Notes to Accounts of Sanghi Industries Ltd.

Mar 31, 2025

I. Provisions

Mines reclamation

The Company provides for the costs of restoring
a mine where a legal or constructive obligation
exists. The estimated future costs for known
restoration requirements are determined
on a mine-by-mine basis and are calculated
based on the present value of estimated
future cash outflows.

The restoration provision before exploitation of
the raw materials has commenced is included in
Property, Plant and Equipment and depreciated
over the life of the related asset.

The effect of any adjustments to the provision
due to further environmental damage as a result
of exploitation activities is recorded through
the Statement of Profit and Loss over the life
of the related asset, in order to reflect the best
estimate of the expenditure required to settle the
obligation at the end of the reporting period.

Changes in the measurement of a provision that
result from changes in the estimated timing or
amount of cash outflows, or a change in the
discount rate, are added to or deducted from the
cost of the related asset to the extent that they
relate to the asset''s installation, construction
or acquisition.

Provisions are discounted to their present value.
The unwinding of the discount is recognised as a
finance cost in the Statement of Profit and Loss.

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the amount
of the obligation. When the Company expects
some or all of a provision to be reimbursed,
for example, under an insurance contract, the
reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually
certain. The expense relating to a provision is
presented in the statement of profit and loss net
of any reimbursement.

II. Contingent liability

A contingent liability is a possible obligation
that arises from the past events whose
existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future
events beyond the control of the Company or a
present obligation that arises from past events
and that is not recognised because it is not
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation. The Company does not recognise a
contingent liability but discloses its existence in
the financial statements.

G. Revenue recognition

Revenue is recognised on the basis of approved
contracts regarding the transfer of goods or
services to a customer for an amount that reflects
the consideration to which the entity expects to be
entitled in exchange of those goods or services.

I. Sale of goods

Revenue from the sale of the goods is recognised
at the point in time when delivery has taken place
and control of the goods has been transferred
to the customer according to the specific
delivery term that have been agreed with the
customer and when there are no longer any
unfulfilled obligations.

Revenue is measured after deduction of any
discounts and any taxes or duties collected on
behalf of the government such as goods and

services tax, etc. The Company accrues for
discounts based on historical experience and
specific contractual terms with the customer.

No element of financing is deemed present as the
sales are made with credit terms largely ranging
between 0 to 30 days depending on the specific
terms agreed with customers.

II. Contract assets Trade receivables and
Contract liabilities:

Contract asset:

A contract asset is the right to consideration
in exchange for goods or services transferred
to the customer. If the Company performs by
transferring goods or services to a customer
before the customer pays consideration or
before payment is due, a contract asset is
recognised for the earned consideration that
is conditional. Contract assets are subject to
impairment assessment.

Trade receivables

A receivable represents the Company''s right to
an amount of consideration that is unconditional
i.e., only the passage of time is required before
payment of consideration is due and the
amount is billable.

Contract liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which the
Company has received consideration from the
customer. Contract liabilities are recognised as
revenue when the Company performs obligations
under the contract.

III. Interest income

Interest income from a financial asset is
recognised when it is probable that the economic
benefits will flow to the Company and the
amount of income can be measured reliably.
Interest income is accrued on a time basis, by
reference to the principal outstanding and at
the effective interest rate applicable, which
is the rate that exactly discounts estimated
future cash receipts through the expected life
of the financial asset to that asset''s net carrying
amount on initial recognition.

H. Retirement and other employee benefits

I. Defined contribution plan

Employee benefits in the form of contribution
to Provident Fund managed by government
authorities, Employees State Insurance
Corporation and Labour Welfare Fund are
considered as defined contribution plans and the
same are charged to the statement of profit and
loss for the year in which the employee renders
the related service.

II. Defined benefit plan

The Company''s gratuity fund scheme, additional
gratuity scheme and post-employment benefit
scheme are considered as defined benefit plans.
The Company''s liability is determined on the basis
of an actuarial valuation using the projected unit
credit method as at the balance sheet date.

Employee benefit, in the form of contribution to
provident fund is charged to statement of profit
and loss for the year in which the employee
renders the related service.

Past service costs are recognised in the statement
of profit and loss on the earlier of:

a) The date of the plan amendment or
curtailment, and

b) The date that the Company recognises
related restructuring costs

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation. The Company recognises the
following changes in the net defined benefit
obligation as an expense in the statement of
profit and loss:

a) Service costs comprising current service
costs, past-service costs, gains and
losses on curtailments and non-routine
settlements; and

b) Interest expense or income

c) Re-measurements, comprising actuarial
gains and losses, the effect of the asset
ceiling (if any), are recognised immediately
in the balance sheet with a corresponding
debit or credit to retained earnings through

OCI in the period in which they occur.
Re-measurements are not reclassified
to the statement of profit and loss in
subsequent periods.

III. Short term employee benefits

Short term employee benefits that are expected
to be settled wholly within 12 months after the
end of the period in which the employees render
the related service are recognised as an expense
at the undiscounted amount in the statement of
profit and loss of the year in which the related
service is rendered.

IV. Other long-term employee benefits

Compensated absences are provided for on
the basis of an actuarial valuation, using the
projected unit credit method, as at the date of
the balance sheet. Actuarial gains / losses, if any,
are immediately recognised in the statement of
profit and loss. Compensated absences, which
are expected to be settled wholly within 12
months after the end of the period in which the
employees render the related service, are treated
as short term employee benefits. The Company
measures the expected cost of such absences
as the additional amount that it expects to pay
as a result of the unused entitlement that has
accumulated at the reporting date.

Long service awards and accumulated
compensated absences which are not expected
to be settled wholly within 12 months after the
end of the period in which the employees render
the related service are treated as other long term
employee benefits for measurement purposes.

V. Presentation and disclosure

For the purpose of presentation of defined
benefit plans, the allocation between the short
term and long-term provisions have been made as
determined by an actuary. Obligations under other
long-term benefits are classified as short-term
provision, if the Company does not have an
unconditional right to defer the settlement
of the obligation beyond 12 months from the
reporting date. The Company presents the entire
compensated absences as short-term provisions
since employee has an unconditional right to
avail the leave at any time during the year.

I. Taxation

Tax expense includes current income tax and
deferred income tax and includes any adjustments
related to past periods in current and / or deferred
tax adjustments that may become necessary due
to certain developments or reviews during the
relevant period.

I. Current income tax

Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax
rates and tax laws used to compute the amount
are those that are enacted or substantively
enacted, at the reporting date in the countries
where the Company operates and generates
taxable income.

Current income tax relating to items recognised
outside the statement of profit and loss is
recognised in correlation to the underlying
transaction either in OCI or directly in equity.
Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject
to interpretation and recognise expense
where appropriate.

Current tax assets and current tax liabilities are
offset when there is a legally enforceable right
to set off the recognised amounts and there is
an intention to settle the asset and the liability
on a net basis.

II. Deferred tax

Deferred tax is recognized for the future
tax consequences of deductible temporary
differences between the carrying values of assets
and liabilities and their respective tax bases at
the reporting date.

Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised only
to the extent that it is probable that sufficient
future taxable income will be available against
which such deferred tax assets can be realised.

The carrying amount of deferred tax assets
are reviewed at each balance sheet date.
The Company writes-down the carrying amount
of a deferred tax asset to the extent that it is
no longer probable that sufficient future taxable
income will be available against which deferred
tax asset can be realised. Any such write-down is
reversed to the extent that it becomes reasonably
certain that sufficient future taxable income
will be available.

Deferred tax assets and liabilities are measured
based on the tax rates that are expected to
apply in the year when the asset is realised or
the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively
enacted at the reporting date.

Deferred tax relating to items recognised
outside the statement of profit and loss is
recognised outside profit or loss (either in
other comprehensive income or in equity).
Deferred tax items are recognised in correlation
to the underlying transaction either in OCI or
directly in equity.

Deferred tax assets and liabilities are offset
when there is a legally enforceable right to
offset current tax assets and liabilities and when
the deferred tax balances relate to the same
taxation authority.

The Company applies significant judgment
in identifying uncertainties over income tax
treatments. Uncertain tax positions are reflected
in the overall measurement of the Company''s tax
expense and are based on the most likely amount
or expected value that is to be disallowed by the
taxing authorities whichever better predict the
resolution of uncertainty. Uncertain tax balances
are monitored and updated as and when new
information becomes available, typically upon
examination or action by the taxing authorities
or through statute expiration.

J. Leases

The Company assesses whether a contract is or
contains a lease, at inception of a contract. A contract
is, or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of
time in exchange for consideration.

I. Company as a lessee:

Right-of-use assets

At the date of commencement of the lease,
the Company recognises a right-of-use asset
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
short-term leases and leases of low-value assets.

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

The right of use assets is also subject to
impairment. Right of use assets are evaluated
for recoverability whenever events or changes
in circumstances indicate that their carrying
amounts may not be recoverable.

Lease liabilities

Lease liability is initially measured at the present
value of the future lease payments. The lease
payments are discounted using the interest rate
implicit in the lease or, if not readily determinable,
using the incremental borrowing rates.
The Company uses the incremental borrowing
rate as the discount rate.

Lease payments included in the measurement
of the lease liability include fixed payments,
variable lease payments that depend on an index
or a rate known at the commencement date; and
extension option payments or purchase options
payments which the Company is reasonably
certain to exercise.

Variable lease payments that do not depend
on an index or rate are not included in the

measurement the lease liability and the ROU
asset. The related payments are recognised as
an expense in the period in which the event or
condition that triggers those payments occurs
and are included in the line "Other expenses” in
the Statement of Profit or Loss.

The lease term comprises the non-cancellable
lease term together with the period covered
by extension options, if assessed as reasonably
certain to be exercised, and termination options,
if assessed as reasonably certain not to be
exercised. For lease arrangement in respect
of ships, the non-lease components are not
separated from lease components and instead
account for each lease component, and any
associated non-lease component as a single
lease component.

The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest
on the lease liabilities, reducing the carrying
amount to reflect the lease payments made.

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

Short-term leases and leases of low-value
assets

The Company applies the low-value asset
recognition exemption on a lease-by-lease basis,
if the lease qualifies as leases of low-value assets.
In making this assessment, the Company also
factors below key aspects:

a) the assessment is conducted on an absolute
basis and is independent of the size, nature,
or circumstances of the lessee.

b) the assessment is based on the value of the
asset when new, regardless of the asset''s
age at the time of the lease.

c) the lessee can benefit from the use of
the underlying asset either independently
or in combination with other readily
available resources, and the asset is
not highly dependent on or interrelated
with other assets.

d) if asset is subleased or expected to be
subleased, the head lease does not qualify
as a lease of a low-value asset.

II. Company as a lessor:

The determination of whether an arrangement is
(or contains) a lease is based on the substance
of the arrangement at the inception of the
lease. The arrangement is, or contains, a lease
if fulfilment of the arrangement is dependent
on the use of a specific asset or assets and the
arrangement conveys a right to use the asset or
assets, even if that right is not explicitly specified
in an arrangement. Leases are classified as
finance leases whenever the terms of the lease
transfer substantially all the risks and rewards
of ownership to the lessee. All other leases are
classified as operating leases. Rental income
from operating leases is generally recognised on
a straight-line basis over the term of the relevant
lease. Where the rentals are structured solely to
increase in line with expected general inflation
to compensate for the Company''s expected
inflationary cost increases, such increases are
recognised in the year in which such benefits
accrue. Initial direct costs incurred in negotiating
and arranging an operating lease are added to
the carrying amount of the leased asset and
recognised on a straight-line basis over the lease.

K. Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss attributable to equity holders of
parent company by the weighted average number of
equity shares outstanding during the period.

Diluted earnings per share are computed by dividing
the profit after tax as adjusted for dividend, interest
and other charges to expense or income (net of any
attributable taxes) relating to the dilutive potential
equity shares, by the weighted average number of
equity shares considered for deriving basic earnings
per share and the weighted average number of equity
shares which could have been issued on conversion of
all dilutive potential equity shares.

L. Foreign currencies translations

The Company''s financial statements are presented in
(H), which is also the Company''s functional currency.

Monetary assets and liabilities denominated in
foreign currencies are translated at the functional
currency spot rates of exchange at the reporting
date. Exchange differences on monetary items
are recognised in profit and loss in the period in
which they arise.

Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency
are reported using the exchange rate at the date of
the transaction.

M. Borrowing Costs

Borrowing costs are recognised in statement of
profit and loss in the period in which they are
incurred. Borrowing cost consist of interest and other
costs that an entity incurs in connection with the
borrowing of funds.

N. Cash and cash equivalents

Cash and cash equivalent in the balance sheet and
for the purpose of statement of cash flows comprise
cash at banks and on hand, short-term deposits with
an original maturity of three months or less and
investment in liquid mutual funds that are readily
convertible to a known amount of cash and subject
to an insignificant risk of changes in value.

O. Classification of current and non-current assets
and liabilities

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
and cash equivalents. The Company has identified
twelve months as its operating cycle for determining
current and non-current classification of assets and
liabilities in the Balance sheet.

P. Exceptional Items

Exceptional items refer to items of income or expense,
within the statement of profit and loss from ordinary
activities which are non-recurring and are of such size,
nature or incidence that their separate disclosure is
considered necessary to explain the performance
of the Company.

3.1 Use of estimates and judgments

The preparation of the Company''s financial statements
requires management to make judgments, estimates
and assumptions that affect the reported amounts of
expenses, assets and liabilities, and the accompanying

disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that require a
material adjustment to the carrying amount of assets
or liabilities affected in future periods.

Estimates and judgments are continually evaluated
and are based on historical experience and other
factors, including expectations of future events that
are believed to be reasonable under the circumstances.

The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised if the revision affects only that
period, or in the period of the revision and future
period, if the revision affects current and future
period. Revisions in estimates are reflected in the
financial statements in the period in which changes
are made and, if material, their effects are disclosed
in the notes to the financial statements.

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

I. Classification of legal matters and tax litigations
(Refer Note 39)

The litigations and claims to which the Company
is exposed to are assessed by management with
assistance of the legal department and in certain
cases with the support of external specialised lawyers.
Determination of the outcome of these matters into
"Probable, Possible and Remote” require judgement
and estimation on case to case basis.

II. Defined benefit obligations (Refer Note 43)

The cost of defined benefit gratuity plans, and
post-retirement medical benefit is determined using
actuarial valuations. The actuarial valuation involves
making assumptions about discount rates, future
salary increases, mortality rates and future pension
increases. Due to the long-term nature of these plans,
such estimates are subject to significant uncertainty.

III. Useful life of property, plant and equipment (Refer
Note 4)

The charge in respect of periodic depreciation is
derived after determining an estimate of an asset''s
expected useful life and the expected residual value.
Increasing an asset''s expected life or its residual value
would result in a reduced depreciation charge in the
statement of profit and loss. The useful lives of the
Company''s assets are determined by management at
the time the asset is acquired and reviewed at least
annually for appropriateness. The lives are based on
historical experience with similar assets as well as
anticipation of future events, which may impact their
life, such as changes in technology.

IV. Impairment of Property, plant and equipment
(Refer Note 4)

Determining whether the property, plant and
equipment are impaired requires an estimate of the
value of use. In considering the value in use, the
management has anticipated the capacity utilization
of plants, operating margins, mineable resources
and availability of infrastructure of mines, and other
factors of the underlying businesses / operations.
Any subsequent changes to the cash flows due to
changes in the above-mentioned factors could impact
the carrying value of property, plant and equipment.

V. Physical verification of Inventory (Refer Note 9)

Bulk inventory for the Company primarily comprises
of coal, petcoke and clinker which are primarily used
during the production process at the manufacturing
locations. Determination of physical quantities of bulk
inventories is done based on volumetric measurements
and involves special considerations with respect to
physical measurement, density calculation, moisture,
etc. which involve estimates / judgments.

VI. Deferred tax assets (Refer Note 7)

Significant management judgement is required to
determine the amount of deferred tax assets that
can be recognised, based upon the likely timing
and the level of future taxable profits together with
future tax planning strategies, including estimates
of temporary differences reversing on account of
available benefits under the Income Tax Act, 1961.
Deferred tax assets are recognised for unused tax
losses to the extent that it is probable that taxable
profit will be available against which the losses can

be utilised. Significant management judgement is
required to determine the amount of deferred tax
assets that can be recognised, based upon the likely
timing and the level of future taxable profits together
with future tax planning strategies.

VII. For key estimates and judgements related to fair
values Refer Note 36.

3.2 New and Amended Standards:

The accounting policies adopted in the preparation
of the financial statements are consistent with those
followed in the preparation of the Company''s annual
financial statements for the year ended March 31,
2025, except for amendments to the existing Indian
Accounting Standards (Ind AS). The Company has
not early adopted any other standard, interpretation
or amendment that has been issued but is
not yet effective.

The Ministry of Corporate Affairs notified new
standards or amendment to existing standards under
Companies (Indian Accounting Standards) Rules as
issued from time to time.

The following amendments are effective from
April 1, 2024:

Introduction of Ind AS 117

MCA notified Ind AS 117, a comprehensive standard that
prescribe, recognition, measurement and disclosure
requirements, to avoid diversities in practice for

accounting insurance contracts and it applies to all
companies i.e., to all "insurance contracts" regardless
of the issuer. However, Ind AS 117 is not applicable
to the entities which are insurance companies
registered with IRDAI.

Additionally, amendments have been made to Ind
AS 101, First-time Adoption of Indian Accounting
Standards, Ind AS 103, Business Combinations,
Ind AS 105, Non-current Assets Held for Sale and
Discontinued Operations, Ind AS 107, Financial
Instruments: Disclosures, Ind AS 109, Financial
Instruments and Ind AS 115, Revenue from Contracts
with Customers to align them with Ind AS 117.
The amendments also introduce enhanced disclosure
requirements, particularly in Ind AS 107, to provide
clarity regarding financial instruments associated
with insurance contracts.

Amendments to Ind AS 116 -Lease liability in a sale
and leaseback

The amendments require an entity to recognise lease
liability including variable lease payments which are
not linked to index or a rate in a way it does not result
into gain on Right of use asset it retains.

The Company has reviewed the new pronouncements
and based on its evaluation has determined that these
amendments do not have impact on the Company''s
Financial Statements.

i) During the year ended March 31, 2024, In terms of Share Purchase Agreement (SPA) dated August 3, 2023 as
amended, entered amongst (a) the Company (b) Certain Members of Erstwhile Promoters Group of the Company
and (c) Ambuja Cements Limited (Acquirer), Acquirer has acquired 140,821,941 Equity Shares constituting
54.51% of Equity Share Capital of Company on December 6, 2023. Consequently, the Board of Directors was
reconstituted on December 7, 2023. The Acquirer had made an Open Offer to Public Shareholders of the Company
for acquiring upto 67,164,760 Equity Shares constituting about 26% of the paid-up equity share capital of the
Company, wherein 20,481,161 Equity shares (i.e. 30.49% of the Offer size and 7.93% of the Paid-up Capital) were
tendered by public shareholders. Post this Open Offer, the shareholding of the Acquirer increased to 161,303,102
Equity shares (i.e. 62.44%) resulting in increase in the overall shareholding of promoter group to 80.52%.
In order to achieve the Minimum Public Shareholding (MPS), the Acquirer during the year sold 5,166,000 Equity
shares (i.e. 2%) in Open Market. Post selling of the shares, Acquirer held 156,137,102 Equity shares (i.e. 60.44%) of
the Company during the year and the overall shareholding of Promoter Group was 202,836,040 Equity shares (i.e.
78.52%) as on March 31, 2024.

ii) During the year ended March 31, 2025, in order to achieve the Minimum Public Shareholding, the Acquirer and
Mr. Ravi Sanghi (erstwhile promoter) sold 60,92,000 and 30,00,000 equity shares respectively aggregating to
90,92,000 Equity Shares (representing 3.52% of the Paid-up Equity Share Capital of the Company) through offer for
sale through stock exchange mechanism. Post successful completion of Offer for Sale, the Promoter Shareholding
has reduced from 78.52% to 75% of the Paid-up Equity Share Capital of the Company and Company has achieved
the MPS requirements, as mandated under Rules 19(2) (b) and 19A of the Securities Contracts (Regulations) Rules,
read with Regulation 38 of the SEBI Listing Regulations.

c) Performance obligation:

All sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations
which is typically upon dispatch or delivery. The Company does not have any remaining performance obligation for
sale of goods or services which remains unsatisfied as at March 31, 2025 or March 31, 2024. Applying the practical
expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related
disclosures for contracts where the revenue recognised corresponds directly with the value to the customer of the
entity''s performance completed to date.

d) Disaggregation of revenue - Refer Note 41 for disaggregated revenue information. The management determines
that the segment information reported is sufficient to meet the disclosure objective with respect to disaggregation
of revenue under Ind AS 115 "Revenue from contracts with customers".

C) Fair value measurements

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

a) Level 1

This level includes those financial instruments which are measured by reference to quoted prices (unadjusted)
in active markets for identical assets or liabilities.

b) Level 2

This level includes financial assets and liabilities measured using inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).

c) Level 3

This level includes financial assets and liabilities measured using inputs that are not based on observable market
data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on
assumptions that are neither supported by prices from observable current market transactions in the same
instrument nor are they based on available market data.

Note:

a) There was no transfer between level 1 and level 2 fair value measurement.

b) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value
disclosures are required)

In the Company''s opinion, the carrying amount of other financial assets, trade receivables, cash and cash equivalents
(excluding investments in liquid mutual funds), bank balances other than cash and cash equivalents, other financial
liabilities (excluding derivative financial instruments) and trade payable recognised in the financial statement
approximate their fair values largely due to the short-term maturities of these instruments.

Note 37. Financial risk management objectives and policies

The Company has a system-based approach to risk management, established policies and procedures and internal
financial controls aimed at ensuring early identification, evaluation and management of key financial risks such as market
risk, credit risk and liquidity risk that may arise as a consequence of its business operations as well as its investing and
financing activities. Accordingly, the Company''s risk management framework has the objective of ensuring that such risks
are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance
with applicable regulations.

All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills,
experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes shall be undertaken.

The Company''s management is supported by a risk management committee that advises on financial risks and the
appropriate financial risk governance framework for the Company. The risk management committee provides assurance
to the Company''s management that the Company''s financial risk activities are governed by appropriate policies and
procedures and that financial risks are identified measured and managed in accordance with the Company''s policies
and risk objectives. The Board of Directors reviews policies for managing each of these risks.

A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risks a) commodity price risk b) currency risk and c)
interest rate risk. Financial instruments affected by market risk comprise deposits, investments, trade payables.
The Company''s investments are predominantly held in bank deposits and liquid mutual funds. Mark to market
movements in respect of the Company''s investments are valued through the Statement of Profit and Loss.
Bank deposits are held with highly rated banks and are not subject to interest rate volatility. The Company''s borrowings
from the Holding Company are at fixed rate of interest so there is no interest rate risk related to borrowings.

Assumption made in calculating the sensitivity analysis

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.
The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other
post - retirement obligations and provisions.

a) Commodity risk

Commodity price risk for the Company is mainly related to fluctuations in fuel prices linked to various external
factors, which can affect the production cost of the Company. Since the energy costs is one of the primary costs
drivers, any fluctuation in fuel prices can lead to a drop in operating margin. To manage this risk, the Company takes
following steps:

i) Optimizing the fuel mix, pursue longer term and fixed contracts where considered necessary.

ii) Consistent efforts to reduce the cost of power and fuel by using both domestic and international coal.

iii) Use of alternative Fuel and Raw Materials (AFR) and enhancing the utilisation of renewable power including
its onsite and offsite solar and wind power.

Additionally, processes and policies related to such risks are reviewed and controlled by senior management and
fuel requirements are monitored by the central procurement team.

b) Foreign currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign
currency, which fluctuate due to change in foreign exchange rates. The Company''s exposure to the risk of changes
in foreign exchange rates primarily relate to import of raw materials, fuels and capital items. The Company has not
used derivative financial instruments either for hedging purpose or for trading or speculative purposes except for
forward contracts executed for LC opened in foreign currency.

The carrying amounts of the Company''s foreign currency denominated monetary assets at the end of the reporting
periods expressed in '', are as follows:

c) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company is having all fixed rate borrowing as at date and accordingly there
is no exposure to interest rate risk.

B) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily,
trade receivables) and from its investing activities, including deposits placed with banks and financial institutions
and other financial instruments.

Trade receivables

Trade receivables of the Company are from related parties. Trade receivables are due for less than one year while
the Company is regularly receiving its dues from related parties, accordingly in relation to these dues, the Company
does not foresee any Credit risk. The loss allowance represents aged trade receivables from third parties for the
sales made in earlier years.

Financial assets other than trade receivables

The exposure to the Company arising out of this category consists of balances with banks, investments in liquid
mutual funds and other receivables which do not pose any material credit risk. Such exposure is also controlled,
reviewed and approved by the management of the Company on routine basis. There are no indications that defaults
in payment obligations would occur in respect of these financial assets.

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

I nvestments of surplus funds are made only with approved financial Institutions. Investments primarily include
investment in units of liquid mutual funds and fixed deposits with banks having low credit risk.

Investments in liquid mutual funds as on March 31, 2025 are '' Nil (March 31, 2024: '' 109.15 crore)

Expected credit loss assessment

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision
matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade
receivables and is adjusted for forward-looking estimates. At each reporting date, the historically observed default
rates and changes in the forward-looking estimates are updated. Accordingly, loss allowances on trade receivables
are measured using provision matrix at an amount equal to life time expected losses i.e. expected cash shortfall.

Credit Impaired

For expected credit loss as at each reporting date, the Company assesses position for the assets for which credit
risk has not significantly increased from initial recognition, assets for which credit risk has increased significantly
but are not credit impaired and for assets for which credit risk has increased significantly and are credit impaired.
The Company assesses detrimental impacts on the estimated future cash flows of the financial asset including
receivables and other assets. Based on the assessment of the observable data relating to significant financial
difficulty and creditworthiness of the counterparties, the management believes that there are no financial assets
which are credit impaired except as disclosed in the notes to the financial statements.

C) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
reasonable price. The Company''s treasury team is responsible for liquidity, funding as well as settlement management.
In addition, processes and policies related to such risks are overseen by senior management. Management monitors
the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company has
invested in short term liquid funds which can be redeemed on a very short notice and hence carried negligible
liquidity risk.

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

Note 38. Capital Management

a) The Company''s objectives when managing capital are to maximise shareholders value through an efficient
allocation of capital towards expansion of business optimisation of working capital requirements and deployment
of balance surplus funds on the back of an effective portfolio management of funds within a well defined risk
management framework.

b) The management of the Company reviews the capital structure of the Company on regular basis to optimise cost of
capital. As part of this review, the Board considers the cost of capital and the risks associated with the movement
in the working capital.

c) The Company has borrowings from Holding Company as apprearing in note 18 which carries intretest @ 8 % p.a.
The Company expects to meet its capital requirement through internal accruals going forward and will continue to
have support from Holding Company

which an application was filed with Electricity Department seeking an exemption for payment of electricity duty
for a period of 10 years as per then prevailing provisions of the Gujarat Electricity Duty Act, 1958. In August 1997,
Company''s application for exemption for payment of Electricity Duty was rejected by Electricity Department on the
grounds that the Company had not commenced cement manufacturing activities.

The Company commenced cement manufacturing in April 2002 and reapplied for the exemption of electricity
duty for the period starting April 2002 to March 2012. Against company''s application, the electricity department
issued exemption certificate for the period of April 2002 to November 2005, interpreting that exemption would be
applicable from the date of commissioning of DG sets i.e. from November 1995 and not manufacturing date and
also in view of the authority issued demand of '' 3.30 crore vide orders dated March 02, 2006 and April 1, 2006, for
the period of November 18, 2005, to February 2006.

The Company filed writ petition challenging department''s demand orders claiming that the Company is entitled to
exemption from the payment of electricity duty for a period of 10 years from March 2002 on the basis of Section
3(2)(vii) of the Electricity Act with Hon''ble Gujarat High Court in year 2006. The Hon''ble High Court of Gujarat, in
their interim order dated May 5, 2006, granted ad-interim relief in the matter.

Since the matter is sub-judice, there is no open demand from the electricity department for the period upto
March 2012. Based on management assessment and the advice of external legal counsel, the Company believes it
has a strong case on merits for successful appeal in this matter. The Company has recognised a provision of '' 43.90
crore (related to principal portion of duty for the period 2007 to 2012) and an amount of '' 174.15 crore is disclosed
as contingent liability towards interest for the dispute period for the year ended March 31, 2025.

For the period post April 2012, pursuant to a demand of '' 161.95 crore (including interest) raised by Chief Commissioner
of State Tax, Gujarat, vide letter dated July 16, 2024, the Company has recognised a provision of '' 170.62 crore
(including interest) in the books against the demand till March 31, 2025, pending payment of demand. Accrual of
provision of '' 119.81 crore and '' 62.72 crore (including interest) has been disclosed as exceptional expense for the
year ended March 31, 2025 and March 31, 2024, respectively.

Further, the Company, as per the terms of Share Purchase Agreement (SPA) dated August 3, 2023, entered between
the Promoters of Sanghi Industries Limited, Sanghi Industries Limited (the "Company" or "SIL''), and Ambuja Cements
Limited, the Company has raised indemnity claims amounting to '' 84.31 crore against the demand raised by
authorities for the period post April 2012. Management, as per the terms of SPA, also has rights to raise further claims
for the period pre-2012, in case the matter is ruled against the Company and demand is raised by the authorities.

The Company has made detailed review of its pending litigation & disputed matters. Based on such review, provision
for probable matters amounting to '' 121.20 crore (March 31, 2024''104.49) is made in the financials and same has
been disclosed as exceptional items, and it includes provision of electricity duty demand which the Company is
litigating with Chief Commissioner of State Tax. The litigation is with regards to computation of duty and interest
thereon. Pending settlement, the Company has accounted for provisions of '' 119.81 Crores (March 31, 2024''62.72
crores) (including interest) as an exceptional item (Refer Note 46).

iii) The Company has applied for the refund for the GST Compensation Cess amounting to '' 2.28 crores which is
currently shown under the balance with government authorities in financial statements. The same was rejected by
the department and the matter is currently under litigation by the Company. The management has assessed the
risk category of the litigation as Possible.

Note:

a) Transactions with related parties are disclosed exclusive of applicable taxes

b) Transaction entered into with related party are made on terms equivalent to those that prevail in arm''s length
transactions and normal credit terms. The company has not recorded any loss allowance for trade receivable from
related parties. Outstanding balances at the end of the year are unsecured and interest free and settlement occurs
in cash. There have been no guarantees provided or received for any related party receivables or payables.

c) Remuneration does not include provision towards Gratuity and Leave Encashment which is provided based on
actuarial valuation on an overall company basis.

d) The Company reimburses salary cost to Holding Company and ACC Limited for employees deployed including key
managerial personnel for performing operational, financial and other functions.

e) '' 0.00 represents the amount less than '' 50,000/- in the above tables.

Note 43. Employee Benefits

The Company operates post employment and other long term employee benefits defined plans as follows:

a) Defined contribution plans

Amount recognised and included in Note 30 Contribution to Provident and Other Funds (including contribution to
provident fund trust) of the Statement of Profit and Loss '' 1.71 crore (March 31, 2024 - '' 0.82 crore).

b) Defined benefit plans

The defined benefit plan (the Gratuity plan) covers eligible employees and provides a lump sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective
employee''s salary and the tenure of employment.

The defined benefit gratuity plan (unfunded) is governed by the Payment of Gratuity Act, 1972. Under the Act, every
employee who has completed at least five year of service is entitled to gratuity benefits on departure at 15 days
salary (last drawn salary) for each completed year of service.

The plans in India typically expose the Company to actuarial risks such as: interest rate risk, salary risk and
longevity risk.

i) Interest risk: A decrease in the bond interest rate will increase the plan liability.

ii) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries
of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

iii) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan''s liability.

Note 45.

The code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain sections of
the Code came into effect on 3 May 2023. However, the final rules/interpretation have not yet been issued. The Company
will assess the impact of the Code when the final rules/interpretation comes into effect and will record any related impact.

Notes:

i) During the previous year, the Company has sold certain non-core immoveable properties. Profit on disposal of certain
non-core immoveable properties amounting to '' 224.10 crore for the year ended March 31, 2024 has been disclosed
as exceptional items.

ii) Includes provision of '' 119.81 crore and '' 62.72 crore (including interest) on electricity duty litigation for the year
ended March 31, 2025 and March 31, 2024, respectively.

iii) During the previous year, the Company has paid one- time charges to lenders for prepayment of loans amounting
to '' 88.42 crore which has been disclosed as exceptional items.

iv) During the previous year, the Company had paid Interest on Custom Duty dues amounting to '' 13.72 crore which
has been disclosed as exceptional items.

Note 47. Corporate Social Responsibility Expenses (CSR)

As per Section 135 of the Companies Act, 2013 read with guidelines issued by Department of Public Enterprises,

Government of India, the Company in absence of profits is not required to spend, in every financial year, at least two per

cent of the average net profits made during the three immediately preceding financial years in accordance with its CSR

Policy. Accordingly, the provision of section 135(5) of the Companies Act, 2013 are also not applicable to the Company.

Note 48. Additional disclosures as required under Schedule III of the Companies Act 2013.

1) Title deeds of all immovable properties including right to use assets are held in name of the Company as at
March 31, 2025.

2) The company does not hold any Investment Property in its books of accounts, so fair valuation of investment property
is not applicable.

3) The Company has not revalued any of its Property, Plant & Equipment including Right of use assets in the current
year and previous year.

4) The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable
on demand, or without specifying any terms or period of repayment.

5) No proceedings have been initiated or pending against the company under the Benami Transactions
(Prohibition) Act,1988.

6) Company is not having any transaction with the Companies struck off under the Section 248 of the Companies Act
2013 or Section 560 of the Companies Act 1956 except as below

7) There are no charges or satisfaction which are to be registered with Registrar of Companies (ROC) beyond
statutory period.

8) The Company has not been declared a willful defaulter by any bank or financial institution or other lender (as defined
under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on willful defaulters issued
by the Reserve Bank of India.

9) The provisions of clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers)
Rules, 2017 are not applicable to the company as per Section 2(45) of the Companies Act, 2013.

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

a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or

b) Provide any guarantee, security or the like to or on behalf of the Ultima

---

Mar 31, 2024

Note (1): During the previous year the Company has issued 7326000 Equity Shares of the face value of '' 10 only per Equity Share, at a price of '' 68.25 per equity share (including premium of '' 58.25 per equity share), aggregating up to '' 50.00 crore by way of private placement on preferential basis to M/s Thinkfar Tradelink Private Limited, Promoter Group Entity. Out of the above proceeds, amount of '' 0.52 crores was pending to be utilised as on March 31, 2023 and the same was held in Company''s current account and same is utilised in current year.

A) Terms, Rights and restrictions attached to equity shares

The Company has one class of equity shares having par value of '' 10 per share. Each member is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

In terms of Share Purchase Agreement (SPA) dated August 03, 2023 as amended, entered amongst (a) the Company (b) Certain Members of Promoters Group and (c) Ambuja Cements Limited (Acquirer), Acquirer has acquired 140821941 Equity Shares constituting 54.51% of Equity Share Capital of the Company on December 06, 2023. Consequently, the Board of Directors was reconstituted on December 07, 2023. The Acquirer had made an Open Offer to Public Shareholders of the Company for acquiring upto 67164760 Equity Shares constituting about 26% of the paid-up equity share capital of the Company, wherein 20481161 Equity shares (i.e. 30.49% of the Offer size and 7.93% of the Paid-up Capital) were tendered by public shareholders. Post this Open Offer, the shareholding of the Acquirer increased to 161303102 Equity shares (i.e. 62.44%) resulting in increase in the overall shareholding of promoter group to 80.52%.

In order to achieve the Minimum Public Shareholding, the Acquirer has sold 5166000 Equity shares (i.e. 2%) in Open Market. Post selling of the shares, Acquirer is holding 156137102 Equity shares (i.e. 60.44%) of the Company and the overall shareholding of Promoter Group is 202836040 Equity shares (i.e. 78.52%) as on March 31, 2024.

Description of Reserve Security Premium

Security Premium is used to record the premium on the issue of shares / securities. This amount will be utilised in accordance with the provisions of the Companies Act, 2013

Capital Redemption Reserve

In accordance with applicable provisions of the Companies Act, 2013 read with the rules, Company has created Capital Redemption Reserve for capital redeemed by the Company and the same will be utilised in accordance with the provisions of the Companies Act, 2013

Retained earnings

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

Note 35 - Financial instruments - Fair values and risk management A. Accounting classification and fair values

The management assessed that fair value of Cash and cash Equivalents, Bank Balances, Short Term Borrowings, Trade Payables, Floating rate Borrowings and Fixed rate Borrowings approximate their carrying amounts, except Trade Receivables, which are initially measured at transaction price.

C. Financial risk management

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

¦ Credit risk;

¦ Liquidity risk; and

¦ Market risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company manages cash resources, borrowing strategies, and ensures compliance with market risk limits and policies.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The audit committee oversees compliance with the Company''s risk management policies and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

ii. 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

Cash and other bank balances

The Company maintains its Cash and cash equivalents and Bank deposits with banks with good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

Trade receivables

The Company''s exposure to credit risk is influenced mainly by 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 the customers. The Company evaluates the concentration of 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 the customers in case of wholesale and retail segment, credit risks are mitigated by way of enforceable securities. 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:

iii. Liquidity risk

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

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity.

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company''s income or the value of its holdings of financial instruments. Exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.

v. Currency risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of its trade receivables, trade payables, borrowings and payables for capital goods in foreign currency. The Company has not used derivative financial instruments either for hedging purpose or for trading or speculative purposes except for forward contracts executed for LC opened in foreign currency.

Forward Exchange Contracts

There is no outstanding Derivatives for hedging currency.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against US dollars at March 31 would have affected the measurement of financial instruments denominated in US dollars and affected equity by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

vi. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. The Company adopts a policy to ensure that it achieves balance between fixed and floating rate.

Note 36 - Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

Note 37 - Contingent Liabilities

The claims against the Company not acknowledged as debt amount to '' 100.32 crore (March 31, 2023: '' 111.99 crore) excluding interest and penalty thereon as may be decided at the time of disposal of the claim. Against above, the Company has deposited a sum of '' 4.23 crore (March 31, 2023: '' 45.87 crore) with respective authorities as deposit.

'' in crore
Particulars	Brief description of contingent liabilities	As at March 31, 2024	As at March 31, 2023
Excise & Service Tax	Demand of Duty on Clinker Transfer value & CVD on Coal Classification, denial of service tax credit on Outward transport and eligible services.	21.43	61.67
Customs	Demand of custom duty on imported steam coal.	12.41	12.41
Goods & Service Tax	Demand of GST for availing ineligible Input credit.	0.81	-
Sales Tax	Demand of Sales tax for availing ineligible Input credit.	-	1.76
Claims of Gujarat Water Claims for breach of conditions of Water Supply and Sewerage Supply agreement. Board		26.38	26.38
Land Revenue Tax	Claim for NA charges on limestone mining lease.	1.17	1.17
Electricity Duty	Claim for electricity duty on account of dispute with regard to exemption period.	20.77	3.30
Employees'' State Insurance Corporation	Claim for ESIC contribution on certain expenses.	0.35	-
GST Compensation Cess Claim of Cess Refund against Zero Rated Supply under GST.		2.28	2.28
Other Claims against the Company	Other miscellaneous commercial claims.	14.72	3.02
Total		100.32	111.99

Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is '' 32.15 crore (March 31, 2023 is '' 11.61 crore).

Bank Guarantee outstanding '' 19.65 crore (March 31, 2023''13.97 crore) and Margin against Bank Guarantee '' NIL (March 31, 2023''11.24 crore)

Note 38 - Segment reporting

(a) Description of segments and principal activities

The principal business of the Company is manufacturing and sale of cement and cement related products. The Management Committee of the Company has been identified as the Chief Operating Decision Maker (CODM). The CODM evaluates the Company''s performance, allocates resources based on analysis of the various performance indicators of the Company as a single unit. CODM have concluded that there is only one operating reportable segment as defined under IND AS 108 "Operating Segments”, i.e. Cement and Cement Related Products clinker which is considered to constitute one single primary segment.

The Company has taken certain assets on operating lease which are cancellable. During the year, Company has paid '' 0.89 crore (FY 22-23''1.03 crore) towards cancellable operating lease. There are no operating leases which are non cancellable.

That significant actuarial assumptions for the determination of the Defined Benefit Plans are discount rate, expected salary increase and mortality.

Discount rate is based on the prevailing market yields of Government of India securities as at Balance Sheet date for the estimated term of the obligations.

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

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Note 42

Balance of trade receivables, trade payables, advances and deposits are subject to confirmation and reconciliation, if any.

Note 43 - Research and Development Cost

During the year the Company has incurred '' Nil towards Research and Development.

Capital Expenditure '' NIL (Previous Year '' NIL)

Recurring Expenditure '' NIL (Previous Year '' 1.03 crore)

There is no principal and interest overdue to Micro and Small enterprises. During the year no interest has been paid to such parties. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note 45 - Disclosure as per Ind AS 116 ‘Leases''

Company as Lessee

The Company''s lease asset class primarily consist of leases for Office premises and Plant and equipment.

(i) The following are the carrying amounts of lease liabilities recognised and the movements during the period:

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

In previous year, there are no exceptional items.

Notes:

i) During the period, Company has sold certain non - core immoveable properties. Profit on disposal of certain non - core immoveable properties amounting to '' 224.10 crore has been disclosed as exceptional items.

ii) During the period, the Company has made detailed review of its pending litigation & disputed matters. Based on such review, provision for probable contingencies amounting to '' 104.49 crore is made in the financials and same has been disclosed as exceptional items.

iii) One-time charges paid to lenders for prepayment of loans amounting to '' 88.42 crore has been disclosed as exceptional items.

iv) Interest on Custom Duty amounting to '' 13.72 crore has been disclosed as exceptional items.

Note 49 - Corporate Social Responsibility Expenses (CSR)

As per Section 135 of the Companies Act, 2013 read with guidelines issued by Department of Public Enterprises, GOI, the Company is required to spend, in every financial year, at least two per cent of the average net profits of the Company made during the three immediately preceding financial years in accordance with its CSR Policy. The details of CSR expenses for the year are as under:

Note 50 - Additional disclosures as required under Schedule III of the Companies Act 2013.

1) Title deeds of all immovable properties are held in name of the Company as at March 31, 2024.

2) The Company does not hold any Investment Property in its books of accounts, so fair valuation of investment property is not applicable.

3) The Company has not revalued any of its Property, Plant & Equipment and including Right of use assets in the current year & previous year.

4) The Company has not granted any loans or advances to promoters, directors, KMP''s and the related parties that are repayable on demand or without specifying any terms or period of repayment.

5) No proceedings have been initiated or pending against the Company under the Benami Transactions (Prohibition) Act,1988.

7) There are no charges or satisfaction which are to be registered with Registrar of Companies (ROC) beyond statutory period.

8) The Company has not been declared as a wilful defaulter by any bank or financial institution or any other lender.

9) The Company has filed quarterly returns or statements with the banks who have sanctioned working capital facilities, which are in agreement with the books of account except for cases where there were material differences.

*Excluding amount payables for post-production activities, project and long term Trade Payables as per the consistent practice followed by the Company and accepted by its lender.

10) The provisions of clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 are not applicable to the Company as per Section 2(45) of the Companies Act, 2013.

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

a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

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

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

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

13) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961

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

15) There were no scheme of Arrangements approved by the competent authority during the year in terms of section 230 to 237 of the Companies Act, 2013.

Note 51 - Corresponding figures of previous year have been regrouped / rearranged wherever necessary to conform to the current year presentation.

---

Mar 31, 2023

Notes (1) During the year company has issued 73,26,000 Equity Shares of the face value of Rs. 10 only per Equity Share, at a price of Rs. 68.25 per Equity Share (including premium of Rs. 58.25 per Equity Share), aggregating up to Rs. 50 crores by way of private placement on preferential basis to M/s Thinkfar Tradelink Private Limited, Promoter Group Entity. Out of the above proceeds fund amounting to Rs. 0.52 crores are pending to be utilised as on 31^st March 2023 and the same is held in company current account.

A. Terms, Rights and restrictions attached to equirty shares

The Company has one class of equity shares having par value of INR 10 per share. Each member is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

During the year under review, the company has allotted 73,26,000 Equity Shares of Facevalue of Rs.10/- each under preferential allotement to Promoter Group entity and therefore the overall paid-up Equity Shares has been increased from 25,10,00,000 to 25,83,26,000 & accordingly the promoter shareholdering got diluted. There is no change in absolute Number of shares held by them.

Description of Reserve Security Premium

Security Premium is used to record the premium on the issue of shares / securities. This amount is utlised in accordance with the provisions of the Companies Act, 2013.

Capital Redemption Reserve

In accordance with applicable provisions of the Companies Act, 2013 read with the rules, Company has created Capital Redemption Reserve for capital redeemed by the company and the same will be utilised in accordance with the provisions of the Companies Act, 2013

Note - 34 - Financial instruments - Fair values and risk management:

A. Accounting classification and fair values

The management assessed that fair value of Cash and cash Equivalents, Bank Balances, Short Term Borrowings, Trade Payables, Floating rate Borrowings and Fixed rate Borrowings approximate their carrying amounts, except Trade Receivables, which are initially measured at transaction price.

B. Financial risk management

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

• Credit risk;

• Liquidity risk; and

• Market risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company manages cash resources, borrowing strategies, and ensures compliance with market risk limits and policies.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The audit committee oversees compliance with the company''s risk management policies and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

ii. 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.

Cash and other bank balances

The company maintains its Cash and cash equivalents and Bank deposits with banks with good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

Trade receivables

The Company''s exposure to credit risk in influenced mainly by 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 the customers. The Company evaluates the concentration of 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 the customers in case of wholesale and retail segment, credit risks are mitigated by way of enforceable securities. However, unsecured credits are extended based on creditworthiness of the customers on case to case basis.

Liquidity risk

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

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity.

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company''s income or the value of its holdings of financial instruments. Exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.

v. Currency risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of its trade receivables, trade payables, borrowings and payables for capital goods in foreign currency. The Company has not used derivative financial instruments either for hedging purpose or for trading or speculative purposes except for forward contracts executed for LC opened in foreign currency.

Forward Exchange Contracts

There is no outstanding Derivatives for hedging currency.

The claims against the company not acknowledged as debt amount to INR 111.99 Crore (31 March 2022 : INR 111.99 Crore) excluding interest and penalty thereon as may be decided at the time of disposal of the claim. Against above, the Company has deposited a sum of INR 45.87 Crore (31 March 2022 : INR 45.87 Crore) with respective authorities as deposit.

INR in crores
Particulars	31 Mar 23	31 Mar 22
Excise & Service Tax	61.67	61.67
Customs	12.41	12.41
Sales Tax	1.76	1.76
Claims of Gujarat Water Supply and Sewerage Board	26.38	26.38
Land Revenue Tax	1.17	1.17
Electricity Duty	3.30	3.30
GST Compensation Cess	2.28	2.28
Other Claims against the Company	3.02	3.02
Total	111.99	111.99

Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is INR NIL (31 March 2022 is INR NIL).

Bank Guarantee outstanding Rs 13.97 Crore (31 March 2022 Rs 2.35 Crore) and Margin against Bank Guarantee Rs 11.24 Crore (31 March 2022 Rs 0.47 Crore)

Note - 37 - Segment reporting :

(a) Description of segments and principal activities

The Company is in the business of manufacturing and sale of cement and clinker which is considered to constitute one single primary segment.

Domestic revenue includes INR 0.15 Crore self consumption (31 March 2022 : INR 0.24 Crore)

(c) Information about major customers

None of the entity''s external customers account for 10 per cent or more of an entity''s revenue. (PY - Nil)

The company has taken certain assets on operating lease which are cancellable. During the year company has paid INR 1.03 Cr ( FY 21-22 INR 1.52 Cr ) towards cancellable operating lease. There are no operating leases which are non cancellable.

Balance of trade receivables, trade payables, advances and deposits are subject to confirmation and reconciliation, if any.

Note - 42:

Disclosures as required under Ind-As 115 - Revenue from Contracts with Customers

(i) Bifurcation of toal revenue from contracts with customer as per Ind As 115 is given below: Revenue from contracts with customers INR 928.37 crore

- Recognised from contract liability of the previous year INR 39.25 crore

- contract liability outstanding as at year end INR 27.79 crore

- Recognised from the performance obligation satisifed in current year INR 4.78 crore

- Recognised from the contracts entered in current year INR 912.13 crore

(ii) Performance Obligation pending at year end for which revenue is to be recognised in next financial year is INR 5.19 crore

(iii) The company clasify the right to receive consideration as trade receivables.

(iv) Sale of goods to customers are made at fixed rate.

Note - 43 - Research and Development Cost:

Research and Development Cost

During the year company has incurred INR 1.03 crore towards Research and Development.

Capital Expenditure INR NIL ( Previous Year INR NIL)

Recurring Expenditure INR 1.03 crore ( Previous Year INR 1.18 crore)

There is no principal and interest overdue to Micro and Small enterprises. During the year no interest has been paid to such parties. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note- 47 :

The Indian Parliament has approved the Code on Social Security 2020 (“the Code") which, inter-alia, deals with employee benefits during employment and post-employment. Effective date of the code and rules thereunder are yet to be notified. In view of this, the impact of change, if any, will be assessed and recognised post notification of the relevant provisions.

1) Title deeds of all immovable properties are held in name of the Company as at 31st March 2023.

2) The company does not hold any Investment Property in its books of accounts, so fair valuation of investment property is not applicable.

3) The Company has not revalued any of its Property, Plant & Equipment and including Right of use assets in the current year & previous year.

4) The company has not granted any loans or advances to promoters, directors, KMP''s and the related parties that are repayable on demand or without specifying any terms or period of repayment.

5) No proceedings have been initiated or pending against the company under the Benami Transactions (Prohibition) Act, 1988.

7) There are no charges or satisfaction which are to be registered with ROC beyond statutory period.

8) The company has not been declared as a wilful defaulter by any bank or financial institution or any other lender.

10) The provisions of clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 are not applicable to the company as per Section 2(45) of the Companies Act,2013.

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

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

13) The company does not have any transaction which is not recorded in the books of accounts that has

been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

14) The company has not traded or invested in Cyrpto Currency or Virtual Currency during the financial year.

15) There were no scheme of Arrangements approved by the competent authority during the year in terms of section 230 to 237 of the Companies Act, 2013.

Note 52 - Disclosure as per Ind AS 8 - ‘Accounting Policies, Changes in Accounting Estimates and Errors’

Recent Accounting Pronouncement:

Standards / amendments issued but not yet effective:

The Ministry of Corporate Affairs, vide notification dated 31 March 2023, has notified Companies (Indian Accounting

Standards) Amendment Rules, 2023 which amends certain Indian Accounting Standards which are effective 1

April 2023. Below is a summary of such amendments:

1. Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies.

2. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates.

3. Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

The Company has evaluated the above amendments and the impact of the same on the standalone financial statements is not material.

Note 53 - Corresponding figures of previous year have been regrouped / rearranged wherever necessary.

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Mar 31, 2018

A. Company Information

Sanghi Industries Limited is engaged in the manufacturing and marketing of cement and cement products in domestic and export market. The Company’s manufacturing facilities are at Sanghipuram, Gujarat and Registered Office at Sanghi nagar, R.R. District, Telangana. Equity shares of the Company are listed on The National Stock Exchange and Bombay Stock Exchange. The Financial Statements were approved and adopted by Board of Directors of the Company in their meeting held on 19^th May 2018.

Notes :

A) Rights, preferences and restrictions attached to shares Equity Shares

The Company has one class of equity shares having par value of INR 10 per share. Each member is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

D) During the year, the Company has issued and allotted 3,10,21,000 equity shares of Rs.10 each to the Qualified Institutional Buyers (QIB) on 25/01/2018 at issue price of Rs.129 per equity share(including premium of Rs.119 per equity share) aggregating to Rs.400.17 Cr. Pursuant to the allotment of equity shares in Qualified Institutional Placement, the paid up equity share capital of the Company stands increased at Rs.251 Cr. Issue Expenses amounting to Rs.9.63 Cr incurred in relation to issue to QIB have been charged off against the Securities Premium Account in accordance with the provisions of Section 52 of the Companies Act, 2013. Some of the proceeds of QIB issue has been utilised as per the object of the issue and the unutilised proceeds of the issue have been invested in short term fixed deposit and included in bank balances other than Cash and Cash Equivalent.

“Basic and Diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

The following reflects the profit and number of shares used in the basic and diluted EPS computations:

Note - 1 Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The management assessed that fair value of Trade Receivables, Cash and Cash Equivalents, Bank Balances, Short Term Borrowings, Trade Payables, Floating rate Borrowings and Fixed rate Borrowings approximate their carrying amounts.

B. Financial risk management

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

- Credit risk ;

- Liquidity risk ; and

- Market risk

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company manages cash resources, borrowing strategies, and ensures compliance with market risk limits and policies. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The audit committee oversees compliance with the Company’s risk management policies and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

ii. Credit risk

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

Cash and other bank balances

The company maintains its Cash and cash equivalents and Bank deposits with banks with good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

Trade receivables

Credit risk is managed through credit approvals, ongoing credit evaluations of its customers’ financial condition and monitoring the creditworthiness of its customers.

iii. Liquidity risk

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

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to derivative financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity.

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company’s income or the value of its holdings of financial instruments. Exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.

v. Currency risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of its receivables, borrowings and payables for capital goods in foreign currency. The Company has not used derivative financial instruments either for hedging purpose or for trading or speculative purposes.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against US dollars at March 31 would have affected the measurement of financial instruments denominated in US dollars and affected equity by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

vi. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. The Company adopts a policy to ensure that it achieves balance between fixed and floating rate.

vii. Exposure to interest rate risk

The company uses a mix of fixed rates and floating rates of borrowings. The changes in the floating interest rates are monitored closely.

Note - 2 Capital Management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company’s adjusted net debt to equity ratio at March 31, 2018 was as follows.

The claims against the Company not acknowledged as debt amount to INR 119.96 Cr. (31 March, 2017 : INR 108.75 Cr.) and interest and penalty thereon as may be decided at the time of disposal of the claim. Against above, the Company has deposited a sum of INR 51.54 Cr. (31 March, 2017 : INR 52.12 Cr.) with respective authorities as deposit.

Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is INR 73.99 Cr. ( 31 March, 2017 is INR 24.74 Cr. Net of advances).

Note - 3 Segment reporting

(a) Description of segments and principal activities

The Company is in the business of manufacturing and sale of cement and clinker which is considered to constitute one single primary segment.

Domestic revenue includes INR 0.85 Cr. self consumption (31 March, 2017 : INR 0.91 Cr.)

(c) Information about major customers

None of the entity’s external customers account for I0 per cent or more of an entity’s revenue.

Note - 4 Related party disclosures

a. Subsidiary Company :

The Company has incorporated subsidiary Company in China named, Sange Testing Services (Shanghai) Co., Ltd. on March 20, 2015.

However, no investment is made till March 31, 2018.

b. Key Management Personnel:

Mr. Ravi Sanghi - Chairman and Managing Director

Mr. Aditya Sanghi - Whole Time Director

Mr. Alok Sanghi - Whole Time Director

Mr. Bina Engineer - Whole Time Director and CFO

Mr. N. B. Gohil - Whole Time Director

Mr. D. K. Kambale - Non Executive Director

Mr. Sadashiv Sawrikar - Non Executive Director

Mr. R. K. Pandey - Non Executive Director

Mr. D. B. N. Rao - Non Executive Director

Mr. M. K. Doogar - Non Executive Director

Mr. T. M. Jagan Mohan - Non Executive Director ( Retired w.e.f. 14th Dec 2017)

Mr. S. Balasubramarian - Non Executive Director ( Appointed w.e.f. 9th Nov 2017)

Mr. Anil Agrawal - Company Secretary

The company has taken certain assets on operating lease which are cancellable. During the year company has paid INR 2.73 Cr ( FY 16-17 INR 2.34 Cr ) towards cancellable operating lease. There are no operating leases which are non cancellable.

Note - 5 Gratuity and other post employment benefit plans

The Company operates post employment and other long term employee benefits defined plans as follows:

I. Unfunded

i. Gratuity

ii. Leave encashment benefit

II. Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service to build up the final obligation. The obligation for leave encashment is recognised in the same manner as for gratuity.

III. Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Note 6

Balance of Debtors, Creditors, Advances and Deposits are subject to confirmation and reconciliation, if any.

Note 7

Goods and Service Tax (GST) has been implemented w.e.f. 01.07.2017 . Accordingly , GST is being levied as against Excise duty applicable hitherto. Since, excise duty is included in the revenue and GST is not included in revenue, revenue from operations for current year ended 31st March 2018 is not comparable with the previous year. Excise amounting to INR 25.65 Cr (Previous Year INR 104.49 Cr) is included in Revenue from operations.

Note 8

Corresponding figures of previous year have been regrouped / rearranged wherever necessary.

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Mar 31, 2017

1. Rights, preferences and restrictions attached to shares Equity Shares

The Company has one class of equity shares having par value of INR 10 per share. Each member is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

2. The Company does not have any holding company.

3. The details of Shareholders holding more than 5 % of Shares (including Share Capital Suspense)

4. Financial risk management

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

- Credit risk ;

- Liquidity risk ; and

- Market risk

5. Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company manages cash resources, borrowing strategies, and ensures compliance with market risk limits and policies.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Audit Committee oversees compliance with the company’s risk management policies and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

6. Credit risk

Credit risk is the risk of financial loss to the Company if a counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investments in debt securities.

Cash and other bank balances

The company maintains its Cash and cash equivalents and Bank deposits with banks with good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

Trade receivables

Credit risk is managed through credit approvals, ongoing credit evaluations of its customers’ financial condition and monitoring the creditworthiness of its customers.

7. Liquidity risk

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

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

8. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company’s income or the value of its holdings of financial instruments. Exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.

9. Currency risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of its receivables, borrowings and payables for capital goods in foreign currency. The Company has not used derivative financial instruments either for hedging purpose or for trading or speculative purposes.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against US dollars at March 31 would have affected the measurement of financial instruments denominated in US dollars and affected equity by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

10. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. The Company adopts a policy to ensure that it achieves balance between fixed and floating rate.

11. Exposure to interest rate risk

The Company uses a mix of fixed rates and floating rates of borrowings. The changes in the floating interest rates are monitored closely.

12: Capital Management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

13:Contingent Liabilities and Commitments

The claims against the company not acknowledged as debt amount to INR 108.75 Cr. (31 March 2016 : INR 130.75 Cr. & 1 July 2015 INR 151.94 Cr.) and interest and penalty thereon as may be decided at the time of disposal of the claim. Against above, the Company has deposited a sum of INR 52.12 Cr. (31 March 2016 : INR 50.64 Cr. & 1 July 2015 : INR 52.95 Cr.) with respective authorities as deposit.

14: Segment reporting

15. Description of segments and principal activities

The Company is in the business of manufacturing and sale of cement and clinker which is considered to constitute one single primary segment.

16. Information about major customers

None of the entity’s external customers account for 10 per cent or more of an entity’s revenue.

17: Related party disclosures

18. Subsidiary, Joint Venture and Associates:

The Company has incorporated subsidiary company in China named, Sange Testing Services (Shanghai) Co., Ltd. on March 20, 2015. However, no investment is made till March 31, 2017.

19. Key Management Personnel:

Shri Ravi Sanghi - Chairman and Managing Director

Shri Aditya Sanghi - Whole Time Director

Shri Alok Sanghi - Whole Time Director

Smt. Bina Engineer - Whole Time Director

Shri N. B. Gohil - Whole Time Director

20. Defined Benefit Plan

The employee’s gratuity fund scheme managed by a Trust is defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service to build up the final obligation. The obligation for leave encashment is recognised in the same manner as for gratuity.

21- Transition to Ind AS:

These financial statements, for the year ended 31 March, 2017, are the first the Company has prepared in accordance with Ind-AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with IGAAP including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31 March, 2017, the comparative information presented in these financial statements for the year ended 31 March 2016 and the opening Ind AS balance sheet at 1 July 2015 (the “transition date”). The comparative period comprises of 9 months since the company had changed its accounting year to end on 31 March each year in compliance with provisions of the Companies Act 2013.

In preparing the opening Ind AS balance sheet, the company has adjusted amounts reported in financial statements prepared in accordance with IGAAP An explanation of how the transition from IGAAP to Ind AS has affected the Company’s financial performance, cash flows and financial position is set out in this note. The optional and mandatory exemptions availed by the Company are enumerated below:

22. Optional exemptions

23. Property Plant and equipments

Ind AS permits a first time adopter to fair value an item of PPE and carry it forward as the deemed cost under Ind AS. Further, Ind AS also permits an entity to restate the values of PPE in compliance with Ind AS 16 principles. Any consequential adjustments are accounted through the retained earnings. Accordingly, the Company has opted to fair value the freehold land and restate the values of other items of PPE based on Ind AS 16 principles. This has resulted in a net increase of INR 143.32 crores on the transition date.

24. Determining whether an arrangement contains a lease

Ind AS 101 includes an optional exemption that permits an entity to apply the relevant requirements in Appendix C of Ind AS 17 for determining whether an arrangement existing at the date of transition contains a lease by considering the facts and circumstances existing at the date of transition (rather than at the inception of the arrangement).

The Company has elected to avail of the above exemption.

25. Mandatory exemptions

26. Estimates

As per Ind AS l0l, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS l0l, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

The Company’s estimates under Ind AS are consistent with the above requirement.

27. De recognition of financial assets and liabilities

The Company has elected to apply the de recognition principles of Ind AS 109 prospectively.

28 Revenue recognition:

Excise duty - Under IGAAP sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss. Thus sale of goods for the financial year 2015-16 under Ind AS has increased by INR 77.81 cr with a corresponding increase in other expense.

Timing of revenue recognition - Under IGAAP goods sold on FOR terms were recorded at the time of dispatch. However, under Ind AS, revenue is to be recognized based on transfer of risk and reward to customers. This has resulted in increase in inventories and corresponding reduction in sales, cost of goods sold and profit margin.

Cash incentives - Under IGAAP cash incentives provided to customers were recorded under other expenses. Under Ind AS, all such cash incentives given to customers are recorded net off revenue. This has resulted in reduction in sales and other expenses and will have no impact on profit.

Non-cash incentives - Under Ind AS, revenue attributable to open schemes at the reporting date has been deferred along with the corresponding costs.

29 Non convertible preference shares:

The company has issued non-convertible redeemable preference shares. The preference shares does not carry any dividend. Under IGAAP the preference shares were classified as equity at face value of the proceeds. Under Ind AS, these are considered to be liability.

30. Loans and borrowings

Under Indian GAAP transaction costs incurred in connection with interest bearing loans and borrowings are charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method. Further, for the refinancing and modification in terms of the loans, based on quantitative as well as qualitative assessment, the Company has accounted for gain or loss where there has been a substantial change.

31. Employee benefits :

Both under IGAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under IGAAP the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, re measurements gains and losses amounting to INR 0.29 crores (actuarial loss) are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Since this impact does not have an impact on the total comprehensive income, it has not been shown separately in the comprehensive income reconciliation above

32. Stores and spares:

Stores and spares meeting the definition of PPE have been capitalized based on Ind AS 16. Depreciation has been computed on these items from the date of purchase based on the estimated useful life. Resultant adjustment amounting to INR 15.47 crores reduced the retained earnings on the transition date. Further, this resulted in an increase in the comprehensive income by INR 11.84 crores in 2015-16.

33. Embedded lease:

Under Ind AS, an entity is required to assess whether a contract or arrangement contains a lease. The company does not have any lease arrangement

Decommissioning liability:

Under Ind AS, the cost of an item of property, plant and equipment includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

Such provision is made wherever applicable.

34. The previous year’s figures have been regrouped/reclassified wherever necessary to confirm with current year’s classification.

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Mar 31, 2016

Note 1. Contingent Liabilities and Commitments

The claims against the company not acknowledged as debt amount to Rs, 130.75 Cr. (Previous year Rs, 151.94 Cr.) and interest and penalty thereon as may be decided at the time of disposal of the claim. Against above, the Company has deposited a sum of Rs, 50.64 Cr. (Previous Yfear Rs, 52.95 Cr.) with respective authorities as deposit.

Note 2. Deferred Tax (Assets) / Liabilities

For recognition of Deferred Tax Asset (DTA) where the Company has unabsorbed depreciation under Income Tax Act, 1961: the virtual certainty of realization of such assets is prescribed as a criteria in AS 22. For the current year, the Company has not recognized such DTA in the accounts on prudent basis.

The Company is in the business of manufacturing and sale of cement and clinker which is considered to constitute one single primary segment. The secondary segment based on geographical segmentation are considered to be business outside India and within India.

Domestic revenue includes Rs, 0.25 crore self consumption (Previous Year Rs, 0.36 crore)

Note 3. related Party Disclosure as per Accounting Standard 18:

a. Key Management Personnel:

Mr. Ravi Sanghi - Chairman and Managing Director

Mr. Aditya Sanghi - Whole Time Director Mr. Alok Sanghi - Whole Time Director

Mrs. Bina Engineer - Whole Time Director Mr. N. B. Gohil - Whole Time Director

b. Subsidiary, Joint Venture and Associates:

The Company has incorporated subsidiary Company in China named, Sange Testing Services (Shanghai) Co., Ltd. on March 20, 2015. However, no investment is made till March 31, 2016.

c. Enterprises over which persons described in (a) above are able to exercise significant influence

1. Sanghi Infrastructure Ltd.

2. Kachchh Steels Pvt. Ltd.

Note 4. Additional information pursuant to the provisions of Schedule III to the Companies Act, 2013 is as under:

Note 5. In conformity to the Companies Act 2013, the Company has changed its Accounting year to 31^st March and hence, the current financial year ended on 31^st March 2016 is for the period of 9 months and not comparable with those of the previous year.

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Jun 30, 2015

1. ABOUT THE COMPANY

Sanghi Industries Limited was incorporated in 1985 and is engaged in the manufacturing and marketing of cement and cement products in domestic and export market. The Company's manufacturing facilities are at Sanghipuram, Gujarat. Equity shares of the Company are listed on The National Stock Exchange and Bombay Stock Exchange.

2. Terms / Rights attached to equity shares

The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares 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.

3. Terms of redemption of Redeemable Preference Shares

Preference Shares are redeemable in stepped up quarterly instalments from June 2011 to June 2018.

4. Details of shares alloted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back during immediately preceding five years. - NIL

5. Corporate Social Responsibility Expenses

a) Gross amount required to be spent by the Company during the year is Rs.1.13 cr. based on average net profit of last three years as per Section 198 of the Companies Act, 2013.

b) Amount spent during the year in cash on purposes other than construction / acquisition of any asset is Rs. 1.70 cr.

6. Contingent Liabilities and Commitments

The claims against the company not acknowledged as debt amount to Rs.151.94 cr. (Previous year Rs.139.35 cr.) and interest and penalty thereon as may be decided at the time of disposal of the claim. Against above, the Company has deposited a sum of Rs.52.95 cr. (Previous Year Rs.46.26 cr.) with respective authorities as deposit.

Rs. In crore)

As at As at 30.06.2015 30.06.2014

Excise & Service Tax 104.58 80.78

Customs 12.41 12.41

Sales Tax 1.76 1.76

Debt Recovery Tribunal - 11.21

Claims of Gujarat Water Supply and Sewerage Board 26.38 26.38

Land Revenue Tax 1.17 1.17

Electricity Duty 3.30 3.30

Other Claims against the Company 2.34 2.34

Total 151.94 139.35

hEstimated amount of contracts remaining to be executed on capital account and not provided for is '4.46 cr. Net of advances (Previous year '53.77 cr.)

7. Deferred Tax (Assets) / Liabilities

For recognition of Deferred Tax Asset (DTA) where the Company has unabsorbed depreciation under Income Tax Act, 1961, the virtual certainty of realization of such assets is prescribed as a criteria in AS 22. For the current year, the Company has not recognized such DTA in the accounts on prudent basis.

8. Segment Reporting

The Company is in the business of manufacturing and sale of cement and clinker which is considered to constitute one single primary segment. The Secondary segment based on geographical segmentation are considered to be Business Outside India and within India.

9. Related Party Disclosure as per Accounting Standard 18:

a. Key Management Personnel:

Mr. Ravi Sanghi - Chairman and Managing Director

Mr. Aditya Sanghi - Whole Time Director

Mr. Alok Sanghi - Whole Time Director

Mrs. Bina Engineer - Whole Time Director

Mr. N. B. Gohil - Whole Time Director

b. Subsidiary, Joint Venture and Associates:

The Company has incorporated subsidiary Company in China named, Sange Testing Services (Shanghai) Co., Ltd. on March 20, 2015. However, no investment is made till June 30, 2015.

10. Other expenses include NIL pertaining to prior period expenses (Previous year '0.17 crore).

11. Power and Fuel consumption include exchange loss of '0.82 crores. (Previous year Rs.2.96 crore)

12. Additional information pursuant to the provisions of Schedule V to the Companies Act, 2013 is as under:

13. As per the Mines and Minerals (Development and Regulations) Amendment Act, 2015, the Company is required, in addition to royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried out, an amount not exceeding the royalty paid, in such a manner and subject to the categorization of the mining leases and the amounts payable by the various categories of lease holders, as may be prescribed by the Central Government.

The Company is also required to pay a sum equivalent to two percent of the royalty to the National Mineral Exploration Trust as per the requirement of the Mines and Minerals (Development and Regulations) Amendment Act, 2015.

As on the balance sheet date, contribution required to be made to District Mineral Foundation is not determined and rules for National Mineral Exploration trust are yet to be notified, hence no provision is made during the year ended June 30, 2015.

14. The previous year's figures have been regrouped/reclassified wherever necessary to conform with current year's classification.

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Jun 30, 2013

Note : 1 (a) : ABOUT THE COMPANY

Sanghi Industries Limited is engaged in the manufacturing and marketing of cement and cement products in domestic and export market. The Company’s manufacturing facilities are at Sanghipuram'' Gujarat. Equity shares of the Company are listed on The National Stock Exchange and Bombay Stock Exchange.

NOTE 2 For recognition of Deferred Tax Asset (DTA) where the Company has unabsorbed depreciation under Income Tax Act'' 1961; the virtual certainty of realisation of such assets is prescribed as a criteria in AS 22. For the current year'' the Company has not recognized such DTA in the accounts on prudent basis.

NOTE 3 RELATED PARTY DISCLOSURE:

a. Key Management Personnel:

i. Mr. Ravi Sanghi – Chairman and Managing Director ii. Mr. Aditya Sanghi – Whole Time Director iii. Mr. Alok Sanghi – Whole Time Director iv. Mrs. Bina Engineer – Whole Time Director v. Mr. N.B. Gohil – Whole Time Director

NOTE 4 Other Expenses include Rs.2.01 Crore pertaining to prior period expenses (Previous year NIL).

NOTE 5 Additional information pursuant to the provisions of paragraph 3'' 4C and 4D of Part (II) of Schedule VI to the Companies Act'' 1956 is as under (Certified by the management):

Note 6 The previous year’s figures have been regrouped/reclassified wherever necessary to conform with current year’s classification.

7. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions'' actual results could differ from these estimates. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

8. The accounts are prepared on historical cost convention and in compliance with the Generally Accepted Accounting Principles in India and in all material respect with the Accounting Standards notified under The Companies Accounting Standards Rule 2006 and the relevant provision of The Companies Act'' 1956.

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Jun 30, 2012

A) Disclosure of Sundry Creditors under Current Liabilities is based on the information provided by the supplier regarding their status as defined under the "Micro, Small and Medium Enterprises Development Act, 2006". Amount overdue as on 30th June 20I2 to Micro, Small and Medium Enterprises on account of principal amount together with interest, aggregate to Rs. Nil (previous year Rs. Nil).

b) No provision for Income Tax is made in the current period in view of the computation of income resulting in loss as per the normal computation as per provision of the Income Tax Act for AY 20I2-I3. MAT Credit Entitlement for the current period Rs. Nil (PY. Rs. 3.I0 crores) . The Deferred Tax Liability and Deferred Tax Assets as on 30.06.20I2 computed as per AS 22 is as under:

c) Related Party Disclosure :

a. Key Management Personnel:

i. Mr. Ravi Sanghi - Chairman and Managing Director

ii. Mr. Aditya Sanghi - Whole Time Director

iii. Mr. Alok Sanghi - Whole Time Director

iv. Mrs. Bina Engineer - Whole Time Director

v. Mr. N.B. Gohil - Whole Time Director

b. Particulars of remuneration paid to Chairman and Managing Director and Whole time Directors are given in Para 4 of the Report on Corporate Governance.

c. As informed, there are no subsidiaries or associate companies.

d) The claims against the company not acknowledged as debt amount to Rs. 118.14 crore (Previous year Rs. 126.35 crore) and interest and penalty thereon as may be decided at the time of disposal of the claim. Against above, the Company has deposited a sum of Rs. 49.11 crore (Previous Year- Rs. 54.24 crore) with respective authorities as deposit.

e) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 0.82 crore (net of advances) (Previous year Nil)

f) Foreign currency exposure that are not hedged by derivative instruments or otherwise as on 30th June, 20I2 amount to Rs. 2II.39 crore ( Previous Year Rs. 202.75 crore )

g) The previous year's figures have been regrouped/reclassified wherever necessary to conform to current year's classification. However, previous year's figures are for I5 months and therefore, are not comparable.

h) Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Part (II) of Schedule VI to the Companies Act, I956 is as under (Certified by the management):

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Mar 31, 2010

1. Secured Loans

a) The Term Loan from IDBI, Dena Bank, Bank of Rajasthan Ltd., Lakshmi Vilas Bank Limited, India Debt Management Pvt. Ltd., Deutsche Investment India Pvt. Ltd., Goldman Sachs (India) Finance Pvt. Ltd. and Power Finance Corporation Ltd., are secured by a registered mortgage of the present and future fixed assets except Thermal Power Plant of the Company.

b) The Foreign Currency Loan from FMO, Netherlands is secured by the mortgage of thermal power plant.

c) The working capital facility from Bank of India is secured by a charge on the Current Assets.

d) The aforesaid Loans, in addition to the security are guaranteed by the Promoter Directors in their personal capacity.

2. Inventory of Raw Materials, Consumables, Stores, Packing Material and Work-in-Progress, are valued at weighted average cost basis, certified by the management. Finished goods and semi finished goods are valued at lower of cost (inclusive of excise duty, if paid) and net realizable value.

3. Depreciation on Fixed Assets has been provided as per schedule XIV to the Companies Act, 1956. The Company has worked all the three shifts during the Year and it is a continuous process plant and the depreciation has been provided accordingly.

4. The production facilities of Polymers Division have been leased to M/s. Sanghi Polymers Pvt. Ltd. (SPPL) with effect from 1st April, 2003 till the process of hiving off of Polymer division is completed with necessary approvals. The lessee has also taken over the obligation of the servicing of the debt secured by the said assets. The lease rent of Rs.12 lacs p.a. is charged as such the same is not considered as a separate segment. Since the actual transfer of assets are pending, instead of SPPL, ICICI Bank and State Bank of Hyderabad have filed a claim against SIL in Debt Recovery Tribunal at Mumbai and Hyderabad for the recovery of their Principal dues of Rs.2.68 crs. and Rs.11.21 crs. respectively and interest thereon as may be decided. These amounts have been included as Contingent Liabilities in Note No. 12 (d)

5. The debtors, creditors and loans and advances balances are subject to confirmation and adjustments, if any.

6. Disclosure of Sundry Creditors under Current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small, and Medium Enterprises Development Act, 2006". Amount overdue as on 31st March, 2010 to Micro, Small, and Medium Enterprises on account of principal amount together with interest, aggregate to Rs. Nil (previous year Rs. Nil). The auditors have relied on the same.

7. (i) Income Tax : No provision for Income Tax is made in the current year in view of the computation of income resulting in loss as per the provision of the Income Tax Act, however, there is book profit as envisaged in section 115 JB of the Income Tax Act and Tax thereon has been provided.

(ii) MAT credit Entitlement includes Rs.34.02 crores pertaining to earlier years.

(iii) Deferred Tax:

Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date, unlike MAT rate at which it was considered till March 2009.

8. Related Party Disclosure:

a. Key Management Personnel:

Mr. Ravi Sanghi - Managing Director Mr. Aditya Sanghi – Whole Time Director Mr. Alok Sanghi - Whole Time Director Mrs. Bina Engineer – Whole Time Director

b. Particulars of remuneration paid to Managing Director and Whole time Directors are given in note No. 14 of this schedule.

c. As informed, there are no subsidiaries or associate companies.

9. The Company had certain derivative transactions with a Bank in 2008-09. These were terminated by the Bank and a claim of USD 37 million was raised on the Company. The matter was under Arbitration at London Court of International Arbitration. Prior to any decision at LCIA, the bank has paid compensation of Rs.5.8 crore to the Company and withdrawn its claim, which is reflected in Schedule "9".

10. a. Provisions involve substantial degree of estimation in measurement and recognized where there is present obligation as a result of the past events and it is probable that there will be an outflow of resources.

b. Contingent liabilities are not recognized but disclosed in notes.

c. Contingent assets are neither recognized nor disclosed in financial statements

d. The claims against the Company not acknowledged as debt amount to Rs.74.83 crore (Previous year Rs.73.41 crore) and interest and penalty thereon as may be decided at the time of disposal of the claim. Against above, the Company has deposited a sum of Rs.42.41 crore (Previous Year- Rs.40.65 crore) with respective authorities as deposit.

e. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.2.16 crore ( Previous year Rs.6.67 crore)

11. Details of Directors Remuneration

a. The Managing Director has waived his remuneration and commission for the current financial year.

12. Foreign currency exposure that are not hedged by derivative instruments or otherwise as on 31st March 2010 amount to Rs.186.46 crore (Previous Year Rs.217.34 crore)

13. Previous years figures have been regrouped/reclassified wherever necessary.