years Exercise Period 4 Years

Expected Life 5.6 Years

Exercise Price (Rs.) 135

Market price as on 4th August, 2015 (Rs.) 183.25

The weighted average remaining contractual life for the stock options outstanding as at 31st March, 2018 is 2.93 years (31st March, 2017 3.93 years).

The weighted average fair value of the stock options granted was RS.105.64. The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:

The expected life of the stock is based on current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

6. Leases

Operating lease: Company as lessee

Certain office premises, equipments, depots etc are obtained by the Company on operating lease. The lease term is for 1-3 years and renewable for further period either mutually or at the option of the Company. Lease agreements have price escalation clauses. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancelable.

7. Capital and other commitments

Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) RS.9,630.18 lacs (31st March, 2017: RS.765.44 lacs).

Based on discussions with the solicitors/ favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary. The timing of outflow of resources in not ascertainable.

* Matter settled in favour.

Related party transactions

The details of related parties transactions entered into by the Company for the year ended 31st March, 2018 and 31st March, 2017, and the details of amounts due to or due from related parties as at 31st March, 2018 and 31st March, 2017:

8. Remuneration paid to Managing Director & CEO of the Company during the financial year ended 31st March, 2017 had exceeded the limit prescribed under Section 197 read with Schedule V of the Companies Act, 2013 by RS.444.99 lacs. The Company had applied to Central Government for waiver of such excess remuneration.

Based on a letter received from Ministry of Corporate Affairs, Government of India, in response to the Company’s application for waiver of aforesaid excess remuneration, the Company is of the view that since the Managing Director & CEO is working in the professional capacity, no Central Government approval is required in terms of amended provisions of Schedule V of the Companies Act, 2013.

9. The management has considered that the Company has a single reportable segment based on nature of products, production process, regulatory environment, customers and distribution methods.

Further, the Company is engaged in single product line of manufacturing and selling cement and its customers and noncurrent assets are located in India only.

10. Financial risk management objectives and policies

The Company’s financial liabilities comprise loans and borrowings, security deposits, and trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s financial assets include trade and other receivables, cash and cash equivalents.

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 summarised 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 the Company’s debt obligations with floating interest rates.

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.

Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates is 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 (net 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.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, bank loans among others.

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.

* including future interest of RS.75,601.92 lacs (31st March, 2017: RS.90,561.48 lacs)

11. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders and issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company’s policy is to keep the gearing ratio between 0.50 to 0.55. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

12. Standards issued but not effective

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:

Ind AS 115 Revenue from Contracts with Customers

The Company is currently evaluating the impact of implementation of Ind AS 115 “Revenue from Contracts with Customers” which is applicable to it w.e.f April 01, 2018. However, based on the evaluation done so far and based on the arrangement that the Company has with its customers for sale of its products, the implementation of Ind AS 115 will not have any significant recognition and measurement impact. However, there will be additional presentation and disclosure requirement which will be provided in the next year’s financial statements.

Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

These amendments are effective for annual periods beginning on or after 1 April 2018. These amendments are not expected to have any impact on the Company as the Company has no deductible temporary differences or assets that are in the scope of the amendments.

Appendix B to Ind AS 21 Foreign Currency Transactions and Advance Consideration

The Appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.

The Appendix is effective for annual periods beginning on or after 1 April 2018. However, since the Company’s current practice is in line with the Interpretation, the Company does not expect any effect on its financial statements.

Amendments to Ind AS 112 Disclosure of Interests in Other Entities, Ind AS 40 Investment Property and Ind AS 28 Investments in Associates and Joint Ventures are not applicable to the Company.

13. Fair Value

The fair value of the financial assets and liabilities approximates their carrying amounts as at the balance sheet date.

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Mar 31, 2017

a) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs,1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

During the year ended 31st March 2017, the amount of per share dividend recognized as distribution to equity shareholders was Rs,1.00 per share (31st March 2016: Rs,1.00 per share).

The Board of Directors, in its meeting on 5th May 2017, have proposed a final dividend of Rs,0.50 per equity share for the financial year ended 31st March 2017. The proposal is subject to the approval of shareholders at the forthcoming Annual General Meeting and if approved would result in a cash outflow of approximately Rs,1,232.88 lacs including corporate dividend tax.

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

1. Term Loans from Banks are secured by way of a first ranking pari passu mortgage on a ii the immovable properties both present and future and first ranking pari passu charge on a ii the movable fixed assets of Chittapur taiuka unit at Guibarga District. Further, the above loans are secured by way of a second charge on all. the current assets of the above unit.

The above loans are repayable in 56 quarterly installments ranging from 1% to 2.5% of the loan amount and repayment starting from 50th June, 2017 and ending on 51st March, 2051. The above loans carry interest

2. Deferred sales tax loan is interest free and payable in 26 unequal installments, starting from February, 2012 and ending on January, 2025.

5. Cash credit from a bank is secured by way of first charge on all the stock and book debts of the Company. The cash credit is repayable on demand and carries interest

4. Commercial papers from a bank are availed for periods ranging from 90 to 180 days and carries interest

| SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

There are no significant areas involving a high degree of judgment or complexity.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans

The cost of defined benefit gratuity plan and its present value of the obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, an employee benefit obligation is highly sensitive to changes in these assumptions particularly the discount rate and estimate of future salary increase. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 32.

Share-based payments

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 33.

GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. The gratuity plan is governed by The Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the balance sheet for the plan.

| EMPLOYEE STOCK OPTION SCHEME

The Company provides share-based payment schemes to its employees. The Company had formulated an employee stock option scheme, namely Employee Stock Option Scheme 2015 (ESOP) during the year ended 31st March 2015 for grant of ESOP. The relevant details of the scheme and grant are as below:

The weighted average remaining contractual life for the stock options outstanding as at 31st March 2017 is 3.93 years (31st March 2016 4.93 years).

The weighted average fair value of the stock options granted was Rs,105.64. The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:

The expected life of the stock is based on current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

LEASES

Operating lease: Company as lessee

Certain office premises, equipments, depots etc are obtained by the Company on operating [ease. The [ease term is for 1-3 years and renewable for further period either mutually or at the option of the Company. Lease agreements have price escalation clauses. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancelable.

| CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs,765.44 lacs (31st March 2016: Rs,2,519.56 lacs, 1st April 2015: Rs,16,414.46 lacs).

* Based on discussions with the solicitors/ favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary. The timing of outflow of resources in not ascertainable.

RELATED PARTY DISCLOSURES List of related parties List of key management personnel

Chairman and Non-Executive Director Mr. CK. Birla

Managing Director & CEO Mr. D.D. Khetrapal

Other Non-Executive Directors Mrs. Amita Birla

Mr. Rajeev Jhawar Mr. V.K. Dhall Mr. R. Jhunjhunwala Mr. Janat Shah Mr. Swapan Dasgupta Chief Financial Officer Mr. Sushil Gupta

Company Secretary Mrs. Deepanjali Gulati

Related party transactions

The details of related parties transactions entered into by the Company for the year ended 31st March 2017 and 31st March

2016, and the details of amounts due to or due from related parties as at 31st March 2017, 31st March 2016 and 1 st April 2015 are as follows:

Note: The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.

I Remuneration paid to the Managing Director & CEO of the Company during the financial year ended March 31, 2017 I has exceeded the limit prescribed under Section 197 read with Schedule V of the Companies Act, 2013.

The Company is in the process of applying to Central Government for waiver of excess remuneration amounting to Rs,444.99 lacs paid to the Managing Director & CEO of the Company during the financial year 2016-17.

I The management has considered that the Company has a single reportable segment based on nature of products, production process, regulatory environment, customers and distribution methods.

Further, the Company is engaged in single product line of manufacturing and selling cement and its customers and non-current assets are located in India only.

I Figures for the year ended 31st March, 2017 are inclusive of figures pertaining to the Company''s plant at Chittapur, Karnataka which had commenced commercial production with effect from 26th September, 2015 and hence are not comparable with the figures of corresponding year ended 31st March, 2016.

US FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s financial liabilities comprise loans and borrowings, security deposits, and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include trade and other receivables, cash and cash equivalents.

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 the Company''s debt obligations with floating interest rates.

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.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, bank loans among others.

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.

* including future interest

CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value and keep the debt equity ratio within acceptable range.

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 and issue new shares.

BSH STANDARDS ISSUED BUT NOT EFFECTIVE

The amendments to standards that are issued, but not yet effective, up to date of issuance of the Company''s financial statements are disclosed below.

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of cash flows'' and Ind AS 102, ''Share-based payment’. The amendments are applicable to the Company from April 1, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes. It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ''fair values'', but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that include a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement.

The company will adopt these amendments from their applicability date.

EH FAIR VALUE

The fair value of the financial assets and liabilities approximates their carrying amounts as at the balance sheet date.

^9 FIRST-TIME ADOPTION OF IND AS

These financial statements, for the year ended 31 March 2017, are the first financial statements, the Company has prepared in accordance with Ind AS. For periods upto and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative periods data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet is prepared as at 1st April 2015, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April 2015 and the financial statements as at and for the year ended 31 March 2016.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirement under Ind AS. The Company has applied the following exemption:

- Since there is no change in the functional currency, the Company has elected to continue with the carrying value for all of its property, plant and equipment as recognized in its Indian GAAP financial as deemed cost at the transition date.

- The Company has not applied Ind AS 20 "Accounting for Govt. Grants and Disclosure of Govt. Assistance" retrospectively and has used its previous GAAP carrying amount of deferred sales tax loan at the date of transition to Ind AS as carrying amount on deferred sales tax loan in the balance sheet as at 1st April 2015.

A) Footnotes to the reconciliation of Equity as at 1st April 2015 and 31st March 2016 and Statement of Profit and Loss for the year ended 31st March 2016

a. Depreciation of Property, plant and equipment

Ind AS 16 requires tangible items that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and are expected to be used during more than one period, to be classified as property, plant and equipment. Accordingly, items such as spare parts, stand-by equipment and servicing equipment are capitalized when they meet the definition of property, plant and equipment, i.e., if the company intends to use these during more than one period. Otherwise, such items are classified as inventory. At the date of transition to Ind AS, an increase of Rs,387.09 lacs was recognized as on 1st April 2015 in property, plant and equipment net of accumulated depreciation due to recognition of spare and other items as property, plant and equipment. For the year ended on 31st March 2016, increase in depreciation was charged in the statement of profit and loss Rs,71.33 lacs.

b. Dividend

Under Indian GAAP, proposed dividends including Dividend Distribution Taxes (DDT) are recognized as a liability in the period to which they relate, irrespective of when they are approved by the shareholders. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid.

In case of the Company, the declaration of dividend occurs after period end. Therefore, the liability recorded for dividend has been derecognized against retained earnings on 1st April 2015 and recognized in year ended 31st March 2016. The proposed dividend for the year ended on 31st March 2016, recognized under Indian GAAP was reduced from other payables and with a corresponding impact in the retained earnings.

c. Deferred tax

The various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity. On the date of transition, the net impact on deferred tax liabilities is Rs,32.03 lacs.

d. Re-classifications

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

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.

iii) Non-cash incentives considered as separate performance obligations are netted off with revenue under Ind AS. However, under IGAAP the same was classified under Other Expenses''.

e. Borrowings

Under Indian GAAP, transaction costs incurred in connection with borrowings are amortized upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method.

f. Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit to profit as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

g. Intangible assets

As per the requirements of Ind AS 38, the Company has capitalized Rs,5,169.12 lacs (present value) being the cost of socio economic welfare expenditure and provision thereof has been made in the accounts. For more information, refer note 16.

h. Sale of Goods

Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss as an expense.

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Mar 31, 2015

1. Corporate information

Orient Cement Limited (the Company) is a public Company domiciled in India. Its shares are listed on National and Bombay Stock exchanges in India. The cement undertaking of Orient Paper & Industries Limited (OPIL) had been transferred to the Company on a going concern basis w.e.f 1st April, 2012, pursuant to the scheme of arrangement approved by the Hon''ble Orissa High Court.

The Company is primarily engaged in the manufacture and sale of Cement and manufacturing facilities at present are located at Devapur in Telangana and Jalgaon in Maharashtra. The Company is also setting up a Greenfield Cement Project at Chittapur in Karnataka.

2. Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. Terms/ rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2015, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 1.75 per share (including interim dividend Rs. 0.75 per share) (31st March 2014: Rs. 1.50 per share, including interim dividend of Rs. 0.75 per share).

4. Plant & Machinery aggregating to Rs. 60,502.67 lacs has been acquired and installed during the period April 01, 2013 to March 31, 2015 (duly certified by chartered engineers) which, pending commencement of commercial production, has been carried forward as Capital Work-in-Progress in these financial statements. As legally advised, the Company is entitled for Investment Allowance under section 32AC of the Income Tax Act, 1961 ("Act") since the above assets were acquired and installed during the specified period. Accordingly, deduction u/s 32AC on above assets has been considered in computation of current tax for the year ended March 31,2015.

5. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed at least five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

6. CAPITAL AND OTHER COMMITMENTS

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. 16,414.46 lacs (31st March, 2014 Rs.82,351.39 lacs)

(b) For commitments relating to lease arrangements, please refer note

7. CONTINGENT LIABILITIES

(Rs. in Lacs)

31st March 2015 31st March 2014

Demands/claims by various Government authorities and others not acknowledged as debts and contested by the Company:

Excise Duty 3,769.59 3,676.21

Sales Tax 549.55 528.45

Escot Charges 14,398.60 11,010.60

Others 2,156.49 2,169.14

20,874.23 17,384.40

Against the above, payments have 467.29 450.13 been made under protest and/ or debts have been withheld by respective parties.

* Based on discussions with the solicitors/favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary.

8. The Company has been legally advised that it is eligible to claim credit for Advance tax of Rs. 1,698.15 lacs paid by Orient Paper & Industries Limited (demerged Company) under its PAN during the month of June, 2012, being the 1st installment for the financial year 2012-13, in terms of clauses 2.10, 6.1 (h) & (i) and 6.4 of the Scheme of arrangement approved by the Hon''ble High Court. In view of the above, the said payment of advance tax has been considered in the accounts for the year ended 31st March, 2013.

9. Based on the synergies, risks and return associated with business operations and in terms of Accounting Standard-17, the Company is engaged in a single reportable segment of manufacture and sale of cement during the year and hence treated the same as a single reportable segment as per Accounting Standard-17.

The Company at present, operates in India only and therefore the analysis of geographical segments is not applicable to the Company.

10. Charity and donation includes Rs. 200 lacs (31st March, 2014 : Rs. Nil) paid to Satya Electoral Trust, an approved Electoral Trust under the Income Tax Act, 1961.

11. PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped and rearranged wherever necessary, to conform to this year''s classification.

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Mar 31, 2013

NOTE 1 CORPORATE INFORMATION

Orient Cement Limited (the Company) is a public Company domiciled in India and incorporated in the previous year on 22nd July, 2011 under the provisions of the Companies Act, 1956. The cement undertaking of Orient Paper & Industries Ltd (OPIL) has been transferred to the Company on a going concern basis w.e.f 1st April, 2012, pursuant to the scheme of arrangement approved by the Hon''ble Orissa High Court.

The Company is primarily engaged in the manufacture and sale of Cement and manufacturing facilities at present are located at Devapur in Andhra Pradesh and Jalgaon in Maharashtra.

NOTE 2 BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

NOTE 3 SCHEME OF ARRANGEMENT

a) Pursuant to the Scheme of Arrangement ("the scheme") approved by the Hon''ble High Court of Orissa, all the assets and liabilities of the Cement undertaking of Orient Paper & Industries Ltd (Demerged Company) have been transferred to and vested in the Company at their respective book values on a going concern basis from 1st April, 2012 being the appointed date.

As per the scheme, appointed date as approved by the Hon''ble High Court is 1st April, 2012 and effective date is 26th February, 2013 being the date on which the certified copy of the order sanctioning the said scheme is filed with the Registrar of Companies, Orissa in accordance with the Companies Act, 1956.

c) Pursuant to the scheme, 5 lacs equity shares of Rs. 1 each of the Company held by the demerged Company (OPIL) stand cancelled and the said amount has been credited to Capital Reserve.

d) Pursuant to the scheme, the Company has issued/alloted 204,868,760 equity shares of Rs. 1 each to the shareholders of the demerged Company aggregating to Rs. 2048.69 lacs, in the ratio of 1 equity share of face value of Rs. 1 each of the Company for every 1 equity share of face value of Rs. 1 each held in the demerged Company.

e) Pursuant to the scheme, the difference between the net book value of assets and liabilities of the Cement undertaking and shares issued to the shareholders of the demerged Company has been credited to General Reserve.

NOTE 4

The Company has not yet ascertained the stamp duty liability payable against Immovable Assets of Cement Undertaking of the Demerged Company transferred to the Company, pursuant to the Scheme of Arrangement approved by Hon''ble Orissa High Court as stated in Note 26 above and hence no provision thereof has been made in these financial statements and the same will be accounted for and capitalised with the respective assets, as and when the liability is ascertained.

NOTE 5 GRATuITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed at least five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to the change in market scenario.

NOTE 6 LEASES

Operating lease: company as lessee

Certain office premises, depots etc are obtained on operating lease. The lease term is for 1-3 years and renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement.

There are no restrictions imposed by lease arrangements. There are no subleases. The leases are cancelable.

NOTE 7 CAPITAL AND OTHER COMMITMENTS

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. 245.78 lacs (31st March, 2012 Rs. Nil)

(b) For commitments relating to lease arrangements, please refer note 30)

NOTE 8 CONTINGENT LIABILITIES

Rs.In lacs

31-Mar-13 31-Mar-12

Demands/claims by various Government authorities and others not acknowledged as debts and contested by the Company:

Excise Duty 9,327.53

Sales Tax 485.44

Escot Charges 7,638.60

Others 1,468.49

* 18920.06

Against the above, payments have been made under protest and/ or debts 323.02

- have been withheld by respective parties.

* Based on discussions with the solicitors/ favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary.

NOTE 9

The Company has been legally advised that it is eligible to claim credit for Advance tax of Rs. 1698.15 lacs paid by Orient Paper & Industries Limited (demerged Company) under its PAN during the month of June,2012, being the 1st installment for the current financial year, in terms of clauses 2.10, 6.1 (h) & (i) and 6.4 of the Scheme of arrangement approved by the Hon,ble High Court. In view of the above, the said payment of advance tax has been considered in these accounts.

NOTE 10

The appointment and remuneration of Rs. 270.05 lacs paid to Managing Director is subject to approval of the shareholders of the Company.

NOTE 11

Based on the Synergies, risks and return associated with business operations and in terms of Accounting Standard-17, the Company is engaged in a single segment of manifactured and sale of cement during the year and hence treated as a single reportable segment as per Accounting Standard-17.

The Company at present, operates in India only and therefore the analysis of geographical segment is not applicable to the Company.

NOTE 12 PREVIOuS YEAR FIGuRES

Previous year''s figures have been regrouped and rearranged wherever necessary. Further, the current year figures being inclusive of figures of Cement undertaking of Orient Paper & Industries limited merged with the Company w.e.f. 1st April, 2012 (pursuant to a scheme of arrangement refer note 26), are not comparable with the previous year''s figures.