Notes to Accounts of Panyam Cements & Mineral Industries Ltd.

Mar 31, 2024

P. Provisions, Contingent liabilities and Commitments

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a 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.

When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a

If the effect of the time value of money is material, provisions are discounted using a current pretax 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 recognized as a finance cost.

Contingent liability:

Contingent liability is a possible obligation that may arise from past events and its existence will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the same are not recognized but disclosed in the financial statements.

Contingent asset

Wherever there is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. A contingent asset is disclosed when the inflow of economic benefit is probable.

Q. Revenue Recognition

Revenue from sale of goods is recognized when control of the products being sold is transferred to customer and when there are no unfulfilled performance obligations.

The Performance Obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

Revenue is measured at transaction price allocated to the performance obligation. The transaction price of goods sold is net of variable consideration on account of various discounts offered by the Company as part of the contract and any taxes or duties collected on behalf of the government such as goods and services tax, etc.

The Company provides discounts to customers on the achievement of the performance criteria based on agreed terms and conditions. There is no significant financing component with regard to sale of products for the Company as per Ind AS 115. The Company do not have any non-cash consideration.

Revenue is only recognized to the extent that it is highly probable a significant reversal will not occur.

Our customers have the contractual right to return goods only when authorized by the Company.

Income from services rendered is recognized based on agreements/arrangements with the customers as the service is performed and there are no unfulfilled obligations.

Interest income is recognized using the effective interest rate (EIR) method.

The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and of allocating interest income / interest expenses over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts / 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 debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Dividend income on investments is recognized when the right to receive dividend is established.

Other Operating Income and Other Income:

Revenue with respect to Other Operating Income and Other Income including incentives are recognized when a reasonable certainty as to its realization exists.

R. Employee Benefits

Short term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the services are classified as short-term employee benefits. Benefits such as salaries, wages etc. and the expected cost of Bonus, Ex-gratia, Leave Travel Allowance, Reimbursement of Medical Expenses, Personal Accident Policy, and Deposit Linked Insurance Policy are recognized in the period in which the employee renders the related services.

Post-Employment Benefits:

(i) Defined Contribution Plan:

The Company''s contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense to the statement of profit and loss based on the amount of contribution required to be made and when services are rendered by the employees.

(ii) Defined Benefit Plans:

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Re-measurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit and loss. Past service cost is recognised in statement of profit and loss when the plan amendment or curtailment occurs. Gains or losses on settlement of a defined benefit plan are recognised when the settlement occurs. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:

• service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

• Net interest expense or income; and

• Re-measurement

The Company presents the first two components of defined benefit costs in the statement of profit and loss in the line item ''Employee benefits expense.

Other Long-Term Benefits Leave Encashment

The employees of the Company are entitled to Leave Encashment. The employees can carry-forward a portion of the unutilised accrued paid leaves and utilise it in future periods or receive cash compensation at retirement or termination of employment for the unutilised accrued paid leaves. The Company records an obligation for leave encashment in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of Leave Encashment based on actuarial valuation made by an independent actuary as at the balance sheet date on projected unit credit method. Leave encashment expected to be maturing after 12 months from the date of balance sheet are classified as non-current.

S. Earnings per share

Basic earnings per share are computed by dividing the profit or loss attributable to equity shareholders of the Company by the weighted average number of equities shares outstanding during the period. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

T. Estimates and assumptions

The preparation of the Company''s 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.

Useful lives and residual value of property, plant and equipment:

The Company reviews the useful life and residual value of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

Allowance for expected credit losses:

Note 1.2(L) describes the use of practical expedient by computing the expected credit loss allowance for trade receivables based on provision matrix. The expected credit allowance is based on the aging of the days receivables which are past due, and the rates derived based on history of defaults in the provision matrix.

Defined benefit plans

The liabilities and costs for defined benefit plans and other post-employment benefits are determined using actuarial valuations. The actuarial valuation involves making assumptions relating to discount rates, future salary increases, mortality rates and

future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.

Recognition of Deferred Tax Assets and Liabilities:

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Inventories

Inventories are stated at the lower of cost and net realisable value. In estimating the net realisable value of inventories, the Company makes an estimate of future selling prices and costs necessary to make the sale.

Contingent liability judgment:

Note 33 describes claims against the Company not acknowledged as debt. Contingencies may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum of contingencies inherently involves the exercise of significant judgment and the use of estimates regarding the outcome of future events.

Note 34: Additional Regulatory Information in accordance with the requirement of

Schedule III:

(i) Title deeds of Immovable Property all the immovable properties owned by the company are held in the name of the company.

(ii) The Company has no investment property held as at 31.03.2024 and 31.03.2023

(iii) The Company has not revalued Property, Plant and Equipment (including Right of Use assets) and Intangible assets during the year under report.

(iv) The company has not granted any Loans or Advances to Promoters, Directors, KMPs and the related parties during the year under report.

(v) The Company has no Intangible assets under development.

(vi) During the year no proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

(vii) The Company has borrowed from bank on the basis of security of current assets.

(viii) There was a variance of Rs. 42.63 lakhs, as given in the table below, in the Inventory statements furnished to the Bank in respect of Cash Credit Facility availed . The Variance was on account of the difference between Cost and NRV.

(ix) The company is not a declared willful defaulter by any bank or financial institution or other lender.

(x) The company has no transactions with companies struck off under section 248 of the Companies Act, 201 3 or section 560 of Companies Act, 1956.

(xi) There is no charges or satisfaction to be registered with Registrar of Companies beyond the statutory period.

(xii) The Company has no investments in subsidiaries hence Compliance with number of layer of companies is not applicable.

(xiii) There was a variance of Rs. 42.63 lakhs, as given in the table below, in the Inventory statements furnished to the Bank in respect of Cash Credit Facility availed . The Variance was on account of the difference between Cost and NRV.

Note: 1. During the current financial year ended, March 31, 2024, there has been a significant increase in the all analytical/ financial ratios, as the company plant operational period was much higher as compared to previous year.

(xiv) The Company has not applied for any scheme of arrangements under section 230 to 237 of the companies'' act, 201 3 during the year.

(xv) Utilization of borrowed funds and share premium:

A) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, 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.

B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities ("Funding Parties"), 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 Parties ("Ultimate Beneficiaries"); or

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

(xvi) Undisclosed Income:

There are no transactions not recorded in books of accounts that has been surrendered/ disclosed as income during the year in the income tax assessments under Income Tax Act, 1961.

(xvii) Corporate Social Responsibility:

The company is not obligated to comply with section 1 35 of Companies Act, 2013.

(xviii) Virtual Currency/ Crypto Currency transactions:

During the year the company has not entered into any transactions involving crypto currency/ virtual currency.

Disclosers in accordance with Indian accounting standards

Note 35: Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

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

Note: There are no transfers between levels 1,2 and 3 during the year.

Note 38: Capital Management & Risk management

The Company being in a capital-intensive industry, its objective is to maintain a strong credit rating healthy capital ratio and establish a capital structure that would maximize the return to stakeholders through optimum mix of debt and equity. The Company''s capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from borrowings. The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the assets, and closely monitors its judicious allocation amongst competing capital expansion projects to capture market opportunities at minimum risk.

Gearing ratio

The Company monitors its capital using gearing ratio, which is total debt divided to total equity as given below:

Financial risk management and objectives and policies

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the financial statements. The Company''s activities, exposed it, to market risk (including price risk), credit risk and liquidity risk. A Special Team with Senior Executives having exposure in various fields is going to be formed to assist Managing director in (a) Overseeing and approving the Company''s enterprise wide risk management framework, and (b) Overseeing that all the risks that the organization faces such as market risk(including currency risk, interest rate risk and other price risk), Credit risk and liquidity risk have been identified and assessed and there is an adequate risk management infrastructure to be in place capable of addressing those risks. The Managing Director and CFO, monitors and reports on the principal risks and uncertainties that can impact the company and its ability to achieve strategic objectives. The Company''s management systems, organizational structures, processes, standards, code of conduct and behaviors together form the Management and business of the Company.

A. 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 and equity prices. Financial assets/ liabilities affected by this risk are borrowings, letter of credits and trade receivables and investments.

The Company''s investments in listed equity securities are susceptible to price risk arising from uncertainties about future value of the investment securities. The Company''s non-current investment in equity shares are strategic investments and hence are considered as Fair Value through Other Comprehensive Income. The Company''s Board of Directors reviews and approves all equity investment decisions.

Interest Rate Risk

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

B. Credit risk

Credit risk refers to the risk that the counter party will default on its contractual obl igations resulting in financial loss to the Company. The Company is operating through network of dealers based at different locations. Regular monitoring of the receivables is undertaken by the Marketing Department and in case the limits are exceeded, steps will be taken by the Marketing departments and after discussing with the management of the Company will decide whether to stop or not further supplies to the specific dealer till the amount outstanding is recovered. The marketing team of the Company meets regularly to discuss the credit risks, measures taken to address them and the status and level of risk after the measures taken.

C. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines. Ultimate responsibility for liquidity risk management rests with the board of directors and it is going to establish an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Note 39: Leases.

Nature of Lease activity by the company-Operating lease commitments:

The Company''s lease assets primarily consist of leases for buildings. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date.

Note 40: IND AS 12 Income Taxes:

During the year under report there is no current tax liability since the company incurred loss for the year.

Deferred tax assets are not recognized for unused tax losses considering the probability of non-available of taxable profits in the near future to recover the deferred tax asset.

Recent accounting pronouncements:

The 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 31^st March 2024 MCA has not notified any new standard or amendments to the existing standards applicable to the Company.

As per our attached report of even date For and on behalf of the Board

For K S Rao & Co M/s Panyam Cements & Mineral Industries Limited

Chartered Accountants

Firm''s Regn No.003109S Sd/- Sd/-

Jagathrakshakan Srinisha Narayanasamy Elamaran

Sd/- Managing Director Director

(CA P.GOVARDHANA REDDY) DIN: 01728749 DIN: 01744259

Partner

Membership No.029193 Sd/- Sd/-

Amaranath Sachu Sai Prashanth Gujja

Place: Hyderabad Chief Financial Officer Company Secretary

Date: May 29, 2024

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Mar 31, 2023

Rights, preferences and restrictions attached to the equity shares:

The Company has only one class of equity shares having a par value of '' 10 each per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company the holder of equity shares will be entailed to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to the no of equity shares held by the share holders.

The dividend declared by the board is subject to approval by the share holders in the ensuing annual general meeting.

Explanatory notes and other information:

Refurbishment Cost: The Company was acquired by the new promoters during the financial year 2021-22 through NCLT Order. During the year under report substantial expenditure was incurred on the cement plant to make it operational and such expenditure was treated as refurbishment cost. (Refer note no 27)

Note 28: Contingent Liabilities and Commitments:			('' in Lakhs)
Sl. No	Particulars	As of 31st March, 2023	As of 31st March, 2022
1	Claims against the Company before the Labor Court, Bangalore
	Deccan wires employees filed a case against the company, before the Industrial Tribunal, Bangalore. Nine managerial staff made a claim before the Industrial Tribunal, Bengaluru, under I.D. No.10/2010, that they are also entitled to the compensation of VRS as has been extended to the general workmen.	57.48	57.48
2.	Claims against the Company before Supreme Court.
	SEBI penalty on non-compliances during the CIRP period and appeal made by them with Supreme Court.	14.00	14.00
3.	Claims against the Company before the National Company Law Appellate Tribunal, Chennai against the allocation of funds given in the approved resolution plan by Hon''ble NCLT, Amaravati bench.
i)	Assistant Commissioner of Central Tax** (Excise & Service Tax)	3,122.21	3,122.21
ii)	Employees and Workmen challenging the Resolution Plan of RV & Sagar on the ground that they are not paid in accordance with law and Section 53 of IBC, 2016	1300.00	1 300.00
iii)	Wage board employees filed a case against the company claiming to pay salaries during the period where the plant was non-operational.	76.56	76.56
iv)	Operational creditors challenging the Resolution Plan of RV & Sagar on the ground that they are not paid in accordance with law and Section 53 of IBC, 2016	1000.00	1000.00
v)	Employee Fund Provident Organization	722.71	722.71
vi)	Appeal filed by Southern Power Department challenging the Resolution Plan*.	4,702.24	4,702.24

Note: The National Company Law Tribunal (NCLT) Amaravathi Bench, has approved the resolution plan submitted by the Resolution Applicant and fixed up the assets and liabilities to be taken over by the Resolution Application vide their order dated 25^th June, 2021 read with corrigendum order dated 10^th July, 2021 and in view of this the contingent liabilities claimed by the claimants may not be maintainable, as the Company is well protected under the said NCLT Order.

Capital Commitments:			('' in Lakhs)
Sl. No	Particulars	As of 31st March, 2023	As of 31st March, 2022
1	Estimated amount of contract remaining to be executed on capital account and not provided for (turnkey contract for plant renovation)	2,139.36	11,200.57

Note 29: Additional Regulatory Information in accordance with the requirement of Schedule III:

((i) Title deeds of Immovable Property:

All the immovable properties owned by the company are held in the name of the company.

(ii) Fair Value of Investment Property:

The Company has no investment property held as at 31.03.2023

(iii) Revaluation of Property , Plant and Equipment and Intangible Assets: No revaluation of PPE and Intangible assets has been carried out during the year under report.

(iv) Loans or Advances to Promotors, Directors, KMPs and the related parties:

During the year the company has not granted any Loans or Advances to Promotors, Directors, KMPs and the related parties.

(v) There are no intangible assets under development.

(vi) Benami Property:

During the year no proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

(vii) The Company has not borrowed any loans against securities of current assets.

(viii) The company has never declared as willful defaulter by any bank or financial institution or other lender.

(ix) During the year the company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(x) There is no charges or satisfaction to be registered with Registrar of Companies beyond the statutory period.

(xi) The Company has no investments in subsidiaries

1. During the current financial year ended, March 31,2023, there has been a significant increase in the all analytical/ financial ratios, as the company was acquired by the new management in the financial year 2021-22 through NCLT and the new management carried out the repairs, renovations and refurbishment of the plant and no production/ operational activities were done in that previous financial year, the company started its operations in the current financial year.

(xiii) There are no scheme of arrangements approved by the competent authority under section 232 to 237 of the companies'' act, 201 3 to be accounted during the year.

(xiv) Utilization of borrowed funds and share premium:

During the year the company has not received any funds from any person/ entity including foreign entities with understanding of investing/ lending/ garneting to any other party/ entity.

(xv) Undisclosed Income:

There are no transactions not recorded in books of accounts that has been surrendered/ disclosed as income during the year in the income tax assessments under Income Tax Act, 1961.

(xvi) Corporate Social Responsibility:

The company is not obligated to comply with section 1 35 of Companies Act, 2013.

(xvii) Virtual Currency/ Crypto Currency transactions:

During the year the company has not entered into any transactions involving crypto currency/ virtual currency.

Disclosers in accordance with accounting standards Note 30: Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

Figures have been rounded off to the nearest decimal of Lakhs under Notes to Accounts. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3. Note: There are no transfers between levels 1,2 and 3 during the year.

Note 33: Capital Management & Risk management Capital management

The Company being in a capital-intensive industry, its objective is to maintain a strong credit rating healthy capital ratio and establish a capital structure that would maximize the return to stakeholders through optimum mix of debt and equity. The Company''s capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from borrowings. The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the assets, and closely monitors its judicious allocation amongst competing capital expansion projects to capture market opportunities at minimum risk."

Gearing ratio

The Company monitors its capital using gearing ratio, which is total debt divided to total equity as given below:

Financial risk management and objectives and policies

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the financial statements. The Company activities exposed it to market risk (including price risk), credit risk and liquidity risk. A Special Team with Senior Executives having exposure in various fields is going to be formed to assist Managing director in (a) Overseeing and approving the Company''s enterprise wide risk management framework, and (b) Overseeing that all the risks that the organization faces such as market risk(including currency risk, interest rate risk and other price risk), Credit risk and liquidity risk have been identified and assessed and an adequate risk management infrastructure to be in place capable of addressing those risks. The Managing Director and CFO, monitors and reports on the principal risks and uncertainties that can impact the company and its ability to achieve strategic objectives. The Company''s management systems, organizational structures, processes, standards, code of conduct and behaviors together form the Management and business of the Company.

A. 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 and equity prices. Financial assets/ liabilities affected by this risk are borrowings, letter of credits and trade receivables and investments."

The Company''s investments in listed equity securities are susceptible to price risk arising from uncertainties about future value of the investment securities. The Company''s non-current investment in equity shares are strategic investments and hence are considered as Fair Value through Other Comprehensive Income. The Company''s Board of Directors reviews and approves all equity investment decisions.

B. Credit risk

"Credit risk refers to the risk that the counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is operating through network of dealers based at different locations. Regular monitoring of the receivables is undertaken by the Marketing Department and in case the limits are exceeded, steps will be taken by the Marketing departments and after discussing with the management the Company will decide whether to stop or not further supplies to the concerned dealer till the amount outstanding is recovered. For the export made by the Company,

the sales are backed by letters of credit or advance receipts. The marketing team of the Company meets regularly to discuss the dealers and credit risks, measures taken to address them and the status and level of risk after the measures taken.

C. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines. Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Note 34: Leases.

Nature of Lease activity by the company-Operating lease commitments:

The Company''s lease asset primarily consist of leases for buildings. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate

The total cash outflow for leases for year ended March 31, 2023 is Rs.16,65,000 (March 2022 Nil)

Note 35: IND AS 12 Income Taxes during the year under report there is no current tax liability since the company incurred loss for the year.

Deferred tax assets are not recognized for unused tax losses considering the probability of non-available of taxable profits in the near future to recover the differed tax asset.

Recent accounting pronouncements:

The 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. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

Ind AS 1, Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.

Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its Standalone financial statements.

Ind AS 12, Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and there is no impact on its Standalone financial statements.

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Mar 31, 2016

1. Under the Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

2. Disclosure of discontinued operations of Wire /Engineering Division:

The operations of the Wire/ Engineering Division at Bangalore were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into agreements for joint development of land with the developers. As per the disclosure requirements under Accounting Standard (AS 24), the book value Rs. 84.95 lakhs of land property under joint development agreements, was shown separately under "Current Assets" as current investment in land property and the amounts received from intending buyers of Rs. 247.00 lakhs (previous year Rs. 314.00 lakhs) were shown separately under "Non-Current Liabilities" as other long term liability. There was a profit on sale of property Rs.58.63 lakhs considered as exceptional item during the year (previous year profit on sale of property (Rs. NIL).

3. Belated charges/overdue interest on delay in payment of statutory dues/liabilities have not been provided in the absence of demand for the same.

4. The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

5. Lease payments:

The Company has not taken any assets under non cancellable operating lease agreements and hence no future lease payments.

6. Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

7. EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.l0/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2016 comes to Profit Rs.6.65 (Previous year Rs.(9.48)).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is net profit of Rs. 10,68,37,963.77 for the year as per Statement of Profit and Loss (Previous year net Loss Rs. 15,15,53,621.11) and as decreased by the preference dividend for the year of Rs.2,70,186/- on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted earning per share = Net Profit of Rs. 10, 65, 67,777.77/16018139 shares =Rs.6.65

8. Figures have been rounded off to the nearest decimal of Lakhs under Notes to Accounts.

9. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2015

1. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

2. Disclosure of discontinued operations of Wire / Engineering Division:

The operations of the Wire/ Engineering Division at Bengalore were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into agreements for joint development of land with the developers. As per the disclosure requirements under Accounting Standard (AS 24), the book value Rs.94.24 lakhs of land property under joint development agreements, was shown separately under "Current Assets" as current investment in land property and the amounts received from intending buyers of Rs.314.00 lakhs (previous year Rs.289.00 lakhs) were shown separately under "Non-Current Liabilities" as other long term liability. There was no revenue income/expenses incurred during the year (previous year profit on sale of property Rs.2820.97 lakhs considered as exceptional item).

3. Belated charges/overdue interest on delay in payment of statutory dues/liabilities have not been provided in the absence of demand for the same.

4. The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

5. Lease payments:

The Company has not taken any assets under non cancelable operating lease agreements and hence no future lease payments.

6. Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

7. EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2015 comes to loss Rs.(9.48) (Previous year Rs.(2.67).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is net loss of Rs.15,15,53,621.11 for the year as per Statement of Profit and Loss (Previous year net Loss Rs.4,25,81,139.63) and as increased by the preference dividend for the year of Rs.2,70,186/- on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted earning per share = Net Loss of Rs.15,18,23,807.11÷16018139 shares=Rs.(9.48)

8. Figures have been rounded off to the nearest decimal of Lacs under Notes to Accounts.

9. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2014

NOTE NO : 1

Significant Accounting Policies and Notes to Accounts for the year ended 31st March, 2014

1.1 Contingent Liabilities not provided in respect of :

RUPEES IN LAKHS

SI. No. PARTICULARS Current Year Previous Year 2013-14 2012-13

a) As a signatory to the Memorandum of Cement Allocation and 1.00 1.00 Co-ordinating Organization

b) Guarantees given by the Bankers / Letters of Credit 222.02 220.37 (Net of margin money paid)

c) Corporate guarantee given to SIPCOT for the financial 3174.79 3124.85 assistance availed by M/s.Cheran Cement Limited (as on 30-04-2013)

d) Corporate guarantee given to SBI, SBH, Bank of India, Syndicate Bank, Indian Overseas Bank, Central Bank of India 19886.91 5877.27 and Canara Bank for financial assistance availed by S.P.Y. Agro Industries Limited

e) Arrears of dividend on "C" Cumulative Preference shares held 40.50 37.80 by institutions, being not redeemed and requested for extension of time

f) Estimated amount of contracts remaining to be executed on 605.78 605.78 capital account (Net of advances)

g) Claims against the Company not acknowlodged as debts being disputed and pending in appeals and not provided for as the Company is hopeful of success in appeals:

i) CENTRAL EXCISE :

a) CENVAT credits availed and utilized were subsequently 469.21 848.27 disallowed by the Department and demand raised for differential duty.

b) Differential Duty on supplies made to direct parties The Company has contested in appeals and are pending with 671.24 575.74 the Commssioner of Appeals or CEGAT/or A.P High Court (paid under protest Rs.12.56 lakhs)

ii) ELECTRICITY MATTERS:

a) Claim of APSEB for 10% voltage surcharge for the period from September 1983 to November 1984 contested. 30.64 30.64 High Court granted stay and directed APSEB to dispose off the pending representations made by the company.

b) Fuel Surcharge Adjustment (FSA) charges for the years 2008-09, 2009-10 and for the first quarter of 2010-11 payable to APCPDCL contested by the industrial units including the company before the Hon''ble High Court of A.P. and the 53.56 53.56 High Court granted stay for the year 2009-10 and first quarter 2010-11 and the favourable order of the High Court for the year 2008-09 was referred to Supreme Court and the same is pending.

iii) INCOME TAX MATTERS

a) During the year the appeal for the Assessment year 2378.49 - 2008-09 was disposed by the C.I.T. Appeals in favour of - 2378.49 the company and re-opened the assessment for theAssessment Year 2006 07.

b) During the year the Assessing Officer (Dy. Commissioner of Income Tax, Kurnool) has raised demand for payment of 3309.50 - capital gains tax on land under Joint Development Agreement for the Assessment year 2006-07. The company contested the demand before the Commissioner of Income Tax Appeals, Hyderabad.

c) During the year the Assessing Officer has re-opened the assessment for the A.Y 2008-09 and demand raised for MAT liability on book profit under section 115JB of Income 878.68 - Tax Act, the Company contested the demand before the Commissioner of Income Tax Appeals, Hyderabad.

d) The MAT liability for the Assessment year 2009-10 was confirmed by the ITAT and not contested by the Company - 222.52 (Paid under protest Rs. 211.30 lakhs was adjusted and (211.30) balance is payable).

e) Demand raised by the Assessing Officer (Deputy CIT, Hyderabad for the Assessment Year 2011 -12 for payment of TDS and Interest on delayed payments, contested in Nil 32.42 appeals before the Commissioner of Income tax (Appeals), Hyderabad. During the year the appeal was disposed in favour of the Company.

iv) COMMERCIAL TAX MATTERS

a) Demand raised by the Commercial Tax Department, Tamilnadu in respect of levy of penalty for the assessment 5.56 5.56 year 1994-95 contested in appeal before Appellate Authority and the matter was remanded to assessing authority.

b) Penalties levied by the Commercial Tax Officer, Kurnool for non payment of tax dues before the due date. The Company 124.85 114.05 has requested the Government for waiver of the penalties.

v) Penal Interest/ Damages on P.F Dues

The Department has levied penal interest and damages for delay in P.F payments for the period from May 1989 to 255.39 - September 2001 and the company requested for waiver.

During the year the liability was provided since not waived by the Department and paid part of the amount.

vi) During the year Department of Mines and Geology has raised demand for penal interest up to 31.03.2014 of Rs.1052.56 lakhs on royalty dues for delay in payments and the Company has filed Revision Application for waiver 835.76 650.26

of interest before the Department and Ministry of Mines, New Delhi. (Part of the interest of Rs.216.80 lakhs was provided in earlier years)

viii) OTHER MATTERS

Suits filed by the parties against the company and pending 120.45 126.34 in Appeals Courts

1.2 Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

1.3 Disclosure of discontinued operations of Wire / Engineering Division:

The operations of the Wire / Engineering Division at Bengalore were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into agreements for joint development of land with the developers. As per the requirements of Revised Schedule VI which is effective from 1st April, 2011, the book value of Rs.94.24 lakhs of land property under joint development agreements, was shown separately under "Current Assets" as current investment in land property and the amounts received from joint developers and advances received from intending buyers were shown separately under "Non-Current Liabilities" as other long term liability. There were no revenue income expenses incurred during the year and in previous year. During the year 2013-14 the company has sold the property under Joint Development Aggrement to the extent of possession given by the Developers and Sale Deads were executed and the profit on sale of property of Rs. 2820.97 lakhs (Previous year Rs.4276.00 lakhs) was considered as exceptional item.

1.4 Belated charges/overdue interest on delay in payment of statutory dues/liabilities have not been provided in the absence of demand for the same.

1.5. The balances of sundry debtors, sundry creditors, other

liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

1.6. Lease payments:

The Company has not taken any assets under non cancelable operating lease agreements and hence no future lease payments.

1.7 Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

1.8 Related party transactions:

The following are the transactions of the related parties, which are related on account of shareholding by key management personnel and their relatives viz. Sri. S.P.Y.Reddy, Chairman, Sri. S.Sreedhar Reddy, Managing Director and other Directors and the Associated Companies :

1.9 EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2014 comes to loss Rs.(2.67) (Previous year Rs.10.90).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is net loss of Rs.4,25,81,140 for the year as per Statement of Profit and Loss (Previous year net Profit Rs.17,48,73,880) and as reduced by the preference dividend for the year of Rs.2,70,186 - on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted earning per share = Net Loss of Rs.4,28,51,326-16018139 shares=Rs.(2.67)

1.10 Figures have been rounded off to the nearest decimal of Lacs as required under Revised Schedule VI.

1.11 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure as required under Revised Schedule VI.

---

Mar 31, 2013

1.1. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

1.2 Disclosure of discontinued operations of Wire / Engineering Division:

The operations of the Wire/ Engineering Division at Bengalur were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into agreements for joint development of land with the developers. As per the requirements of Revised Schedule VI which is effective from 1st April, 2011, the book value Rs. 660.52 lakhs of land property under joint development agreements, was shown separately under "Current Assets" as current investment in land property and the amounts received from joint developers and advances received from intending buyers were shown separately under "Non-Current Liabilities" as other long term liability. There were no revenue income/expenses incurred during the previous year. During the year 2012-13 the company has sold the property under Joint Development Aggrements to the extent of possession given by the Developers and Sale Deads were executed and the profit on sale of properity of Rs.4276.00 lakhs was considered as exceptional item.

1.3 Belated charges/overdue interest on delay in payment of statutory dues liabilities have not been provided in the absence of demand for the same.

1.4 The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

1.5 Lease payments:

The Company has not taken any assets under non cancelable operating lease agreements and hence no future lease payments.

1.6 Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

1.7 EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2013 comes to Rs. 10.90 (Previous year Rs.5.68).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is profit after tax of Rs. 1748.74 lakhs for the year as per Statement of Profit and Loss (Previous year net Profit Rs. 913.28 lakhs) and as reduced by the preference dividend for the year of Rs. 2.70 lakhs on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted earning per share = Net Profit of Rs. 174603879 16018139 shares = Rs. 10.90

1.8 Figures have been rounded off to the nearest decimals of lakhs for disclosures under Notes to Accounts

1.9 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure as required under Revised Schedule VI.

---

Mar 31, 2012

1.1 There were no loans repayable on demand and short term deposits/loans and advances from related parties

1.2 There was no default as on 31.03.2012 and 31.03.2011 in repayment of loans and interest payments on working capital cash credit loans.

1.3 SECURITY

Cash Credits working capital loans from banks: Secured by hypothication of inventory of raw materials,finished goods, stocks in-process and book debts and first pari pasu charge on the current assets and second charge on fixed assets of the company and also by the personal gurantee of the above Directors and shareholders.

1.4 There were no current maturities of Finance Lease Obligations, unpaid Dividends,unpaid matured Debentures or deposits and interest accrued thereon, Income received in advance and Application money received for allotment of securities.

There were no investments in Subsidiaries, Associates, Joint Ventures and controlled special purpose Entities and in Preference Shares, Bonds,Debentures,Mutual Funds and in Partnership Firms

2.1 Contingent Liabilities not provided in respect of :

RUPEES IN LAKHS

SI. No. PARTICULARS 2011-2012 2010-2011

a) As a signatory to the Memorandum of Cement Allocation and 1.00 1.00 Co-ordinating Organization

b) Guarantees given by the Bankers/Letters of Credit (Net of 314.61 66.80 margin money paid)

c) Corporate guarantee given to SIPCOT for the financial 2351.62 1683.74 assistance availed by M/s.Cheran Cement Limited (estimated liability)

6952.54 7742.77

d) Corporate guarantee given to SBI, SBH, Bank of India, Syndicate Bank and Indian Overseas Bank for financial assistance availed by S.P.Y. Agro Industries Limited

e) Arrears of dividend on "C" Cumulative Preference shares held 35.10 32.40 by institutions, being not redeemed and requested for extension of time

f) Estimated amount of contracts remaining to be executed on 705.50 765.65 capital account (Net of advances)

g) Claims against the Company not acknowlodged as debts being disputed and pending in appeals and not provided for as the Company is hopeful of success in appeals:

i) CENTRAL EXCISE AND CENVAT CREDIT: CENVAT credits 950.51 878.62 availed and utilized were subsequently disallowed by the Department and demand raised for differential duty and show cause notice for irregular availment of CENVAT credit (July 2006 to November 2007).

The Company has contested in appeals and are pending with the Commssioner of Appeals or CEGAT/or A.P High Court (paid under protest Rs. 12.56 lakhs)

ii) ELECTRICITY MATTERS:

Claim of APSEB for 10% voltage surcharge for the period from September 1983 to November 1984 contested. High 30.64 108.73 Court granted stay and directed APSEB to dispose off the pending representations made by the company. (Provided during the year Rs. 70.35 lakhs)

iii) INCOME TAX MATTERS

Demand raised by the Assessing Officer (Addl.CIT, Kurnool) 2601.00 2378.48 for the Assessment year 2008-09 for payment of capital gains tax on Bengaluru/ Wire Division land under Joint Development Agreement and for assessment year 2009-10 MAT liability on book profit under section 115JB of IT Act, which are contested by the company before the Commissioner of Income Tax (Appeals), Hyderabad and the appeals are pending and got stay/installments from the Commissioner for the balance amount.(Paid under protest Rs. 144.70 lakhs)

iv) COMMERCIAL TAX MATTERS

a) Demand raised by the Commercial Tax Department, Tamilnadu in respect of levy 5.56 5.56 of penalty for the assessment year 1994-95 contested in appeal before Appellate Authority and the matter was remanded to assessing authority.

b) Demand raised by the Asst. Commissioner (CT) Audit, Nil 92.59 Kurnool for payment of dirfferential tax for the year 2007-08,contested in appeal before the Appellate Dy.Commissioner, Kurnool and the Appeal was remanded during the year. The Assessing Officer partly allowed and the amount was paid (Rs.11.57 lakhs paid under protest in previous year was adjusted during the year)

c) During the year Penalties levied by the Commercial Tax 58.27 Nil Officer, Kurnool for non payment of tax dues before the due date for which installments were granted by the Department. The Company has requested the Government for waiver of the penalities.

v) Penal Interest / Damages on PF Dues The Department 277.59 399.69 has levied penal interest and damages for delay in P.F payments for the period from May 1989 to September 2001 and the company requested for waiver. (Paid during the year Rs. 122.10 lakhs and previous year Rs. 28.19 lakhs)

vi) Penal interest on Royalty Dues During the year Department 343.72 Nil of Mines and Geology has raised demand for penal interest up to 31.03.2011 of Rs. 560.52 lakhs on royalty dues for delay in payments and the Company has filed Revision Application for waiver of interest before the Department and Ministry of Mines, New Delhi. (Part of the interest of Rs. 216.80 lakhs was provided in earlier years)

vii) Suits filed against the Company and the Developers of 66625.12 66625.12 Bengaluru Property, in the Court of City Civil Judge, Bengaluru by two prospective buyers (Kare Electronics and Developments Private Limited and Pranava Electronics Private Limited) for specific performance of agreements to sell the property of Bengaluru land under development agreements and for refund of advances paid under the agreements to sell with interest, damages and value of undivided right, title, interest in the land entitlement as per the agreements to sell, which were contested by the company and the case was dismissed by the City Civil Court and High Court of Karnataka, Bengaluru and the matter is pending before the Honourable Supreme Court of India.

viii)OTHER MATTERS

Suits filed by the parties against the company and 126.34 126.34 pending in Appeals/Courts

2.2. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

2.3 Disclosure of discontinued operations of Wire / Engineering Division:

The operations of the Wire/ Engineering Division at Bengalur were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into agreements for joint development of land with the developers. As per the requirements of Revised Schedule VI which is effective from 1st April, 2011, the book value Rs. 813.12 lakhs of land property under joint development agreements, was shown separately under "Current Assets" as current investment in land property and the amounts received from joint developers and advances received from intending buyers were shown separately under "Non-Current Liabilities" as other long term liability. There were no revenue income/expenses incurred during the year and in previous year.

2.4 Belated charges/overdue interest on delay in payment of statutory dues liabilities have not been provided in the absence of demand for the same.

2.5 The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

2.6 Lease payments:

The Company has not taken any assets under non cancelable operating lease agreements and hence no future lease payments.

2.7 Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

2.8 EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2012 comes to Rs. 5.68 (Previous year (Loss) Rs.2.40).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is profit after tax of Rs.913.28 lakhs for the year as per Statement of Profit and Loss (Previous year net loss Rs.381.20 lakhs) and as reduced by the preference dividend for the year of Rs. 2.70 lakhs on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted earning per share =Net Profit of Rs. 910582016018139 shares=Rs.5.68.

2.9 Figures have been rounded off to the nearest decimal of Lacs as required under Revised Schedule VI.

2.10 The Revised Schedule VI has become effective from 1st April, 2011 for preparation of financial statements for the year 2011 -12. This has significantly impacted the disclosure and presentation in financial statements. Consequently previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure as required under Revised Schedule VI.

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Mar 31, 2011

Rupees in Lakhs 2010-2011 2009-2010

1 Contingent Liabilities not provided for :

a) As a signatory to the Memorandum of Cement Allocation and Co-ordinating Organization

1.00 1.00

b) Guarantees given by the Bankers/ Letters of Credit(Net of margin money paid)

66.80 19.28

c) Corporate guarantee given to SIPCOT for the financial assistance availed by M/s.Cheran Cement Limited estimated Liability.

1445.00 1000.00

d) Corporate guarantee given to SBI, SBH, Bank of India, Syndicate Bank and Indian Overseas Bank for financial assistance availed by S.P.Y. Agro Industries Limited

7742.77 6569.69

e) Arrears of dividend on "C" Cumulative Preference shares held by institutions, being not redeemed and requested for extension of time

32.40 29.70

f) Estimated amount of contracts remaining to be executed on capital account(Net of advances)

765.65 1724.12

2. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

3. Disclosure of discontinued operations of Wire Division and Chemical Division:

The operations of the Engineering Division were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into an agreement for joint development of land with the developers. As per the requirements of Accounting Standard (AS-24), the book values as at 31.03.2009 of fixed assets (land, office equipment, furniture and vehicle etc.) of Rs.759.95 lakhs were not shown separately but included under relevant heads of account and the amount received from joint developer during the year of Rs.65.00 lakhs (Previous year Rs.Nil) and advances received from intending buyers during the year of Rs. Nil (Previous year Rs.NIL lakhs) and repayments made to parties during the year Rs.200.81 lakhs (Previous year Rs.356.50 lakhs) shown separately under sources of funds as advance against property development. There was no revenue income expenses incurred during the year and in previous year.

The operations of the Chemical Division were permanently discontinued and the division was closed on 31.03.1998. During the year 2008 09, the company has disposed off the total land and buildings of the division and during the year no expenses were incurred.

4. Belated charges/overdue interest on delay in payment of statutory dues/ liabilities have not been provided in the absence of demand for the same.

5 The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

6. Lease payments:

There are no lease payments during the year and no liability in future years.

7. Deferred Tax Liability

There is no deferred tax liability as on 31.03.2011 on account of business loss/depreciation and expenditure allowable under section 43B of the I.T. Act, 1961.

8. Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

9. EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2011, comes to loss Rs.(2.40) (Previous year Rs.9.06).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is net loss after tax of Rs.381.20 lakhs for the year as per Profit and Loss Account(Previous year Rs. 1453.99 lakhs)and as increased by the preference dividend for the year of Rs.2.70 lakhs on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted loss per share = Net Loss of Rs.3,83,90,635/16018139 shares = Rs.(2.40).

10. Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with the current year figures.

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Mar 31, 2010

Rupees in Lakhs

2009-2010 2008-2009

1 Contingent liabilities not provided for:

a) As a signatory to the Memorandum of Cement Allocation and Co-ordinating Organization

1.00 1.00

b) Guarantees given by the Bankers/ Letters of Credit(Net of margin money paid)

19.28 16.19

c) Corporate guarantee given to SIPCOT/TIIC for the financial assistance availed by M/s.Cheran Cement Limited estimated liability (During the year TIIC liability paid Rs. 148.69 lakhs under final settlement of Rs. 198.69 lakhs (previous year paid Rs.50.00 lakhs

1000.00 1362.53

d) Corporate guarantee given to SBI, SBH, Bank of India, Syndicate Bank and Indian Overseas Bank for financial assistance availed by S.P.Y. Agro Industries Limited

6569.69 7394.29

e) Arrears of dividend on "C" Cumulative Preference shares held by institutions, being not redeemed and requested for extension of time

29.70 27.00

f) Estimated amount of contracts remaining to be executed on capital account (Net of advances)

1724.12 3549.86

2. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

3. Disclosure of discontinued operations of Wire Division and Chemical Division:

The operations of the Engineering Division were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into an agreement for joint development of land with the developers. As per the requirements of Accounting Standard (AS 24), the book values as at 31.03.2009 of fixed assets (land, office equipment, furniture and vehicle etc.) of Rs.759.95 lakhs were not shown separately but included under relevant heads of account and the amount received from joint developer during the year of Rs.Nil (Previous year Rs.Nil) and advances received from intending buyers during the year of Rs.Nil (Previous year Rs.30.00 lakhs) and repayments made to parties during the year Rs.356.50 lakhs (Previous year Rs.Nil) shown separately under sources of funds as advance against property development. There was no revenue income/expenses incurred during the year and in previous year.

The operations of the Chemical Division were permanently discontinued and the division was closed on 31.03.1998. During the year 2008- 09, the company has disposed off the total land and buildings of the division and during the year no expenses were incurred.

4 During the year 2005-06 the company has announced

VRS and the amount settled under VRS treated as deferred revenue expenditure to be written off over a period of five years from 2005-06. Accordingly an amount of Rs.282.85 lakhs (Previous year Rs.282.86 lakhs) has been written off and the balance at the year end is Rs.Nil (Previous year Rs.282.85 lakhs).

5. Belated charges/overdue interest on delay in payment of statutory dues/liabilities have not been provided in the absence of demand for the same.

6. The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

7. Lease payments:

There are no lease payments during the year and no liability in future years.

8. Deferred Tax Liability

There is no deferred tax liability as on 31.03.2010 on account of expenditure allowable under section 43B of thel.T.Act, 1961 and deferred revenue expenditure allowable in future years.

9. Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

10. Related party transactions:

The following are the transactions of the related parties, which are related on account of shareholding by key management personnel and their relatives viz. Sri S.P.Y.Reddy, Chairman, Sri S.Sreedhar Reddy, Managing Director and other Directors and the Associated Companies.

EARNING PER SHARE :

Basic and diluted earnings per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2010, comes to Rs.9.06 (Previous year Rs.21.50)

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs. 10/-each numerator is net profit after tax of Rs.1453.99 lakhs for the year as per Profit and Loss Account(Previous year Rs.3446.55lakhs)and as reduced by the preference dividend for the year of Rs.2.70 lakhs on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted EPS = Net Profit of Rs.145129015/16018139 shares=Rs.9.06.

11.Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with the current year figures.