Notes to Accounts of Ramco Industries Ltd.

Mar 31, 2025

5.12 Provisions, Contingent Liabilities and Contingent Assets

5.12.1 Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a
result of past events and it is probable that there will be an outflow of resources embodying economic benefits in respect of
which a reliable estimate can be made.

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

5.12.3 Insurance claims are accounted on the basis of claims admitted or expected to be admitted and to the extent that the
amount recoverable can be measured reliably and it is reasonable to expect ultimate collection. Any subsequent change in
the recoverability is provided for Contingent Assets are not recognised.

5.12.4 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 recognised but disclosed in the financial statements.

5.13 Intangible Assets

5.13.1 The costs of computer software acquired and its subsequent improvements are capitalised. Internally generated software is
not capitalized and the expenditure is recognized in the Statement of Profit and Loss in the year in which the expenditure is
incurred.

5.13.2 Intangible Assets are amortised over their estimated useful life on straight line method. The estimated useful lives of
intangible assets are assessed by the internal technical team. Its accounting classification is given below:

5.13.3 The intangible assets that are under development phase are carried at cost including related expenses and attributable
interest, and are recognised as Intangible assets under development.

5.13.4 The residual values, useful lives and methods of depreciation of intangible asset are reviewed at each reporting date and
adjusted prospectively, if appropriate.

5.14 Investment Properties

5.14.1 An investment in land or buildings both furnished and unfurnished, which are held for earning rentals or capital appreciation
or both rather than for use in the production or supply of goods or services or for administrative purposes or sale in the
ordinary course of business, are classified as investment properties.

5.14.2 Investment properties are stated at cost, net of accumulated depreciation and impairment loss, if any except freehold land
which is carried at cost.

5.14.3 The company identifies the significant parts of investment properties separately which are required to be replaced at
intervals. Such parts are depreciated separately based on their specific useful lives determined on best estimate basis upon
technical advice. The cost of replacement of significant parts are capitalised and the carrying amount of replaced parts are

de-recognised. Other expenses including day-to-day repair and maintenance expenditure and cost of replacing parts that does
not meet the capitalisation criteria, are charged to the Statement of Profit and Loss for the period during which such expenses
are incurred.

5.14.4 Depreciation on investment properties are calculated on straight-line method based on useful life of the significant
components.

5.14.5 Investment properties are eliminated from the financial statements on disposal or when no further benefit is expected from
its use and disposal. Gains or losses arising from disposal, measured as the difference between the net disposal proceeds
and the carrying amount of such investment properties, are recognised in the Statement of Profit and Loss. Amount received
towards investment properties that are impaired and derecognized in the financial statements, are recognized in Statement
of Profit and Loss, when the recognition criteria are met.

5.14.6 The residual values, useful lives and methods of depreciation of investment properties are reviewed at each reporting date
and adjusted prospectively, if appropriate.

5.15 Operating Segments

Operating segment has been identified on the basis of nature of products and reported in a manner consistent with the
internal reporting provided to Chief Operating Decision Maker.

The Company has three operating/reportable segments viz. building products, textile and wind power generation.

The inter-segment transfers of units of power from windmills are recognized at the applicable tariff rates of the electricity
boards for the purpose of segment reporting as per the relevant accounting standard.

Costs are allocated to the respective segment based upon the actual incidence of respective cost. Unallocated items include
general other income and expenses which are not allocated to any business segment.

5.16 Financial Instruments

5.16.1 The Company initially determines the classification of financial assets and liabilities. After initial recognition, no re¬
classification is made for financial assets which are categorised as equity instruments at FVTOCI and financial assets /
liabilities that are specifically designated as FVTPL. However, other financial assets are re-classifiable when there is a change
in the business model of the Company.

Financial Assets

5.16.2 Financial assets comprise of investments in equity and mutual funds, trade receivables, cash and cash equivalents and other
financial assets.

Initial recognition and measurement

5.16.3 All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, Trade
receivables that do not contain a significant financing component are measured at transaction price.

5.16.4 Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between
the fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition
if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or
through a valuation technique that uses data from observable markets (i.e. level 2 input).

5.16.5 In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair
value and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only
to the extent that such gain or loss arises due to a change in factor that market participants take into account when pricing
the financial asset.

Subsequent measurement

5.16.6 For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

(a) The Company’s business model for managing the financial asset and,

Financial Liabilities

5.16.10 Financial liabilities comprise of Borrowings from Banks, Trade payables, Derivative financial instruments, Financial guarantee
obligation and other financial liabilities.

Initial recognition and measurement:

5.16.11 All financial liabilities are recognised initially at fair value minus, in the case of financial liabilities not recorded at fair value
through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability.

5.16.12 Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between
the fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition

if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or
through a valuation technique that uses data from observable markets (i.e. level 2 input).

5.16.13 In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair
value and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only
to the extent that such gain or loss arises due to a change in factor that market.

Subsequent measurement

5.16.14 All financial liabilities of the Company are subsequently measured at amortised cost using the effective interest method
except for certain items like foreign exchange forward contracts that do not qualify for hedge accounting are measured at
fair value through profit or loss (FVTPL).

5.16.15 Transaction cost of financial guarantee contracts that are directly attributable to the issuance of the guarantee are recognised
initially as a liability at fair value. Subsequently, the liability is measured at the higher of the amount of loss allowance
determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortization.

5.17 Fair value measurement

5.17.1 The fair value of an asset or a liability is measured using the assumptions that the market participants would use when pricing
the asset or liability, assuming that the market participants act in the economic best interest.

5.17.2 All assets and liabilities for which fair value is measured are disclosed in the financial statements are categorised within fair
value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value
hierarchy is described as below:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities

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

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

5.17.3 For assets and liabilities that are recognised in the Balance sheet on a recurring basis, the company determines whether
transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period (i.e)
based on the lowest level input that is significant to the fair value measurement as a whole.

5.17.4 For the purpose of fair value disclosures, the company has determined the classes of assets and liabilities based on the nature,
characteristics and risks of the assets or liabilities and the level of the fair value hierarchy as explained above.

6. SIGNIFICANT ESTIMATES AND JUDGEMENTS

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. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed
on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the
revision effects only that period or in the period of the revision or future periods, if the revision affects both current and
future years.

Accordingly, the management has applied the following estimates / assumptions / judgements in preparation and presentation
of financial statements:

Property, Plant and Equipment, Intangible Assets and Investment Properties

The residual values and estimated useful life of PPEs, Intangible Assets and Investment Properties are assessed by technical
team duly reviewed by the management at each reporting date. Wherever the management believes that the assigned useful
life and residual value are appropriate, such recommendations are accepted and adopted for computation of depreciation/
amortisation. Also, management judgement is exercised for classifying the asset as investment properties or vice versa.

Revenue Recognition

Significant management judgement is exercised in determining the transaction price and discounts to customer which is based
on market factors namely demand and supply. The Company offers credit period to customers for which there is no financing

component.

Current Taxes

Calculations of income taxes for the current period are done based on applicable tax laws and management’s judgement by
evaluating positions taken in tax returns and interpretations of relevant provisions of law.

Deferred Tax Asset

Significant management judgement is exercised by reviewing the deferred tax assets at each reporting date to determine the
amount of deferred tax assets that can be retained / recognised, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.

Contingent Liabilities

Management judgement is exercised for estimating the possible outflow of resources, if any, in respect of contingencies /
claims / litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

Impairment of Trade receivables

The impairment for financial assets are done based on assumptions about risk of default and expected loss rates. The
assumptions, selection of inputs for calculation of impairment are based on management judgement considering the past
history, market conditions and forward looking estimates at the end of each reporting date.

Impairment of Non-financial assets

The impairment of non-financial assets is determined based on estimation of recoverable amount of such assets. The
assumptions used in computing the recoverable amount are based on management judgement considering the timing of future
cash flows, discount rates and the risks specific to the asset.

Provisions

The timing of recognition requires application of judgement to existing facts and circumstances that may be subject to
change. The litigations and claims to which the company is exposed are assessed by the management and in certain cases
with the support of external experts. The amounts are determined by discounting the expected future cash flows at a pre-tax
rate that reflects the current market assessments of the time value of money and the risks specific to the liability.

Defined Benefit Plans and Other long term benefits

The cost of the defined benefit plan and other long term benefits, and the present value of such obligation are determined
by the independent actuarial valuer. Management believes that the assumptions used by the actuary in determination of the
discount rate, future salary increases, mortality rates and attrition rates are reasonable. Due to the complexities involved in
the valuation and its long term nature, this obligation is highly sensitive to changes in these assumptions.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in active
markets, management uses valuation techniques including the Discounted Cash Flow (DCF) model, to determine its fair value
the inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of
judgement is exercised in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility.

Impairment of Investments in Subsidiaries /Associates

Significant management judgement is exercised in determining whether the investment in subsidiaries / associates are
impaired or not is on the basis of its nature of long term strategic investments and business projections.

Interests in other entities

Significant management judgement is exercised in determining the interests in other entities. The management believes that
wherever there is significant influence over certain companies belong to its group, such companies are treated as Associate
companies even though it holds less than 20% of the voting rights.

(c) Industrial Promotion Assistance from:

- Deferred Grant recognised as income -''9.77 lakhs [PY-''9.77 lakhs]

(d) Out of 252.78 lakhs units [PY - 278.22 lakhs units] generated by our windmills, 50.59 lakhs units [PY - 54.42 lakhs units] were
sold to concerned state Electricity Board, 201.89 lakhs units [PY - 226.08 lakhs units] were consumed at our plant and 2.99
lakhs units [PY - 2.69 lakhs units] remain unadjusted.

(e) The Company’s Revenue from sale of products is recognised upon transfer of control of such products to the customer at a
point of time. Revenue from windmills is recognised upon transmission of energy to the grids of state electricity boards. The
revenue from project contract is recognised on using percentage of completion method.

40.2.1 Income tax demands amounting to ^3,348.09 Lakhs (Previous Year: ^3,784.52 Lakhs) have been disputed by the Company.
Appeals have been filed before the appellate authorities against various disallowances in assessments, and the matters are
currently pending. Out of this total demand, ^969.71 Lakhs (Previous Year: ^1,176.00 Lakhs) has been provided for in the
books of accounts. The balance amount of ^2,378.39 Lakhs (Previous Year: ^2,608.52 Lakhs) has not been acknowledged as
a liability by the Company. In the opinion of the management, no further tax liability is expected to arise in connection with
this matter, and hence, no additional provision has been considered necessary.

40.2.2 Sales tax demands amounting to ^125.42 Lakhs (Previous Year: ^219.85 Lakhs) have been disputed by the Company. Appeals
have been preferred before the appellate authorities against various disallowances across several assessments, and the
appeals are pending. The entire disputed amount has been provided for in the books of accounts.

40.2.3 The Company had set up a plant in Silvassa (Union Territory of Daman, Diu, Dadra & Nagar Haveli) in 1998 and availed of VAT
and CST exemptions for a period of 15 years, ending March 2013, based on a certificate issued by the competent authority
under the relevant provisions of the CST Act, 1956. However, this power to grant exemption was retrospectively withdrawn by

an amendment introduced through the Finance Act, 2002. Subsequently, the Sales Tax Department issued a circular mandating
the compulsory submission of concessional sales tax forms to continue availing CST exemption.

This could have led to a differential sales tax liability of ^3700 lakhs for the period 1998-2002. However, no formal demand
had been received from the authorities. As a precautionary measure, the Company filed a writ petition with the Hon’ble
Bombay High Court, which quashed the said circular and upheld the Company’s eligibility for the CST exemption, despite the
retrospective amendment.

The Commercial Tax Department, Silvassa, appealed this decision before the Hon’ble Supreme Court. The Supreme Court
decided the case in the Company’s favour in February 2025.

40.2.4 Entry tax demands amounting to ^204.69 Lakhs (Previous Year: ^19.48 Lakhs) have been disputed by the Company. Appeals
have been filed before the appropriate appellate authorities, and the matters are pending. The entire amount has been
provided for in the books of accounts.

The Government of West Bengal enacted “The West Bengal Tax on Entry of Goods into Local Areas Act, 2012,” which was
legally challenged by the Company. The Hon’ble Calcutta High Court, via its order dated 20.04.2017, transferred jurisdiction
of the matter to the West Bengal Taxation Tribunal. The Tribunal, via its order dated 25.03.2022, held that the State had
no legislative competence to introduce Sections 5 and 6 (Entry Tax) of the West Bengal Finance Act, 2017 and declared the
provisions unconstitutional.

Subsequently, the Department filed an appeal before the Hon’ble High Court, which, in January 2025, ruled in favour of the
Government. The Company has challenged this ruling and filed a further appeal before the Hon’ble Supreme Court, based on
legal advice received from consultants.

The Company has paid and expensed the entry tax up to May 2013. It has also made provisions in its books amounting to
^295.37 Lakhs for the period June 2013 to June 2017. Additionally, provision for interest has been made to the extent of
^711.56 Lakhs (Previous Year: ^640.67 Lakhs).

40.2.5 GST demands amounting to ^285.96 Lakhs (Previous Year: ^52.80 Lakhs) have been disputed by the Company. Appeals have
been filed before the Deputy Commissioner/Assistant Commissioner/Superintendent against various disallowances during
assessment and audit proceedings. The entire disputed amount of ^285.96 Lakhs (Previous Year: ^16.14 Lakhs) has been
provided for in the books of accounts. The balance amount of NIL (Previous Year: ^36.66 Lakhs) has not been acknowledged
as a liability by the Company. In the opinion of the management, no further tax liability is expected to arise, and accordingly,
no additional provision has been considered necessary.

40.2.6 In respect of electricity matters related to the Textile Division, the Company has filed appeals/writ petitions amounting to
'' 291.87 lakhs (PY: '' 291.87 lakhs) concerning various issues. These matters are currently pending before the Tamil Nadu
Electricity Regulatory Commission (TNERC), the Honourable High Court, and the Honourable Supreme Court. The Company is
confident of a favourable outcome and, therefore, no provision has been made in the books of accounts.

40.2.7 Under the Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations, 2010,
consumers operating grid-connected captive power generating plants and open access consumers with a sanctioned demand
of more than 2 MVA are required to source a minimum of 0.5% of their energy requirement from solar sources. Non-compliant
entities must either purchase Renewable Energy Certificates (RECs) from the market at the rate of 1 REC per 1,000 units of
shortfall or deposit an equivalent amount in a designated fund. Although the Company uses wind energy generated from its
own wind farms, it has been excluded from fulfilling this obligation due to its wheeling and banking arrangement with TNEB.
Aggrieved by this exclusion, the Company, along with other affected producers, has approached the Honourable High Court of
Madras and obtained an interim stay on the implementation of the said regulation

40.2.8 The Company has commissioned windmills with the Electricity Board (EB) under a banking arrangement. For four of the Wind
Energy Generators (WEGs), the banking period expired in March (three units) and September (one unit) 2023. The Company
filed a case before the Madras High Court, which directed the EB to adjust the wind energy generated from the said WEGs
from March 2023 onwards. Following receipt of the court order, the Company approached the EB, and the lapsed banking units
were accordingly adjusted. The Company is in the process of entering into addendum agreements with TNGECL, in compliance
with the High Court’s order.

40.2.9 The Company made a representation to the Chairman of the Electricity Board (EB) seeking a tariff concession for establishing
a new industry at Arakkonam prior to 14.02.1997, under the scheme outlined in GO Ms.17 Energy (A2), which was active at
that time. The EB denied the concession.

Consequently, the Company filed a writ petition before the Madras High Court, seeking a refund of '' 8.22 lakhs along with
interest up to April 2008 ('' 15.21 lakhs), aggregating to '' 23.43 lakhs, with further interest at 18% per annum till the date of
payment. On 01.02.2019, the High Court disposed of the case, allowing the writ petition by setting aside the EB’s order dated
04.11.2009. The EB was directed to reconsider the Company’s claim for the tariff concession after providing an opportunity
to submit documentary evidence. Pursuant to the court’s direction, the Company has made several representations to the EB
and is currently awaiting a hearing from TNEB, Vellore. A further representation has also been made to the Chairman, TNEB,
and a response is awaited

40.2.10 The Company received a notice from the Directorate of Revenue Intelligence (DRI) demanding '' 41.23 lakhs (excluding
interest and penalty) for the financial year 2009-10, in relation to the short payment of customs duty. The demand pertains to
the use of DEPB scrips purchased by the Company in the open market, which the DRI alleges were fraudulently obtained by the
original exporters. The Company has denied any wrongdoing and its liability for the duty, as detailed in its letter dated August
4, 2014. A personal hearing was attended by the Company before the Assistant Commissioner of Customs, JNPT, Mumbai, in
October 2016. The Company is awaiting a favourable order and, based on legal opinion and internal assessment, is confident
of a favourable outcome. Accordingly, no provision has been made in the accounts.

40.3.1 The Company is eligible for incentives under the “Bihar Industrial Incentive Policy 2006” in respect of its Fibre Cement Plant
at Bihiya in the State of Bihar. During the year under review,

• We have recognised a sum of '' 9.77 Lakhs (PY. ''9.77 Lakhs) due to fair valuation of Govt. Grants as per Ind AS.

• Incentive Scheme under GST regime from 1^st July, 2017 has been announced by the Govt. of Bihar. Company has applied
for the same and is awaiting for approval from Govt.

42. DISCLOSURES PERTAINING TO SHARE BASED PAYMENTS AS PER IND AS 102
Employee Stock Option Schemes (ESOS)

Employee Stock Option Schemes (ESOS)

The Company instituted Employee Stock Option Schemes (ESOS 2021) approved by shareholders at the Annual General Meeting
held on 19.08.2021. The Board of Directors and Nomination & Remuneration Committee granted 1,46,000 options to its
eligible employees under various ESOS schemes at its meeting held on January 20, 2022 and 146000 shares have been fully
exercised by respective employees within the period.

The Board of Directors and Nomination & Remuneration Committee granted further 32,500 options to its eligible employees
under ESOS 2021 - Plan A scheme at its meeting held on May 28, 2024. Each option entitles the option holder thereof to apply
for one equity share of the company, upon satisfaction of performance condition during the vesting period and payment of
exercise price during the exercise period. Options are granted for no consideration and carries no dividend or voting rights.
There are no market conditions attached to the grant / vesting of options. There are no cash settlement options alternatives.

The Company has recognized '' 64.30 Lakhs [PY: NIL Lakhs] as Employee stock options expense towards equity-settled share-
based transactions. There are no cash settlement options alternatives.

1. It includes bonus, sitting fees, and value of perquisites.

2. It includes contribution to Provident fund and Superannuation fund

3. As the liability for gratuity and compensated absences are provided on actuarial basis for the Company as a whole,
amounts accrued pertaining to key managerial personnel are not included above.

46. DISCLOSURE OF FAIR VALUE MEASUREMENTS

The fair values of financial assets and liabilities are determined at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of cash and short-term
deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks
and other financial instruments approximate their carrying amounts largely due to their short term maturities of these
instruments.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

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

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.

The details of financial instruments that are measured at fair value on recurring basis are given below:

The Board of Directors (BOD) has overall responsibility for the establishment and oversight of the Company’s risk management
framework and thus established a risk management policy to identify and analyses the risk faced by the Company. Risk
Management systems are reviewed by the BOD periodically to reflect changes in market conditions and the Company’s
activities. The Company through its training and management standards and procedures develop a disciplined and constructive
control environment in which all employees understand their roles and obligations. The Audit Committee oversees how
management monitors compliance with the Company’s risk management policies and procedures, and reviews the risk
management framework. The Audit committee is assisted in the oversight role by Internal Audit. Internal Audit undertakes
reviews of the risk management controls and procedures, the results of which are reported to the Audit Committee.

Credit Risk is the risk of financial loss to the Company if the customer or counterparty to the financial instruments fails
to meet its contractual obligations and arises principally from the Company’s receivables, treasury operations and other
operations that are in the nature of lease.

Receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer. The Company
extends credit to its customers in the normal course of business by considering the factors such as financial reliability of
customers. The Company evaluates the concentration of the risk with respect to trade receivables as low, as its customers
are located in several jurisdictions and operate in largely independent markets. The Company maintains adequate security
deposits from its customers in case of wholesale and retail segment. The exposures with the Government are generally
unsecured but they are considered as good. However, unsecured credits are extended based on creditworthiness of the
customers on case to case basis.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy
or failing to engage in a repayment plan with the company and where there is a probability of default, the company creates
a provision based on Expected Credit Loss for trade receivables under simplified approach as below:

Financial Instruments and Cash deposits

Investments of surplus funds are made only with the approved counterparties. The Company is presently exposed to counter
party risk relating to short term and medium term deposits placed with banks, and also investments made in mutual funds.
The Company places its cash equivalents based on the creditworthiness of the financial institutions.

Liquidity Risk

Liquidity Risks are those risk that the Company will not be able to settle or meet its obligations on time or at reasonable
price. In the management of liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed
adequate by the management to finance the company’s operations and to mitigate the effects of fluctuations in cash flows.

Fund Management

Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping both
committed and uncommitted credit lines available. The Company has laid well defined policies and procedures facilitated
by robust information system for timely and qualitative decision making by the management including its day to day
operations

The Company’s exposure in USD and other foreign currency denominated transactions in connection with import of raw
material, capital goods and spares, besides exports of finished goods and borrowings in foreign currency, gives rise to exchange
rate fluctuation risk. The Company has following policies to mitigate this risk:

Decisions regarding borrowing in Foreign Currency and hedging thereof, (both interest and exchange rate risk) and the
quantum of coverage is driven by the necessity to keep the cost comparable. Foreign Currency loans, imports and exports
transactions are hedged by way of forward contract after taking into consideration the anticipated Foreign exchange inflows/
outflows, timing of cash flows, tenure of the forward contract and prevailing Foreign exchange market conditions.

Cash flow and fair value interest rate risk

Interest rate risk arises from long term borrowings with variable rates which exposed the company to cash flow interest rate
risk. The Company’s fixed rate borrowing are carried at amortized cost and therefore are not subject to interest rate risk
as defined in Ind AS 107 since neither the carrying amount nor the future cash flows will fluctuate because of the change in
market interest rates. The Company is exposed to the evolution of interest rates and credit markets for its future refinancing,
which may result in a lower or higher cost of financing, which is mainly addressed through the management of the fixed/
floating ratio of financial liabilities. The Company constantly monitors credit markets to strategize a well-balanced maturity
profile in order to reduce both the risk of refinancing and large fluctuations of its financing cost. The Company believes that it
can source funds for both short term and long term at a competitive rate considering its strong fundamentals on its financial
position.

For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is
to maximize the shareholders’ wealth.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the
requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by
total capital plus Debt.

49. PROJECT REVENUE RECOGNITION

Contract revenue from Project activity on fixed price contracts is recognized when the outcome of the contract is ascertained
reliably, contract revenue is recognized at cost of work performed on the contract plus proportionate margin, using percentage
of completion method. Percentage of completion is determined based on work certified by the customer.

Disclosure as per Indian Accounting Standard - 11 in respect of projects in progress

[a] Contract Revenue during the year ''121.48 Lakhs [PY: ''58.70 Lakhs]

[b] Aggregate amount of cost incurred ''93.63 Lakhs [PY: '' 66.83 Lakhs] and recognised Profit '' 27.85 Lakhs
[PY: '' (8.12)Lakhs]

[c] Advances received [Outstanding] Nil [PY: '' 21.25 Lakhs]

[d] Retention Money [Outstanding] ''24.98 Lakhs [PY: '' 32.38 Lakhs]*

[e] Gross Amount due from Customers for Contract Work [including Retention at (d) above] '' 49.18 Lakhs [PY: ''75.38 Lakhs]

[f] Gross Amount due to Customers for Contract Work [other than advances at (c) above] - Nil

[g] Unbilled revenue - Nil

* Retention Money [Outstanding] is after adjusting amounts released against furnishing of Bank Guarantees.

Unbilled Revenue represents revenue recognised based on percentage of completion method over and above the amount due
from the customers as per the agreed payment plans.

e. Unbilled Revenue Ageing Schedule

The Company do not have any such transaction.

f. Undisclosed Income

The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or
disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

g. CSR Disclosure:

Disclosure has been given in Note no:36(b) and (c) of note on accounts.

h. Compliance with approved Scheme(s) of arrangements.

The Company do not have any such approved Scheme(s) of arrangements.

i. Relationship with Struck off Companies

The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956 considering the information available with the Company.

j. Details of Crypto Currency or Virtual Currency

The Company did not trade or invest in Crypto Currency or virtual currency during the financial year.

k. Disclosure on loans / advance to directors / KMP / related parties:

Disclosure has given in note on accounts Note no:10 (a) and (b) as per the Schedule III.

l. Benami Property

The Company did not have any Benami property, where any proceeding has been initiated or pending against the Company for

holding any Benami property.

m. The Company has neither advanced or loaned or invested, nor received any fund, to or from, any other persons or
entities including foreign entities (intermediaries) with the understanding that the intermediary shall:

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company or

ii. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Formula adopted for above Ratios:

Current Ratio = Total Current Assets / Total Current Liabilities

(a) Debt-Equity Ratio = Total Debt / Total Equity

(b) Debt Service Coverage Ratio = (EBITDA - Current Tax) / (Principal Repayment Gross Interest)

(c) Return on Equity Ratio = Total Comprehensive Income / Average Total Equity

(d) Inventory Turnover Ratio = (Average Inventory days) = 365 / (Net Revenue / Average Inventories)

(e) Trade receivable Turnover Ratio = (Average Receivables days) = 365 (Net Revenue / Average Trade receivables)

(f) Trade payable Turnover Ratio = (Average Payables days) = 365 (Net Revenue / Average Trade payables)

(g) Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade Receivable Turnover Ratio - Trade Payable Ratio)

(h) Net Profit Ratio = Net Profit / Total Income

(i) Return on Capital Employed = (Total Comprehensive Income Interest) / (Average of (Equity Total Debt))

(j) Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets

Reasons for Variation if more than 25%

The Increase in Debt-Service Coverage Ratio by 154% from 2.21 times in previous year to 5.62 times in current year is mainly
due to higher profits, decrease in interest cost and decrease in term loan repayments.

The Increase in Net Profit Ratio by 37% from 4.5% in previous year to 6.1% in current year is mainly due to cost decrease.

52. DISCLOSURES ON LEASES
COMPANY AS A LESSEE
Nature of leasing activities

The Company has entered into operating lease on certain assets i.e land and building. Lease rentals are determined based on
agreed terms. There is escalation clause in certain lease agreements after a specified period and no restriction imposed by
the lease arrangements.

55. THE CODE ON SOCIAL SECURITY, 2020 AND INDUSTRIAL RELATIONS CODE, 2020

The Central Government has published The Code on Social Security, 2020 and Industrial Relations Code,2020 (“the codes”) in
the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees including
post-employment period. The effective date of the code and the rules are yet to be notified. The impact of the legislative
changes if any will be assessed and recognised post notification of relevant provisions

57. The previous period figures have been re-grouped / restated wherever considered necessary.

As per our Report Annexed For and on behalf of the Board

For M/s. SRSV & Associates For M/s. Ramakrishna Raja and Co., P.R. VENKETRAMA RAJA PREM G SHANKER

Chartered Accountants Chartered Accountants Chairman Chief Executive Officer

Firm Registration No.: 015041S Firm Registration No.: 005333S (DIN: 00331406) K SANKARANARAYANAN

V. RAJESWARAN M. VIJAYAN P.V. ABINAV RAMASUBRAMANIAM RAJA Chief Financial Officer

^{Partner Partner Mana}gⁱⁿg ^Director s. BALAMURUGASUNDARAM

Membership No. 020881 Membership No.026972 (DIN: 07273249) C_ompany S_ecret_ary & L_eg_al H_ead

UDIN: 25020881BMKQGE2477 UDIN: 25026972BMGDZU7137

Place : Chennai
Date : 23^rd May, 2025

---

Mar 31, 2024

a. The Company has accounted for investments in Subsidiaries and Associates at Cost. Refer Note Nos. 46 (a) and 46 (b) for information on principal place of business / country of incorporation and company’s interest / percentage of shareholding in the above subsidiaries and associates.

b. The carrying amount of Investment in Associates is tested for impairment in accordance with Ind AS 36. These investments are strategic and longterm in nature. Impairment testing is carried out for listed securities based on fair market value as per the stock exchange. However, in case of unlisted securities, impairment testing is carried out based on the recent trade transactions with third parties or DCF method or valuation report by an independent valuer as it may be appropriate. Accordingly, no impairment is considered necessary as at the reporting date.

c. During the year, the company invested 3,174 equity shares of Clean Max Opus Private Limtied for ''144.21 lakhs.

d. During the year, the company invested 15,75,000 shares of Green Infra clean wind generation Limited for ''157.50 lakhs

e. By virtue of execution of Share Subscription and Purchase Agreement of Sale and transfer of its entire shareholding of 45,56,35,662 equity shares (including

7,52,57,047 equity shares, invested during current year for '' 1,035.59 lakhs, as part of the said Agreement) held in Associate viz. Lynks Logistics Limited

(“Lynks”) to Bundl Technologies Private Limited (“Bundl” operating under the brand name “Swiggy”), Lynks ceased to be an Associate with effect from 12-07.2023. Accordingly, the Company discontinued the cost model and measured such investment at its fair value through OCI in accordance with Ind AS 109 read with Ind AS 28. Consequent to that, on 29-08-2023, the Company has sold and transferred such shares and simultaneously acquired 21,95,777 Compulsory Convertible Preference Shares (CCPS) of Bundl, in consideration of sale of shares for a value equivalent to '' 7,858.03 lakhs as part of non-core asset disposal strategy. The cumulative net gain on the disposal of such investment amounted to '' 2,682.75 lakhs is included under ‘Other comprehensive Income’.

a. The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand or without specifying any terms or period of repayment

b. Loan given to related party represents loan given to wholly owned subsidiary company, M/s.Sudharsanam Investments Ltd -'' 139.86 lakhs [PY: '' 175.73 lakhs]. Loan given to M/s. Lynks Logistics Ltd (Associate company upto 12.07.2023) has been repaid during the year. CY: NIL [PY: '' 1,000.00 lakhs] [Refer Note No. 47 (b) (6)].

a. Inventories are valued as per company’s accounting policy. [Refer Note No. 5.1 of Material Accounting Policies]

b. The total carrying cost of inventories as at the reporting date has been hypothecated as security for Short term Borrowings.

c. During current year, some of the PPE with book value of '' 46.26 lakhs [PY: '' 127.08 lakhs] are impaired and the loss of impairment of '' 42.33 lakhs [PY: '' 48.21 lakhs] is accounted.

d. The Average Inventory Holding period stood at 158 days for the year ended 31.03.2024 (PY: 131 days) [Refer Note No. 53]

a. Trade receivables on account of goods are generally non-interest bearing and are with terms of 30 to 45 days.

b. No trade receivable are due from directors or other officers of the company either severally or jointly with any other person.

c. Trade receivable from related parties represents Royalty receivable from our subsidiaries of '' 647.89 lakhs [PY: '' 476.79 lakhs]- [Refer Note No. 47 (b) (1)].

d. The total carrying amount of trade receivables has been hypothecated as security for Short term Borrowings.

e. Refer Note No. 49 and 52 (d ) for information about risk profile of Trade Receivables under Financial Risk Management and Ageing Schedule respectively.

Terms / Rights / Restrictions attached to Equity shares

The Company has one class of equity shares having a face value of '' 1/- each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividend in Indian Rupees. In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Fair Value through Other Comprehensive Income Reserve represents the balance in equity for items to be accounted in Other Comprehensive Income (OCI). The Company has opted to recognise the changes in the fair value of certain investments in equity instruments and remeasurement of defined benefit obligations in OCI. The Company transfers amounts from this reserve to Retained Earnings in case of actuarial loss / gain and in case of fair value recognition of equity instrument, the same will be transferred when the respective equity instruments are derecognised.

a. Short term Borrowings from Banks (other than Current maturities of Long term borrowings) are secured by way of first pari passu hypothecation charge on trade receivables and inventories of the Company, present and future. The quarterly returns or statement filed by the Company with the banks or financial institutions are in agreement with the books of accounts.

b. Loans and advances from Directors represents amount due to Managing Director, which carries an interest. Interest rate have quarterly rest and is equivalent to interest rate of Short term borrowings. The interest accrued and paid during the year amounts to '' 3.16 Lakhs (PY: '' 1.99 Lakhs).

c. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at reporting date.

a. Trade payables are non-interest bearing and are normally settled in 10 to 30 days, except where credit term as per contractual obligation is more than 30 days.

b. The dues to Micro and Small Enterprises as at 31-03-2024 is '' 398.04 lakhs (PY: '' 409.46 lakhs). This has been determined to the extent such parties have been identified on the basis of information available with the Company.

c. The dues to related parties are not due more than 45 days. [Refer Note No. 47 (b) (2)]

d. Refer Note No. 49 and 52 (a) for information about risk profile of Trade payables under Financial Risk Management and Ageing Schedule respectively.

e. Provision for interest on delayed payment to MSME Suppliers - '' 1.51 lakhs (PY - '' 1.48 lakhs), included in Dues to MSME Suppliers

a. The Company provides for expenses towards compensated absences provided to its employees. The expense is recognised at the present value of the amount payable determined based on an independent external actuarial valuation as at the Balance sheet date, using Projected Unit Credit method.

b. The company maintains Gratuity fund account in LIC of India. The Company provides for expenses towards Gratuity to its employees. The expense is recognised at the present value of the amount payable determined based on an independent external actuarial valuation as at the Balance sheet date, using Projected Unit Credit method.

(d) Out of 278.22 lakhs units [PY - 268.00 lakhs units] generated by our windmills, 54.42 lakhs units [PY - 51.56 lakhs units] were sold to concerned state Electricity Board, 226.08 lakhs units [PY - 215.21 lakhs units] were consumed at our plant and 2.69 lakhs units [PY - 4.97 lakhs units] remain unadjusted.

(e) The Company’s Revenue from sale of products is recognised upon transfer of control of such products to the customer at a point of time. Revenue from windmills is recognised upon transmission of energy to the grids of state electricity boards. The revenue from project contract is recognised on using percentage of completion method.

CONTINGENT LIABILITIES			'' In Lakhs
		As at 31-03-2024	As at 31-03-2023
41.1	Guarantees given by the bankers on behalf of company	491.64	524.13
41.2	Demands / Claims not acknowledged as Debts in respect of matters in appeals relating to -
	Income Tax (Refer Note No. 41.2.1)	2,608.52	2,610.30
	VAT & Input Tax Credit, CST (Refer Note No. 41.2.2 and 41.2.3)	-	-
	Entry tax (Refer Note No. 41.2.4)	-	-
	GST (Refer Note No. 41.2.5)	36.66	23.33
	Other demands (Refer Note No. 41.2.6 to 41.3.2)	291.87	291.87

41.2.1 Income tax demand amounting to '' 3,784.52 Lakhs (PY '' 3,786.30 Lakhs) have been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in assessments and the appeals are pending. Out of this demand '' 1,176.00 Lakhs (PY '' 1,176.00 Lakhs) is provided in books of accounts. Balance amount of '' 2,608.52 Lakhs (PY '' 2,610.30 Lakhs) is not acknowledged as Debts by company. In the opinion of the Management, there may not be any further tax liability with regard this contingent liability and due to this no provision has been considered necessary.

41.2.2 Sales tax demand amounting to '' 219.85 Lakhs (PY '' 263.10 Lakhs) have been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in several assessments and the appeals are pending. Above amount is fully provided in the books of accounts.

41.2.3 The Company had put up a plant in Silvassa in The Union Territory of Daman, Diu, Dadra and Nagar Haveli in the year 1998 and availed VAT and CST exemption for the period of 15 years ending on March 2013 based on a certificate of exemption given by appropriate authority in exercise of powers conferred on it by relevant provision of the CST Act, 1956. This power of granting exemption was withdrawn with retrospective effect by an amendment in Finance Act 2002 and the sales tax department has followed it up by issuing a circular for compulsory production of concessional sales tax forms for availing CST exemption. The differential sales tax liability for the year 1998 to the year 2002 works out to '' 37 Crores. However, the Company was not in receipt of any demand from the appropriate authority. Aggrieved by the department circular and as an additional precaution, the Company had filed an appeal with Bombay High Court and the Bombay High Court has quashed the circular issued by the Commercial tax department, Silvassa, The Union Territory of Daman, Diu, Dadra and Nagar Haveli thereby allowing continuance of CST exemption even after amendment of relevant provision of CST Act, 1956 by the Finance Act, 2002. But the department of Commercial Tax, Silvassa has preferred an appeal against the Bombay High Court order before the Honourable Supreme Court and the adjudication and the court hearing is in process pending final disposal by the Honourable Supreme Court.

Based on the decision of Bombay High Court and interpretations of other relevant provisions, the Company has been legally advised that there will not be any demand likely to be raised or if the demand is raised it is likely to be deleted or substantially reduced and accordingly no provision is considered necessary.

41.2.4 Entry tax demand amounting to '' 19.48 Lakhs (PY '' 19.48 Lakhs) have been disputed by the company and the company has preferred appeals before appellate authorities in respect of this disallowances and the appeal are pending. This demand '' 19.48 Lakhs (PY '' 19.48 Lakhs) is provided in books of accounts.

The Government of West Bengal enacted “The West Bengal Tax on Entry of goods into Local Areas Act, 2012” and writ petitions was filed by RIL challenging the validity of the said Act. The Calcutta High Court passed order on 20.04.2017 stating that it is no longer retains the jurisdiction over the subject writ petition and directed “West Bengal Taxation tribunal” to decide the case. The Company has filed additional petition with “West Bengal Taxation tribunal” during the FY 2018-19. The Hon’ble West Bengal Tribunal passed order dated 25.03.2022, stating that the State of West Bengal had no legislative competence to introduce Sections 5 and 6 (Entry tax) of the West Bengal Finance Act, 2017 and declared the said provisions to be ultra vires and unconstitutional.

The company has paid and expensed the said tax upto May 2013 from its inception. Company also made provision in the book of accounts for the above tax for '' 295.37 Lakhs for the period from June 2013 to Jun 2017. Provision has been made in the books of accounts for interest to the extent of '' 640.67 Lakhs (Previous year '' 569.59 Lakhs)

41.2.5 GST demands amounting to '' 52.80 Lakhs (PY '' 38.54 Lakhs) have been disputed by the Company has preferred appeals before Deputy Commissioner/Assistant Commissioner/Superintendent in respect of various disallowances in assessment and audit and the appeals are pending. Out of this total demand '' 16.14 Lakhs (PY '' 15.21 Lakhs) is provided in books of accounts and balance amount of '' 36.66 Lakhs (PY '' 23.33 Lakhs) is not acknowledged as Debts by Company. In the opinion of the Management, there may not be any further tax liability with regard this contingent liability and due to this no provision has been considered necessary.

41.2.6 In respect of the electricity matters relating to our Textile Division, the Company has filed appeals / writ petition for '' 291.87 lakhs (PY: '' 291.87 lakhs) against various subject to the matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The Company is confident of resolving the matter in its favour and hence no provision is made in the books of accounts.

41.2.7 Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 0.5% of their energy requirements from solar sources. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1,000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its own wind farms, it has been excluded for reckoning the obligatory consumption, since the Company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Honourable High court of Madras and obtained an interim stay against the implementation of the said regulation.

41.2.8 Company windmills commissioned with the Electricity Board (EB) for banking. In the commissioned Windmills (WEG), four WEGs banking period was expired in the months of March (3) and September (1) 2023. And Company filed case before the Madras High Court, and the Court had directed the EB to give adjustment of wind energy generated from the WEGs from March 2023 onwards. After getting the copy of the order, Company approached EB to adjust the lapsed banking units and awaiting for further action.

41.2.9 Company had made a representation to Chairman of Electricity Board (EB) for grant of Tariff Concession to Company for setting up of a new industry prior to 14.02.1997 at Arakkonam, since the scheme under GO Ms.17 Energy (A2) was open during the time. The Tariff concession was denied by the EB.

Therefore, Company has filed a writ petition before the Madras High Court - for a refund of '' 8.22 Lakhs with interest till April 2008 which amounts to '' 15.21 Lakhs totally '' 23.43 Lakhs with further interest till date of payment at 18% pa. High Court on 01.02.2019 disposed. Court allowed the writ petition by setting aside the EB order dated 04.11.2009. And the EB is directed to consider the claim of the Company with regard to tariff concession, after affording an opportunity to adduce documentary evidence to sustain their claim. Based on the order Company represented several time before the EB through letters and awaiting for hearing from TNEB, Vellore.

41.2.10 The Company received a notice from the Department of Revenue Intelligence (DRI) for an amount of '' 41.23 lakhs excluding interest and penalty pertaining to the year 2009-10 for short payment of customs duty to the extent of utilization of DEPB Scrip’s purchased in the open market by the Company and which were originally obtained by the ultimate export firms fraudulently as alleged by the DRI. The Company had denied the allegations made in the notice in so far as they relate to the Company’s role is concerned and also the obligation to pay the duty demanded in the notice vide its letter dated August 4, 2014. We attended the personal hearing before the assistant commissioner of customs JNPT Mumbai during October 2016 and awaiting for the favourable order. The Management is confident of resolving the matter in favour of the Company and hence no provision is considered necessary.

41.3.1 The Company is eligible for incentives under the “Bihar Industrial Incentive Policy 2006” in respect of its Fibre Cement Plant at Bihiya in the State of Bihar. During the year under review,

• We have recognised a sum of '' 9.77 Lakhs (PY. '' 9.77 Lakhs) due to fair valuation of Govt. Grants as per Ind AS.

• Incentive Scheme under GST regime from 1^st July, 2017 has been announced by the Gov. of Bihar. Company has applied for the same and is awaiting for approval from Govt.

41.3.2 The company is eligible for incentive under the “Rajasthan Investment Promotion Scheme 2010” in respect of its Calcium Silicate Board Plant at Kotputli in the state of Rajasthan,

• A sum of '' Nil (Previous year: '' 0.61 Lakhs) received as Industrial Promotion Assistance has been credited to Profit and loss Account which was received as per Incentive Scheme under GST regime

44 DISCLOSURES PERTAINING TO SHARE BASED PAYMENTS AS PER IND AS 102 Employee Stock Option Schemes (ESOS)

The Company instituted Employee Stock Option Schemes (ESOS 2021) approved by shareholders at the Annual General Meeting held on 19.08.2021. The Board of Directors and Nomination & Remuneration Committee granted 1,46,000 options to its eligible employees under various ESOS schemes at its meeting held on January 20, 2022. Each option entitles the option holder thereof to apply for one equity share of the company, upon satisfaction of performance condition during the vesting period and payment of exercise price during the exercise period. Options are granted for no consideration and carries no dividend or voting rights. There are no market conditions attached to the grant / vesting of options. The Company has recognized '' Nil [PY: '' 323.17 Lakhs] as Employee stock options expense towards equity-settled share based transactions. There are no cash settlement options alternatives. Other terms and conditions of the plan are tabled below:

a. The weighted average remaining contractual life as at 31.03.2024 is not relevant since there is no outstanding options as at the reporting date.

b. The weighted average share price determined based on market price prevailing at each date of exercise by the option holders is '' Nil [PY: '' 142.75 per share]

Fair Valuation of Employee Stock Options

The Company has not granted options during the year ended 31.03.2024. However, the Weighted Average Fair Value of the option granted during the previous year was '' 274.80. The fair value of options has been done on the date of grant by an independent valuer using the Black-Scholes Model. The key assumptions in the Black-Scholes model for calculating fair value as on the date of grant is given below:

48 DISCLOSURE OF FAIR VALUE MEASUREMENTS

The fair values of financial assets and liabilities are determined at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to their short term maturities of these instruments.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

FINANCIAL RISK MANAGEMENT

The Board of Directors (BOD) has overall responsibility for the establishment and oversight of the Company’s risk management framework and thus established a risk management policy to identify and analyses the risk faced by the Company. Risk Management systems are reviewed by the BOD periodically to reflect changes in market conditions and the Company’s activities. The Company through its training and management standards and procedures develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the risk management framework. The Audit committee is assisted in the oversight role by Internal Audit. Internal Audit undertakes reviews of the risk management controls and procedures, the results of which are reported to the Audit Committee.

The Board of Directors regularly reviews these risks and approves the risk management policies, which covers the management of these risks:

Credit Risk

Credit Risk is the risk of financial loss to the Company if the customer or counterparty to the financial instruments fails to meet its contractual obligations and arises principally from the Company’s receivables, treasury operations and other operations that are in the nature of lease.

Receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer. The Company extends credit to its customers in the normal course of business by considering the factors such as financial reliability of customers. The Company evaluates the concentration of the risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets. The Company maintains adequate security deposits from its customers in case of wholesale and retail segment. The exposures with the Government are generally unsecured but they are considered as good. However, unsecured credits are extended based on creditworthiness of the customers on case to case basis.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the company and where there is a probability of default, the company creates a provision based on Expected Credit Loss for trade receivables under simplified approach as below:

Financial Instruments and Cash deposits

Investments of surplus funds are made only with the approved counterparties. The Company is presently exposed to counter party risk relating to short term and medium term deposits placed with banks, and also investments made in mutual funds. The Company places its cash equivalents based on the creditworthiness of the financial institutions.

Liquidity Risk

Liquidity Risks are those risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. In the management of liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the company’s operations and to mitigate the effects of fluctuations in cash flows.

Fund Management

Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping both committed and uncommitted credit lines available. The Company has laid well defined policies and procedures facilitated by robust information system for timely and qualitative decision making by the management including its day to day operations.

Foreign Currency Risk

The Company’s exposure in USD and other foreign currency denominated transactions in connection with import of raw material, capital goods and spares, besides exports of finished goods and borrowings in foreign currency, gives rise to exchange rate fluctuation risk. The Company has following policies to mitigate this risk:

Decisions regarding borrowing in Foreign Currency and hedging thereof, (both interest and exchange rate risk) and the quantum of coverage is driven by the necessity to keep the cost comparable. Foreign Currency loans, imports and exports transactions are hedged by way of forward contract after taking into consideration the anticipated Foreign exchange inflows/ outflows, timing of cash flows, tenure of the forward contract and prevailing Foreign exchange market conditions.

Cash flow and fair value interest rate risk

Interest rate risk arises from long term borrowings with variable rates which exposed the company to cash flow interest rate risk. The Company’s fixed rate borrowing are carried at amortized cost and therefore are not subject to interest rate risk as defined in Ind AS 107 since neither the carrying amount nor the future cash flows will fluctuate because of the change in market interest rates. The Company is exposed to the evolution of interest rates and credit markets for its future refinancing, which may result in a lower or higher cost of financing, which is mainly addressed through the management of the fixed/ floating ratio of financial liabilities. The Company constantly monitors credit markets to strategize a well-balanced maturity profile in order to reduce both the risk of refinancing and large fluctuations of its financing cost. The Company believes that it can source funds for both short term and long term at a competitive rate considering its strong fundamentals on its financial position. Sensitivity on interest rate fluctuation.

CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximize the shareholders’ wealth.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus Debt.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. There have been no breaches in the financial covenants of any interest-bearing loans/borrowing. The Company has been consistently focusing on reduction in long term borrowings. There are no significant changes in the objectives, policies or processes for managing capital during the years ended 31-03-2024 and 31-03-2023.

51 PROJECT REVENUE RECOGNITION

Contract revenue from Project activity on fixed price contracts is recognized when the outcome of the contract is ascertained reliably, contract revenue is recognized at cost of work performed on the contract plus proportionate margin, using percentage of completion method. Percentage of completion is determined based on work certified by the customer.

Disclosure as per Indian Accounting Standard - 11 in respect of projects in progress

[a] Contract Revenue during the year '' 58.70 Lakhs [PY: '' 87.03 Lakhs]

[b] Aggregate amount of cost incurred '' 66.83 Lakhs [PY: '' 65.29 Lakhs] and recognised loss '' (8.12) Lakhs [PY: '' 21.73 Lakhs]

(less recognised losses) to date

[c] Advances received [Outstanding] '' 21.25 Lakhs [PY: '' 27.75 Lakhs]

[d] Retention Money [Outstanding] '' 32.38 Lakhs [PY: '' 41.02 Lakhs]*

[e] Gross Amount due from Customers for Contract Work [including Retention at (d) above] '' 75.38 Lakhs [PY: '' 49.79 Lakhs]

[f] Gross Amount due to Customers for Contract Work [other than advances at (c) above] - Nil

[g] Unbilled revenue - Nil

* Retention Money [Outstanding] is after adjusting amounts released against furnishing of Bank Guarantees.

Unbilled Revenue represents revenue recognised based on percentage of completion method over and above the amount due from the customers as per the agreed payment plans.

e. Unbilled Revenue Ageing Schedule

The Company do not have any such transaction.

f. Undisclosed Income

The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

g. CSR Disclosure:

Disclosure has been given in Note no:36(b) and (c) of note on accounts.

h. Compliance with approved Scheme(s) of arrangements

The Company do not have any such approved Scheme(s) of arrangements.

i. Relationship with Struck off Companies

The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.

j. Details of Crypto Currency or Virtual Currency

The Company did not trade or invest in Crypto Currency or virtual currency during the financial year.

k. Disclosure on loans / advance to directors / KMP / related parties:

Disclosure has given in note on accounts Note no:10 (a) and (b) as per the Schedule III.

l. Benami Property

The Company did not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

m. The Company has neither advanced or loaned or invested, nor received any fund, to or from, any other persons or entities including foreign entities (intermediaries) with the understanding that the intermediary shall:

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company or

ii. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(d) Inventory Turnover Ratio = (Average Inventory days) = 365 / (Net Revenue / Average Inventories)

(e) Trade receivable Turnover Ratio = (Average Receivables days) = 365 (Net Revenue / Average Trade receivables)

(f) Trade payable Turnover Ratio = (Average Payables days) = 365 (Net Revenue / Average Trade payables)

(g) Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade Receivable Turnover Ratio - Trade Payable Ratio)

(h) Net Profit Ratio = Net Profit / Total Income

(i) Return on Capital Employed = (Total Comprehensive Income Interest) / (Average of (Equity Total Debt))

(j) Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets

Reasons for Variation if more than 25%

The decline in Debt-Equity Ratio by 25% from 0.28 times in previous year to 0.21 times in current year is mainly due to decreased debt outstanding.

The decline in Debt-Service Coverage Ratio by -48% from 4.25 times in previous year to 2.21 times in current year is mainly due to Lower profits, increase in interest cost and increase in term loan repayments.

The decline in Return on Equity Ratio by -29% from 10% in previous year to 7% in current year is mainly due to decreased operational margin.

The decline in Net Profit Ratio by -38% from 7.3% in previous year to 4.5% in current year is mainly due to cost increase.

The decline in Return on Investment (Assets) Ratio by -26% from 6.5% in previous year to 4.8% in current year is mainly due to decrease in operational margin.

54 DISCLOSURES ON LEASES COMPANY AS A LESSEE Nature of leasing activities

The Company has entered into operating lease on certain assets i.e land and building. Lease rentals are determined based on agreed terms. There is escalation clause in certain lease agreements after a specified period and no restriction imposed by the lease arrangements.

a) Depreciation charge for Right-of-Use Asset include capitalized portion of '' 235.23 Lakhs (PY: '' 237.34 Lakhs) and Interest on lease liabilities include capitalized portion of '' 18.78 Lakhs (PY: '' 18.85 Lakhs).

b) Expenses relating to Short-term lease include leases whose lease term ends within 12 months and leases whose non-cancellable period is less than 12 months, irrespective of the actual tenure agreed as per the arrangement.

THE CODE ON SOCIAL SECURITY, 2020 AND INDUSTRIAL RELATIONS CODE, 2020

The Central Government has published The Code on Social Security, 2020 and Industrial Relations Code,2020 (“the codes”) in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees including post-employment period. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes if any will be assessed and recognised post notification of relevant provisions

59 The previous period figures have been re-grouped / restated wherever considered necessary.

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Mar 31, 2023

4.14 Provisions, Contingent Liabilities and Contingent Assets

4.14.1 Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources embodying economic benefits in respect of which a reliable estimate can be made.

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

4.14.3 I nsurance claims are accounted on the basis of claims admitted or expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection. Any subsequent change in the recoverability is provided for. Contingent Assets are not recognised.

4.14.4 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 recognised but disclosed in the financial statements.

4.15 Intangible Assets

4.15.1 The costs of computer software acquired and its subsequent improvements are capitalised. Internally generated software is not capitalized and the expenditure is recognized in the Statement of Profit and Loss in the year in which the expenditure is incurred.

4.15.2 Intangible Assets are amortised over their estimated useful life on straight line method. The estimated useful lives of intangible assets are assessed by the internal technical team. Its accounting classification is given below:

4.15.3 The intangible assets that are under development phase are carried at cost including related expenses and attributable interest, and are recognised as Intangible assets under development.

4.15.4 The residual values, useful lives and methods of depreciation of intangible asset are reviewed at each reporting date and adjusted prospectively, if appropriate.

4.16 Investment Properties

4.16.1 An investment in land or buildings both furnished and unfurnished, which are held for earning rentals or capital appreciation or both rather than for use in the production or supply of goods or services or for administrative purposes or sale in the ordinary course of business, are classified as investment properties.

4.16.2 I nvestment properties are stated at cost, net of accumulated depreciation and impairment loss, if any except freehold land which is carried at cost.

4.16.3 The company identifies the significant parts of investment properties separately which are required to be replaced at intervals. Such parts are depreciated separately based on their specific useful lives determined on best estimate basis upon technical advice. The cost of replacement of significant parts are capitalised and the carrying amount of replaced parts are de-recognised. Other expenses including day-to-day repair and maintenance expenditure and cost of replacing parts that does not meet the capitalisation criteria, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred.

4.16.4 Depreciation on investment properties are calculated on straight-line method based on useful life of the significant components.

4.16.5 Investment properties are eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Gains or losses arising from disposal, measured as the difference between the net disposal proceeds and the carrying amount of such investment properties, are recognised in the Statement of Profit and Loss. Amount received towards investment properties that are impaired and derecognized in the financial statements, are recognized in Statement of Profit and Loss, when the recognition criteria are met.

4.16.6 The residual values, useful lives and methods of depreciation of investment properties are reviewed at each reporting date and adjusted prospectively, if appropriate.

4.17 Operating Segments

Operating segment has been identified on the basis of nature of products and reported in a manner consistent with the internal reporting provided to Chief Operating Decision Maker.

The Company has three operating/reportable segments viz. building products, textile and wind power generation.

The inter-segment transfers of units of power from windmills are recognized at the applicable tariff rates of the electricity boards for the purpose of segment reporting as per the relevant accounting standard.

Costs are allocated to the respective segment based upon the actual incidence of respective cost. Unallocated items include general other income and expenses which are not allocated to any business segment.

4.18 Financial Instruments

4.18.1 A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

4.18.2 Financial assets and liabilities are offset and the net amount is presented in the Balance sheet when and only when the Company has a legal right to offset the recognised amounts and intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

4.18.3 The Company initially determines the classification of financial assets and liabilities. After initial recognition, no re-classification is made for financial assets which are categorised as equity instruments at FVTOCI and financial assets / liabilities that are specifically designated as FVTPL. However, other financial assets are re-classifiable when there is a change in the business model of the Company. When the Company reclassifies the financial assets, such reclassifications are done prospectively from the first day of the immediately next reporting period. The Company does not restate any previously recognised gains, losses including impairment gains or losses or interest.

Financial Assets

4.18.4 Financial assets comprises of investments in equity and mutual funds, trade receivables, cash and cash equivalents and other financial assets.

4.18.5 Investment in equity instrument and mutual funds are recognised based on the date of contract note where the transaction is entered through stock exchanges and based on date of allotment in respect of others.

4.18.6 Depending on the business model (i.e) nature of transactions for managing those financial assets and its contractual cash flow characteristics, the financial assets are initially measured at fair value and subsequently measured and classified at:

a) Amortised cost; or

b) Fair value through other comprehensive income (FVTOCI); or

c) Fair value through profit or loss (FVTPL)

Amortised cost represents carrying amount on initial recognition at fair value plus or minus transaction cost.

4.18.7 Financial assets are measured at FVTPL except for those financial assets whose contractual terms give rise to cash flows on specified dates that represents solely payments of principal and interest thereon, are measured as detailed below depending on the business model:

4.18.8 Financial assets are derecognised (i.e) removed from the financial statements, when its contractual rights to the cash flows expire or upon transfer of the said assets. The Company also derecognises when it has an obligation to adjust the cash flows arising from the financial asset with third party and either upon transfer of:

a. significant risk and rewards of the financial asset, or

b. control of the financial asset

However, the Company continue to recognise the transferred financial asset and its associated liability to the extent of its continuing involvement, which are measured on the basis of retainment of its rights and obligations of financial asset. The Company has applied the de-recognition requirements prospectively.

4.18.9 Upon derecognition of its financial asset or part thereof, the difference between the carrying amount measured at the date of recognition and the consideration received including any new asset obtained less any new liability assumed shall be recognised in the Statement of Profit and Loss.

4.18.10 For impairment purposes, significant financial assets are tested on individual basis at each reporting date. Other financial assets are assessed collectively in groups that share similar credit risk characteristics. Accordingly, the impairment testing is done retrospectively on the following basis:

4.18.13 Financial guarantee contracts issued by the company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Transaction cost of financial guarantee contracts that are directly attributable to the issuance of the guarantee are recognised initially as a liability at fair value. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortization.

4.18.14 Financial liabilities are derecognised when and only when it is extinguished (i.e) when the obligation specified in the contract is discharged or cancelled or expired.

4.18.15 Upon derecognition of its financial liabilities or part thereof, the difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid including any non-cash assets transferred or liabilities assumed is recognised in the Statement of Profit and Loss.

4.19 Fair value measurement

4.19.1 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

4.19.2 The fair value of an asset or a liability is measured using the assumptions that the market participants would use when pricing the asset or liability, assuming that the market participants act in the economic best interest.

4.19.3 All assets and liabilities for which fair value is measured are disclosed in the financial statements are categorised within fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as below:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are

directly or indirectly observable.

Level 3: Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are

unobservable.

4.19.4 For assets and liabilities that are recognised in the Balance sheet on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period (i.e) based on the lowest level input that is significant to the fair value measurement as a whole.

4.19.5 For the purpose of fair value disclosures, the company has determined the classes of assets and liabilities based on the nature, characteristics and risks of the assets or liabilities and the level of the fair value hierarchy as explained above.

4.19.6 The basis for fair value determination for measurement and / or disclosure purposes is detailed below:

Investments in Equity / Mutual Funds

The fair value is determined by reference to their quoted prices at the reporting date. In the absence of the quoted price, the fair value of the equity is measured using valuation techniques.

Trade and other receivables

The fair value is estimated as the present value of the future cash flows, discounted at the market rate of interest at the reporting date. However, the fair value generally approximates the carrying amount due to the short term nature of such assets.

Forward exchange contracts

The fair value of forward exchange contracts is based on the quoted price if available; otherwise it is estimated by discounting the difference between contractual forward price and current forward price for the residual maturity of the contract using government bond rates.

Non-derivative financial liabilities

The fair value of non-derivative financial liabilities viz, soft loan from government, deferred sales tax liability, borrowings are determined for disclosure purposes calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

Financial guarantee obligation

The fair value of financial guarantee obligation with reference to loan availed by subsidiary/associates is determined on the basis of estimated cost involved in securing equivalent size of the guarantees from bank.

Investment Properties

The fair value is determined for disclosure purposes based on evaluation performed by an external technical team measured using the technique of quoted prices for similar assets in the active markets and further moderated by market corroborated inputs.

5. SIGNIFICANT ESTIMATES AND JUDGEMENTS

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. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision or future periods, if the revision affects both current and future years.

Accordingly, the management has applied the following estimates / assumptions / judgements in preparation and presentation of financial statements:

Property, Plant and Equipment, Intangible Assets and Investment Properties

The residual values and estimated useful life of PPEs, Intangible Assets and Investment Properties are assessed by technical team duly reviewed by the management at each reporting date. Wherever the management believes that the assigned useful life and residual value are appropriate, such recommendations are accepted and adopted for computation of depreciation/ amortisation. Also, management judgement is exercised for classifying the asset as investment properties or vice versa.

Revenue Recognition

Significant management judgement is exercised in determining the transaction price and discounts to customer which is based on market factors namely demand and supply. The Company offers credit period to customers for which there is no financing component.

Current Taxes

Calculations of income taxes for the current period are done based on applicable tax laws and management’s judgement by evaluating positions taken in tax returns and interpretations of relevant provisions of law.

Deferred Tax Asset (Including MAT Credit Entitlement)

Significant management judgement is exercised by reviewing the deferred tax assets at each reporting date to determine the amount of deferred tax assets that can be retained / recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Contingent Liabilities

Management judgement is exercised for estimating the possible outflow of resources, if any, in respect of contingencies / claims / litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

Impairment of Trade receivables

The impairment for financial assets are done based on assumptions about risk of default and expected loss rates. The assumptions, selection of inputs for calculation of impairment are based on management judgement considering the past history, market conditions and forward looking estimates at the end of each reporting date.

Impairment of Non-financial assets (PPE/Intangible Assets/Investment Properties)

The impairment of non-financial assets is determined based on estimation of recoverable amount of such assets. The assumptions used in computing the recoverable amount are based on management judgement considering the timing of future cash flows, discount rates and the risks specific to the asset.

Provisions

The timing of recognition requires application of judgement to existing facts and circumstances that may be subject to change. The litigations and claims to which the company is exposed are assessed by the management and in certain cases with the support of external experts. The amounts are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability.

Defined Benefit Plans and Other long term benefits

The cost of the defined benefit plan and other long term benefits, and the present value of such obligation are determined by the independent actuarial valuer. Management believes that the assumptions used by the actuary in determination of the discount rate, future salary increases, mortality rates and attrition rates are reasonable. Due to the complexities involved in the valuation and its long term nature, this obligation is highly sensitive to changes in these assumptions.

Employee Stock Options

Significant management judgement is exercised in determination of the most appropriate valuation model, most appropriate inputs to the valuation model including the expected life of the share option, volatility, dividend yield, risk free rate and the number of options that are expected to vest as at the reporting date. Management believes that the assumptions used by the valuer are reasonable.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in active markets, management uses valuation techniques including the Discounted Cash Flow (DCF) model, to determine its fair value the inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is exercised in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

Impairment of Investments in Subsidiaries /Associates

Significant management judgement is exercised in determining whether the investment in subsidiaries / associates are impaired or not is on the basis of its nature of long term strategic investments and business projections.

Interests in other entities

Significant management judgement is exercised in determining the interests in other entities. The management believes that wherever there is significant influence over certain companies belong to its group, such companies are treated as Associate companies even though it holds less than 20% of the voting rights.

39.2.1 Income tax demand amounting to '' 3,786.30 Lakhs (PY '' 3,252.64 Lakhs) have been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in assessments and the appeals are pending. Out of this demand '' 1,176.00 Lakhs (PY '' 1,084.27 Lakhs) is provided in books of accounts. Balance amount of '' 2,610.30 Lakhs (PY '' 2,168.37 Lakhs) is not acknowledged as Debts by company. In the opinion of the Management, there may not be any further tax liability with regard this contingent liability and due to this no provision has been considered necessary.

39.2.2 Govt. has announced in the Budget 2020-21 that a new Direct tax Vivad se Vishwas (VSV) Scheme be launched. Under this scheme taxpayer would be required to pay only the amount of the disputed taxes. The taxpayer will get a full waiver of interest and penalty on comply with Scheme conditions. The Company has opted for this scheme for six assessment year (AY 2001-02, to AY 2005-06 and AY 2012-13) for settling the disputes which were pending for very long time and got Assessment completed for all the afore said AY and received refund of '' 147.60 Lakhs as per the scheme.

39.2.3 Sales tax demand amounting to '' 263.10 Lakhs (PY '' 283.92 Lakhs) have been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in several assessments and the appeals are pending. Above amount is fully provided in the books of accounts.

39.2.4 The Company had put up a plant in Silvassa in The Union Territory of Daman, Diu, Dadra and Nagar Haveli in the year 1998 and availed VAT and CST exemption for the period of 15 years ending on March 2013 based on a certificate of exemption given by appropriate authority in exercise of powers conferred on it by relevant provision of the CST Act, 1956. This power of granting exemption was withdrawn with retrospective effect by an amendment in Finance Act 2002 and the sales tax department has followed it up by issuing a circular for compulsory production of concessional tax forms for availing CST exemption. The differential sales tax liability for the year 1998 to the year 2002 works out to '' 37 Crores. However, the Company was not in receipt of any demand from the appropriate authority. Aggrieved by the department circular and as an additional precaution, the Company had filed an appeal with Bombay High Court and the Bombay High Court has quashed the circular issued by the Commercial tax department, Silvassa, The Union Territory of Daman, Diu, Dadra and Nagar Haveli thereby allowing continuance of CST exemption even after amendment of relevant provision of CST Act, 1956 by the Finance Act, 2002. But the department of Commercial Tax, Silvassa has preferred an appeal against the Bombay High Court order before the Honourable Supreme Court and the adjudication and the court hearing is in process pending final disposal by the Honourable Supreme Court.

Based on the decision of Bombay High Court and interpretations of other relevant provisions, the Company has been legally advised that there will not be any demand likely to be raised or if the demand is raised it is likely to be deleted or substantially reduced and accordingly no provision is considered necessary.

39.2.5 Entry tax demand amounting to '' 19.48 Lakhs (PY '' 29.19 Lakhs) have been disputed by the company and the company has preferred appeals before appellate authorities in respect of this disallowances and the appeal are pending. This demand '' 19.48 Lakhs (PY '' 29.19 Lakhs) is provided in books of accounts.

The Government of West Bengal enacted “The West Bengal Tax on Entry of goods into Local Areas Act, 2012” and writ petitions was filed by RIL challenging the validity of the said Act. The Calcutta High Court passed order on 20.04.2017 stating that it is no longer retains the jurisdiction over the subject writ petition and directed “West Bengal Taxation tribunal” to decide the case. The Company has filed additional petition with “West Bengal Taxation tribunal” during the FY 2018-19. The Hon’ble West Bengal Tribunal passed order dated 25.03.2022, stating that the State of West Bengal had no legislative competence to introduce Sections 5 and 6 (Entry tax) of the West Bengal Finance Act, 2017 and declared the said provisions to be ultra vires and unconstitutional.

The company has paid and expensed the said tax upto May 2013 from its inception. Company also made provision in the book of accounts for the above tax for '' 295.37 Lakhs for the period from June 2013 to Jun 2017. Provision has been made in the books of accounts for interest to the extent of '' 569.59 Lakhs (Previous year '' 498.70 Lakhs)

39.2.6 GST demands amounting to '' 38.54 Lakhs (PY '' 0.99 Lakhs) have been disputed by the Company has preferred appeals before Deputy Commissioner/Assistant Commissioner/Superintendent in respect of various disallowances in assessment and audit and the appeals are pending. Out of this total demand '' 15.21 Lakhs (PY '' 0.99 Lakhs) is provided in books of accounts and balance amount of '' 23.33 Lakhs (PY '' NIL) is not acknowledged as Debts by Company. In the opinion of the Management, there may not be any further tax liability with regard this contingent liability and due to this no provision has been considered necessary.

39.2.7 In respect of the electricity matters relating to our Textile Division, the Company has filed appeals / writ petition for '' 291.87 lakhs (PY: '' 291.87 lakhs) against various subject to the matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The Company is confident of resolving the matter in its favour and hence no provision is made in the books of accounts.

39.2.8 Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 0.5% of their energy requirements from solar sources. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1,000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its own wind farms, it has been excluded for reckoning the obligatory consumption, since the Company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Honourable High court of Madras and obtained an interim stay against the implementation of the said regulation.

39.2.9 The Company received a notice from the Department of Revenue Intelligence (DRI) for an amount of '' 41.23 lakhs excluding interest and penalty pertaining to the year 2009-10 for short payment of customs duty to the extent of utilization of DEPB Scrip’s purchased in the open market by the Company and which were originally obtained by the ultimate export firms fraudulently as alleged by the DRI. The Company had denied the allegations made in the notice in so far as they relate to the Company’s role is concerned and also the obligation to pay the duty demanded in the notice vide its letter dated August 4, 2014. We attended the personal hearing before the assistant commissioner of customs JNPT Mumbai during October 2016 and awaiting for the favourable order. The Management is confident of resolving the matter in favour of the Company and hence no provision is considered necessary.

39.3 (A) The Company is eligible for incentives under the “Bihar Industrial Incentive Policy 2006” in respect of its Fibre Cement Plant

at Bihiya in the State of Bihar. During the year under review,

• We have recognised a sum of '' 9.77 Lakhs (PY. '' 9.77 Lakhs) due to fair valuation of Govt. Grants as per Ind AS.

• Incentive Scheme under GST regime from 1^st July, 2017 has been announced by the Gov. of Bihar. Company has applied for the same and is awaiting for approval from Govt.

(B) The company is eligible for incentive under the “Rajasthan Investment Promotion Scheme 2010” in respect of its Calcium

Silicate Board Plant at Kotputli in the state of Rajasthan, during the year under review,

• A sum of '' Nil (Previous year: '' 35.18 Lakhs) received as Industrial Promotion Assistance has been credited to Profit and loss Account which was received as per VAT scheme.

• A sum of '' 0.61 Lakhs (Previous year: Nil) received as Industrial Promotion Assistance has been credited to Profit and loss Account which was received as per Incentive Scheme under GST regime

57 The previous period figures have been re-grouped / restated wherever considered necessary.

As per our Report Annexed For and on behalf of the Board

P.R. VENKETRAMA RAJA Chairman

^{For M/s}. ^SRSV & ^{Associates For M/s}. ^{Ramakrishna Raja and Co}.^, p.v. ABINAV RAMASUBRAMANIAM RAJA

Chartered Accountants Chartered Accountants M_anagi_ng Di_rect_or

Firm Registration No.: 015041S Firm Registration No.: 005333S

^G. ^{CHELLA KRISHNA C}. ^KESAVAN Chief Executilfe^(Officer

Partner Partner

Membership No.: 210474 Membership No.227833 ^K. ^SANKARANARAY^ANAN

UDIN: 23210474BGYKFV4732 UDIN: 23227833BGWCLL8969 ^{Chief Financial Officer}

_{Place : Chennai}S. BALAMURUGASUNDARAM D_at_{e :} 22"d M_ay 2023 Company Secretary & Legal Head

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Mar 31, 2022

a. The Company measured all of its Investment Property at Cost in accordance with Ind AS 40.

b. During the year, Additions under Free hold Land & Buildings are made for '' 2.71 lakhs and '' 18.04 lakhs respectively in view of change in usage.

c. During the year, withdrawal/Adjustments under Lease hold Land & Building include recalssification from Investment Property Land & Buildings of '' 6.29 lakhs and '' 210.24 lakhs respectively in view of change in usage.

d. The Company has no restrictions on the disposal of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

e. The fair valuation of the investment properties are valued by Registered Valuer, has required by amendments made to Schedule III of the Companies Act, effective from 01.04.2021, measured using the technique of quoted prices for similar assets in the active markets or recent price of similar properties in less active markets and adjusted to reflect those differences. All resulting fair value estimates for investment properties as given below are included in Level 2. During previous years, the fair valuation of these investment properties were determined by an internal technical team and the fair value of the investment property approximates to the historical cost at which its was carried.

a. The Company has accounted for investments in Subsidiaries and Associates at Cost. Refer Note Nos. 43 (a) and 43 (b) for information on principal place of business / country of incorporation and company’s interest / percentage of shareholding in the above subsidiaries and associates.

b. The carrying amount of Investment in Subsidiaries / Associates is tested for impairment in accordance with Ind AS 36. These investments are strategic and long term in nature. Impairment testing is carried out for listed securities based on fair market value as per stock exchange. However, in case of unlisted securities, impairment testing is carried out based on the recent trade transactions with third parties or DCF method, wherever applicable. Accordingly, no impairment is considered necessary as at the reporting date.

c. During the year, the company has made additional investment of '' 5,061.31 lakhs (5,75,550 equity shares) in The Ramco Cements Limited.

d. During the year, the Company has made strategic investments in equity shares of Lynks Logistics Limited for '' 950.94 Lakhs (9,50,94,028 Equity shares). The investee company has proposed to apply this funds for expansion of their business.

e. During the year, the company has been allotted 21227 equity shares of Rajapalayam Mills Ltd under rights issue entitlement for '' 120.78 lakhs.

Fair Value through Other Comprehensive Income Reserve represents the balance in equity for items to be accounted in Other Comprehensive Income (OCI). The Company has opted to recognise the changes in the fair value of certain investments in equity instruments and remeasurement of defined benefit obligations in OCI. The Company transfers amounts from this reserve to Retained Earnings in case of actuarial loss / gain and in case of fair value recognition of equity instrument, the same will be transferred when the respective equity instruments are derecognised.

a. Short term Borrowings from Banks (other than Current maturities of Long term borrowings) are secured by way of first pari passu hypothecation charge on trade receivables and inventories of the Company, present and future. The quarterly returns or statement filed by the Company with the banks or financial institutions are in agreement with the books of accounts.

b. Loans and advances from Directors represents amount due to Managing Director, which carries an interest. Interest rate have quarterly rest and is equivalent to interest rate of Short term borrowings. The interest accrued during the year amounts to '' 4.43 Lakhs (PY: '' 3.18 Lakhs).

c. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at reporting date.

a. Trade payables are non-interest bearing and are normally settled in 10 to 30 days, except where credit term as per contractual obligation is more than 30 days.

b. The dues to Micro and Small Enterprises as at 31-03-2022 is '' 476.04 lakhs (PY: '' 337.51 lakhs). This has been determined to the extent such parties have been identified on the basis of information available with the Company.

c. The dues to related parties are dues to Associate entities and due not more than 45 days. [Refer Note No. 44 (b) (2)]

d. Refer Note No. 46 and 49 (a) for information about risk profile of Trade payables under Financial Risk Management and Ageing Schedule respectively.

a. The Company provides for expenses towards compensated absences provided to its employees. The expense is recognised at the present value of the amount payable determined based on an independent external actuarial valuation as at the Balance sheet date, using Projected Unit Credit method.

b. The company maintains Gratuity fund account in LIC of India. The Company provides for expenses towards Gratuity to its employees. The expense is recognised at the present value of the amount payable determined based on an independent external actuarial valuation as at the Balance sheet date, using Projected Unit Credit method.

(a) As per the Guidance Note on Division II, Ind AS Schedule III to the Companies Act, 2013 issued by ICAI, Revenue includes only the gross inflows of economic benefits received and receivable by the entity on its own account. Amounts collected such as sales taxes, goods and services taxes and value added taxes are not economic benefits which flow to the entity and do not result in increases in equity. Therefore, they have been excluded from revenue.

(b) Industrial Promotion Assistance from:

- Government of Rajasthan - '' 35.18 lakhs [PY - '' NIL]

- Deferred Grant recognised as income -'' 9.77 lakhs [PY-'' 11.70 lakhs]

(c) Out of Royalty Income of 3035.08 lakhs, a sum of '' 510.04 lakhs is received during the year. The receipt of balance amount is getting delayed due to repatriation restrictions imposed by Central Bank of Sri Lanka on account of prevailing economic situation in that country.

(d) Out of 231.95 lakhs units [PY - 238.69 lakhs units] generated by our windmills, 50.99 lakhs units [PY - 46.46 lakhs units] were sold to concerned state Electricity Board, 180.12 lakhs units [PY - 193.78 lakhs units] were consumed at our plant and 3.74 lakhs units [PY - 2.90 lakhs units] remain unadjusted.

(e) The Company’s Revenue from sale of products is recognised upon transfer of control of such products to the customer at a point of time. Revenue from windmills is recognised upon transmission of energy to the grids of state electricity boards. The revenue from project contract is recognised on using percentage of completion method.

38.2.1 Income tax demand amounting to '' 3,252.64 Lakhs (PY '' 3,362.89 Lakhs) have been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in assessments and the appeals are pending. Out of this demand '' 1,084.27 Lakhs (PY '' 1,447.40 Lakhs) is provided in books of accounts. Balance amount of '' 2,168.37 Lakhs (PY '' 1915.49 Lakhs) is not acknowledged as Debts by company. In the opinion of the Management, there may not be any further tax liability with regard this contingent liability and due to this no provision has been considered necessary.

38.2.2 Govt. has announced in the Budget 2021-22 that a new Direct tax Vivad se Vishwas (VSV) Scheme launched. Taxpayer would be required to pay only the amount of the disputed taxes. The taxpayer will get a full waiver of interest and penalty on comply with Scheme conditions. We have opted for this scheme for six assessment year as mentioned below for settling the disputes which are pending for very long time.

38.2.3 Sales tax demand amounting to '' 283.92 Lakhs (PY '' 362.81 Lakhs) have been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in several assessments and the appeals are pending. Above amount is fully provided in the books of accounts.

38.2.4 The Company had put up a plant in Silvassa in The Union Territory of Daman, Diu, Dadra and Nagar Haveli in the year 1998 and availed VAT and CST exemption for the period of 15 years ending on March 2013 based on a certificate of exemption given by appropriate authority in exercise of powers conferred on it by relevant provision of the CST Act, 1956. This power of granting exemption was withdrawn with retrospective effect by an amendment in Finance Act 2002 and the sales tax department has followed it up by issuing a circular for compulsory production of concessional sales tax forms for availing CST exemption. The differential sales tax liability for the year 1998 to the year 2002 works out to '' 37 Crores. However, the Company was not in receipt of any demand from the appropriate authority. Aggrieved by the department circular and as an additional precaution, the Company had filed an appeal with Bombay High Court and the Bombay High Court has quashed the circular issued by the Commercial tax department, Silvassa, The Union Territory of Daman, Diu, Dadra and Nagar Haveli thereby allowing continuance of CST exemption even after amendment of relevant provision of CST Act, 1956 by the Finance Act, 2002. But the department of Commercial Tax, Silvassa has preferred an appeal against the Bombay High Court order before the Honourable Supreme Court and the adjudication and the court hearing is in process pending final disposal by the Honourable Supreme Court.

Based on the decision of Bombay High Court and interpretations of other relevant provisions, the Company has been legally advised that there will not be any demand likely to be raised or if the demand is raised it is likely to be deleted or substantially reduced and accordingly no provision is considered necessary.

38.2.5 Entry tax demand amounting to '' 29.19 Lakhs (PY '' 19.69 Lakhs) have been disputed by the company and the company has preferred appeals before appellate authorities in respect of this disallowances and the appeal are pending. This demand of '' 29.19 Lakhs (PY '' 19.69 Lakhs) is provided in books of accounts.

The Government of West Bengal enacted “The West Bengal Tax on Entry of goods into Local Areas Act, 2012” and writ petitions was filed by the Company challenging the validity of the said Act. The Calcutta High Court passed an order on 20.04.2017 stating that it is no longer retains the jurisdiction over the subject writ petition and directed “West Bengal Taxation tribunal” to decide the case. The Company has filed additional petition with “West Bengal Taxation tribunal” during the FY 2018-19. The Hon’ble West Bengal Tribunal passed an order dated 25.03.2022, stating that the State of West Bengal had no legislative competence to introduce Sections 5 and 6 (Entry tax) of the West Bengal Finance Act, 2017 and declared the said provisions to be ultra vires and unconstitutional.

The company has paid and expensed the said tax upto May 2013 from its inception. Company also made provision in the book of accounts for the above tax for '' 295.37 Lakhs for the period from June 2013 to Jun 2017. Provision has been made in the books of accounts for interest to the extent of '' 498.70 Lakhs (Previous year '' 427.81 Lakhs)

38.2.6 GST demands amounting to '' 0.99 Lakhs (Previous year: 0.99 Lakhs) have been disputed by the Company and necessary appeals have been filed. This amount is fully provided in books of Accounts.

38.2.7 In respect of the electricity matters relating to our Textile Division, the Company has filed appeals / writ petition for '' 291.87 lakhs (PY: '' 291.87 lakhs) against various subject to the matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The Company is confident of resolving the matter in its favour and hence no provision is made in the books of accounts.

38.2.8 Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 0.5% of their energy requirements from solar sources. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1,000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its own wind farms, it has been excluded for reckoning the obligatory consumption, since the Company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Honourable High court of Madras and obtained an interim stay against the implementation of the said regulation.

38.2.9 The Company received a notice from the Department of Revenue Intelligence (DRI) for an amount of '' 41.23 lakhs excluding interest and penalty pertaining to the year 2009-10 for short payment of customs duty to the extent of utilization of DEPB Scrip’s purchased in the open market by the Company and which were originally obtained by the ultimate export firms fraudulently as alleged by the DRI. The Company had denied the allegations made in the notice in so far as they relate to the Company’s role is concerned and also the obligation to pay the duty demanded in the notice vide its letter dated August 4, 2014. We attended the personal hearing before the assistant commissioner of customs JNPT Mumbai during October 2016 and awaiting for the favourable order. The Management is confident of resolving the matter in favour of the Company and hence no provision is considered necessary.

38.3 (A) The Company is eligible for incentives under the “Bihar Industrial Incentive Policy 2006” in respect of its Fibre

Cement Plant at Bihiya in the State of Bihar. During the year under review,

• We have recognised a sum of '' 9.77 lakhs (PY 11.70 lakhs) due to fair valuation of Govt. Grants as per Ind AS.

• Incentive Scheme under GST regime from 1^st July, 2017 has been announced by the Gov. of Bihar. Company has applied for the same and is awaiting for approval from Govt.

(B) The company is eligible for incentive under the “Rajasthan Investment Promotion Scheme 2010” in respect of its Calcium Silicate Board Plant at Kotputli in the state of Rajasthan, during the year under review,

• A sum of '' 35.18 lakhs (Previous year: Nil) received as Industrial Promotion Assistance has been credited to Profit and loss Account which was received as per VAT scheme.

• Incentive Scheme under GST regime from 1^st July, 2017 has been announced by the Gov. of Rajasthan. Company has applied for the same and is awaiting for approval from Govt

46. FINANCIAL RISK MANAGEMENT

The Board of Directors (BOD) has overall responsibility for the establishment and oversight of the Company’s risk management framework and thus established a risk management policy to identify and analyses the risk faced by the Company. Risk Management systems are reviewed by the BOD periodically to reflect changes in market conditions and the Company’s activities. The Company through its training and management standards and procedures develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the risk management framework. The Audit committee is assisted in the oversight role by Internal Audit. Internal Audit undertakes reviews of the risk management controls and procedures, the results of which are reported to the Audit Committee.

The Board of Directors regularly reviews these risks and approves the risk management policies, which covers the management of these risks:

Credit Risk

Credit Risk is the risk of financial loss to the Company if the customer or counterparty to the financial instruments fails to meet its contractual obligations and arises principally from the Company’s receivables, treasury operations and other operations that are in the nature of lease.

Receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer. The Company extends credit to its customers in the normal course of business by considering the factors such as financial reliability of customers. The Company evaluates the concentration of the risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets. The Company maintains adequate security deposits from its customers in case of wholesale and retail segment. The exposures with the Government are generally unsecured but they are considered as good. However, unsecured credits are extended based on creditworthiness of the customers on case to case basis.

Financial Instruments and Cash deposits

I nvestments of surplus funds are made only with the approved counterparties. The Company is presently exposed to counter party risk relating to short term and medium term deposits placed with banks, and also investments made in mutual funds. The Company places its cash equivalents based on the creditworthiness of the financial institutions.

Liquidity Risk

Liquidity Risks are those risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. In the management of liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Company’s operations and to mitigate the effects of fluctuations in cash flows.

Fund Management

Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping both committed and uncommitted credit lines available. The Company has laid well defined policies and procedures facilitated by robust information system for timely and qualitative decision making by the management including its day to day operations

Foreign Currency Risk

The Company’s exposure in USD and other foreign currency denominated transactions in connection with import of raw material, capital goods and spares, besides exports of finished goods and borrowings in foreign currency, gives rise to exchange rate fluctuation risk. The Company has following policies to mitigate this risk:

Decisions regarding borrowing in Foreign Currency and hedging thereof, (both interest and exchange rate risk) and the quantum of coverage is driven by the necessity to keep the cost comparable. Foreign Currency loans, imports and exports transactions are hedged by way of forward contract after taking into consideration the anticipated Foreign exchange inflows/outflows, timing of cash flows, tenure of the forward contract and prevailing Foreign exchange market conditions.

Cash flow and fair value interest rate risk

Interest rate risk arises from long term borrowings with variable rates which exposed the company to cash flow interest rate risk. The Company’s fixed rate borrowing are carried at amortized cost and therefore are not subject to interest rate risk as defined in Ind AS 107 since neither the carrying amount nor the future cash flows will fluctuate because of the change in market interest rates. The Company is exposed to the evolution of interest rates and credit markets for its future refinancing, which may result in a lower or higher cost of financing, which is mainly addressed through the management of the fixed/floating ratio of financial liabilities. The Company constantly monitors credit markets to strategize a well-balanced maturity profile in order to reduce both the risk of refinancing and large fluctuations of its financing cost. The Company believes that it can source funds for both short term and long term at a competitive rate considering its strong fundamentals on its financial position. Sensitivity on interest rate fluctuation.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. There have been no breaches in the financial covenants of any interest-bearing loans/borrowing. The Company has been consistently focusing on reduction in long term borrowings. There are no significant changes in the objectives, policies or processes for managing capital during the years ended 31-03-2022 and 31-03-2021.

48. PROJECT REVENUE RECOGNITION

Contract revenue from Project activity on fixed price contracts is recognized when the outcome of the contract is ascertained reliably, contract revenue is recognized at cost of work performed on the contract plus proportionate margin, using percentage of completion method. Percentage of completion is determined based on work certified by the customer.

Disclosure as per Indian Accounting Standard - 11 in respect of projects in progress

[a] Contract Revenue during the year '' 217.02 Lakhs [PY: 129.74 Lakhs]

[b] Aggregate amount of cost incurred '' 201.33 Lakhs [PY: 132.91 Lakhs] and recognised profit '' 15.69 Lakhs [PY: (3.17) Lakhs] (less recognised losses) to date

[c] Advances received [Outstanding] '' 26.73 Lakhs [PY: 13.30 Lakhs]

[d] Retention Money [Outstanding] '' 31.12 Lakhs [PY: 24.00 Lakhs]*

[e] Gross Amount due from Customers for Contract Work [including Retention at (d) above] '' 92.56 Lakhs [PY: 69.19 Lakhs]

[f] Gross Amount due to Customers for Contract Work [other than advances at (c) above] - Nil

[g] Unbilled revenue - Nil

* Retention Money [Outstanding] is after adjusting amounts released against furnishing of Bank Guarantees.

Unbilled Revenue represents revenue recognised based on percentage of completion method over and above the amount due from the customers as per the agreed payment plans.

e. Unbilled Revenue Ageing Schedule

The Company do not have any such transaction.

f. Undisclosed Income

The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

g. CSR Disclosure:

Disclosure has been given in (Note no:34 (b) & (c)) of note on accounts.

h. Compliance with approved Scheme(s) of arrangements.

The Company do not have any such approved Scheme(s) of arrangements.

i. Relationship with Struck off Companies

The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.

j. Details of Crypto Currency or Virtual Currency

The Company did not trade or invest in Crypto Currency or virtual currency during the financial year.

k. Disclosure on loans / advance to directors / KMP / related parties:

Disclosure has given in note on accounts (Note no:9 (a) & (b)) as per the Schedule III.

l. Benami Property

The Company did not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

m. The Company has neither advanced or loaned or invested, nor received any fund, to or from, any other persons or entities including foreign entities (intermediaries) with the understanding that the intermediary shall:

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company or

ii. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Formula adopted for above Ratios:

(a) Current Ratio = Total Current Assets / Total Current Liabilities

(b) Debt-Equity Ratio = Total Debt / Total Equity

(c) Debt Service Coverage Ratio = (EBITDA - Current Tax) / (Principal Repayment Gross Interest)

(d) Return on Equity Ratio = Total Comprehensive Income / Average Total Equity

(e) Inventory Turnover Ratio = (Average Inventory days) = 365 / (Net Revenue / Average Inventories)

(f) Trade receivable Turnover Ratio = (Average Receivables days) = 365 (Net Revenue / Average Trade receivables)

(g) Trade payable Turnover Ratio = (Average Payables days) = 365 (Net Revenue / Average Trade payables)

(h) Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade Receivable Turnover Ratio - Trade Payable Ratio)

(i) Net Profit Ratio = Net Profit / Total Income

(j) Return on Capital Employed = (Total Comprehensive Income Interest) / (Average of (Equity Total Debt))

(k) Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets

Reasons for Variation if more than 25%

The increase in Debt-Equity Ratio by 29% from 0.17 times in previous year to 0.22 times in current year is mainly due to increased Working capital borrowing.

The increase in Debt-Service Coverage Ratio by 119% from 3.52 times in previous year to 7.73 times in current year is mainly due to Lower Term Loan repayments and reduced interest rates

The decline in Return on Equity Ratio by 26% from 15% in previous year to 11% in current year is mainly due to decrease in operational margin.

The decline in Return on Investment (Assets) Ratio by 25% from 10% in previous year to 7% in current year is mainly due to decrease in operational margin and increase in assets.

51. THE CODE ON SOCIAL SECURITY, 2020 AND INDUSTRIAL RELATIONS CODE, 2020

The Central Government has published The Code on Social Security, 2020 and Industrial Relations Code,2020 (“the codes”) in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees including postemployment period. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes if any will be assessed and recognised post notification of relevant provisions

52. IMPACT ON COVID 19 PANDEMIC

The second wave of COVID 19 has impacted the demand for the product as the pandemic is now affecting rural areas also. The Company is continuing its operations in compliance with the directives issued by the Government Authorities. The company is monitoring the situation closely and is taking necessary steps to continue operations in due compliance with applicable regulations.

The Company has considered the possible effects that may result from the pandemic relating to COVID19 in the preparation of these standalone financial statements including the recoverability of carrying amounts of financial and nonfinancial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these financial statements, used internal and external sources of information including economic forecasts and expects that the carrying amount of these assets will be recovered. However, the final impact may differ from the current estimates made as at the date of approval of the financial statements for the year ended 31-03-2022 considering the prevailing uncertainties.

54. The previous period figures have been re-grouped / restated wherever considered necessary.

---

Mar 31, 2018

5. Significant Estimates and Judgements

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. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision or future periods, if the revision affects both current and future years.

Accordingly, the management has applied the following estimates / assumptions / judgements in preparation and presentation of financial statements:

Property, Plant and Equipment, Intangible Assets and Investment Properties

The residual values and estimated useful life of PPEs, Intangible Assets and Investment Properties are assessed by technical team duly reviewed by the management at each reporting date. Wherever the management believes that the assigned useful life and residual value are appropriate, such recommendations are accepted and adopted for computation of depreciation/amortisation. Also, management judgement is exercised for classifying the asset as investment properties or vice versa.

Current Taxes

Calculations of income taxes for the current period are done based on applicable tax laws and management’s judgement by evaluating positions taken in tax returns and interpretations of relevant provisions of law.

Deferred Tax Asset (Including MAT Credit Entitlement)

Significant management judgement is exercised by reviewing the deferred tax assets at each reporting date to determine the amount of deferred tax assets that can be retained / recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Contingent Liabilities

Management judgement is exercised for estimating the possible outflow of resources, if any, in respect of contingencies / claims / litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

Impairment of Trade receivables

The impairment for financial assets are done based on assumptions about risk of default and expected loss rates. The assumptions, selection of inputs for calculation of impairment are based on management judgement considering the past history, market conditions and forward looking estimates at the end of each reporting date.

Impairment of Non-financial assets (PPE/lntangible Assets/Investment Properties)

The impairment of non-financial assets is determined based on estimation of recoverable amount of such assets. The assumptions used in computing the recoverable amount are based on management judgement considering the timing of future cash flows, discount rates and the risks specific to the asset.

Defined Benefit Plans and Other Ions term benefits

The cost of the defined benefit plan and other long term benefits, and the present value of such obligation are determined by the independent actuarial valuer. Management believes that the assumptions used by the actuary in determination of the discount rate, future salary increases, mortality rates and attrition rates are reasonable. Due to the complexities involved in the valuation and its long term nature, this obligation is highly sensitive to changes in these assumptions.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in active markets, management uses valuation techniques including the Discounted Cash Flow (DCF) model, to determine its fair value The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is exercised in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

Interests in other entities

Significant management judgement is exercised in determining the interests in other entities. The management believes that wherever there is significant influence over certain companies belong to its group, such companies are treated as Associate companies even though it holds less than 20% of the voting rights.

a. The Company’s investment property consist of commercial properties at Kolkatta, Chennai and Pipe plant Building at Maksi.

b. Out of these, properties at Kolkatta was sold during the year. During the year, a property at Chennai, which was self-occupied was rented out and it has been reclassified under Investment property from Plant, Property and Equipment.

c. The Company has no restrictions on the disposal of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

d. The fair valuation of these investment properties are determined by an internal technical team, measured using the technique of quoted prices for similar assets in the active markets and further moderated by market corroborated inputs.

a. Inventories are valued as per company’s accounting policy. [Note No. 4.1 of accounting policies]

b. The total carrying cost of inventories as at the reporting date has been pledged as security for borrowings.

a. Trade receivables are non-interest bearing and are generally on terms of 30 to 45 days.

b. No trade receivable are due from directors or other officers of the company either severally or jointly with any other person.

c. Trade receivable from related parties is royalty receivable from our subsidiaries and are not due more than 6 months.

d. The total carrying amount of trade receivables has been pledged as security for Borrowings.

a. Foreign exchange forward contracts are purchased to mitigate the risk of changes in foreign exchange rates with certain payables / receivables in foreign currencies.

b. The Company has recognised financial guarantee obligation at fair value towards the corporate guarantees issued to the bankers on behalf of Related parties and the same is recognised as other income over the tenure of the corporate guarantee.

a. The Company provides for expenses towards compensated absences provided to its employees. The expense is recognised at the present value of the amount payable determined based on an independent external actuarial valuation as at the Balance sheet date, using Projected Unit Credit method.

b. The company maintains Gratuity fund account in LIC of India. The Company provides for expenses towards Gratuity to its employees. The expense is recognised at the present value of the amount payable determined based on an independent external actuarial valuation as at the Balance sheet date, using Projected Unit Credit method.

(a) As per the Guidance Note on Division II, Ind AS Schedule III to the Companies Act, 2013 issued by ICAI, Revenue includes only the gross inflows of economic benefits received and receivable by the entity on its own account. Amounts collected such as sales taxes, goods and services taxes and value added taxes are not economic benefits which flow to the entity and do not result in increases in equity. Therefore, they have excluded from revenue. On the other hand, the recovery of excise duty is an inflow that the entity receives on its own account since the Company acts as a principal in collecting the excise duty and therefore the revenue has grossed up to include excise duty.

(b) Goods and Service Tax (GST) has been effective from 01-07-2017. Consequently, Excise Duty, Value Added Tax (VAT), Service Tax etc. have been replaced with GST. Until 30-06-2017, ‘Sale of Products’ and ‘Scrap Sales’ include the amount of Excise Duty recovered on Sales. With effect from 01-07-2017, ‘Sale of Products’ and ‘Scrap Sales’ excludes the amount of GST recovered. Accordingly, Revenue from ‘Sale of Products’, ‘Scrap Sales’ and ‘Revenue from Operations’ for the year

(c) Industrial Promotion Assistance from:

- Government of Bihar - NIL [Previous year - Rs, 824.04 lakhs]

- Deferred Grant recognised as income - Rs, 11.69 lakhs [Previous year- Rs, 11.70 lakhs]

(d) Out of 299.98 lakhs units [Previous year - 326.07 lakhs units] generated by our windmills, 79.32 lakhs units [Previous year

- 54.50 lakhs units] were sold to concerned state Electricity Board, 244.22 lakhs units [Previous year - 237.97 lakhs units] were consumed at our plant and 10.04 lakhs units [Previous year - 33.60 lakhs units] remain unadjusted.

37.2.1 Income Tax Assessment completed up to 2014-15 and total pending demand is ''2,620.48 lakhs (As at 31-03-2017: ''2,658.08 lakhs). The total demand has been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in assessments and the appeals are pending. In the opinion of the Management, there may not be any further tax liability with regard to the said disallowances. Based on the nature of claim disputed pending, no provision has been considered necessary.

37.2.2 Sales Tax demands amounting to Rs,144.09 lakhs (As at 31-03-2017: Rs,412.73 lakhs) have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed pending, no provision has been considered necessary.

37.2.3 Central Excise demands amounting to Rs,217.00 lakhs (As at 31-03-2017: Rs, 52.55 lakhs) have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed pending, no provision has been considered necessary.

37.2.4 In respect of the electricity matters relating to our Textile Division, the Company has filed appeals / writ petition for ''291.87 lakhs (As at 31-03-2017: ''291.87 lakhs) against various subjects to the matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The Company is confident of resolving the matter in its favour and hence no provision is made in the books of accounts.

37.2.5 The Company had received two letters from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) in the year 2000 and 2003 respectively claiming an amount totalling to ''27.41 lakhs towards alleged violation of the terms and conditions of supply of electricity. The Company has deposited a sum of ''16.87 lakhs on various dates under protest and filed writ petition before the Honourable High Court of Madras in the year 2003 and the same has been disposed of vide order dated 30.09.2003, hence both impugned orders are quashed and the matter is remitted to the responded Board for a fresh de novo enquiry. As on 31.03.2018 no further proceedings has been initiated by the department in this regard. Since no claim beyond a period of 2 years can be proceeded with under section 56 of the said Act, company initiated steps to get refund of ''16.87 lakhs deposited in this regard. The management is confident of resolving the matter in its favour and hence no provision is made in the books of account.

37.2.6 The Company had received a letter dated 04.11.2009 from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) withholding an amount of ''46.54 lakhs pending resolution of Power Tariff Concession applicability to fibre cement sheet plant at Arakonam. This amount was withheld against our dues towards power sold to Tamil Nadu Electricity Board covered under the power purchase agreement. The Company preferred an appeal against TANGEDCO in the year 2009 and the matter is pending with the Honourable High Court of Madras. During the year, there was no development in the matter. The management is confident of collecting the withheld amount and no provision is made in the books of account.

37.2.7 Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 0.5% of their energy requirements from solar sources. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1,000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its own wind farms, it has been excluded for reckoning the obligatory consumption, since the Company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Honourable High court of Madras and obtained an interim stay against the implementation of the said regulation.

37.2.8 The Company had put up a plant in Silvassa in The Union Territory of Daman, Diu, Dadra and Nagar Haveli in the year 1998 and availed VAT and CST exemption for the period of 15 years ending on March 2013 based on a certificate of exemption given by appropriate authority in exercise of powers conferred on it by relevant provision of the CST Act , 1956. This power of granting exemption was withdrawn with retrospective effect by an amendment in Finance Act 2002 and the sales tax department has followed it up by issuing a circular for compulsory production of concessional sales tax forms for availing CST exemption. The differential sales tax liability for the year 1998 to the year 2002 works out to '' 37 Crores. However, the Company was not in receipt of any demand from the appropriate authority. Aggrieved by the department circular and as an additional precaution, the Company had filed an appeal with Bombay High Court and the Bombay High Court has quashed the circular issued by the Commercial tax department, Silvassa, The Union Territory of Daman, Diu, Dadra and Nagar Haveli thereby allowing continuance of CST exemption even after amendment of relevant provision of CST Act, 1956 by the Finance Act, 2002. But the department of Commercial Tax, Silvassa has preferred an appeal against the Bombay High Court order before the Honourable Supreme Court and the adjudication and the court hearing is in process pending final disposal by the Honourable Supreme Court.

Based on the decision of Bombay High Court and interpretations of other relevant provisions, the Company has been legally advised that there will not be any demand likely to be raised or if the demand is raised it is likely to be deleted or substantially reduced and accordingly no provision is considered necessary.

37.2.9 The Company received a notice from the Department of Revenue Intelligence (DRI) for an amount of '' 41.23 lakhs excluding interest and penalty pertaining to the year 2009-10 for short payment of customs duty to the extent of utilization of DEPB Scrip’s purchased in the open market by the Company and which were originally obtained by the ultimate export firms fraudulently as alleged by the DRI. The Company had denied the allegations made in the notice in so far as they relate to the Company’s role is concerned and also the obligation to pay the duty demanded in the notice vide its letter dated August 4, 2014. We attended the personal hearing before the assistant commissioner of customs JNPT Mumbai during October 2016 and awaiting for the favourable order. The Management is confident of resolving the matter in favour of the Company and hence no provision is considered necessary.

37.2.10 The Government of West Bengal enacted “The West Bengal Tax on Entry of goods into Local Areas Act, 2012” and writ petitions was filed by RIL challenging the validity of the said Act. The Calcutta High Court passed order on 20.04.2017 stating that it is no longer retains the jurisdiction over the subject writ petition and directed “West Bengal Taxation Tribunal” to decide the case. The company has not received any demand.

37.2.11 (A) The Company is eligible for incentives under the “Bihar Industrial Incentive Policy 2006” in respect of its Fibre Cement Plant at Bihiya in the State of Bihar. During the year under review,

- No amount was received as Incentive grant during this year (As at 31-03-2017: ''824.04 lakhs) as accrued Industrial Promotion Assistance

- We have recognised a sum of ''11.70 lakhs due to fair valuation of Govt. Grants as per Ind AS

- Incentive Scheme under GST regime from 1st July, 2017 onwards is yet to be finalised by the Govt, of Bihar

(B) The company is eligible for incentive under the “Rajasthan Investment Promotion Scheme 2010” in respect of its Calcium silicate Board Plant at Kotputli in the state of Rajasthan, during the year under review,

- No amount was received as Incentive grant during the year (As at 31-03-2017: ''NIL) as Industrial Promotion Assistance.

- Incentive Scheme under GST regime from 1st July, 2017 onwards is yet to be finalised by the Govt, of Rajasthan.

(c) Key Management Personnel and Directors

Name of the Key Management Personnel Designation

P.R. Ramasubrahmaneya Rajha Chairman (upto 11-05-2017)

P.R. Venketrama Raja Chairman (from 04-06-2017)

P.V. Abinav Ramasubramaniam Raja Managing Director (from 04-06-2017)

Prem G Shanker Chief Executive Officer

K. Sankaranarayanan Chief Financial Officer

S. Balamurugasundaram Company Secretary

S.S. Ramachandra Raja Independent Director

K.T. Ramachandran Independent Director

N.K. Shrikantan Raja Independent Director

R.S. Agarwal Independent Director

V. Santhanaraman Independent Director

Smt. Justice Chitra Venkataraman (Retd.) Independent Director

(d) Relative of Key Management Personnel

Name of the Relative of KMP Relationship

P.V. Abinav Ramasubramaniam Raja Son of P.R. Venketrama Raja

P.V. Nirmala Wife of P.R. Venketrama Raja

R. Sudarsanam Mother of P.R. Venketrama Raja

P.V. Srisandhya Daughter of P.R. Venketrama Raja

Ramaraju Son in Law of P.R. Venketrama Raja

S. Saradha Deepa Sister of P.R. Venketrama Raja

R. Nalina Ramalakshmi Sister of P.R. Venketrama Raja

(e) Companies over which KMP/Relatives of KMP exercise significant influence

Ramco Company R. Sudarsanam & Co

Gowrihouse Metal Works Gowri Shankar Screws

Timeous, USA Lotus Knitting Mills

Sudarasana Farms Private Limited Rajapalayam Farms Private Limited

Ramco Private Limited Sri Sandhya Farms (India) Private Limited

Ramamandiram Agricultural Estate Private Limited Nalina Agricultural Farms Private Limited

Sri Saradha Deepa Farms Private Limited Sri Nithyalakshmi Farms Private Limited

Nirmala Shankar Farms & Estates Private Limited Ram Sandhya Farms Private Limited

RCDC Securities and Investments Private Limited Ramco Management Private Limited

Ramco Agencies Private Limited Barefoot Dance Company Private Limited

Sound Investment & Leasing Private Limited Satmala Agro-Farms Private Limited

Bharani Bio-Tech Private Limited Parimala Chemicals Private Limited

Pranahita Power Generation Private Limited Barefoot Media & Entertainment Private Limited

The Ramco Cements Limited Rajapalaiyam Mills Ltd

Ramaraju Surgical Cotton Mills Ltd Sri Vishnu Shankar Mills Ltd

Sandhya Spinning Mill Ltd Rajapalayam Textile Ltd

Ramco Systems Limited Lynks Logistics Limited

Vinvent Chemilab Private Limited JKR Enterprises Limited

Shri Harini Media Limited

(f) Employee Benefit Funds where control exists

Ramco Industries Limited Officers’ Superannuation Fund Ramco Industries Limited Employees’ Gratuity Fund

(g) Other entities over which there is a significant influence

Smt. Lingammal Ramaraju Shastra Prathishta Trust The Ramco Cements Limited Educational and Charitable Trust

PACR Sethuramammal Charity Trust PACR Sethuramammal Charities

Ramco Welfare Trust PAC Ramasamy Raja Education Charity Trust

Raja Charity Trust Rajapalayam Rotary Trust

Sri Abhinava Vidyatheertha Seva Trust Ramco Debate And Research Educational And Charitable Trust

Sastra Prakasika Trust PAC Ramasamy Raja Centenary Trust Thangavilas Estate

1. It includes bonus, sitting fees, and value of perquisites.

2. It includes contribution to Provident fund and Superannuation fund

3. As the liability for gratuity and compensated absences are provided on actuarial basis for the Company as a whole, amounts accrued pertaining to key managerial personnel are not included above.

43. Disclosure of Fair value measurements

The fair values of financial assets and liabilities are determined at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to their short term maturities of these instruments.

are located in several jurisdictions and operate in largely independent markets. The Company maintains adequate security deposits from its customers in case of wholesale and retail segment. The exposures with the Government are generally unsecured but they are considered as good. However, unsecured credits are extended based on creditworthiness of the customers on case to case basis.

Financial instruments and cash deposits

Investments of surplus funds are made only with the approved counterparties. The Company is presently exposed to counter party risk relating to short term and medium term deposits placed with banks, and also investments made in mutual funds. The Company places its cash equivalents based on the creditworthiness of the financial institutions.

Liquidity Risk

Liquidity Risks are those risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. In the management of liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the company’s operations and to mitigate the effects of fluctuations in cash flows. Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping both committed and uncommitted credit lines available. The Company has laid well defined policies and procedures facilitated by robust information system for timely and qualitative decision making by the management including its day to day operations.

Foreign Currency Risk

The Company’s exposure in USD and other foreign currency denominated transactions in connection with import of raw material, capital goods and spares, besides exports of finished goods and borrowings in foreign currency, gives rise to exchange rate fluctuation risk. The Company has following policies to mitigate this risk:

Decisions regarding borrowing in Foreign Currency and hedging thereof, (both interest and exchange rate risk) and the quantum of coverage is driven by the necessity to keep the cost comparable. Foreign Currency loans, imports and exports transactions are hedged by way of forward contract after taking into consideration the anticipated Foreign exchange inflows/ outflows, timing of cash flows, tenure of the forward contract and prevailing Foreign exchange market conditions.

Cash flow and fair value interest rate risk

Interest rate risk arises from long term borrowings with variable rates which exposed the company to cash flow interest rate risk. The Company’s fixed rate borrowing are carried at amortized cost and therefore are not subject to interest rate risk as defined in Ind AS 107 since neither the carrying amount nor the future cash flows will fluctuate because of the change in market interest rates. The Company is exposed to the evolution of interest rates and credit markets for its future refinancing, which may result in a lower or higher cost of financing, which is mainly addressed through the management of the fixed/ floating ratio of financial liabilities. The Company constantly monitors credit markets to strategize a well-balanced maturity profile in order to reduce both the risk of refinancing and large fluctuations of its financing cost. The Company believes that it can source funds for both short term and long term at a competitive rate considering its strong fundamentals on its financial position. Sensitivity on interest rate fluctuation

1.There are no dues to Micro and Small Enterprises as at 31.03.2018 (Previous Year : '' Nil). This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties having been identified on the basis of information available with the company

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Mar 31, 2017

(a) The Company has opted to use previous GAAP carrying amount as Deemed cost as at the date of transition to Ind AS (i.e As on 1-4-2015). However, as per the FAQ issued by Accounting Standard Board of ICAI, the above information regarding gross block of assets, accumulated depreciation and provision for impairment under Previous GAAP is an additional disclosure and the same is not considered for subsequent recognition and/or measurement purposes.

(b) No Borrowings cost have been capitalized for both current and previous year.

(c) As per Ind AS, the Company reclassify land at Gaziabad, 2 Numbers of commercial properties at Mumbai, a commercial property at Kolkatta and Pipe plant Building at Maksi as investment properties. These amount are adjusted in the opening balance as at 01.04.2015

a. The Company’s investment property consists of a commercial property at Mumbai, a commercial property at Kolkatta and Pipe plant Building at Maksi. Out of these, property at Mumbai was sold on 15.06.2016.

b. The Company has no restrictions on the disposal of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

c. The fair valuation of these investment properties are determined by an internal technical team, measured using the technique of quoted prices for similar assets in the active markets and further moderated by market corroborated inputs.

a. Trade receivables are non-interest bearing and are generally on terms of 30 to 45 days.

b. No trade receivable are due from directors or other officers of the company either severally or jointly with any other person.

c. Trade receivable from related parties is royalty receivable from our subsidiaries and are due not more than 6 months.

d. The total carrying amount of trade receivables has been pledged as security for Borrowings.

Capital Reserve

Represents the difference between the shares allotted to the Share Holders of Transferor Company and Net Worth acquired from Transferor Company as per scheme of Amalgamation.

Securities Premium Reserve

Represents excess of share subscription money received over par value of shares.

General reserve

The general reserve is used from time to time to transfer profits from retained profits. There is no policy of regular transfer.

Retained earnings

Represents that portion of the net income of the Company that has been retained by the Company.

FVTOCI Reserve

Fair Value through Other Comprehensive Income Reserve represents the balance in equity for items to be accounted in Other Comprehensive Income (OCI). The Company has opted to recognize the changes in the fair value of certain investments in equity instruments and remeasurement of defined benefit obligations in OCI. The Company transfers amounts from this reserve to Retained Earnings in case of actuarial loss / gain and in case of fair value recognition of equity instrument, the same will be transferred when the respective equity instruments are derecognised.

Industrial Promotion Assistance (IPA) provided by Department of Industries of Government of Bihar [Rs. 134.31 lakhs] and Government of West Bengal [Rs. 150.00 lakhs] towards creation of infrastructure facilities is recognized as ‘Industrial Promotion assistance’ over the useful life of the underlying PPE.

a. Trade payables are non-interest bearing and are normally settled on 10 to 30 days, except where credit term as per contractual is more than 30 days.

b. There are no dues to micro and small enterprises as at 31-03-2017 (PY: Rs.NIL). This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

a. Foreign exchange forward contracts are purchased to mitigate the risk of changes in foreign exchange rates with certain payables / receivables in foreign currencies.

b. The Company has recognized financial guarantee obligation at fair value towards the corporate guarantees issued to the bankers on behalf of Related parties, and the same is recognized as other income over the tenure of the corporate guarantee.

a. The Company provides for expenses towards compensated absences provided to its employees. The expense is recognized at the present value of the amount payable determined based on an independent external actuarial valuation as at the Balance sheet date, using Projected Unit Credit method.

b. The company maintains Gratuity fund account in LIC of India. The Company provides for expenses towards Gratuity to its employees. The expense is recognized at the present value of the amount payable determined based on an independent external actuarial valuation as at the Balance sheet date, using Projected Unit Credit method.

a. Sale Revenue include Excise Duty

b. Industrial Promotion Assistance from:

- Government of Bihar - Rs.824.04 lakhs [Previous year - Rs.605.27 lakhs]

- Government of Rajasthan - NIL [ Previous year- Rs.10.33 lakhs]

- Deferred Grant recognized as income - Rs.11.70 lakhs [Previous year Rs.11.70 lakhs]

c. Out of 326.07 lakhs units [Previous year - 222.21 lakhs units] generated by our windmills, 54.50 lakhs units [Previous year - 58.19 lakhs units] were sold to concerned state Electricity Board, 237.97 lakhs units [Previous year - 145.94 lakhs units] were consumed at our plant and 33.60 lakhs units [Previous year - 18.08 lakhs units] remain unadjusted.

1. Income Tax Assessment has been completed up to the accounting year ended 31st March, 2013 and 31^st March 2014 i.e. Assessment Year 2013-14 & 2014-15 and demand raised by the Income Tax department amounting to Rs.478.87 lakhs for the Assessment year 2013-14 and there is no demand for the Assessment year 2014-15. With this, the total demand received up to the Assessment year 2012-13 is Rs.2,658.08 lakhs (As at 31-03-2016: Rs.5,453.52 lakhs; As at 01-04-2015: 3,971.06 lakhs). The total demand has been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in assessments and the appeals are pending. In the opinion of the Management, there may not be any further tax liability with regard to the said disallowances. Based on the nature of claim disputed pending, no provision has been considered necessary.

2. Sales Tax demands amounting to Rs.412.73 lakhs (As at 31-03-2016: Rs.455.62 lakhs; As at 01-04-2015: Rs.428.20 lakhs) have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed pending, no provision has been considered necessary.

3. Central Excise demands amounting to Rs.52.55 lakhs (As at 31-03-2016: Rs.59.17 lakhs; As at 01-04-2015: Rs.66.40 lakhs) have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed pending, no provision has been considered necessary.

4. In respect of the electricity matters relating to our Textile Division, the Company has filed appeals / writ petition for Rs.291.87 lakhs (As at 31-03-2016: Rs.291.87 lakhs; As at 01-04-2015: Rs.305.81 lakhs) against various subject to the matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The Company is confident of resolving the matter in its favour and hence no provision is made in the books of accounts.

5. The Company had received two letters from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) in the year 2000 and 2003 respectively claiming an amount totalling to Rs.27.41 lakhs towards alleged violation of the terms and conditions of supply of electricity. The Company has deposited a sum of Rs.16.87 lakhs on various dates under protest and filed writ petition before the Honourable High Court of Madras in the year 2003 and the same has been disposed of vide order dated 30.09.2003, hence both impugned orders are quashed and the matter is remitted to the responded Board for a fresh de novo enquiry. During the year, there was no development in the matter. The management is confident of resolving the matter in its favour and hence no provision is made in the books of account.

6. The Company had received a letter dated 04.11.2009 from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) withholding an amount of Rs.46.54 lakhs pending resolution of Power Tariff Concession applicability to fibre cement sheet plant at Arakonam. This amount was withheld against our dues towards power sold to Tamil Nadu Electricity Board covered under the power purchase agreement. The Company preferred an appeal against TANGEDCO in the year 2009 and the matter is pending with the Honourable High Court of Madras. During the year, there was no development in the matter. The management is confident of collecting the withheld amount and no provision is made in the books of account.

7. Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 0.5% of their energy requirements from solar sources. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1,000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its own wind farms, it has been excluded for reckoning the obligatory consumption, since the Company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Honourable Madras High Court and obtained an interim stay against the implementation of the said regulation.

8. The Company had put up a plant in Silvassa in The Union Territory of Daman, Diu, Dadra and Nagar Haveli in the year 1998 and availed VAT and CST exemption for the period of 15 years ending on March 2013 based on a certificate of exemption given by appropriate authority in exercise of powers conferred on it by relevant provision of the CST Act, 1956. This power of granting exemption was withdrawn with retrospective effect by an amendment in Finance Act 2002 and the sales tax department has followed it up by issuing a circular for compulsory production of concessional sales tax forms for availing CST exemption. The differential sales tax liability for the year 1998 to the year 2002 works out to Rs.37 Crores. However, the Company was not in receipt of any demand from the appropriate authority. Aggrieved by the department circular and as an additional precaution, the Company had filed an appeal with Bombay High Court and the Bombay High Court has quashed the circular issued by the Commercial tax department, Silvassa, The Union Territory of Daman, Diu, Dadra and Nagar Haveli thereby allowing continuance of CST exemption even after amendment of relevant provision of CST Act, 1956 by the Finance Act, 2002. But the department of Commercial Tax, Silvassa has preferred an appeal against the Bombay High Court order before the Honourable Supreme Court and the adjudication and the court hearing is in process pending final disposal by the Honourable Supreme Court.

Based on the decision of Bombay High Court and interpretations of other relevant provisions, the Company has been legally advised that there will not be any demand likely to be raised or if the demand is raised it is likely to be deleted or substantially reduced and accordingly no provision is considered necessary

9. The Company received a notice from the Department of Revenue Intelligence (DRI) for an amount of Rs.41.23 lakhs excluding interest and penalty pertaining to the year 2009-10 for short payment of customs duty to the extent of utilization of DEPB Scrips purchased in the open market by the Company and which were originally obtained by the ultimate export firms fraudulently as alleged by the DRI. The Company had denied the allegations made in the notice in so far as they relate to the Company’s role is concerned and also the obligation to pay the duty demanded in the notice v''de its letter dated August 4, 2014. We attended the personal hearing before the assistant commissioner of customs JNPT Mumbai during October 2016 and awaiting for the favorable order. The Management is confident of resolving the matter in favour of the Company and hence no provision is considered necessary.

10. The Company received a notice from Gangaikondan Sub-Registrar office demanding a short payment of stamp duty of Rs.2.57 lakhs in connection with registration of Company’s land at Gangaikondan, Tirunelveli district, Tamil Nadu and has appropriately recorded the deficiency of the stamp duty payment in the encumbrance certificate of the Land records maintained by Sub-Registrar office. The Company has represented the matter with the Sub-Registrar citing payment of stamp duty correctly as per the guide line rate prevailing then. Based on the representation, they reduced the Stamp Duty to the tune of Rs.1.21 lacs. The Company filed the appeal against the order of Deputy Collector. The IG, Registration (Appellate Authority) quashed the order of Deputy Collector (stamps) in favor of the company.

11. The Government of West Bengal enacted “The West Bengal Tax on Entry of goods into Local Areas Act, 2012” and writ petitions were filed by others challenging the validity of the said Act. The Calcutta High Court held that the said Act was unconstitutional. Aggrieved, the Government has preferred an appeal before the Division Bench and obtained an interim direction to continue the Assessment proceedings only. Though the company has not received any demand, it has filed a petition to join in the case.

12. The company is eligible for incentives under the “Bihar Industrial Incentive Policy 2006” in respect of its Fibre Cement Plant at Bihiya in the State of Bihar. During the year under review,

- A sum of Rs.824.04 lakhs ( As at 31-03-2016: Rs.605.27 lakhs; As at 01-04-2015: Rs.559.79 lakhs) accrued as Industrial Promotion Assistance is credited to Profit and Loss account. Out of this Rs.571.93 lakhs has been received before 31.03.2017.

- We have received a sum of Rs.11.70 lakhs due to fair valuation of Govt Grants as per Ind AS

The company is eligible for incentive under the “Rajasthan Investment Promotion Scheme 2010” in respect of its Calcium silicate Board Plant at Kotputli in the state of Rajasthan, during the year under rev''ew,

- No amount was received as Incentive grant during the year (As at 31-03-2016: Rs.10.33 lakhs; As at 01-04-2015: Rs.0.00 lakhs) as Industrial Promotion Assistance.

1. It includes bonus, sitting fees, and value of perquisites.

2. It includes contribution to Provident fund and Superannuation fund

3. As the liability for gratuity and compensated absences are provided on actuarial basis for the Company as a whole, amounts accrued pertaining to key managerial personnel are not included above.

13. Disclosure of Fair value measurements

The fair values of financial assets and liabilities are determined at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to their short term maturities of these instruments.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

14. Financial Risk Management

The Board of Directors (BOD) has overall responsibility for the establishment and oversight of the Company’s risk management framework and thus established a risk management policy to identify and analyse the risk faced by the Company. Risk Management systems are reviewed by the BOD periodically to reflect changes in market conditions and the Company’s activities. The Company through its training and management standards and procedures develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the risk management framework. The Audit committee is assisted in the oversight role by Internal Audit. Internal Audit undertakes reviews of the risk management controls and procedures, the results of which are reported to the Audit Committee.

The Board of Directors regularly reviews these risks and approves the risk management policies, which covers the management of these risks:

Credit Risk

Credit Risk is the risk of financial loss to the Company if the customer or counterparty to the financial instruments fails to meet its contractual obligations and arises principally from the Company’s receivables, treasury operations and other operations that are in the nature of lease.

Receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer. The Company extends credit to its customers in the normal course of business by considering the factors such as financial reliability of customers. The Company evaluates the concentration of the risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets. The Company maintains adequate security deposits from its customers in case of wholesale and retail segment. The exposures with the Government are generally unsecured but they are considered as good. However, unsecured credits are extended based on creditworthiness of the customers on case to case basis.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the company and where there is a probability of default, the company creates a provision based on Expected Credit Loss for trade receivables under simplified approach as below:

Note: Provision amount of receivables relating to legal case Rs.46.54 lakhs

Other disputed Rs.27.23 lakhs Total Rs.73.77 lakhs

Financial instruments and cash deposits

Investments of surplus funds are made only with the approved counterparties. The Company is presently exposed to counter party risk relating to short term and medium term deposits placed with banks, and also investments made in mutual funds. The Company places its cash equivalents based on the creditworthiness of the financial institutions.

Liquidity Risk

Liquidity Risks are those risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. In the management of liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the company’s operations and to mitigate the effects of fluctuations in cash flows. Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping both committed and uncommitted credit lines available. The Company has laid well defined policies and procedures facilitated by robust information system for timely and qualitative decision making by the management including its day to day operations.

Foreign Currency Risk

The Company’s exposure in USD and other foreign currency denominated transactions in connection with import of raw material, capital goods and spares, besides exports of finished goods and borrowings in foreign currency, gives rise to exchange rate fluctuation risk. The Company has following policies to mitigate this risk:

Decisions regarding borrowing in Foreign Currency and hedging thereof, (both interest and exchange rate risk) and the quantum of coverage is driven by the necessity to keep the cost comparable. Foreign Currency loans, imports and exports transactions are hedged by way of forward contract after taking into consideration the anticipated Foreign exchange inflows/ outflows, timing of cash flows, tenure of the forward contract and prevailing Foreign exchange market conditions.

Cash flow and fair value interest rate risk

Interest rate risk arises from long term borrowings with variable rates which exposed the company to cash flow interest rate risk. The Company’s fixed rate borrowing are carried at amortized cost and therefore are not subject to interest rate risk as defined in Ind AS 107 since neither the carrying amount nor the future cash flows will fluctuate because of the change in market interest rates. The Company is exposed to the evolution of interest rates and credit markets for its future refinancing, which may result in a lower or higher cost of financing, which is mainly addressed through the management of the fixed/ floating ratio of financial liabilities. The Company constantly monitors credit markets to strategize a well-balanced maturity profile in order to reduce both the risk of refinancing and large fluctuations of its financing cost. The Company believes that it can source funds for both short term and long term at a competitive rate considering its strong fundamentals on its financial position. Sensitivity on interest rate fluctuation

15. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximize the shareholders’ wealth.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus Debt.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. There have been no breaches in the financial covenants of any interest-bearing loans/borrowing. The Company has been consistently focusing on reduction in long term borrowings. There are no significant changes in the objectives, policies or processes for managing capital during the years ended 31-03-2017 and 31-03-2016.

16. Details of Specified Bank Notes (‘SBN’) held and transacted during the period 8-11-2016 to 30-12-2016

As per the amendments notified on 30-3-2017 to Ind AS Schedule III, Clause K of Note 6 to General Instructions for Preparation of Balance Sheet, the details of Specified Bank Notes (‘SBN’) held and transacted during the period 8-11-2016 to 30-12-2016 is given in the below table:

Explanatory Notes on preparation and presentation of financial statements upon transition to Ind AS

In preparing these financial statements, the Company’s Opening Balance Sheet was prepared as at 1-4-2015, which is the Company’s date of transition to Ind AS. The following note explains the nature of adjustments made by the Company read with Note No. 3 in restating its previous GAAP Financial Statements including its Balance Sheet as at 1-4-2015 and the financial statements as at and for the year ended 31-3-2016.

A. Depreciation and Amortization expense

Under previous GAAP, the carrying value of significant components of Property, Plant and Equipment which have completed their useful life, have been charged off against opening balance of Retained Earnings for the financial year 2015-16 as permitted by Schedule II to the Companies Act, 2013. However, under Ind AS, this has been taken through profit and loss for the year ended 31-3-2016 as it not a GAAP difference.

B. Leasehold Land

Lease prepayments made for Leasehold land were classified as Leasehold Land under previous GAAP. However, under Ind AS, prepayments made for leasehold land should be classified as lease prepayments under operating lease and the same should be amortized over the tenure of the lease. Accordingly, lease prepayments as at 1-4-2015 are reclassified from Property, Plant and Equipment into Prepaid expenses. The subsequent amortization of lease prepayments for the year ended 31-3-2016 is recognized as ‘Rent’ under classification of ‘Other Expenses’ in the Statement of Profit and Loss.

C. Investment Properties

Under previous GAAP as well as Ind AS, Investment Properties are required to be stated at cost net of accumulated depreciation and impairment loss, if any. Under previous GAAP, it was grouped under fixed assets whereas under Ind AS, the same is required to be disclosed as a separate line item in the Balance Sheet. Accordingly, investment properties are reclassified.

D. Investments

Under previous GAAP, investments in mutual funds were measured at the lower of cost or fair value. Under Ind AS, the Company is required to measure the investments in mutual funds at fair value through profit & loss and accordingly recognized the fair value gain/loss in Opening Equity or in the Statement of Profit and Loss for the year ended 31-3-2016. Under previous GAAP, long term equity instruments were measured at cost less provision for permanent diminution. In respect of investments in companies other than in Subsidiary and Associates, the Company is required to designate such investments necessarily at fair value. Therefore, the Company has designated such investments as FVTOCI Investments. At the date of transition to Ind AS, the excess /deficit of fair value of equity instruments over the previous GAAP carrying amount is recognized as fair value gain/loss, in the FVTOCI reserve/Other Comprehensive Income for the year ended 31-3-2016.

E. Classification of Financial Instruments

The company has evaluated the facts and circumstances on date of transition to Ind AS for the purpose of classification and measurement of financial assets/financial liabilities. Accordingly, bifurcation of assets/liabilities as financial/Non-financial is identified and reclassified. However, this reclassification is not presented as transition adjustments.

F. Financial Guarantee Contracts

The Company has issued Corporate Guarantee to Banks for the loans availed by Subsidiary, Associates and other related parties. Where guarantees in relation to loans are provided for no compensation, the fair values are accounted for as contributions and recognized as part of the cost of the investment if the loan is given to Associate/Subsidiary, and recognized as Other expenses if the loan is given to other related parties. The carrying amount of financial guarantee obligation is recognized as other income over the tenure of the corporate guarantee.

G. Presentation of MAT Credit Entitlement as ‘Deferred Tax Assets''

Under previous GAAP, MAT credit entitlement was presented under the head ‘Loans and advances’ since there being a convincing evidence of realization of the asset. As per Ind AS 12 on Income Taxes, Deferred Tax Assets include the amounts of income taxes recoverable in future periods in respect of the carry forward of unused tax credits. Accordingly, MAT Credit Entitlement classified as Loans and Advances under previous GAAP, are netted against Deferred Tax Liability under Ind AS.

H. Dividend

Under previous GAAP, dividends proposed by the Board of Directors are recognized as proposed dividend in the financial statements even though it is approved by the shareholders in the AGM. However, under Ind AS, dividend has to be recognized upon approval by the shareholders in the Annual General Meeting. Accordingly, Proposed Dividend (including Dividend Distribution Tax recognized as liability in the financial year 2014-15 as per previous GAAP has been reversed with corresponding credit to Equity as at the date of transition i.e. 1-4-2015 and recognized in the Equity during the year ended 31-3-2016 as declared and paid.

I. Transaction cost on Borrowings

Under previous GAAP, transaction costs (loan processing fees) incurred in connection with borrowings is charged to profit or loss up front. Under Ind AS, transaction cost is to be included in the initial recognition and charged to profit or loss using the effective interest method. Accordingly, transaction cost on borrowings is reversed to Equity, for the loans outstanding as at 1-4-2015 and additional interest expense is recognized in the Opening Equity for the period up to 1-4-2015, using Effective Interest Rate method (EIR). For the year ended 31-3-2016, the Company has reversed the transaction cost pertaining to the Borrowings availed during the year 2015-16 and the additional Interest impact computed using EIR method is recognized as Finance cost.

J. Recognition and Measurement of Forward Contracts on Mark To Market (MTM)

Under previous GAAP, in respect of forward contracts, the difference between the forward rate and the exchange rate at the inception of the forward exchange contract is recognized as income/expenses over the tenure of such contract. Under Ind AS, the fair value of forward foreign exchange contracts has to be recognized. Accordingly, the assets and liabilities related to forward contracts recognized under previous GAAP are reversed and Mark to Market (MTM) gain/loss is recognized as other expenses in the Statement of Profit and Loss.

K. Deferred Tax

Deferred tax is accounted using income statement approach by computing the differences between taxable profits and accounting profits for the period under previous GAAP. As per Ind AS 12, the deferred tax is to be computed using the balance sheet approach, which is based on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. Deferred tax adjustments are recognized either in retained earnings or a separate component of equity.

L. Security Deposits from Customers & Service Providers

The company has presented the Security deposits from Customers & Service providers as Non-current liability under previous GAAP as per the FAQ on Schedule III to the Companies Act 2013 issued by ICAI based on the fact that company’s past record shows that these deposits are not generally claimed and hence it was appropriate to treat it as non-current liability. However, as per Educational material issued by ICAI on Ind AS 1 Presentation of Financial Statements, such deposits have to be classified under Current Financial Liability only in view of the fact that the Company does not have the unconditional right to defer settlement of the liability. Accordingly, the Company has reclassified Security Deposits from Customers/Service providers from non-current liability to other current financial liabilities.

M. Defined Benefit Plan

Under previous GAAP, actuarial gains and losses are charged to profit or loss. Under Ind AS re-measurements of net defined benefit asset/liability comprising of actuarial gains or losses are arising from experience adjustments and changes in actuarial assumption are charged/credited to other comprehensive income. There is no impact on the total equity as at 31-3-2016. However for the period up to the date of transition, the Company has transferred all re-measurement costs recognized in the past periods within accumulated profits or loss (a component of equity), in accordance with provisions of Para 122 of Ind AS 19.

N. Excise Duty

Under previous GAAP, Sale of goods and scraps was presented as net of excise duty. However, under Ind AS, sale of goods and scraps includes excise duty. Excise duty on sale of goods and scraps is separately shown as a line item in the Statement of Profit and Loss as part of expenses. However, there is no impact on the total equity and profit.

O. Dealer Awards

Under previous GAAP, Dealer awards were recognized as part of Sales Promotion Expenses. However, under Ind AS, the same has to be netted against Revenue. Accordingly, dealer awards have been netted against Revenue from Operations in the Statement of Profit and Loss.

P. Other Comprehensive Income (OCI)

This is a new classification under Ind AS. Any income or expense that are not required to be recognized in profit or loss are shown under a new category namely OCI in the Statement of Profit and Loss namely re-measurements of defined benefit plans, gains and losses from investments in equity instruments designated at fair value through other comprehensive income, gains and losses on financial assets measured at fair value through other comprehensive income, gain or loss on financial instruments that qualify for hedge accounting, changes in revaluation surplus and gains and losses arising from translating the financial statements of a foreign operation.

Q. Bank Overdraft

Under previous GAAP, bank overdrafts were considered as part of borrowings and movements in the same were shown as part of financing activities. Under Ind AS, Bank overdrafts repayable on demand are to be treated as an integral part of the cash management process. Accordingly, Bank overdraft is included in Cash and Cash equivalents for the purpose of presentation of Statement of Cash Flows.

17. There are no dues to Micro and Small Enterprises as at 31.03.2017 (Previous Year : Rs. Nil). This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties having been identified on the basis of information available with the company.

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Mar 31, 2016

II. Income Tax Assessment has been completed up to the accounting year ended 31st March, 2012 i.e. Assessment Year 2012-13 and demand raised by the Income Tax department amounting to Rs, 740.98 lakhs. With this, the total demand received up to the Assessment year 2012-13 is Rs, 5,453.52 lakhs (previous year Rs, 3,971.06 lakhs). The total demand has been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in assessments and the appeals are pending. In the opinion of the Management, there may not be any tax liability with regard to the said disallowances. Based on the nature of claim disputed, no provision has been considered necessary.

III. Sales Tax and Central Excise demands amounting to Rs, 514.78 lakhs (Previous year Rs, 494.60 lakhs) have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed, no provision has been considered necessary.

IV In respect of the electricity matters relating to our Textile Division, the Company has filed appeals / writ petition for Rs, 291.87 lakhs (previous year Rs, 305.81 lakhs) against various subject matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The Company is confident of resolving the matter in its favour and hence no provision is made in the books of accounts.

V The Company had received two letters from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) in the year 2000 and 2003 respectively claiming an amount totaling to Rs, 27.41 lakhs towards alleged violation of the terms and conditions of supply of electricity. The Company has deposited a sum of Rs, 16.87 lakhs on various dates under protest and filed writ petition before the Honourable High Court of Madras in the year 2003 and the same has been admitted. During the year, there was no development in the matter. The management is confident of resolving the matter in its favour and hence no provision is made in the books of account.

VI The Company had received a letter dated 04.11.2009 from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) withholding an amount of Rs, 46.54 lakhs pending resolution of Power Tariff Concession applicability to fibre cement sheet plant at Arakonam. This amount was withheld against our dues towards power sold to Tamil Nadu Electricity Board covered under the power purchase agreement. The Company preferred an appeal against TANGEDCO in the year 2009 and the matter is pending with the Honorable High Court of Madras. During the year, there was no development in the matter. The management is confident of collecting the withheld amount and no provision is made in the books of account.

VII Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 0.5% of their energy requirements from solar sources. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1,000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its

own wind farms, it has been excluded for reckoning the obligatory consumption, since the Company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Honorable Madras High Court and obtained an interim stay against the implementation of the said regulation.

VIII The Company had put up a plant in Silvassa in The Union Territory of Daman, Diu, Dadra and Nagar Haveli in the year 1998 and availed VAT and CST exemption for the period of 15 years ending on March 2013 based on a certificate of exemption given by appropriate authority in exercise of powers conferred on it by relevant provision of the CST Act, 1956. This power of granting exemption was withdrawn with retrospective effect by an amendment in Finance Act 2002 and the sales tax department has followed it up by issuing a circular for compulsory production of concessional sales tax forms for availing CST exemption. The differential sales tax liability for the year 1998 to the year 2002 works out to '' 37 Crores. However, the Company was not in receipt of any demand from the appropriate authority. Aggrieved by the department circular and as an additional precaution, the Company had filed an appeal with Bombay High Court and the Bombay High Court has quashed the circular issued by the Commercial tax department, Silvassa, The Union Territory of Daman, Diu, Dadra and Nagar Haveli thereby allowing continuance of CST exemption even after amendment of relevant provision of CST Act, 1956 by the Finance Act, 2002. But the department of Commercial Tax, Silvassa has preferred an appeal against the Bombay High Court order before the Honorable Supreme Court and the adjudication and the court hearing is in process pending final disposal by the Honorable Supreme Court.

Based on the decision of Bombay High Court and interpretations of other relevant provisions, the Company has been legally advised that there will not be any demand likely to be raised or if the demand is raised it is likely to be deleted or substantially reduced and accordingly no provision is considered necessary.

IX The Company received a notice from the Department of Revenue Intelligence (DRI) for an amount of '' 32.4 lakhs excluding interest and penalty pertaining to the year 2009-10 for short payment of customs duty to the extent of utilization of DEPB Scrips purchased in the open market by the Company and which were originally obtained by the ultimate export firms fraudulently as alleged by the DRI. The Company had denied the allegations made in the notice in so far as they relate to the Company’s role is concerned and also the obligation to pay the duty demanded in the notice vide its letter dated August 4, 2014. There has been no development further to our letter dated August 4, 2014. The Management is confident of resolving the matter in favour of the Company and hence no provision is considered necessary.

X The Company received a notice from Gangaikondan Sub-Registrar office demanding a short payment of stamp duty of Rs, 2.57 lakhs in connection with registration of Company’s land at Gangaikondan, Tirunelveli district, Tamil Nadu and have appropriately recorded the deficiency of the stamp duty payment in the encumbrance certificate of the Land records maintained by Sub-Registrar office. The Company has represented the matter with the Sub-Registrar citing payment of stamp duty correctly as per the guide line rate prevailing then. Based on the representation, they reduced the Stamp Duty to the tune of Rs, 1.21 lakhs. The Company filed the appeal against the order of Deputy Commissioner and the Company is confident of resolving the matter in its favour and hence no provision is considered necessary.

1. The Exceptional items in the Statement of Profit and Loss Account is net off the following:- Profit on Sale of Investment in Shares - Rs, 1,049.35 lakhs (Previous Year Rs, 1,349.91 lakhs)

- Expenditure on Voluntary Retirement Scheme - NIL lakhs (Previous Year Rs, 336.64 lakhs)

- Profit on Sale of Assets (Land and Building) Rs, 183.57 lakhs (Previous year NIL)

2. The Company has entered into an agreement with the group company M/s. The Ramco Cements Limited to share the cost of development of the facilities and accordingly debited Rs, 0.38 crores during the year (previous year Rs, 1.94 crores) and shown as a deduction from the gross block of its fixed assets.

3. The Government of West Bengal enacted “The West Bengal Tax on Entry of goods into Local Areas Act, 2012” and writ petitions were filed by others challenging the validity of the said Act. The Calcutta High Court held that the said Act was unconstitutional. Aggrieved, the Government has preferred an appeal before the Division Bench and obtained an interim direction to continue the Assessment proceedings only. Though the company has not received any demand, it has filed a petition to join in the case.

4. Trade receivables include due from Overseas Subsidiary Company viz., Sri Ramco Lanka (Private) Limited, Sri Lanka to the extent of Rs, 244.83 lakhs (previous year Rs, 194.61 lakhs) and Sri Ramco Roofing Lanka (Private) Limited (wholly owned subsidiary of Sri Ramco Lanka (Private) Limited) to the extent of Rs, 272.40 lakhs (previous year 175.45 lakhs). Maximum amount outstanding during the year from Sri Ramco Lanka (Private) Ltd is Rs, 579.86 lakhs (previous year Rs, 175.45 lakhs) and Sri Ramco Roofing Lanka (Private) Limited is Rs, 568.75 lakhs (previous year Rs, 564.11 lakhs)

5. Pursuant to the mandatory requirement of notification of schedule II to the Companies Act 2013 with effect from 01.04.2015 for computation of depreciation based on useful life of significant components of Plant, Property and Equipment’s, the company determined the useful life and value of such components and computed depreciation amounting to Rs, 1960.79 lakhs for the year. Accordingly the carrying values of significant components of plant, property and equipment’s which have completed their useful life as on 01.04.2015, have been charged off against the Retained Earnings amounting to Rs, 18 lakhs after netting off deferred tax of Rs, 9.53 lakhs as per the transitional provisions of the said notification.

Due to this change in accounting policy, the depreciation for the year ended 31.03.2016 is higher by Rs, 84.69 lakhs when compared to the calculation of depreciation prior to the componentization of assets.

6. The Company’s Shares are listed in National Stock Exchange of India Ltd and BSE Ltd and the listing fees in respect National Stock Exchange of India Ltd and BSE Ltd for the Financial year 2016-2017 have been paid.

7. a. The breakup of Secured long term borrowings are as under:

Rs, 4,287.99 lakhs (Previous year Rs, 6973.82 lakhs) is secured by pari-passu first charge on the fixed assets and pari-passu second charge on the current assets of the company.

Rs, 9,316.03 lakhs (Previous year Rs, 3,933.63 lakhs) is secured by pari-passu first charge on movable fixed assets of the company.

b. The breakup of Secured short term borrowings from banks are as under:

Rs, 5,862.64 lakhs (previous year Rs, 11,709.64 lakhs) secured by pari-passu first charge on stocks of raw materials, work-in-progress, stores, spares and finished goods and book debts and second charge on fixed assets.

Rs, 4,430.53 lakhs (previous year Rs, 9,005.60 lakhs) secured by pari-passu first charge on stocks of raw materials, work-in-progress, stores, spares and finished goods and book debts.

The premium of forward exchange contracts not intended for trading or speculative purpose is amortized and charged as expense over the period of the contract. During the year under review, a sum of Rs, 7.25 lakhs (Previous year Rs, 17.88 lakhs) has been amortized for adjustment in the subsequent period and a sum of Rs, 185.38 lakhs (Previous year Rs, 440.23 lakhs) has been charged off and debited to the Statement of Profit and Loss under “exchange rate variation” and disclosed under “finance costs”.

The Company has not utilized Short Term Loans for Long Term purposes

8. The company is eligible for incentives under the “Bihar Industrial Incentive Policy 2006” in respect of its Fibre Cement Plant at

Bihiya in the State of Bihar. During the year under review,

- A sum of Rs, 605.27 lakhs (previous year Rs, 559.79 lakhs) accrued as Industrial Promotion Assistance is credited to Profit and Loss account.

- No amount was received as Incentive grant for investment in Plant and Machinery, Land and Diesel Generating Set (Previous year Rs, 15 lakhs on investment in Land) received as Capital Subsidy Investment.

The Company is eligible for incentives under the “Rajasthan Investment Promotion Scheme 2010” in respect of its Calcium Silicate

Board Plant at Kotputli in the State of Rajasthan, during the year under review

A sum of Rs, 10.33 lakhs (previous year NIL) that has accrued as Industrial Promotion Assistance has been credited to Profit and Loss

Account

9. A total of 222.31 lakhs units (PY 255.64 lakhs units) has been generated (net of wheeling and banking) at wind farms -

a) 58.19 lakhs units (Previous year 70.32 lakhs units) were sold to concerned State Electricity Board for Rs, 219.30 lakhs (Previous year Rs, 229.29 lakhs), shown under “Income from Wind Power generation”.

b) 145.94 lakhs units (Previous year 177.38 lakhs units) were consumed at our plants. The monetary value of such units for Rs, 979.61 lakhs (Previous year Rs, 1,100.95 lakhs) is not recognized as it is inter-divisional transfer.

c) 18.18 lakhs units (Previous year 7.94 lakhs units) remain unadjusted and eligible for adjustment in the subsequent periods and its monetary value of Rs, 52.73 lakhs (PY:Rs, 31.06 lakhs) has been included in “Other Current Assets”.

10. The Company has taxable income for the year computed under section 115BBD of the Income Tax Act, 1961. Accordingly, provision for income tax has been made for the year.

11 The Company is required to spend gross CSR expenditure of Rs, 46.68 lakhs for the year 2015-16 in accordance with Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy ) Rules, 2014. As against this, the company has spent Rs, 38.03 lakhs in the following categories :

12. There are no dues to Micro and Small Enterprises as at 31.03.2016 (Previous Year : Rs, Nil). This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties having been identified on the basis of information available with the company.

13. Previous year’s figures have been regrouped/restated wherever necessary so as to make them comparable with that of the current year.

14. Figures have been rounded off in lakhs with two decimal.

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Mar 31, 2015

1. NOTES ON ACCOUNTS: As at As at 31.03.2015 31.03.2014 Rs. in lakhs Rs. in lakhs

1. I. Contingent Liabilities and commitments

a. Contingent Liabilities

i. Claims against the Company / disputed liabilities not acknowledged as debts 4,845.42 2,000.44 (Refer to notes II to VI below)

ii. Guarantees given to Banks to avail loan facilities by Group Companies :

a. Ramco System Ltd 3,550.00 6,550.00

b. Sri Harini Textiles Ltd 3.629.00 3,629.00

b. Commitments

i. Guarantees given by Bankers on behalf of Company 374.09 344.05

ii. Capital Contracts:

a. Estimated amount of contracts remaining to be executed on capital account and not provided for: 914.06 438.41

b. Unexpired Letters of Credit for purchase of Capital goods and raw materials 58.42 181.45

II. Income Tax Assessment has been completed up to the accounting year ended 31st March, 2011 i.e. Assessment Year 2011-12 and demand raised by the Income Tax department amounting to Rs. 256.64 lakhs. With this, the total demand received up to the Assessment year 2011-12 is Rs. 3,971.06 lakhs (previous year Rs. 1,751.40 lakhs). The total demand has been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in assessments and the appeals are pending. In the opinion of the Management, there may not be any tax liability with regard to the said disallowances. Based on the nature of claim disputed, no provision has been considered necessary.

III. Sales Tax and Central Excise demands amounting to Rs. 494.60 lakhs (Previous year Rs. 249.04 lakhs) have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed, no provision has been considered necessary.

IV. In respect of the electricity matters relating to our Textile Division, the Company has filed appeals / writ petition for Rs. 305.81 lakhs against various subject matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The Company is confident of resolving the matter in its favour and hence no provision is made in the books of accounts.

V The Company had received two letters from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) in the year 2000 and 2003 respectively claiming an amount totalling to Rs. 27.41 lakhs towards alleged violation of the terms and conditions of supply of electricity. The Company has deposited a sum of Rs. 16.87 lakhs on various dates under protest and filed writ petition before the Honourable High Court of Madras in the year 2003 and the same has been admitted. During the year, there was no development in the matter. The management is confident of resolving the matter in its favour and hence no provision is made in the books of account.

VI The Company had received a letter dated 04.11.2009 from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) withholding an amount of Rs. 46.54 lakhs pending resolution of Power Tariff Concession applicability to fibre cement sheet plant at Arakonam. This amount was withheld against our dues towards power sold to Tamil Nadu Electricity Board covered under the power purchase agreement. The Company preferred an appeal against TANGEDCO in the year 2009 and the matter is pending with the Honourable High Court of Madras. During the year, there was no development in the matter. The management is confident of collecting the withheld amount and no provision is made in the books of account.

VII Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 0.5% of their energy requirements from solar sources. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1,000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its own wind farms, it has been excluded for reckoning the obligatory consumption, since the Company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Honourable Madras High Court and obtained an interim stay against the implementation of the said regulation.

VIII The Company had put up a plant in Silvassa in The Union Territory of Daman, Diu, Dadra and Nagar Haveli in the year 1998 and availed VAT and CST exemption for the period of 15 years ending on March 2013 based on a certificate of exemption given by appropriate authority in exercise of powers conferred on it by relevant provision of the CST Act, 1956. This power of granting exemption was withdrawn with retrospective effect by an amendment in Finance Act 2002 and the sales tax department has followed it up by issuing a circular for compulsory production of concessional sales tax forms for availing CST exemption. The differential sales tax liability for the year 1998 to the year 2002 works out to Rs. 37 Crores. However, the Company was not in receipt of any demand from the appropriate authority. Aggrieved by the department circular and as an additional precaution, the Company had filed an appeal with Bombay High Court and the Bombay High Court has quashed the circular issued by the Commercial tax department, Silvassa, The Union Territory of Daman, Diu, Dadra and Nagar Haveli thereby allowing continuance of CST exemption even after amendment of relevant provision of CST Act, 1956 by the Finance Act, 2002. But the department of Commercial Tax, Silvassa has preferred an appeal against the Bombay High Court order before the Honourable Supreme Court and the adjudication and the court hearing is in process pending final disposal by the Honourable Supreme Court.

Based on the decision of Bombay High Court and interpretations of other relevant provisions, the Company has been legally advised that there will not be any demand likely to be raised or if the demand is raised is likely to be deleted or substantially reduced and accordingly no provision is considered necessary.

IX The Company received a notice from the Department of Revenue Intelligence (DRI) for an amount of Rs. 32.4 lakhs excluding interest and penalty pertaining to the year 2009-10 for short payment of customs duty to the extent of utilization of DEPB Scrips purchased in the open market by the Company and which were originally obtained by the ultimate export firms fraudulently as alleged by the DRI. The Company had denied the allegations made in the notice in so far as they relate to the Company''s role is concerned and also the obligation to pay the duty demanded in the notice vide its letter dated August 4, 2014. There has been no development further to our letter dated August 4, 2014. The Management is confident of resolving the matter in favour of the Company and hence no provision is considered necessary.

X The Company received a notice from Gangaikondan Sub-Registrar office demanding a short payment of stamp duty of Rs. 2.57 lakhs in connection with registration of Company''s land at Gangaikondan, Tirunelveli district, Tamil Nadu and have appropriately recorded the deficiency of the stamp duty payment in the encumbrance certificate of the Land records maintained by Sub-Registrar office. The Company has represented the matter with the Sub-Registrar citing payment of stamp duty correctly as per the guide line rate prevailing then. The Company is confident of resolving the matter in its favour and hence no provision is considered necessary.

2. The Company had announced Voluntary Retirement Scheme (VRS) for the employees of Arakonam Manufacturing Division during the year under review. A sum of Rs. 336.34 (Previous year Rs. nil ) has been paid during the year and debited to the Profit and Loss Statement under the head "Employee Benefit Expense" and shown under "Exceptional item" in the Profit and Loss Statement.

3. The Exceptional items in the Statement of Profit and Loss Account is net off the following:-

- Profit on Sale of Investment in Shares – Rs. 1,349.91 lakhs (Previous Year Rs. Nil)

- Expenditure on Voluntary Retirement Scheme – Rs. 336.64 lakhs (Previous Year Rs. Nil)

4. The Company has entered into an arrangement to enter into an agreement with the group company M/s. The Ramco Cements Limited to share the cost of development of the facilities and accordingly debited Rs. 1.94 crores during the year (previous year Rs. Nil) and shown as a deduction from the gross block of its fixed assets on provisional basis. Final adjustments, if any, in this regard will be accounted for as and when the costs are determined.

5. The Government of West Bengal enacted "The West Bengal Tax on Entry of goods into Local Areas Act, 2012" and writ petitions were filed by others challenging the validity of the said Act. The Calcutta High Court held that the said Act was unconstitutional. Aggrieved, the Government has preferred an appeal before the Division Bench and obtained an interim direction to continue the Assessment proceedings only. Though the company has not received any demand, it has filed a petition to join in the case.

6. Trade receivables include due from Overseas Subsidiary Company viz., Sri Ramco Lanka (Private) Limited, Sri Lanka to the extent of Rs. 194.61 lakhs (previous year Rs. 191.68 lakhs) and Sri Ramco Roofing Lanka (Private) Limited (wholly owned subsidiary of Sri Ramco Lanka (Private) Limited) to the extent of Rs. 175.45 lakhs (previous year Rs. 177.28 lakhs). Maximum amount outstanding during the year from Sri Ramco Lanka (Private) Ltd is Rs. 324.84 lakhs (previous year Rs. 1,109.32 lakhs) and Sri Ramco Roofing Lanka (Private) Limited is Rs. 564.11 lakhs (previous year Rs. 1,016.32 lakhs)

7. Pursuant to the notification of Schedule II to the Companies Act, 2013 for computation of depreciation with effect from 1st April 2014, the Company revised the useful life of its assets to align the useful life with those specified in Schedule II of the Act. Accordingly, the carrying values of the fixed assets which has completed their useful life as on 1st April, 2014 have been charged off against the General reserve amounting to Rs. 191.01 Lakhs after netting off deferred tax of Rs. 64.93 lakhs. Due to this change in accounting policy, the depreciation for the year ended 31st March, 2015 is lower by Rs. 3,041.17 lakhs when compared to the calculation of depreciation under the Companies Act, 1956.

8. The Company''s Shares are listed in Madras Stock Exchange Ltd*, National Stock Exchange of India Ltd and BSE Ltd and the listing fees in respect National Stock Exchange and BSE for the Financial year 2015-2016 have been paid.

* Listing in MSE had been delisted as MSE ceased to be a stock exchange with effect from 14th May, 2015.

9. a. The breakup of Secured long-term borrowings are as under:

Rs. 6,973.82 lakhs (Previous year Rs. 15,432.27) is secured by pari-passu first charge on the fixed assets and pari-passu second charge on the current assets of the company.

Rs. 3,933.63 lakhs (Previous year Rs. Nil) is secured by pari-passu first charge on movable fixed assets of the company.

b. The breakup of Secured short-term borrowings from banks are as under:

Rs. 11,709.64 lakhs (previous year Rs. 9,324.35 Lakhs) secured by pari-passu first charge on stocks of raw materials, work-in-progress, stores, spares and finished goods and book debts and second charge on fixed assets.

Rs. 9,005.60 lakhs (previous year Rs. 7,999.60 Lakhs) secured by pari-passu first charge on stocks of raw materials, work-in-progress, stores, spares and finished goods and book debts.

10. The Company is eligible for Incentive under the "West Bengal Incentive Scheme 2000" in respect of its Fibre Cement Plant and Clinker Grinding Unit at Kharagpur in the State of West Bengal. No amount was received as incentive during the year under review . (Previous year Rs. 99.02 lakhs)

The company is eligible for incentives under the "Bihar Industrial Incentive Policy 2006" in respect of its Fibre Cement Plant at Bihiya in the State of Bihar. During the year under review,

- A sum of Rs. 559.79 lakhs (previous year Rs. 501.66 lakhs) accrued as Industrial Promotion Assistance is credited to Profit and Loss account.

– A sum of Rs. 15 lakhs (Previous year Rs. 100 lakhs on investment in Plant and Machinery) received as Capital Subsidy on Investment in Land and credited to Capital Reserve Account.

- No amount was received as Incentive grant for investment in Diesel Generating Set (Previous year Rs. 19.31 lakhs)

11. Out of units of 255.64 Lakhs units (PY 264.95 Lakhs units) generated net of wheeling and banking at wind farms –

a) 70.32 Lakhs units (Previous year 74.60 Lakhs units) were sold to concerned State Electricity Board for Rs. 229.29 Lakhs (Previous year Rs. 257.41 Lakhs), shown under "Income from Wind Power generation".

b) 177.38 Lakhs units (Previous year 178.36 Lakhs units) were consumed at our plants. The monetary value of such units for Rs. 1,100.95 Lakhs (Previous year Rs. 1,069.92 Lakhs) is not recognised as it is inter-divisional transfer.

c) 7.94 lakhs units (Previous year 11.99 lakhs units) remain unadjusted and eligible for adjustment in the subsequent periods and its monetary value of Rs. 31.06 lakhs (PY: Rs. 53.01 lakhs) has been included in "Other Current Assets".

12. The Company has taxable income for the year computed under section 115JB of the Income Tax Act, 1961 (Minimum Alternate Tax). Accordingly, provision for income tax has been made for the year.

13. Previous year''s figures have been regrouped / restated wherever necessary so as to make them comparable with that of the current year.

14. Figures have been rounded off in Lakhs with two decimal.

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Mar 31, 2014

As at As at 31.03.2014 31.03.2013 Rs. in lakhs Rs. in lakhs

1. I. Contingent Liabilities and commitments not provided for

A. Claims against the Company / disputed liabilities not acknowledged as debts

a. In respect of Joint ventures NIL NIL

b. In respect of others 2,000.44 2,927.84

B. Guarantees

Guarantees to Banks/Financial institutions against credit facilities extended to third parties

a. In respect of Joint ventures NIL NIL

b. In respect of others 10,179.00 10,949.00

II. Commitments

A. Estimated amount of contracts remaining to be executed on capital account and not provided for:

a. In respect of Joint ventures NIL NIL

b. In respect of others 438.41 1,739.84

B. Other Commitments

a. Letters of Credit 181.45 NIL

b. Bank Guarantees 344.05 259.01

III. Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) has raised the demand towards alleged violation of the terms and conditions of supply of electricity for Rs. 27.41 lakhs. The Company has deposited a sum of Rs. 16.87 lakhs under protest and filed writ petition before the Honourable High Court of Madras and the same has been admitted. The management is confident of resolving the matter in its favour and hence no provision is made in the books of account.

IV TANGEDCO has withheld an amount of Rs. 46.54 lakhs pending resolution of Power Tariff Concession applicability to fibre cement sheet plant at Arakkonam. This amount was withheld against our dues towards power sold to Tamil Nadu Electricity Board covered under the power purchase agreement. The Company preferred an appeal against TANGEDCO and the matter is pending with the Honourable High Court of Madras. The management is confident of collecting the withheld amount and no provision is made in the books of account

2. The Company has not utilized Short-term Loans for Long-term purposes.

3. Income Tax Assessment has been completed upto the Accounting Year 2010-2011 (i.e. Assessment Year 2011-12) and demands raised by the Income Tax Department amounting to Rs. 256.64 lakhs (upto the Assessment year 2010.11-Rs. 1,494.76 lakhs) which have been disputed by the Company and necessary appeals have been filed. Based on the nature of the claim disputed, no provision has been considered necessary.

4. Sales Tax and Central Excise demands amounting to Rs.1A9.Q4 lakhs (Previous year Rs. 46.94 lakhs) have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed, no provision has been considered necessary.

5. Trade receivables include due from Overseas Subsidiary Company viz., Sri Ramco Lanka (Private) Limited, Sri Lanka to the extent of Rs. 191.68 lakhs (Previous Year Rs.664.23 lakhs) and Sri Ramco Roofing Lanka (Private) Limited (wholly owned subsidiary of Sri Ramco Lanka (Private) Limited) to the extent of Rs.11.28 lakhs (Previous Year Rs. 474.11 lakhs). Maximum amount outstanding during the year from Sri Ramco Lanka (Private) Ltd is Rs.1,109.32 (Previous Year Rs. 664.23 lakhs) and Sri Ramco Roofing Lanka (Private) Limited is Rs. 1,016.32 (Previous Year Rs. A1AM lakhs)

6. The Company''s Shares are listed in Madras Stock Exchange Ltd, National Stock Exchange of India Ltd and BSE Ltd and the listing fees in respect of all the three exchanges for the Financial year 2014-2015 have been paid.

7. a. i. Long-term Loans of Rs. 15,432.27 lakhs borrowed from banks are secured by pari-passu first charge on the fixed assets and pari-passu second charge on current assets of the Company.

b. Short-term Loans of Rs. 9,324.35 lakhs borrowed from banks are secured by hypothecation of Stocks of raw materials, work-in- progress, stores, spares and finished goods and book debts and second charge on fixed assets.

c. i) External Commercial Borrowing Loan of USD 1.25 million amounting to Rs. 748.50 lakhs borrowed from DBS Bank Ltd.,

Singapore is secured by pari-passu first charge on the fixed assets and pari-passu second charge on current assets in favour of Security Trustee DBS Bank, Chennai.

As per requirements of Accounting Standard 11 (revised 2005 " The Effects of changes in Foreign Exchange Rates"), ECB loan has been valued at Rs. 59.88 per USD, as the closing rate on 31 /03/2014. This has resulted in a notional loss of Rs. 69.88 lakhs which has been capitalised as per Notifications dated 31 /03/2009 and 09th Aug 2012.

The premium on forward exchange contracts not intended for trading or speculative purpose is amortised as expense over the life of the contract, During the current year X 259.69 lakhs (Previous Year:Rs. 123.02 lakhs) has been amortised and the same is included in interest and finance charges.

12. The Company is eligible for Incentive under the "West Bengal Incentive Scheme 2000" in respect of its Fibre Cement Plant and Clinker Grinding unit at Kharagpur in the State of West Bengal. A sum of Rs. 99.02 lakhs (Previous Year: Rs. 394.35 lakhs) accrued as Industrial Promotion Assistance is credited to Profit and Loss Account.

The company is eligible for incentives under the " Bihar Industrial Incentive Policy 2006" in respect of its Fibre Cement Plant at Bihiya in the State of Bihar . During the year under review ,

- Asum of Rs. 501.66 lakhs (Previous Year Rs. 481.53 lakhs) accrued as Industrial Promotion Incentive and credited to Profit and Loss account.

A sum of Rs. 100 lakhs (Previous Year Rs. Nil) received as capital subsidy on investment in Plant and Machinery and credited to Capital Reserve Account.

A sum of Rs. 19.31 lakhs (Previous Year Rs. Nil) received as incentive grant for investment in Diesel Generating set and credited to Capital Reserve Account.

8. Out of units of 264.95 lakhs units (Previous Year 336.40 lakhs units) generated net of wheeling and banking at wind farms -

a) 74.60 lakhs units (Previous Year 81.57 lakhs units) were sold to concerned State Electricity Board for X 245.63 lakhs (Previous Year Rs. 280.51 lakhs), shown under "Power generated from windmills".

b) 178.36 lakhs units (Previous Year 242.44 lakhs units) were consumed at the plants and f. 1069.92 lakhs (Previous Year Rs. 1446.11 lakhs), which is not recognised in the financial statements.

c) 11.99 lakhs units (Previous Year 12.39 lakhs units) remain unadjusted and its monetary value of Rs. 53.01 lakhs (Previous Year: Rs. 41.24 lakhs) has been included in " Other Current Assets".

9. The Company does not have taxable income for the year, both under the conventional method of computation of income and under section 115JBof the Income Tax Act, 1961 (Minimum Alternate Tax). Accordingly, no provision for income tax has been made for the year.

10. Related Party Disclosure

As per Accounting Standard (AS 18) issued by the Institute of Chartered Accountants of India, the Company''s related parties are given below:

a. Subsidiary Companies:

1. Sudharsanam Investments Ltd

2. Sri Ramco Lanka (Private) Ltd., Srilanka

3. Sri Ramco Roofings Lanka (Private) Ltd., Srilanka (Wholly owned subsidiary of Sri Ramco Lanka (Private) Limited)

b. Key Management Personnel and relatives: P.R. Ramasubrahmaneya Rajha, Chairman

P.R. Venketrama Raja, Vice Chairman and Managing Director

c. Enterprises over which the above persons exercise significant influence and with which the Company has transactions during the year.

Rajapalayam Mills Ltd

The Ramco Cements Ltd

Ramco Systems Ltd

The Ramaraju Surgical Cotton Mills Ltd

Sri Vishnu Shankar Mills Ltd

Sandhya Spinning Mills Ltd

Thanjavur Spinning Mills Ltd

Sri Harini Textiles Ltd

Public Trust

Raja Charity Trust

- P A C R Educational & Charitable Trust P A C R Sethurammal Charities

- Shri Abinava Vidyatheertha Seva Trust

11. During the year under review, The Company has paid Rs. 343.95 lakhs (Previous Year Rs. 423.61 lakhs) as sole selling agency commission to a related company M/s. Raja Charity Trust pending approval for re-appointment of M/s. Raja Charity Trust from Ministry of Corporate Affairs, Government of India as required under sub-section (3) of Section 294AA of the Companies Act, 1956. The Company has filed relevant application for renewal of appointment of M/s. Raja Charity Trust as sole selling agent which is pending as on reporting date.

12. In respect of the electricity matters relating to our Textile Division, the company has filed appeals/ writ petition for Rs. 281.07 lakhs against various subject matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The company is confident of resolving the matter in its favour and hence no provision is made in the books of account

13 (a). During the year, the Company made an investment of Rs. 100.00 lakhs in the Equity Shares of Cauvery Power Generation Chennai Private Limited in order to enable the company to purchase electricity from them under Group Captive arrangement for the period from October 2013 to March 2014 for our Textile Division namely Sri Ramco Spinners and Ramco Textile Mill. The Company has not renewed the power purchase agreement beyond March 2014 and hence sold the above investment for Rs. 100.00 lakhs during March 2014

14. There are no dues to Micro and Small Enterprises as at 31.03.2014 (Previous Year : Rs. Nil). This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

15. Previous year''s figures have been regrouped / restated wherever necessary so as to make them comparable with that of the current year.

16. Figures have been rounded off in lakhs with two decimal.

---

Mar 31, 2013

1. The Company has not utilized Short Term Loans for Long Term purposes

2. Income Tax Assessment has been completed upto the Accounting Year 2009-2010 (i.e. Assessment Year 2010-11) Demand''s raised by the Income Tax Department amounting to Rs..701.90 lacs (For Assessment year 2009-10-Rs..2179 lacs) which have been disputed by the Company and necessary appeals have been fi led. Based on the nature of the claim disputed, no provision has been considered necessary

3. Sales Tax and Central Excise demands amounting to Rs..46.94 lacs have been disputed by the Company and necessary appeals have been fi led. Based on the nature of claim disputed, no provision has been considered necessary

4. Trade receivables include Dues from Overseas Subsidiary Company viz., Sri Ramco Roofi ngs Lanka (Private) Ltd., Sri Lanka to the extent of Rs..474.11 lacs and Sri Ramco Lanka (Private) Ltd, Sri Lanka to the extent of Rs.. 664.23 lacs. Maximum amount due during the year is - Rs..664.23 lacs and Rs..474.11 lacs respectively

5. The Company''s Shares are listed on Madras Stock Exchange Ltd, National Stock Exchange of India Ltd and BSE Ltd and the isting fees in respect of all the three exchanges for the Financial year 2013-2014 have been paid

6. The Company is eligible for Incentives under the "West Bengal Incentive Scheme 2000" in respect of its Fibre Cement Plant and Clinker Grinding unit at Kharagpur in the State of West Bengal. A sum of Rs..394.35 lacs (Previous Year: Rs.. 728.86 lacs) accrued as Industrial Promotion Assistance is credited to Profi t and Loss Account

The Company is eligible for Incentives under the "Bihar Industrial Policy 2006" in respect of its Fibre Cement Plant at Bihiya in the State of Bihar. A sum of Rs..481.53 lacs (Previous Year: Rs..185.50 lacs) accrued as Industrial Promotion Incentive is credited to Profi t and Loss Account

7. Out of units of 332.62 Lacs units (PY 301.59 Lacs units) generated net of wheeling and banking at wind farms -

a) 81.57 Lacs units (PY 92.06 Lacs units) were sold to concerned State Electricity Board for Rs.. 280.51 Lacs (PY Rs.. 307.66 Lacs), shown under "Power generated from windmills"

b) 242.44 Lacs units (PY 210.24 Lacs units) were consumed at the plants and Rs.. 1446.11 Lacs (PY Rs.. 916.67 Lacs), which is not recognised in the fi nancial statements

c) 12.39 Lacs units (PY 3.78 Lacs units) remain unadjusted and its monetary value of Rs..41.24 Lacs (PY: Rs..27.69 Lacs) has been included in "Other Current Assets"

8. Related Party Disclosure

As per Accounting Standard (AS 18) issued by the Institute of Chartered Accountants of India, the Company''s related parties are given below:

a. Subsidiary Companies

1. Sudharsanam Investments Ltd

2. Sri Ramco Lanka (Private) Ltd., Srilanka

3. Sri Ramco Roofi ngs Lanka (Private) Ltd., Srilanka

b. Key Management Personnel and relatives P.R. Ramasubrahmaneya Rajha

P.R. Venketrama Raja

c. Enterprises over which the above persons exercise signifi cant infl uence and with which the Company has transactions during the year.

Rajapalayam Mills Ltd

Madras Cements Ltd

Ramco Systems Ltd

Ramaraju Surgical Cotton Mills Ltd

Sri Vishnu Shankar Mill Ltd

Sandhya Spinning Mill Ltd

Thanjavur Spinning Mill Ltd

Sri Harini Textiles Ltd

Rajapalayam Spinners Ltd

9. Previous year''s fi gures have been regrouped / restated wherever necessary so as to make them comparable with that of the current year.

10. Figures have been rounded off" in Lacs with two decimale

---

Mar 31, 2012

As at As at

31.03.2012 31.03.2011

Rs.in Lacs Rs.in Lacs

1. I. Contingent Liabilities not provided for :

A. Claims against the company / disputed liabilities not acknowledged as debts:

a. In respect of Joint ventures NIL NIL

b. In respect of others 9.89 89.00

B. Guarantees

Bank Guarantees to Banks/Financial institutions against credit facilities extended to third parties:

a. In respect of Joint ventures NIL NIL

b. In respect of others 9,899.00 8,629.00

II. Commitments

A. Estimated amount of contracts remaining to be executed on capital account and not provided for:

a. In respect of Joint ventures NIL NIL

b. In respect of others 377.81 831.77

B. Other Commitments

a. Letter of Credits NIL 791.79

b. Bank Guarantees 258.12 255.94

2. Audit, Accountancy and Legal Charges include fees (inclusive of service tax) paid to Statutory Auditors towards:

Statutory Audit Fees 7.87 6.62

Tax Audit Fees 0.44 0.44

Fees for certification 0.67 0.66

Expenses of Audit 2.85 2.24

Cost Audit Fees 2.25 -

3. The breakup of Deferred tax liability as at 31.03.2012 of Rs 2,288.56 lacs is as under:

Timing Difference on account of Tax effect on difference between 2,411.74 2,501.35 book depreciation and depreciation under the Income Tax Act, 1961

Tax effect of provision for Leave Encashment (120.97) (86.51)

Tax effect of provision for Bad and Doubtful debts (2.21) (6.28)

4. The Company has not utilized Short Term Loans for Long Term purposes.

5. Demand raised by the Income Tax Department amounting to Rs 2,179 lacs which have been disputed by the company and necessary appeals have been filed. Based on the nature of the claim disputed, no provision has been considered necessary.

6. Sales Tax demand amounting to Rs 9.89 lacs have been disputed by the company and necessary appeals have been filed. Based on the nature of claim disputed, no provision has been considered necessary.

7. Trade receivables include dues from Overseas Subsidiary Company viz., Sri Ramco Roofings Lanka (Private) Ltd., Sri Lanka to the extent of Rs 54.41 lacs and Sri Ram co Lanka (Private) Ltd, Sri Lanka to the extent of Rs 694.11 lacs. Maximum amount due during the year is Rs 697.26 and Rs 694.11 lacs respectively.

8. The Company's Shares are listed on Madras Stock Exchange Limited, National Stock Exchange of India Limited and Bombay Stock Exchange Limited and the listing fees in respect of all the three exchanges for the Financial year 2012-2013 have been paid.

a. External Commercial Borrowing Loan of USD 6.00 million amounting to Rs 3,052.50 lacs borrowed from DBS Bank Ltd., Singapore is secured by paripasu first charge on the fixed assets and paripasu second charge on current assets in favour of Security Trustee DBS Bank Ltd., Chennai.

As per requirements of Accounting Standard 11, ECB loan has been valued at Rs 50.875 per USD, as the closing rate on 31/03/2012.

This has resulted in a notional loss of X 375.50 lacs which has been accounted as per Notifications dated 31/03/2009 and 11th May 2011 amending the Accounting Standard AS 11 relating to the Effects of Foreign Exchange Rates as Rs 79.85 lacs towards Interest and Rs 295.65 lacs towards Fixed Assets.

b. The Working Capital Borrowings of the Company are secured by hypothecation of Stocks of raw materials, work-in progress, stores, spares and finished goods and book debts and second charge on fixed assets.

9. The premium on forward exchange contracts not intended for trading or speculative purpose is amortized as expense over the life of the contract. During the current year Rs 4.80 lacs (PY: Rs 29.02 lacs) has been amortized and the same is included in interest and finance charges.

10. The Company is eligible for Incentives under the "West Bengal Incentive Scheme 2000 in respect of its Fibre Cement Plant and Clinker Grinding unit at Kharagpur in the State of West Bengal. A sum of Rs 728.86 lacs (Previous Year: Rs 564.12 lacs) accrued as Industrial Promotion Assistance is credited to Profit and Loss Account.

The Company is eligible for Incentives under the "Bihar Industrial Policy 2006" in respect of its Fibre Cement Plant at Bihiya in the State of Bihar. A sum of Rs 185.50 lacs (Previous Year: Rs NIL) accrued as Industrial Promotion Incentive is credited to Profit and Loss Account.

Interest subsidy under Technology Up gradation Fund (TUF) is credited to interest.

11. Previous year's figures have been regrouped / restated wherever necessary so as to make them comparable with that of the current year.

12. Figures have been rounded of in lacs with two decimals.

---

Mar 31, 2011

As at As at 31.03.2011 31.03.2010 Rs. Rs.

1. Contingent Liabilities not provided for: -

a. Estimated amount of contracts remaining to be executed on Capital accounts 8,31,77,495 1,19,55,000

b. Bank Guarantees 2,55,93,673 18,20,23,938

c. Letters of Credit 7,91,78,751 1,47,08,148

d. Corporate Guarantee furnished by the Company for Ramco Systems Limited to support their credit facilities to their bankers. 50,00,00,000 35,00,00,000

Corporate Guarantee furnished by the Company for Sri Harini Textiles Ltd., to support their credit facilities to their bankers. 36,29,00,000 36,29,00,000

e. Sales Tax 89,00,000 89,00,000

2. Audit, Accountancy and Legal Charges include fees (inclusive of service tax) paid to Statutory Auditors towards:

Statutory Audit Fees 6,61,800 6,61,800

Tax Audit Fees 44,120 44,120

Fees for certification 66,180 33,090

Expenses of Audit 2,24,468 3,18,501

3 The Company has not utilized Short Term Loans for Long Term purposes.

4. Income Tax assessment has been completed upto the Accounting year 2007–2008 (i.e. Assessment year 2008-09). Demands raised by the Department amounting to Rs.21.79 Crs which have been disputed by the company and necessary appeals have been filed. Based on the nature of the claim disputed, no provision has been considered necessary.

5. Sales Ta x demands amounting to Rs.89 lacs have been disputed by the company and necessary appeals have been filed. Based on the nature of claim disputed, no provision has been considered necessary.

6. Sundry Debtors include Dues from Overseas Subsidiary Company viz., Sri Ramco Lanka (Private) Ltd., Sri Lanka to the extent of Rs.3,17,49,064/-. Maximum amount due during the year – Rs.7,55,81,346/-.

7. Current Liabilities:- There are no dues to Micro and Small Enterprises as at 31-3-2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

8. The Companys Shares are listed on Madras Stock Exchange, National Stock Exchange of India Ltd and The Stock Exchange, Mumbai and the listing fees in respect of all the three exchanges for the Financial year 2011 – 2012 have been paid.

9. a. Term Loans of Rs.5587.41 Lacs borrowed from banks for expansion of Textile and Wind Mill division under TUF Scheme are secured by paripasu first charge on the fixed assets and paripassu second charge on current assets of the Company.

b. Term Loans of Rs.8700.00 Lacs borrowed from banks are secured by paripasu first charge on the fixed assets and paripasu second charge on current assets.

c. External Commercial Borrowing Loan of USD.4.25 Million amounting to Rs.2118.50 lacs borrowed from DBS Bank Ltd, Singapore is secured by paripasu first charge on the fixed assets and paripasu second charge on current assets in favour of Security Trustee DBS Bank, Chennai.

d. The Working Capital Borrowings of the Company are secured by hypothecation of Stocks of raw materials, work-in- progress, stores, spares and finished goods and book debts and second charge on fixed assets.

10. The premium on forward exchange contracts not intended for trading or speculative purpose is amortized as expense over the life of the contract, During the current year Rs.29.02 lacs (PY:Rs.42.39 lacs) has been amortized and the same is included in Interest and finance charges.

11. The Company has availed Incentives of Rs.111.14 Lacs during the year under the "Kutch Development Scheme 2001” in respect of its Fibre Cement Plant at Anjar, Bhuj in the State of Gujarat. The Scheme, inter-alia, stipulates investment of the amount equivalent to 50% of the Incentives availed in the new project in the State of Gujarat within a period of 10 years from the date of commencement of commercial production. The Company had obtained a Legal Opinion on the manner of treatment of these subsidies. During the year incentives amounting to Rs.55.57 lacs has been capitalized (PY:Rs.654.42 lacs) together with Rs.1205.14 lacs capitalized upto 31.03.2010, the incentives capitalized so far is Rs.1260.71 lacs, being 50% of the total incentives of Rs.2521.42 lacs availed upto 31.03.2011.

The Company is eligible for Incentives under the "West Bengal Incentive Scheme 2000” in respect of its Fibre Cement Plant and Clinker Grinding unit at Kharagpur in the State of West Bengal. A sum of Rs.564.12 lacs (Previous Year: Rs.446.72 lacs) accrued as Industrial Promotion Assistance is credited to Profit and Loss Account.

Interest subsidy under Technology Upgradation Fund (TUF) is credited to interest and finance charges account.

12. The Company has capitalized borrowing cost amounting to Rs.0.35 Crs for Gangaikondan Plant and Rs.0.66 Crs for Bihiya Plant.

13. RELATED PARTY DISCLOSURE

As per Accounting Standard (AS 18) issued by the Institute of Chartered Accountants of India, the Companys related parties are given below:

a. Subsidiary Companies:

1. Sudharsanam Investments Ltd

2. Sri Ramco Lanka (Private) Ltd., Sri Lanka

3. Sri Ramco Roofings Lanka (Private) Ltd., Sri Lanka

b. Key Management Personnel and relatives: P.R. Ramasubrahmaneya Rajha

P.R. Venketrama Raja

c. Enterprises over which the above persons exercise significant influence and with which the company has transactions during the year.

Rajapalayam Mills Ltd

Madras Cements Ltd

Ramco Systems Ltd

The Ramaraju Surgical Cotton Mills Ltd

Sri Vishnu Shankar Mill Ltd

Sandhya Spinning Mill Ltd

Thanjavur Spinning Mill Ltd

Sri Harini Textiles Ltd

Rajapalaiyam Spinners P Ltd

14. Previous years figures have been regrouped/restated wherever necessary so as to make them comparable with that of the current year.

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Mar 31, 2010

As at As at 31.03.2010 31.03.2009 Rs. Rs.

1. Contingent Liabilities not provided for:- a. Estimated amount of contracts remaining to be executed on Capital accounts 1,19,55,000 6,63,05,446

b. Bank Guarantees 18,20,23,938 22,11,75,826

c. Letters of Credit 1,47,08,148 --

d. Corporate Guarantee furnished by the Company for Ramco Systems Limited:

To support their credit facilities to AXIS Bank Ltd 8,00,00,000 13,75,00,000

To support their credit facilities to IDBI Bank Ltd 7,00,00,000 20,00,00,000

To support their credit facilities to Punjab & Sind Bank 20,00,00,000 --

Corporate Guarantee furnished by the Company to AXIS Bank Ltd for Sri Harini Textiles Ltd., to support their credit facilities 36,29,00,000 --

e. Sales Tax 89,00,000 89,00,000

2. The Company has not utilized Short Term Loans for Long Term purposes.

3. Income Tax assessment has been completed upto the Accounting year 2006 - 2007 (i.e. Assessment year 2007-08). Demand raised by the Department amounting to Rs.120.19 lacs (Previous year Rs.72.75 lacs) have been fully adjusted against the refund due for the Asst. Year 2008-09 as per provisional assessment u/s 143(1) of the Income Tax Act.

4. Sales Tax demands amounting to Rs. 89 lacs have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed, no provision has been considered necessary.

5. Sundry Debtors include Dues from Overseas Subsidiary Company viz., Sri Ramco Lanka (Private) Ltd., Sri Lanka to the extent of Rs. 2,38,01,609/- - Maximum amount due during the year – Rs. 2,38,01,609/- 8. Current Liabilities:- There are no dues to Micro and Small Enterprises as at 31-3-2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. The Companys Shares are listed on Madras Stock Exchange, National Stock Exchange of India Ltd and The Stock Exchange, Mumbai and the listing fees in respect of all the three exchanges for the Financial year 2010-2011 have been paid.

7. a. Term Loans of Rs.6512.04 Lacs borrowed from banks for expansion of Textile and Wind Mill division under TUF Scheme are secured by paripassu first charge on the fixed assets and paripassu second charge on current assets of the company.

b. Term Loans of Rs.6400 Lacs borrowed from banks are secured by paripassu first charge on the fixed assets and paripasu second charge on current assets.

c. The Working Capital Borrowings of the Company are secured by hypothecation of Stocks of raw materials, work-in- progress, stores, spares and finished goods and book debts and second charge on fixed assets.

8. In Sept.2009, the Equity Shares of Rs.10/- each were sub-divided into 10 shares of Re.1/- each and 4,33,31,530 Equity Shares of Re.1/- each were issued as Bonus Shares by capitalization of General Reserves

9. The premium on forward exchange contracts not intended for trading or speculative purpose is amortized as expense over the life of the contract, During the current year Rs.42.39 lacs (PY: Rs. 7.31 lacs) has been amortized and the same is included in Interest and Finance charges.

10. The Company has availed Incentives of Rs.747.44 Lacs during the year under the "Kutch Development Scheme 2001" in respect of its Fibre Cement Plant at Anjar, Bhuj in the State of Gujarat. The Scheme, inter-alia, stipulates investment of the amount equivalent to 50% of the Incentives availed in the new project in the State of Gujarat within a period of 10 years from the date of commencement of commercial production. The Company had obtained a Legal Opinion on the manner of treatment of these subsidies. During the year incentives amounting to Rs.654.42 lacs has been capitalized (PY: Rs.291.81 lacs) together with Rs.550.71 lacs capitalized upto 31.03.2009, the incentives capitalized so far is Rs.1205.13 lacs, being 50% of the total incentives of Rs.2410.26 lacs availed upto 31.03.2010.

The Company is eligible for Incentives under the "West Bengal Incentive Scheme 2000" in respect of its Fibre Cement Plant and Clinker Grinding unit at Kharagpur in the State of West Bengal. A sum of Rs.446.72 lacs (Previous Year: Rs.287.58 lacs) accrued as Industrial Promotion Assistance is credited to Profit and Loss Account. A sum of Rs.1.76 lacs accrued as State Capital Investment Subsidy for the year (Previous Year: Rs.57.51 lacs) is treated as Capital Receipt. With this, the total incentive capitalized is Rs.150 lacs as on 31st March, 2010.

Interest subsidy under Technology Upgradation Fund (TUF) is credited to Interest and Finance Charges account.

11. RELATED PARTY DISCLOSURE

As per Accounting Standard (AS 18) issued by the Institute of Chartered Accountants of India, the Companys related parties are given below:

a. Subsidiary Companies:

1. Sudharsanam Investments Ltd

2. Sri Ramco Lanka (Private) Ltd., Sri Lanka

b. Key Management Personnel and relatives: P.R. Ramasubrahmaneya Rajha

P.R. Venketrama Raja

c. Enterprises over which the above persons exercise significant influence and with which the company has transactions during the year.

Rajapalayam Mills Ltd Madras Cements Ltd Ramco Systems Ltd Ramaraju Surgical Cotton Mills Ltd Sri Vishnu Shankar Mill Ltd Sandhya Spinning Mill Ltd Thanjavur Spinning Mill Ltd Sri Harini Textiles Ltd Rajapalaiyam Spinners P Ltd

12. Previous years figures have been regrouped/restated wherever necessary so as to make them comparable with that of the current year.

13. Figures have been rounded off to the nearest rupee.