Get Updates

Get notified about market trends, financial advice, and investment tips!

A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Shiva Cement Ltd.

Mar 31, 2025

M. Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event and it is probable that an outflow of resources,
that can be reliably estimated, will be required to settle
such an obligation.

cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows
(when the effect of the time value of money is material).

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably

Onerous contracts

Present obligations arising under onerous contracts
are recognised and measured as provisions.
However, before a separate provision for an onerous
contract is established, the Company recognises any
write down that has occurred on assets dedicated to
that contract. An onerous contract is considered to exist
where the Company has a contract under which the
unavoidable costs of meeting the obligations under the
contract exceed the economic benefits expected to be
received from the contract. The unavoidable costs under
a contract reflect the least net cost of exiting from the
contract, which is the lower of the cost of fulfilling it
and any compensation or penalties arising from failure
to fulfil it. The cost of fulfilling a contract comprises
the costs that relate directly to the contract (i.e., both
incremental costs and an allocation of costs directly
related to contract activities).

N. Financial Instruments

Financial assets and financial liabilities are recognised
when an entity becomes a party to the contractual
provisions of the instrument.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at fair value through Statement of
Profit and Loss (FVTPL)) are added to or deducted from
the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit
and loss are recognised immediately in Statement of
Profit and Loss.

(i) Financial assets

(a) Recognition and initial measurement

A financial asset is initially recognised at fair value
and, for an item not at FVTPL, transaction costs
that are directly attributable to its acquisition or
issue. Purchases and sales of financial assets are
recognised on the trade date, which is the date

on which the Company becomes a party to the
contractual provisions of the instrument.

(b) Classification of financial assets

Financial assets are classified, at initial recognition
and subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit and loss.

A financial asset is measured at amortized cost if it
meets both of the following conditions and is not
designated at FVTPL:

â¢ The asset is held within a business model
whose objective is to hold assets to collect
contractual cash flows; and

â¢ The contractual terms of the financial asset
give rise on specified dates to cash flows that
are solely payments of principal and interest
on the principal amount outstanding.

A debt instrument is classified as FVTOCI only if it
meets both of the following conditions and is not
recognised at FVTPL;

â¢ The asset is held within a business model
whose objective is achieved by both
collecting contractual cash flows and selling
financial assets; and

â¢ The contractual terms of the financial asset
give rise on specified dates to cash flows that
are solely payments of principal and interest
on the principal amount outstanding.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognised in the Other Comprehensive Income
(OCI). However, the Company recognises interest
income, impairment losses & reversals and foreign
exchange gain or loss in the Statement of Profit and
Loss. On derecognition of the asset, cumulative gain
or loss previously recognised in OCI is reclassified
from the equity to Statement of Profit and Loss.
Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using
the EIR method.

All equity investments in scope of Ind AS 109
are measured at fair value. The Company may
make an irrevocable election to present in other
comprehensive income subsequent changes in the
fair value. The Company makes such election on an
instrumentby-instrument basis. The classification
is made on initial recognition and is irrevocable.
The equity instruments which are strategic

investments and held for long term purposes are
classified as FVTOCI.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are
recognised in the OCI. There is no recycling of the
amounts from OCI to Statement of Profit and Loss,
even on sale of investment. However, the Company
may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all changes
recognised in the Statement of Profit and Loss.

All other financial assets are classified as
measured at FVTPL.

In addition, on initial recognition, the Company
may irrevocably designate a financial asset that
otherwise meets the requirements to be measured
at amortised cost or at FVTOCI as at FVTPL if
doing so eliminates or significantly reduces and
accounting mismatch that would otherwise arise.

Financial assets at FVTPL are measured at fair
value at the end of each reporting period, with
any gains and losses arising on remeasurement
recognized in statement of profit or loss. The net
gain or loss recognized in statement of profit or
loss incorporates any dividend or interest earned
on the financial asset and is included in the âother
incomeâ line item.

The Company derecognizes a financial asset when
the contractual rights to the cash flows from the
asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another party.

(d) Impairment

The Company applies the expected credit
loss model for recognizing impairment loss on
financial assets measured at amortised cost, debt
instruments at FVTOCI, lease receivables, trade
receivables, other contractual rights to receive cash
or other financial asset, and financial guarantees
not designated as at FVTPL.

discounted at the original effective interest rate
(or credit-adjusted effective interest rate for
purchased or originated credit-impaired financial
assets). The Company estimates cash flows by
considering all contractual terms of the financial
instrument (for example, prepayment, extension,
call and similar options) through the expected life of
that financial instrument.

The Company measures the loss allowance for
a financial instrument at an amount equal to the
lifetime expected credit losses if the credit risk on
that financial instrument has increased significantly
since initial recognition. If the credit risk on a
financial instrument has not increased significantly
since initial recognition, the Company measures the
loss allowance for that financial instrument at an
amount equal to 12-month expected credit losses.
12-month expected credit losses are portion of the
life-time expected credit losses and represent the
lifetime cash shortfalls that will result if default
occurs within the 12 months after the reporting date
and thus, are not cash shortfalls that are predicted
over the next 12 months.

If the Company measured loss allowance for a
financial instrument at lifetime expected credit loss
model in the previous period, but determines at the
end of a reporting period that the credit risk has
not increased significantly since initial recognition
due to improvement in credit quality as compared
to the previous period, the Company again
measures the loss allowance based on 12-month
expected credit losses.

When making the assessment of whether there
has been a significant increase in credit risk since
initial recognition, the Company uses the change in
the risk of a default occurring over the expected life
of the financial instrument instead of the change
in the amount of expected credit losses. To make
that assessment, the Company compares the risk
of a default occurring on the financial instrument
as at the reporting date with the risk of a default
occurring on the financial instrument as at the date
of initial recognition and considers reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant
increases in credit risk since initial recognition.

For trade receivables or any contractual right to
receive cash or another financial asset that result
from transactions that are within the scope of
Ind AS 115, the Company always measures the
loss allowance at an amount equal to lifetime
expected credit losses.

Further, for the purpose of measuring lifetime
expected credit loss allowance for trade receivables,
the Company has used a practical expedient
as permitted under Ind AS 109. This expected
credit loss allowance is computed based on
a provision matrix which takes into account
historical credit loss experience and adjusted for
forward-looking information.

The impairment requirements for the recognition
and measurement of a loss allowance are equally
applied to debt instruments at FVTOCI except
that the loss allowance is recognised in other
comprehensive income and is not reduced from the
carrying amount in the balance sheet.

The Company has performed sensitivity analysis
on the assumptions used and based on current
indicators of future economic conditions, the
Company expects to recover the carrying amount
of these assets.

e) Effective interest method

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

Income is recognized on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognized in profit or loss and is included in the
âOther incomeâ line item.

(ii) Financial liabilities and equity instruments

a) Classification as debt or equity

Debt and equity instruments issued by a company
are classified as either financial liabilities or as
equity in accordance with the substance of the
contractual arrangements and the definitions of a
financial liability and an equity instrument.

b) Equity instruments

equity instruments is recognised and deducted
directly in equity. No gain or loss is recognised in
Statement of Profit and Loss on the purchase,
sale, issue or cancellation of the Companyâs own
equity instruments

c) Financial liabilities

Financial liabilities are classified as either financial
liabilities âat FVTPLâ or âother financial liabilitiesâ.

(i) Financial liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when
the financial liability is either held for trading or it is
designated as at FVTPL.

A financial liability is classified as held for trading if:

â¢ It has been incurred principally for the purpose
of repurchasing it in the near term; or

â¢ on initial recognition it is part of a portfolio
of identified financial instruments that the
Company manages together and has a recent
actual pattern of short-term profit-taking; or

â¢ it is a derivative that is not designated and
effective as a hedging instrument.

A financial liability other than a financial liability
held for trading may be designated as at FVTPL
upon initial recognition if:

â¢ such designation eliminates or significantly
reduces a measurement or recognition
inconsistency that would otherwise arise;

â¢ the financial liability forms part of a group of
financial assets or financial liabilities or both,
which is managed and its performance is
evaluated on a fair value basis, in accordance
with the Companyâs documented risk
management or investment strategy, and
information about the grouping is provided
internally on that basis; or

â¢ it forms part of a contract containing one
or more embedded derivatives, and Ind AS
109 permits the entire combined contract
to be designated as at FVTPL in accordance
with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value,
with any gains or losses arising on remeasurement
recognized in Statement of Profit and Loss. The net
gain or loss recognized in Statement of Profit and
Loss incorporates any interest paid on the financial
liability and is included in the Statement of Profit
and Loss. For Liabilities designated as FVTPL, fair

value gains/losses attributable to changes in own
credit risk are recognised in OCI.

The Company derecognises financial liabilities
when, and only when, the Companyâs obligations are
discharged, cancelled or they expire. The difference
between the carrying amount of the financial
liability derecognised and the consideration paid
and payable is recognised in the Statement of
Profit and Loss.

(ii) Other financial liabilities:

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

d) De-recognition of financial/ liabilities :

The Company derecognizes financial liabilities
when, and only when, the Companyâs obligations are
discharged, cancelled or have expired. An exchange
between with a lender of debt instruments with
substantially different terms is accounted for as an
extinguishment of the original financial liability and
the recognition of a new financial liability. Similarly, a
substantial modification of the terms of an existing
financial liability (whether or not attributable to
the financial difficulty of the debtor) is accounted
for as an extinguishment of the original financial
liability and the recognition of a new financial
liability. The difference between the carrying
amount of the financial liability derecognized and
the consideration paid and payable is recognised in
Statement of profit and loss.

O. Segment reporting:

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief
operating decision maker. The Board of directors of the
Company has been identified as the Chief Operating
Decision Maker which reviews and assesses the financial
performance and makes the strategic decisions.

P. Cash and cash equivalents:

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

For the purpose of the statement of cash flows, cash
and cash equivalent consists of cash and short term
deposits, as defined above.

Q. Earnings Per Share:

Basic Earning Per Share is computed by dividing the net
profit or (loss) after tax for the year attributable to the
equity shareholders by the weighted average number of
equity shares outstanding during the year.

Diluted Earnings per share is computed by dividing the
net profit or loss for the year by the weighted average
number of equity shares outstanding during the year as
adjusted for the effects of all dilutive potential equity
shares, except where the results are anti-dilutive.

3. Key sources of estimation uncertainty and Recent
Accounting Pronouncements:

In the course of applying the policies outlined in all
notes under section 2 above, the Company is required
to make judgments that have a significant impact on
the amounts recognized and to make estimates and
assumptions about the carrying amount of assets
and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are
based on historical experience and other factors that are
considered to be relevant. Actual results may differ from
these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognized 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.

A Key sources of estimation uncertainty

i) Useful lives of property, plant and equipment

Management reviews the useful lives of property,
plant and equipment at least once a year. Such lives
are dependent upon an assessment of both the
technical lives of the assets and also their likely
economic lives based on various internal and
external factors including relative efficiency and
operating costs. This reassessment may result in
change in depreciation and amortisation expected
in future periods..

ii) Mines restoration obligation

In determining the fair value of the Mines
Restoration Obligation, assumptions and estimates
are made in relation to mining reserve, discount
rates, the expected cost of mines restoration and
the expected timing of those costs.

iii) Contingencies

In the normal course of business, contingent
liabilities may arise from litigation and other claims

against the Company. Potential liabilities that are
possible but not probable of crystallizing or are
very difficult to quantify reliably are treated as
contingent liabilities. Such liabilities are disclosed in
the notes but are not recognized.

iv) Fair value measurements

When the fair values of financial assets or financial
liabilities recorded or disclosed in the financial
statements cannot be measured based on
quoted prices in active markets, their fair value is
measured using valuation techniques including the
Discounted Cash Flows model . The inputs to these
models are taken from observable markets where
possible, but where this is not feasible, a degree
of judgment is required in establishing fair values.
Judgments include consideration of inputs such as
liquidity risk, credit risk and volatility.

v) Taxes

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

vi) Provisions and liabilities

Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of funds resulting from past operations
or events that can reasonably be estimated.
The timing of recognition requires application of
judgment to existing facts and circumstances
which may be subject to change. The amounts are
determined by discounting the expected future
cash flows at a pre-tax rate that reflects current
market assessment of time value of money and the
risk specific to the liability. Potential liabilities that
are remote are neither recognised nor disclosed
as contingent liability. The management decides
whether the matters needs to be classified as
âremote,â âpossibleâ or âprobableâ based on expert

advice, past judgements, terms of the contract,
regulatory provisions etc

vii) Expected credit loss:

The measurement of expected credit loss on
financial assets is based on the evaluation of
collectability and the managementâs judgement
considering external and internal sources of
information. A considerable amount of judgement is
required in assessing the ultimate realization of the
loans having regard to, the past collection history of
each party and ongoing dealings with these parties,
and assessment of their ability to pay the debt on
designated dates.

viii) Defined benefit plans:

The cost of defined benefit plan and other
post-employment benefits and the present value
of such obligations are determined using actuarial
valuations. An actuarial valuation involves making
various assumptions that may differ from actual
development in the future. These include the
determination of the discount rate, future salary
escalations and mortality rates etc. Due to the
complexities involved in the valuation and its
long term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.

B Application of new and amended standards :

The Ministry of Corporate Affairs vide
notification dated 9 September 2024 and 28
September 2024 notified the Companies (Indian
Accounting Standards) Second Amendment Rules,
2024 and Companies (Indian Accounting Standards)
Third Amendment Rules, 2024, respectively, which
amended/ notified certain accounting standards
(see below), and are effective for annual reporting
periods beginning on or after 1 April 2024:

Insurance contracts - Ind AS 117; and

Lease Liability in Sale and Leaseback -

Amendments to Ind AS 116

Their adoption has not had any significant impact on
the amounts reported in the financial statements.

Note 11. Deferred tax assets (net)

Income Tax expense

Indian companies are subject to Indian income tax on a standalone basis. For each fiscal year, the entity profit and loss is subject
to the higher of the regular income tax payable or the Minimum Alternative Tax (âMATâ).

Statutory income taxes are assessed based on book profits prepared under generally accepted accounting principles in India
adjusted in accordance with the provisions of the (Indian) Income Tax Act, 1961. Statutory income tax is charged at 25% plus a
surcharge and education cess with tax benefits or 22% plus a surcharge and education cess without tax benefits.

MAT is assessed on book profits adjusted for certain items as compared to the adjustments followed for assessing regular
income tax under normal provisions. MAT for the fiscal year 2023-24 is charged at 15% plus a surcharge and education cess.
MAT paid in excess of regular income tax during a year can be set off against regular income taxes within a period of fifteen years
succeeding the fiscal year in which MAT credit arises subject to the limits prescribed.

Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment
year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.

Note :

14.1. The credit period on sales of goods ranges from 0 to 30 days with or without security. The Company charges interest on
receivable beyond credit period in case of certain customers.

14.2. The Company does not generally hold any collateral or other credit enhancements over these balances nor does it have a
legal right of offset against any amounts owed by the Company to the counterparty.

14.3. Trade Receivable does not include any receivable from Directors and Officers of the Company.

14.4. Trade receivable from related parties has been disclosed in note 37 e

14.5. Loss allowance is estimated for disputed receivables based on assessmenmt of each case where consider necessary.

14.6. Credit risk management regarding trade receivables has been described in note 34.

(ii) Terms/rights attached to 1% Optionally Convertible Cumulative Reedeemable Preference Share (OCCRPS)

The Company has one class of Preference Shares. These shares carry cumulative dividend @ 1%. These OCCRPS are
convertible into Equity Shares at the option of the Holder within a period of 18 months from the date of allotment, in one
or more tranches, at a price determined on the relevant date or to be redeemed at par upon maturity after 18 months but
within 9 years from date of allotment.

The option to convert the instrument into Equity shares lapsed on 04 August, 2022 ( valuation date ), and hence the nature
of instrument changes from this date and will be redeemed at par upon maturity. Accordingly, future estimated cash flows
of principal on redemption and cumulative coupon of 1% for 9 years are discounted at pre tax borrowing rate of 9.5% to
determine the fair value of the instrument at valuation date.

The difference between the issue price of OCCRPS and the fair value on valuation date '' 4,483.73 Lakhs treated as Equity
component of compounded financial instrument in the financial statement.

Retained earning :

Retained earnings are the profits that the Company has earned till date, less any transfers 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 Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

Capital Reserve :

Reserve is primarily created out of share forfeiture amounting '' 214.50 lakhs and amalgamation reserve amounting '' 566.03
lakhs as per statutory requirement.

Security premium reserve :

The amount received in excess of face value of the equity shares is recognised in securities premium. This reserve is utilised in
accordance with the specific provisions of the Companies Act 2013

Equity component of 1% optionally convertible cumulative redeemable preference shares

Upon expiry of conversion options given in OCCRPS, the Company has computed equity portion (based on concessional rate of
interest in OCCRPS) amounting to ''4,483.73 lakhs.

Notes :

19.1. The above unsecured loan from related party has been taken from holding company, M/s. JSW Cement Limited. The tenure
of the loan is 5 years from the date of disbursement or 31 March, 2027 which ever is earlier or such ended time as may be
agreed and repayable at the end of the tenure alongwith interest accrued on the same. The rate of interest is 8.73%.

19.2. The company raised fund of '' 10,000.00 lakhs by issue of One Crore 1% optionally convertible cumulative redeemable
preference share (OCCRPS) of '' 100 each. These OCCRPS are convertible into Equity Shares at the option of the Holder
within a period of 18 months from the date of allotment in one or more tranches, at a price determined on the relevant date
or to be redeemed at par upon maturity after 18 months but within 9 years from date of allotment.

The difference between the issue price of OCCRPS and the fair value on valuation date '' 4,483.73 Lakhs treated as Equity
component of compounded financial instrument in the financial statement.

19.3. a) The applicable rate of interest on term loan from Axis Bank & Indian Bank is of 8.73% per annum till 28^th March, 2025.

From 29^th March, 2025 interest rate on loan from Axis Bank & Indian Bank has been reduced to 8.48%. However the
Interest rate on loan from Canara Bank remained at 8.73% per annum & Interest on term loan from DBS Bank carrying
interest @ 9.25% per annum. Interest are payable on monthly basis.

b. Term of Repayment

- 9 years ( 36 quarterly structured repayment) from quarter ending 31 December, 2024) for loan taken from Axis Bank,
Indian Bank & Canara Bank.

- 2 years (bullet repayment) from date of 1^st drawal of loan from DBS Bank Limited.

c. Nature of security

- First pari-passu charge on project fixed assets (both movable & immovable) including assignment of lease hold right
of the land acquired for mining and project.

- Unconditional and irrevocable Corporate Guarantee of JSW Cement Limited - Holding company.

Note 34 : Financial instruments
A. Capital risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios
and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.
The Companyâs capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its
borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated
from its operations supplemented by bank borrowing and funding from holding company. The Company is not subject to
any externally imposed capital requirements.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest
bearing loans and borrowings less cash and cash equivalents, Bank balances other than cash and cash equivalents and
current investments.

Fair value hierarchy

This section explains the judgements and estimates made in determining the fair value of the financial instruments that are

(a) recognised and measured at fair value and

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

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

Fair value of financial assets and liabilities measured at amortised cost

The carrying amount of Trade Receivable, Trade Payable, Capital Creditors, Cash and Cash Equivalents ,other Bank Balances
, other financial assets and liabilities are considered to be the same as their fair values due to their short term nature.
The management considers that the carrying amount of financial assets and financial liabilities recognised in the financial
statements approximate their fair values.

Financial risk management

Board of Directors of the Company has developed and are responsible for monitoring the Companyâs risk management
policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting
acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve
risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the
market conditions and the Companyâs activities to evaluate the adequacy of the risk management framework in relation to
the risk faced by the Company.

The risk management policies aim to mitigate the following risks arising from the financial instruments:

i) Market risk

ii) Credit risk

iii) Liquidity risk

iv) Commodity risk

i) Market Risk

Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price
of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,
commodity prices and other market changes that effect market risk sensitive instruments. Market risk is attributable
to all market risk sensitive financial instruments including investments and deposits, and borrowings.

All such transactions are carried out within the guidelines set by the management.
a) 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 exposed to interest rate risk because funds are borrowed at
both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes
in variable interest rate. The borrowings of the Company are principally denominated in rupees with a mix of fixed
and floating rates of interest.

ii) Credit Risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness
as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties
and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.
The carrying amount of financial assets represent the maximum credit risk exposure.

(a) Trade receivables

Trade receivables consist of a large number of customers spread across diverse industries and geographical areas
with no significant concentration of credit risk. No single customer accounted for 10.0% or more of revenue
in any of the years indicated except sales to holding company. The outstanding trade receivables are regularly
monitored and appropriate action is taken for collection of overdue receivables.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk
was '' 4,730.43 lakhs as at 31 March 2025 and '' 4,931.40 lakhs as at 31 March 2024, being the total carrying value
of trade receivables, balances with bank, bank deposits, current investments, loans and other financial assets.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a
provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date
wherever outstanding is for longer period and involves higher risk.

Our historical experience of collecting receivables indicate a low credit risk. Hence, trade receivables are considered
to be a single class of financial assets.

iii. Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of
liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company
requires funds both for short term operational needs as well as for long term capital expenditure growth projects.
The company generate sufficient cash flow for operation, which together with the available cash and cash equivalent
provide liquidity in the short term & long term. The company has established an appropriate liquidity risk management
frame work for the management of the companyâs short, medium & long term funding and liquidity management
requirement. The company manages liquidity risk by maintaining adequate reserve, banking facilities and reserve
borrowing facilities by continuously monitoring forecast and actual cash flows and by maching the maturity profile of
financial asset and liability.

The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods and its non-derivative financial assets. The tables have been drawn up based on the
undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to
pay. The tables include both interest and principal cash flows.

To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at
the end of the reporting year.The contractual maturity is based on the earliest date on which the Company may be
required to pay.

c) Employee Benefits:

i) Defined Contribution Plan:

Retirement Benefits in the form of Provident Fund which is defined contribution schemes are charged to the statement
of profit and loss for the year in which the contributions to the respective funds accrue as per relevant rules / statutes.

Companyâs contribution to Provident Fund & other fund recognized in statement of Profit and Loss '' 109.45 Lakhs
(Previous Year '' 75.96 Lakh) ( included in note 28)

ii) Defined Benefit Plans

The Company provides for gratuity to its employees as per the Payment of Gratuity Act, 1972. The amount of gratuity
shall be payable to an employee on the termination of employment after rendering continuous service for not less
than five years, or on their superannuation or resignation. However, in case of death of an employee, the minimum
period of five years shall not be required. The amount of gratuity payable on retirement / termination is the employeeâs
last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number of years
of service completed. The Company does not fully fund the liability and maintains a target level of funding to be
maintained over period of time based on estimations of expected gratuity payments.

Compensation to key management personnel

Key managerial persons such as Whole Time Director, Chief Financial Officer, Company Secretary are in receipt of
remuneration from the holding company.

The amount paid for sitting fees to non executive independent director during the period is '' 12.15 lakhs (previous
year '' 12.00 lakhs),

Terms & Conditions
Sales :

The sales to related parties are made on terms equivalent to those that prevail in armâs length transactions and in the
ordinary course of business. Sales transactions are based on prevailing price list and memorandum of understanding
signed with related parties. For the year ended 31 March, 2025, the Company has not recorded any impairment of
receivables relating to amounts owed by related parties.

Purchases :

Thepurchasesfrom relatedpartiesaremadeontermsequivalenttothosethatprevail inarmâs lengthtransactionsandinthe
ordinary course of business. Purchase transactions are made on normal commercial terms and conditions
and market rates.

Loan from Related Party :

The company has availed loan from its holding company for general corporate purpose. The loan balance as on 31
March, 2025 amounting '' 64,031.47 lakhs ( balance as on 31 March, 2024''69,759.09 lakhs). The loan is unsecured and
carry an interest @ 8.73% per annum and repayable after the end of the tenure.

g. During the year March 31, 2025, the Company has incurred loss of '' 14,247.66 lakhs and as on March 31, 2025, the Companyâs
accumulated loss is '' 43,387.15 lakhs. Meanwhile, the Company has received rights issue proceeds of '' 40,000.00 lakhs
including securities premium of '' 38,000.00 lakhs which has resulted in positive net-worth. The Management is hopeful
of improving the performance of the company considering the improvement in the plantâs operational performance,
updated management strategies and business plan. Accordingly, these financial statements continue to be presented on a
going concern basis.

h. The Company has been maintaining its books of accounts in the SAP which has feature of recording audit trail of each and
every transaction, creating an edit log of each change made in books of account along with the date when such changes
were made and ensuring that the audit trail cannot be disabled, throughout the year as required by proviso to sub rule (1) of
rule 3 of The Companies (Accounts) Rules, 2014 known as the Companies (Accounts) Amendment Rules, 2021.

The Company did not come across any instance of audit trail feature being tampered with, in respect of accounting software
for the period for which the audit trail feature was operating.

Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record retention.

i. Other Statutory information

1. The Company does not have any benami property, where any proceeding has been initiated or pending against the
Company for holding any benami property

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

3. 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.

4. 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.

5. The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961â

6. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
the Companies (Restriction on number of Layers) Rules, 2017â

7. The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

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

9. Presently no quarterly returns or statements of fund utilisation need to be filed by the Company with banks or
financial institutions.

10. The Company has used the borrowings from banks and financial institutions for the specific purpose for which
it was obtained.

11. The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee
andtheleaseagreementsaredulyexecutedinfavouroftheCompany)disclosedinthefinancialstatementsincludedinproperty,
plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

12. The Company does not have any transactions with companies which are struck off.

j. As at 31 March 2025; the current liabilities exceeds current assets of the Company by '' 8,038.98 Lakhs. Based on
predicted cash flows from operations for the financial year 2025-26 and sanctions received from lenders to refinance the
long-term borrowings, the management is confident that the Company would be in a position to service its liabilities in the
foreseeable future.

k. The financial statements are approved for issue by the audit committee at its meeting held on 28 April, 2025 and by the
board of directors on 28 April, 2025.

l. Previous yearâs figures have been regrouped / reclassified wherever necessary including those as required in keeping with
revised Schedule III amendments.

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

For Shah Gupta & Co.

Chartered Accountants
F.R.N. 109574W

Heneel K Patel Narinder Singh Kahlon Manoj Kumar Rustagi

Partner Director CEO & Whole Time Director

Membership No.: 114103 DIN No :0378016 DIN No : 07742914

UDIN: 25114103BMNAQX4216

Place: Mumbai Ishika Sharma Girish Menon

Date: 28 April, 2025 Company Secretary Chief Financial Officer

Mar 31, 2024

M. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably

Onerous contracts

Present obligations arising under onerous contracts are recognised and measured as provisions. However, before a separate provision for an onerous contract is established, the Company recognises any write down that has occurred on assets dedicated to that contract. An onerous contract is considered to exist where the Company has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly related to contract activities).

N. Financial Instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through Statement of Profit and Loss (FVTPL)) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit and loss are recognised immediately in Statement of Profit and Loss.

(i) Financial assets

(a) Recognition and initial measurement

A financial asset is initially recognised at fair value and, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. Purchases and sales of financial assets are recognised on the trade date, which is the date on which the Company becomes a party to the contractual provisions of the instrument.

(b) Classification of financial assets

Financial assets are classified, at initial recognition and subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit and loss.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated at FVTPL:

â¢ The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

â¢ The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument is classified as FVTOCI only if it meets both of the following conditions and is not recognised at FVTPL;

â¢ The asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

â¢ The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the Other Comprehensive

Income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain or loss in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

All equity investments in scope of Ind AS 109 are measured at fair value. The Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrumentby-instrument basis. The classification is made on initial recognition and is irrevocable. The equity instruments which are strategic investments and held for long term purposes are classified as FVTOCI.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

All other financial assets are classified as measured at FVTPL.

In addition, on initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVTOCI as at FVTPL if doing so eliminates or significantly reduces and accounting mismatch that would otherwise arise.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains and losses arising on remeasurement recognized in statement of profit or loss. The net gain or loss recognized in statement of profit or loss incorporates any dividend or interest earned on the financial asset and is included in the âother income'' line item.

(c) De-recognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

(d) Impairment

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) through the expected life of that financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.

If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model in the previous period, but determines at the end of a reporting period that the credit risk has not increased significantly since initial recognition due to improvement in credit quality as compared to the previous period, the Company again measures the loss allowance based on 12-month expected credit losses.

that assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.

The impairment requirements for the recognition and measurement of a loss allowance are equally applied to debt instruments at FVTOCI except that the loss allowance is recognised in other comprehensive income and is not reduced from the carrying amount in the balance sheet.

The Company has performed sensitivity analysis on the assumptions used and based on current indicators of future economic conditions, the Company expects to recover the carrying amount

e) Effective interest method

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

Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. Interest income is recognized in profit or loss and is included in the âOther income'' line item.

(ii) Financial liabilities and equity instruments

a) Classification as debt or equity

Debt and equity instruments issued by a company are classified as either financial liabilities or as

equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

b) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs. Repurchase of the Company''s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in Statement of Profit and Loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments

c) Financial liabilities

Financial liabilities are classified as either financial liabilities âat FVTPL'' or âother financial liabilities''.

(i) Financial liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is either held for trading or it is designated as at FVTPL.

A financial liability is classified as held for trading if:

â¢ It has been incurred principally for the purpose of repurchasing it in the near term; or

â¢ on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or

â¢ it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if:

â¢ such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;

â¢ the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company''s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

â¢ it forms part of a contract containing one or more embedded derivatives, and Ind AS 109 permits the entire combined contract to be designated as at FVTPL in accordance with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in Statement of Profit and Loss. The net gain or loss recognized in Statement of Profit and Loss incorporates any interest paid on the financial liability and is included in the Statement of Profit and Loss. For Liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are recognised in OCI.

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the Statement of Profit and Loss.

(ii) Other financial liabilities:

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

d) Reclassification of financial assets/ liabilities:

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

e) De-recognition of financial/ liabilities :

The Company derecognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognised in profit or loss.

O. Segment reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Board of directors of the Company has been identified as the Chief Operating Decision Maker which reviews and assesses the financial performance and makes the strategic decisions.

P. Cash and cash equivalents:

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

For the purpose of the statement of cash flows, cash and cash equivalent consists of cash and short term deposits, as defined above.

Q. Earnings Per Share:

Basic EPS is computed by dividing the net profit or (loss) after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the profit or loss 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 the conversion of all dilutive potential equity shares including the treasury shares held by the Company to satisfy the exercise of the share options by the employees

R. Exceptional items:

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and the same is disclosed in the notes to accounts.

3. Key sources of estimation uncertainty and Recent Accounting Pronouncements:

A Key sources of estimation uncertainty

and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized 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.

i) Useful lives of property, plant and equipment

The Company uses its technical expertise along with historical and industry trends for determining the economic life of an asset/component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate. In case of a revision, the unamortized depreciable amount is charged over the remaining useful life of the assets.

ii) Mines restoration obligation

In determining the fair value of the Mines Restoration Obligation, assumptions and estimates are made in relation to mining reserve, discount rates, the expected cost of mines restoration and the expected timing of those costs.

iii) Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized. Potential liabilities that are remote are neither recognized nor disclosed as contingent liability. The management decides whether the matters needs to be classified as âremote,'' âpossible'' or âprobable'' based on expert advice, past judgements, terms of the contract, regulatory provisions etc.

iv) Fair value measurements

When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flows model . The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values.

Judgments include consideration of inputs such as liquidity risk, credit risk and volatility.

v) Taxes

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

vii) Provisions and liabilities

application of judgment to existing facts and circumstances which may be subject to change. The amounts are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of time value of money and the risk specific to the liability.

viii) Expected credit loss:

The measurement of expected credit loss on financial assets is based on the evaluation of collectability and the management''s judgement considering external and internal sources of information. A considerable amount of judgement is required in assessing the ultimate realization of the loans having regard to, the past collection history of each party and ongoing dealings with these parties, and assessment of their ability to pay the debt on designated dates.

Note 11. Deferred tax assets (net)

Income Tax

Indian companies are subject to Indian income tax on a standalone basis. For each fiscal year, the entity profit and loss is subject to the higher of the regular income tax payable or the Minimum Alternative Tax (âMAT").

Statutory income taxes are assessed based on book profits prepared under generally accepted accounting principles in India adjusted in accordance with the provisions of the (Indian) Income Tax Act, 1961. Statutory income tax is charged at 25% plus a surcharge and education cess with tax benefits or 22% plus a surcharge and education cess without tax benefits.

MAT is assessed on book profits adjusted for certain items as compared to the adjustments followed for assessing regular income tax under normal provisions. MAT for the fiscal year 2023-24 is 15% plus a surcharge and education cess. MAT paid in excess of regular income tax during a year can be set off against regular income taxes within a period of fifteen years succeeding the fiscal year in which MAT credit arises subject to the limits prescribed.

Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.

(i) Rights, preferences and restriction attached to Equity Shares

The company has only one class of equity shares having a par value of '' 2/- per share. Each holder of equity shares is entitled to one vote per share. Whenever Dividend is proposed by board of director it is subject to the approval of shareholder.

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.

(ii) Terms/rights attached to 1% Optional Convertible Cumulative Reedeemable Preference Share (OCCRPS)

The Company has one class of Preference Shares. These shares carry cumulative dividend @ 1%. These OCCRPS are convertible into Equity Shares at the option of the Holder within a period of 18 months from the date of allotment, in one or more tranches, at a price determined on the relevant date or to be redeemed at par upon maturity after 18 months but within 9 years from date of allotment.

The option to convert the instrument into Equity shares lapsed on 04 August, 2022 ( valuation date ), and hence the nature of instrument changes from this date and will be redeemed at par upon maturity. Accordingly, future estimated cash flows of principal on redemption and cumulative coupon of 1% for 9 years are discounted at pre tax borrowing rate of 9.5% to determine the fair value of the instrument at valuation date.

Retained earning :

Retained earnings are the profits that the Company has earned till date, less any transfers 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 Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

Capital Reserve :

Reserve is primarily created out of share forfeiture amounting '' 214.50 lakhs and amalgamation reserve amounting '' 566.03 lakhs as per statutory requirement.

Security premium reserve :

The amount received in excess of face value of the equity shares is recognised in securities premium. This reserve is utilised in accordance with the specific provisions of the Companies Act 2013

Notes :

19.1. The above unsecured loan from related party has been taken from holding company, M/s. JSW Cement Limited. The tenure of the loan is 5 years from the date of disbursement or 31 March, 2026 which ever is earlier or such ended time as may be agreed and repayable at the end of the tenure alongwith interest accrued on the same. The rate of interest range between 8.40% to 8.96%.

19.2. The company raised fund of '' 10,000.00 lakhs by issue of One Crore 1% optionally convertible cumulative redeemable preference share (OCCRPS) of '' 100 each. These OCCRPS are convertible into Equity Shares at the option of the Holder within a period of 18 months from the date of allotment in one or more tranches, at a price determined on the relevant date or to be redeemed at par upon maturity after 18 months but within 9 years from date of allotment.

The option to convert the instrument into Equity shares lapsed on 04 August, 2022 (valuation date), and hence the nature of instrument changes from this date and will be redeemed at par upon maturity. Accordingly, future estimated cash flows of principal on redemption and cumulative coupon of 1% for 9 years are discounted at pre tax borrowing rate of 9.5% to determine the fair value of the instrument at valuation date.

The difference between the issue price of OCCRPS and the fair value on valuation date '' 4,483.73 Lakhs treated as Equity component of compounded financial instrument in the financial statement.

19.3.

a) The applicable rate of interest on term loan from banks is of 8.73% per annum and payable on monthly basis.

b. Term of Repayment

- 9 years ( 36 quarterly structured repayment) from quarter ending 31 December, 2024).

c. Nature of security

- First pari-passu charge on project fixed assets (both moveable & immoveable) including assignment of lease hold right of the land acquired for mining and project.

- Unconditional and irrevocable Corporate Guarantee of JSW Cement Limited - Holding company.

19.4. Term loans were applied for the purpose for which the Term loans have been obtained from Banks.

19.5. All charges are registered with ROC within statutory period by the company.

19.6. Current borrowing includes current maturity of long term debt

Note 20.2. Lease liabilities

The Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months from the date of agreement by class of asset and leases for which the underlying asset is of low value on a lease-by-lease basis. The Company has used a single discount rate to a portfolio of leases with similar characteristics. The Company recognised a lease liability measured at the present value of the remaining lease payments. The right-of-use asset is recognised at its carrying amount and discounted using the lessee''s incremental borrowing rate. The principal portion of the lease payments have been disclosed under cash flow from financing activities.

The Company has recognised '' 2.79 Lakh (previous year '' 0.87 Lakh) as rent expenses during the year which pertains to short term lease/ low value asset which was not recognised as part of right-of-use asset.

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

Note 34 : Financial instruments A. Capital risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity. The Company''s capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by bank borrowing and funding from holding company.

i) Market Risk

Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, commodity prices and other market changes that effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, and borrowings.

All such transactions are carried out within the guidelines set by the management. a) 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 exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in rupees with a mix of fixed and floating rates of interest.

Exposure to interest rate risk

The interest rate profile of the Company''s interest-bearing financial instruments at the end of the reporting period are as follows:

ii) Credit Risk

and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The carrying amount of financial assets represent the maximum credit risk exposure.

(a) Trade receivables

Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. No single customer accounted for 10.0% or more of revenue in any of the years indicated except sales to holding company. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

iii. Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term capital expenditure growth projects. The company generate sufficient cash flow for operation, which together with the available cash and cash equivalent provide liquidity in the short term & long term. The company has established an appropriate liquidity risk management frame work for the management of the company''s short, medium & long term funding and liquidity management requirement. The company manages liquidity risk by maintaining adequate reserve, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by maching the maturity profile of financial asset and liability.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods and its non-derivative financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

c) Employee Benefits:

i) Defined Contribution Plan:

Retirement Benefits in the form of Provident Fund which is defined contribution schemes are charged to the statement of profit and loss for the year in which the contributions to the respective funds accrue as per relevant rules / statutes.

Company''s contribution to Provident Fund & other fund recognized in statement of Profit and Loss '' 75.96 Lakhs (Previous Year '' 27.41 Lakh) ( included in note 28)

ii) Defined Benefit Plans

The Company provides for gratuity to its employees as per the Payment of Gratuity Act, 1972. The amount of gratuity shall be payable to an employee on the termination of employment after rendering continuous service for not less than five years, or on their superannuation or resignation. However, in case of death of an employee, the minimum period of five years shall not be required. The amount of gratuity payable on retirement / termination is the employee''s last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number of years of service completed. The Company does not fully fund the liability and maintains a target level of funding to be maintained over period of time based on estimations of expected gratuity payments.

vi) Compensated Absences

The Company has a policy on compensated absences with provisions on accumulation and encashment of privilege leave by the employees during employment or on separation from the group due to death, retirement or resignation. The expected cost of contingency leave is determined by actuarial valuation performed by an independent actuary at the balance sheet date using projected unit credit method.

The company also have leave policy as follows :

Privileged Leave (PL) - Unutilised PL balance at the end of the calendar year (31^st December) shall be encashed at the prevailing basic pay and no carry forward is allowed.

Contingency Leave (CoL) - Unutilised CoL balance at the end of the calendar year (31^st December) shall not be encashed but allowed to carry forward subject to a maximum of 30 days.

d. Segment Reporting

The Company is primarily in the business of manufacturing and sale of cement related product, primarily with operations in India and regularly reviewed by the Chief Operating Decision Maker (âCODM'') for assessment of Company''s performance and resource allocation. As per IND AS 108 âOperating Segments" specified under Section 133 of the Companies Act 2013, there are no other reportable segment applicable to the company.

The transactions are excluding of taxes wherever applicable.

Compensation to key management personnel

Key managerial persons such as Whole Time Director, Chief Financial Officer, Company Secretary are in receipt of remuneration from the holding company.

The amount paid for sitting fees to non executive independent director during current year is '' 12.00 lakhs (previous year '' 8.65 lakhs),

Terms & Conditions Sales :

The sales to related parties are made on terms equivalent to those that prevail in arm''s length transactions and in the ordinary course of business. Sales transactions are based on prevailing price list and memorandum of understanding signed with related parties. For the year ended 31 March, 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties.

Purchases :

Thepurchasesfrom relatedpartiesaremadeontermsequivalenttothosethatprevail inarm''s lengthtransactionsandinthe ordinary course of business. Purchase transactions are made on normal commercial terms and conditions and market rates.

Loan from Related Party :

The company has availed loan from its holding company for general corporate purpose. The loan balance as on 31 March, 2024 amounting '' 69,759.09 lakhs (balance as on 31 March, 2023''62,136.91 lakhs). The loan is unsecured and carry an interest range between 8.40% to 8.96% per annum and repayable after the end of the tenure.

Corporate Guarantee by Related Party :

The holding company,JSW Cement Limited has issued corporate guarantee to banks on behalf of and in respect of loan availed by the company.

g. During the year ended 31 March, 2024, the Company has incurred a loss of '' 6,844.19 lakh and as on 31 March, 2024 the Company''s accumulated loss '' 29,078.95 lakh resulting in erosion of net-worth of the Company. The Management is hopeful of improving the performance of the company considering the improvement in the plant operational performance. The management is confident that the Company will be able to operate as a âGoing Concern" and meet its liabilities as they fall due for payment along with continued support being received from its shareholders/lenders. Accordingly, these financial statements continue to be presented on a going concern basis..

h. As at 31^st March, 2024; the current liabilities exceed current assets of the Company by 14071.84 lakh. Basis predicated cash flows from operations for the financial year 2024-25 and continued support being received from its shareholders and sanctions received from lenders to refinance the long-term borrowings, the management is confident that the Company would be in a position to service its liabilities in the foreseeable future.

i. The companies incorporated in India and whose financial statements have been audited under the Act have complied with the requirements of audit trail except for the following:

The Company has been maintaining its books of accounts in the SAP which has feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled, throughout the year as required by proviso to sub rule (1) of rule 3 of The Companies (Accounts) Rules, 2014 known as the Companies (Accounts) Amendment Rules, 2021. However, the

audit trail feature is not enabled for direct changes to data in the underlying database and in the application when using certain privileged access rights. The Company as per its policy has not granted privilege access for change to data in the underlying database as evident from the manual log being maintained in this regard and further privilege access rights to application are restricted only to specific authorised users for which audit trail exists except in certain debugging cases.

Further, the Company has also implemented Privileged Access Management tool (PAM) and onboarded the SAP database servers on the PAM tool, which is currently under testing phase. The PAM is identity management tool which focuses on the control, monitoring, and protection of privileged accounts within an organization. The PAM tool saves complete screen video recording sessions of all the admin activities as soon as they authenticate on the PAM console and connect to the target resources (Servers, Network Devices, Applications and Database) which acts as an audit trail feature.

j. Other Statutory information

1. The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property

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

3. 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.

4. 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.

5. The Company does not have any such transaction which is not recorded in the books of accounts that has been

surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

6. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017

7. The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

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

9. Presently no quarterly returns or statements of fund utilisation need to be filed by the Company with banks or financial institutions.

10. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

11. The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

12. The Company does not have any transactions with companies which are struck off.

k. The financial statements are approved for issue by the audit committee at its meeting held on 25 April, 2024 and by the board of directors on 25 April, 2024.

l. Previous year''s figures have been regrouped / reclassified wherever necessary including those as required in keeping with revised Schedule III amendments.

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

For Shah Gupta & Co.

Chartered Accountants F.R.N. 109574W

Heneel K Patel Narinder Singh Kahlon Manoj Kumar Rustagi

Partner Director CEO & Whole Time Director

Membership No.: 114103 DIN No :0378016 DIN No : 07742914

UDIN: 24114103BKBHAY3688

^{Place: Mumbai} Sneha Bindra Girish Menon

Date: 25 April, 2024 Company Secretary Chief Financial Officer

Mar 31, 2023

5.1. Projects has been grouped into various heads basis nature of the projects.

5.2. Capital work-in-progress includes borrowing cost of C 10,544.59 lakhs (as at 31.03.2022 C 3,433.97 lakhs).

5.3. Capital work-in-progress includes trial run expenditure amounting C 1,238.06 lakhs.

5.4. There were no capital work-in-progress assets where completion was overdue against original planned timelines or where estimated cost exceeded its original plant cost as on 31.03.2023 (for the year ended 31.03.2022: C NIL).

8.1. Projects has been grouped into various heads basis nature of the projects.

8.2. There were no intangible asset under development assets where completion was overdue against original planned timelines or where estimated cost exceeded its original plant cost as on 31.03.2023 (for the year ended 31.03.2022: CNIL).

8.3. I ntangible assets under development include expenditure incurred on development of mining rights and other related costs for mines which are yet to be made operational and expenditure towards software upgrades.

7.1. Mining rights includes:

a) Acquisition cost incurred for mines such as stamp duty, registration fees and other such costs have been capitalised as Intangible Assets.

b) Restoration liabilities estimated through a mining expert and accordingly the Company recognised mining rights and corresponding liability (refer note 21.1).

Note 11. Deferred tax assets (net)

Indian companies are subject to Indian income tax on a standalone basis. For each fiscal year, the entity profit and loss is subject to the higher of the regular income tax payable or the Minimum Alternative Tax (âMATâ).

Statutory income taxes are assessed based on book profits prepared under generally accepted accounting principles in India adjusted in accordance with the provisions of the (Indian) Income Tax Act, 1961. Statutory income tax is charged at 25% plus a surcharge and education cess.

MAT is assessed on book profits adjusted for certain items as compared to the adjustments followed for assessing regular income tax under normal provisions. MAT paid in excess of regular income tax during a year can be set off against regular income taxes within a period of fifteen years succeeding the fiscal year in which MAT credit arises subject to the limits prescribed.

Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.

Wherever the Company has a present obligation and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation, such amounts have been adequately provided for, and the Company does not currently estimate any probable material incremental tax liabilities in respect of these matters (refer note 37 (a)).

(i) Rights, preferences and restriction attached to Equity Shares

The Company has only one class of equity shares having a par value of C 2/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

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.

(ii) Terms/rights attached to 1% Optional Convertible Cumulative Redeemable Preference Share (OCCRPS)

The Company has one class of Preference Shares. These shares carry cumulative dividend @ 1%. These OCCRPS are convertible into Equity Shares at the option of the Holder within a period of 18 months from the date of allotment, in one or more tranches, at a price determined on the relevant date or to be redeemed at par upon maturity after 18 months but within 9 years from date of allotment.

The option to convert the instrument into Equity shares lapsed on 04.08.2022 (valuation date), and hence the nature of instrument changes from this date and will be redeemed at par upon maturity. Accordingly, future estimated cash flows of principal on redemption and cumulative coupon of 1% for 9 years are discounted at pre tax borrowing rate of 9.5% to determine the fair value of the instrument at valuation date.

Capital Reserve:

Reserve is primarily created out of share forfeiture amounting C 214.50 lakhs and amalgamation reserve amounting C 566.03 lakhs as per statutory requirement.

Security premium reserve:

The amount received in excess of face value of the equity shares is recognised in securities premium. This reserve is utilised in accordance with the specific provisions of the Companies Act, 2013

Equity component of optionally convertible cumulative redeemable preference shares (OCCRPS)

During the year, upon expiry of conversion options given in OCCRPS, the Company has computed equity portion (based on concessional rate of interest in OCCRPS) amounting to C 4,483.73 lakhs.

Retained earning:

Retained earnings are the profits that the Company has earned till date, less any transfers 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 Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

(i) The above unsecured loan from related party has been taken from holding company, M/s. JSW Cement Limited. The tenure of the loan is 3 years from the date of disbursement or such extended time as may be agreed and repayable at the end of the tenure alongwith interest accrued on the same. The rate of interest is 8.00% per annum.

(ii) The Company raised fund of C 10,000 lakhs by issue of One crore 1% optionally convertible cumulative redeemable preference share (OCCRPS) of C 100 each. These OCCRPS are convertible into Equity Shares at the option of the Holder within a period of 18 months from the date of allotment in one or more tranches, at a price determined on the relevant date or to be redeemed at par upon maturity after 18 months but within 9 years from date of allotment.

The difference between the issue price of OCCRPS and the fair value on valuation date C 4,483.73 lakhs treated as Equity component of compounded financial instrument in the financial statement for the year ended 31.03.2023.

(iii) Out of the sanctioned amount of C 1,06,600 lakhs by consortium of Banks having Axis Bank Limited as a lead banker with other Banks such as Bank of India, Bank of Maharastra & Punjab National Bank, disbursement of loan made during the year is for C 30,266.49 lakhs (Previous year: C 30,990.94 lakhs). Cumulative disbursement of loan done by the banks as on 31.03.2023 is C 61,257.43 lakhs. The applicable rate of interest is of 8.75% per annum till 17.12.2022 & 9.65% from 18.12.2022 to 31.03.2023 during construction period. (8.50% after date of schedule operation 30.09.2023) and payable on monthly basis.

a) Term of Repayment

- 9 years (36 quarterly structured repayment) after one year of moratorium from schedule date of operation i.e. 30.09.2024

b) Nature of security

- First pari passu charge on project fixed assets (both moveable & immoveable) including assignment of lease hold right of the land acquired for mining and project.

- Unconditional and irrevocable Corporate Guarantee of JSW Cement Limited - Holding company.

(iv) Term loans were applied for the purpose for which the Term loans have been obtained from Banks.

(v) As per the term sheet, the Company is not required to file Stock statements or any Bank returns with its bankers.

(vi) All charges are registered with ROC within statutory period by the Company.

(vii) The Company has not declared wilful defaulter by any bank or financial institution or lender during the year.

Note 20.2. Lease liabilities

The Company incurred C Nil for the year ended March 31, 2023 (C 2.74 lakhs for year ended March 31, 2022) towards expenses relating to short-term leases and leases of low-value assets. The total cash outflow for leases is C Nil for the year ended March 31, 2023 (C 2.74 lakhs for year ended March 31, 2022), including cash outflow for short-term and low value leases.

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

Ind AS 115 Revenue from Contracts with Customers

The Company recognises revenue when control over the promised goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

The Company has assessed and determined the following categories for disaggregation of revenue in addition to that provided under segment disclosure (refer note 37 e):

25.1. The credit period on sales of goods ranges from 0 to 30 days with or without security.

25.2. As at March 31, 2023, C 130.33 lakhs (previous C 129.26 lakhs) was recognised as provision for allowance for doubtful debts on trade receivables.

25.3. Contract liabilities include short-term advances received for sale of goods. The outstanding balances of these accounts decreased in due to adjustment against receivable balances. Short-term advances are detailed in note 24.

25.4. Out of the total contract liabilities outstanding as on March 31, 2023, C 3.83 lakhs (previous C 51.50 lakhs) will be recognised by March 31, 2023 and remaining thereafter.

25.5. Trade receivables are in respect of sales made during trial run operations (Refer note 36).

Note 33. Income tax

Indian companies are subject to Indian income tax on a standalone basis. For each fiscal year, the entity profit and loss is subject to the higher of the regular income tax payable or the Minimum Alternative Tax (âMATâ).

Statutory income taxes are assessed based on book profits prepared under generally accepted accounting principles in India adjusted in accordance with the provisions of the (Indian) Income Tax Act, 1961. Statutory income tax is charged at 25% plus a surcharge and education cess.

Note 34. Financial instruments A. Capital risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity. The Company''s capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by bank borrowing and funding from holding company.

The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the asset and closely monitors its judicious allocation amongst competing capital expansion projects and strategic acquisitions, to capture market opportunities at minimum risk. The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, Bank balances other than cash and cash equivalents and current investments.

Fair value hierarchy of financial instruments

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

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

Level 2: The fair value of financial instruments that are not traded in an active market (for example traded bonds) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on company specific estimates. The mutual fund units are valued using the closing net asset value. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Calculation of fair values:

The fair values of the financial assets and liabilities are defined as the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the year ended 31.03.2023.

Financial assets and Financial liabilities

Cash and Cash equivalents, trade receivables, investments in term deposits, other financial assets, trade payables, and other financial liabilities (other than those specifically disclosed) have fair values that approximate to their carrying amounts due to their short-term nature.

Loans have fair values that approximate to their carrying amounts AS it is based on the net Present value of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

The carrying amount of Trade Receivable, Trade Payable, Capital Creditors, Cash and Cash Equivalents and other Bank Balances are considered to be the same as their fair values due to their short-term nature. The management considers that the carrying amount of financial assets and financial liabilities recognised in the financial statements approximate their fair values.

The management consider that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair values.

Financial risk management

Board of Directors of the Company has developed and monitoring the Company''s risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

The risk management policies aim to mitigate the following risks arising from the financial instruments:

i) Market risk

ii) Credit risk

iii) Liquidity risk

Risk management framework

The Company''s principal financial liabilities, comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company operations. The Company''s principal financial assets, include trade and other receivables, investments and cash and cash equivalents that derive directly from its operations.

Board of Directors of the Company have developed and are monitoring the Company''s risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and processes for measuring and managing risk, and the Company''s management of capital.

i) Market Risk

Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowings.

All such transactions are carried out within the guidelines set by the management.

a) 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 exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

Interest Rate Sensitivity -

The sensitivity analysis below have been determined based on the exposure to interest rates for financial instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 100 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

b) Commodity risk

Commodity price risk for the Company is mainly related to fluctuations in coal prices linked to various external factors, which can affect the production cost of the Company. Since the fuel costs is one of the primary costs drivers, any fluctuation in fuel prices can lead to drop in operating margin. To manage this risk, the Company take steps to optimise the fuel mix and to pursue longer term and fixed contracts, where Additionally, processes and policies related to such risks are reviewed and controlled by senior management and fuel requirement are monitored by the procurement team.

ii) Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The carrying amount of financial assets represent the maximum credit risk exposure.

(a) Trade receivables

Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. No single customer accounted for 10.0% or more of revenue in any of the years indicated except sales to holding company. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Our historical experience of collecting receivables indicate a low credit risk. Hence, trade receivables are considered to be a single class of financial assets.

iii. Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short-term operational needs as well as for long-term capital expenditure growth projects. The Company generate sufficient cash flow for operation, which together with the available cash and cash equivalent provide liquidity in the short-term & long-term. The Company has established an appropriate liquidity risk management frame work for the management of the Company''s short, medium & long-term funding and liquidity management requirement. The Company manages liquidity risk by maintaining adequate reserve, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by maching the maturity profile of financial asset and liability.

^a)	Contingent liabilities not provided for in respect of disputed claims/levies:		C in lakhs
	Particular	As at 31.03.2023	As at 31.03.2022
	Orissa Sales Tax, VAT, CST	130.00	130.00
	Entry Tax	6.38	6.38
	Income tax	3,048.73	466.32
	Compensation for excess mining of Limistone	-	1,857.74
	Interest @ 1% on Optionaly convertible cumulative redeemable preference shares (OCCRPS)	216.67	116.67
	Total	3,401.78	2,577.11
b)	Commitments		C in lakhs
	Particular	As at 31.03.2023	As at 31.03.2022
	Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance)	8,883.05	17,870.04

c) The Company is yet to receive balance confirmation in respect of certain Trade Payables, Advances and Trade Receivables. The Management does not expect any material difference affecting the amount at which they are stated.

d) Employee Benefits:

i) Defined Contribution Plan:

The Company operates defined contribution retirement benefit plans for all qualifying employees. Under these plans, the Company is required to contribute a specified percentage of payroll costs.

Company''s contribution to provident fund recognised in statement of Profit and Loss C 23.90 lakhs (Previous year: C 22.55 lakhs) (included in note 28).

ii) Defined Benefit Plans

Under the Gratuity plan, the eligible employees are entitled to post-retirement benefit at the rate of 15 days salary for each year of service until the retirement age of 58 and 60 without any payment ceiling. The vesting period for Gratuity as payable under The Payment of Gratuity Act is 5 years.

Under the compensated absences plan, leave encashment is payable to all eligible employees on separation from the Company due to death, retirement, superannuation or resignation. At the rate of daily salary, as per current accumulation of leave days.

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.

The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for estimate term of the obligations.

iv) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate,expected salary increase and attrition. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting year, while holding all other assumptions constant.

e) Segment Reporting

The Company is primarily in the business of manufacturing and sale of cement and cement related product. As per Ind AS 108 âOperating Segmentsâ specified under Section 133 of the Companies Act, 2013, there are no other reportable business applicable to the Company.

vi) Compensated Absences

Under the compensated absences plan, leave encashment is payable to certain eligible employees on separation from the Company due to death,retirement, superannuation or resignation. Employees are entitled to encash leave while serving the Company at the rate of daily salary, as per current accumulation of leave days.

The Company also has leave policy for certain employees to compulsorily encash unavailed leave on December 31, every year at the current basic salary.

vii) The Code on Social Security, 2020 (âthe Codeâ) relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect.

Key managerial persons such as Whole Time Director, Chief Financial Officer, Company Secretary are in receipt of remuneration from the holding company.

Terms & Conditions Sales:

The sales to related parties are made on terms equivalent to those that prevail in arm''s length transactions and in the ordinary course of business. Sales transactions are based on prevailing price lists and memorandum of understanding signed with related parties. For the year ended 31.03.2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties.

Purchases:

The purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions and in the ordinary course of business. Purchase transactions are made on normal commercial terms and conditions and market rates.

Loan from Related Party:

The Company has availed loan from its holding company for general corporate purpose. The loan balance as on 31.03.2023 was amounting C 62,136.91 lakhs. The loan is unsecured and carry an interest 8.00% per annum and repayable after the end of the tenure.

Corporate Guarantee by Related Party:

The holding company, JSW Cement Limited has issued corporator guarantee to banks on behalf of and in respect of loan availed by the Company.

i) During the year ended 31.03.2023, the Company has incurred a loss of C 8,044.18 lakhs and as on 31.03.2023, the Company''s accumulated loss is C 22,234.75 lakhs resulting in erosion of net-worth of the Company. The Management is hopeful of improving the performance of the Company after expansion and commissioning of 4000 TPD clinkerisation unit. The management is confident that the Company will be able to operate as a âGoing Concernâ and meet its liabilities as they fall due for payment based on its future business plans as indicated in this note and continues support being received from its shareholders/lenders. Accordingly, these financial statements continue to be presented on a going concern basis.

j) Other Statutory information

1. The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

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

3. 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.

4. 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.

5. The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

6. The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

7. The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

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

9. Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of account.

10. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

11. The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

12. The Company does not have any transactions with companies which are struck off.

k) The financial statements are approved for issue by the audit committee at its meeting held on 16.05.2023 and by the board of directors on 16.05.2023.

m) Previous year''s figures have been regrouped/reclassified wherever necessary including those as required in keeping with revised Schedule III amendments.

Mar 31, 2018

1. General Information

Shiva Cement Limited (âthe Companyâ) is engaged in the business of manufacture and sale of cement, clinker and trading of allied products. The company is operating its integrated cement plant having cement production capacity of 1,32,000 MT and clinker production capacity of 1,15,500 MT.

Shiva Cement Limited is a public limited company and is listed on Bombay Stock Exchange having its registered office at YY-5, Civil Township, Rourkela, Sundargarh, Odisha.

2. Key sources of estimation uncertainty and Recent Accounting Pronouncements:

A. Key sources of estimation uncertainty

In the course of applying the policies outlined in all notes under section 2 above, the Company is required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized 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.

i) Useful lives of property, plant and equipment

ii) Mines restoration obligation

In determining the fair value of the Mines Restoration Obligation, assumptions and estimates are made in relation to mining reserve, discount rates, the expected cost of mines restoration and the expected timing of those costs.

iii) Contingencies

iv) Fair value measurements

When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include consideration of inputs such as liquidity risk, credit risk and volatility. v ) Taxes

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

The cost of defined benefit plan and other postemployment benefits and the present value of such obligations are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual development in the future. These include the determination of the discount rate, future salary escalations and mortality rates etc. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

B. Recent Accounting Pronouncements

(i) IND AS 115 - Revenue from Contracts with Customers:

On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Ind AS 115, Revenue from Contract with Customers effective from April 1, 2018. The core principle of the new standard is that an entity should recognize revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers. Control of an asset refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset. Control includes the ability to prevent other entities from directing the use of, and obtaining the benefits from, an asset.

(ii) IND AS 21 - Foreign currency transactions and advance consideration

On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 effective from April 1, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

(iii) Amendments to Ind AS 12

Amendments to Ind AS 12, Income Taxes clarifying the requirements for recognising deferred tax assets on unrealised losses. The amendments clarify the accounting for deferred tax where an asset is measured at fair value and that fair value is below the assetâs tax base. They also clarify certain other aspects of accounting for deferred tax assets. These amendments only clarify the existence of guidance of Ind AS 12 and do not change the underlying principles for recognition of deferred tax asset.

b Fixed Assets include assets with net block of Rs. 95.52 Lakhs (Previous Year Rs. 119.32 Lakhs) not owned by the Company. c The land at kalunga and the land at Teleghana on which factories have been built were taken on 90 years lease from Industrial Development Corporation of Odissa. d Certain property, plant and equipment are pledged against borrowings ,the details relating to which have been described in Note 17 pertaining to borrowings.

e The Company has reviewed the useful lives and the residual value of Property,Plant and equipment and intangible assets in accordance with requirement of IND AS and revised the useful life of Property,plant and equipments and Intangible assets. Accordingly, depreciation for the current year is higher by Rs. 24.34 Lakhs.

Deferred Tax benefits are recognised on assets to the extent that it is probable that taxable profit will be available against which the deductible temporary differences will be utilised against which the asset can be utilised

3.1. Includes deposits of Rs. 63.05 lakhs ( as at 31.03.2017 - Rs. 65.17 lakhs, as at 31.03.2016- Rs. 78.11 lakhs ) are pledged with bank against cash credit facilities.

3.2. Includes deposits of Rs. 68.79 lakhs ( as at 31.03.2017 - Rs. 1.96 lakhs , as at 31.03.2016- Rs. 1.79 lakhs) given as security to Government department and others.

(i) Terms/rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs. 2/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.

4.1 . Trade Payables are based on the information available with the Company regarding the status of the suppliers as defined under the âMicro, Small and Medium Enterprises Development Act, 2006â and there are no delays in payments to Micro, Small, and Medium Enterprises as required to be disclosed under the said Act.

5.1. There are no amounts due and outstanding to Investor Education and Protection Fund as at 31.03.2018, 31.03.2017 and 01.04.2016.

5.2 Others include the liability related to Employees, Rebate and Discount to Customers etc.

Note 6 . Financial instruments

A. Capital risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity. The Companyâs capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings and strategic acquisitions. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by bank borrowing and funding from holding company.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, Bank balances other than cash and cash equivalents and current investments.

(i) Equity includes all capital and reserves of the company that are managed as capital

(ii) Debt is defined as long-term and short-term borrowings .

A. Risk management framework

The Company has a Risk Management Committee established by its Board of Directors for overseeing the Risk Management Framework and developing and monitoring the Companyâs risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Companyâs activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

B. Financial risk management

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

- Market risk

- Interest rate risk

- Credit risk ; and

- Liquidity risk

i. 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 the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates and interest rates.The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Companyâs policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the Management and the internal auditors on a continuous basis. The Company does not enter into or trade financial instruments, including derivatives for speculative purposes.

ii. 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 exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities, after the impact of hedge accounting, assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

iii. Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Companyâs credit risk arises principally from the trade receivables, loans, cash & cash equivalents, derivatives.

(a) Trade receivables

Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an individual credit limits defined in accordance with the assessment.Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. No single customer accounted for 10.0% or more of revenue in any of the years indicated. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

(b) Cash and cash equivalents :

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For derivative and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by credit-rating agencies. The Companyâs maximum exposure to the credit risk for the components of balance sheet as 31st March 18, 31st March 17 and 1st April 16 is the carrying amounts mentioned in Note no 12 .

iv. Liquidity risk management

The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods and its non-derivative financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

Collateral

The Company has pledged part of its trade receivables, short term investments and cash and cash equivalents in order to fulfil certain collateral requirements for the banking facilities extended to the Company. There is obligation to return the securities to the Company once these banking facilities are surrendered.

c) In the opinion of the Management, the current assets, the loans and advances have a value on realisation atleast equal to the amount at which they are stated in Balance Sheet in ordinary course of business. Provisions are for all known liabilities and the same is adequate and not in excess of what is required.

d) The Company is yet to receive balance confirmation in respect of certain Trade Payables, Advances and Trade Receivables. The Management does not expect any material difference affecting the amount at which they are stated.

e) Exceptional Item:

-Exceptional item for the year ended March 31, 2018 amounting to Rs. 1011.41 lakhs represents settlement of old quality claims and interest on disputed security deposit under long-term supply agreement of cement.

-Exceptional items for the previous year ended March 31,2017 amounting to Rs. 1109.54 Lakhs includes prior period interest on statutory dues, security deposits written off and consultancy charges.

f) Employee Benefits:

i) Defined Contribution Plan:

The company operates defined contribution retirement benefit plans for all qualifying employees.

ii) Defined Benefit Plans - Gratuity:

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

No other post-retirement benefits are provided to these employees.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at 31 March 2018 by external agencies. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Companyâs contribution to Provident Fund recognized in statement of Profit and Loss Rs. 21.92 Lakhs (Previous Year Rs. 20.85 Lakhs). Companyâs contribution to ESIC recognized in statement of Profit and Loss Rs. 8.37 Lakhs (Previous Year Rs. 8.02 Lakhs).

g) Segment Reporting

The Company is primarily in the business of manufacturing and sale of cement and cement related product. As per IND AS 108 âOperating Segmentsâ specified under Section 133 of the Companies Act 2013, there are no other reportable business applicable to the company Non-current operating assets

All non - current assets, financial instruments, deferred tax assets of the company are located in India.

NOTES:

1. To comply with the Companies (Accounting Standard) Rules, 2006, certain account balances have been regrouped as per the format prescribed under Division II of Schedule III to the Companies Act, 2013.

2. Financial liabilities and related transaction costs:

Borrowings and other financial liabilities which were recognized at historical cost under previous GAAP have been recognized at amortised cost under Ind AS with the difference been adjusted to opening retained earnings.

Under previous GAAP, transaction costs incurred in connection with borrowings were amortised equally over the tenure of the borrowings. Under Ind AS, transaction costs are deducted from the initial recognition amount of the financial liability and charged over the tenure of borrowing using the effective interest method.

Difference in the un-amortised borrowing cost as per Ind AS and previous GAAP on transition date has been adjusted to the cost of asset under construction or opening retained earnings, as applicable.

3. Financial assets at amortised cost:

Certain financial assets held on with an objective to collect contractual cash flows in the nature of principal and interest have been recognized at amortised cost on transition date as against historical cost under the previous GAAP with the difference been adjusted to the opening retained earnings.

4. Deferred tax as per balance sheet approach:

Under previous GAAP, deferred tax was accounted using the income statement approach, on the timing differences between the taxable profit and accounting profits for the period. Under Ind AS, deferred tax is recognized following balance sheet approach on the temporary differences between the carrying amount of asset or liability in the balance sheet and its tax base. In addition, various transitional adjustments has also lead to recognition of deferred taxes on new temporary differences.

5. Excise duty:

Under previous GAAP, revenue from sale of goods was presented net of excise duty whereas under Ind AS the revenue from sale of goods is presented inclusive of excise duty. The excise duty is presented on the face of the Statement of Profit and Loss as part of expenses.

6. Defined benefit liabilities:

Under Ind AS, Remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined liability, are recognized in other comprehensive income instead of profit or loss in previous GAAP.

7. Property,plant and equipments

Under IGAAP, Leasehold Land were classified as Fixed Assets as the standard on the leases excluded Land. However, as per IND AS - 17, where the substantial risk and rewards incidental to ownership of an asset has not been transferred in the name of the company, the company has classified such land under Operating lease. The amount paid towards such leases has been shown as Pre payments under Other non current assets.

8. Other comprehensive income:

Under Ind AS, all items of income and expense recognized in the period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss and âother comprehensive incomeâ includes remeasurements of defined benefit plans and fair value gain or losses on FVTOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

Mar 31, 2016

Term Loan-2 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 6.76 Lakhs and last installment of Rs 6.77 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 1 year 15 days.

Term Loan-3 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.04 Lakhs and last installment of Rs 3.04 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 1 year 15 days.

Term Loan-4 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.77 Lakhs and last installment of Rs 3.77 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 1 year 15 days.

(c) The Term Loan from IDBI Bank Ltd is repayable in 18 quarterly unequal installments as given below from July,2016. The loan is secured by first charge on entire fixed assets of the company situated at Telighana, Kutra present and future except those which are charged to Tata Capital & second charge on the current assets of the company, Pledge of 5 lakh number of equity shares of the promoters, Lien on Fixed deposits of Rs. 55 Lacs, Pledge of additional 1 crore number of equity shares having face value of Rs 2/- per share, & Mortgage of additional around 25 Acres land at Telighana Plant having approx market value about Rs. 4.25 Crores as per agreement dated 26/03/2016. The period of maturity as on Balance Sheet date is 4 years 7 months.

Mar 31, 2015

1.1 Related party transaction

Details of related parties:

Description of relationship Names of related parties

Associates Shivom Minerals Ltd.

Key Management Personnel (KMP) Mr. R.P. Gupta

Mr.Akash Gupta

Relatives of KMP Smt Anubha Bhoir (Daughter of Managing Director)

Smt Shilpi Agarwal (Daughter of Managing Director)

Master Raghav Gupta (Son of Executive Director)

Master Rachit Gupta (Grandson of Managing Director)

Sri Jatin Bhoir (Husband of Daughter of Managing Director)

Company in which KMP / Relatives of KMP can exercise significant influence Unicon Merchants (p) Ltd. In which Mr. R.P.Gupta and

Mr. Akash Gupta are directors.

1.2 Balances of parties are subject confirmation & reconciliation and consequential adjustment, if any.

1.3 Self consumption of cement by the company for its expansion project and testing work has been provided at estimated cost as determined by the management.

1.4 Sales of products (Note No. 19) includes raw materials like slag, coal etc.

1.5 Value of imports on C.I.F basis is Nil ( P.Y Import of Capital goods Rs. Nil)

1.6 Number of Employees who were in receipt of or entitled to receive emoluments including benefits aggregating to Rs.60.00 Lakhs or more per annum if employed for full year or Rs.5.00 Lakhs per month or more if employed for part of the year - NONE. (Previous year - None)

1.7 Sales of products includes traded goods in raw materials like slag, coal etc.

1.8 MAT credit entitlement of Rs. 415.98 Lakhs (Previous year Rs. 360.72 Lakhs) is treated as an asset which shall be adjusted against future income tax liability in coming years.

Mar 31, 2014

1. (a) Terms/rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs 2/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.

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.

(b) Terms/rights attached to 9% Non Cumulative Redeemable Preference Shares

The company has only one class of Preference Shares. These shares carry non cumulative dividend @ 9% These NCRP Shares are redeemable in four installments by 2014-15 (out of which 40% has been redeemed) with an option to the holders & the company to mutually alter and vary the terms of these NCRP''s before and after their allotment.

(C) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date:

1,70,00,000 equity shares (Previous year-1,70,00,000 equity shares) out of the issued, subscribed and paid up share capital were alloted as bonus shares in the last five years.

* Note - Public deposits includes Rs.7.82 Lakhs (Previous year Rs.7.64 Lakhs) from related parties.

2. Details of Security and Terms of repayment of Loans are as under:

(a) The Term loan from Bank of Baroda is secured by the hypothecation of car Scorpio and personal guarantee of Directors (Mr. R.P.Gupta and Mr. Akash Gupta) as specified in the loan agreement executed on 15-11-2011. The loan is repayable in 48 monthly installments of Rs.0.24 Lakhs each. It carries floating rate of interest @ 12.5%. The period of maturity as on Balance Sheet date is 1 years 8 months.

(b) The Term Loan from ICICI Bank Ltd carries interest @ 13.25% (floating) p.a. The loan is repayable in 23 EMI of Rs. 1.34 Lakh along with interest, from Oct, 2013. The loan is secured by first & exclusive charge on Vehicles, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 24/09/2013. The period of maturity as on Balance Sheet date is 17 months.

(c) The Term loan from Tata Capital Financial Services Ltd. are :

Term Loan-1 from Tata Capital Financial Services Ltd. carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 6.83 Lakhs and 1 installment of Rs 6.83 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 3 years 15 days.

Term Loan-2 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 6.76 Lakhs and 1 installment of Rs 6.77 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 3 years 15 days.

Term Loan-3 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.04 Lakhs and 1 installment of Rs 3.04 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 3 years 15 days.

Term Loan-4 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.77 Lakhs and 1 installment of Rs 3.77) Lakhs along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 3 years 15 days.

(d) Term Loan from Religare Finvest Ltd carries interest @ 18 % p.a. The loan is repayable in 12 EMI of Rs 4.58 Lakhs along with interest, from 1st July, 2013 as per agreement dated 27/09/2013. The period of maturity as on Balance Sheet date is 3 months.

(e) Term Loan from Tata Capital Financial Services Ltd carries interest @ 18% p.a. The loan is repayable in 12 EMI of Rs.2.37 Lakhs along with interest, from Oct, 2013. The period of maturity as on Balance Sheet date is 6 months.

(f) Unsecured loans from bodies corporate carries interest @ 12% applicable from April 2014 and are repayable after 12 months.

31/03/2014

Particulars Period Demand Paid under Protest

3. Contingent liabilities not provided for

(i) Orissa Sales Tax

1995-96 47.25 8.00

1992-93 to 1995-96 999 4.35 1998-99 1.89 1.00

2003-04 57.84 27.50 2004-05 69.71 8.00

JuneÂ03 to SeptÂ03 1.44 - Central Sales Tax

1995-96 8.69 -

1998-99 0.27 0.08

2003-04 3.01 1.30

Entry Tax

1999-2000 0.58 0.20

2001-02 4.20 2.60

2002-03 148 040

2003-04 160 120

2004-05 1.27 0.35

2008-11 2.95 0.23

Income Tax (TDS)

2008-12 307.11 5.25

Total 519.26 60.46

31/03/2013

Particulars Period Demand Paid under Protest

(i) Orissa Sales Tax

1995-96 47.25 8.00

1992-93 to 1995-96 999 4.35 1998-99 1.89 1.00

2003-04 57.84 27.50 2004-05 69.71 8.00

JuneÂ03 to SeptÂ03 1.44 - Central Sales Tax

1995-96 8.69 -

1998-99 0.27 0.08

2003-04 3.01 1.30

Entry Tax

1999-2000 0.58 0.20

2001-02 4.20 2.60

2002-03 148 0.40

2003-04 160 120

2004-05 1.27 0.35

2008-11 2.95 0.23

Income Tax (TDS)

2008-12 - -

Total 212.15 55.21

31/03/2014 31/03/2013

(ii) Bank guarantees issued by the bank on behalf of the company 40.19 46.82

(iii) Commitments : 31/03/2014 31/03/2013

Estimated amount of contracts remaning to be executed on capital acoount and not provided for

Tangible Assets 147.50 145.00

Intengible Assets - -

4. Balances of parties are subject confirmation & reconciliation and consequential adjustment, if any.

5. Self consumption of cement by the company for its expansion project and testing work has been provided at estimated cost as determined by the management.

6. Sales of products (Note No. 19) includes raw materials Like slag, coal etc.

7. Value of imports on C.I.F basis is Nil ( P.Y Import of Capital goods Rs. Nil)

8. Number of Employees who were in receipt of or entitled to receive emoluments including benefits aggregating to Rs.60.00 lacs or more per annum if employed for full year or Rs.5.00 lacs per month or more if employed for part of the year - NONE. (Previous year - None)

9. Sales of products includes traded goods in raw materials Like slag, coal etc.

10. MAT credit entitlement of Rs. 360.73 lacs (Previous year Rs. 286.06 lacs is treated as an asset which shall be adjusted against future income tax liability in coming years).

11. The previous year figures have been re-worked, re-arranged, re-grouped, and re-classified, wherever considered necessary to conform to the current year figures.

Mar 31, 2013

31/03/2013 31/03/2012

Particulars Period Demand Paid under Demand Paid under Protest Protest

1.1 Contingent liabilities

(i) Orissa Sales Tax

1995-96 * 47.25 8.00 47.25 8.00

1992-93 to 1995-96 9B(3) 9.99 4.35 9.99 4.35

1998-99 1.89 1.00 1.89 1.00

2003-04 57.84 27.50 57.84 27. 50

2004-05 69.71 8.00 69.71 8.00

June 03 to Sept 03 1.44 0.00 1.44 0.00

2005-07 - - 8.60 2.07

Central Sales Tax

1996-96* 8.69 - 8.69 -

1998-99 0.27 0.08 0.27 0.08

2003-04 3.01 1.30 3.01 1.30

Entry Tax

1999-2000 0.58 0.20 0.58 0.20

2001-02 4.20 2.60 4.20 2.60

2002-03 1.48 0.40 1.48 0.40

2003-04 1.60 1.20 1.60 1.20

2004-05 1.27 0.35 1.27 0.35

2005-08 - - 0.30 0.12

2008-11 2.95 0.23 - -

Total 212.15 55.21 218.10 57.17

(ii) Contigent Liabilities not provided for : 31/03/2013 31/03/2012

Bank guarantees issued by on behalf of the company 46.82 46.82

(iii) Commitments : 31/03/2013 31/03/2012

Estimated amount of contracts remaining to be executed on capital account and not provided for ]Tangible Assets 145.00 122.50

Intangible Assets - -

Note: Related parties have been identified by the Management. 27.5. Balances of parties are subject confirmation & reconciliation and consequential adjustment, if any. 27.6. Own consumption of cement by the unit for its expansion and testing work has been provided at estimated cost as determined by the management.

1.2 Sales of product (Note No.20) includes raw material Like slag, coal etc.

1.3. Value of imports on C.I.F basis is Nil ( P.Y Import of Capital goods Rs. Nil )

1.4. Number of employees who were in receipt of or entitled to receive emoluments including benefits aggregating to Rs. 60.00 Lakhs or more per annum if employed for full year or Rs. 5.00 Lakhs per month or more if employed for part of the year - NONE.

1.5. Sales of product (Note No.19) includes raw material Like slag, coal etc.

1.6. MAT credit entitlement of Rs. 286.06 Lakhs (including earlier years Rs.207.59 Lakhs is treated as an asset which shall be adjusted against future income tax liability in coming years.

Mar 31, 2012

(i) (b) Terms/rights attached to 9% Non Cumulative Redeemable Preference Shares

The company has only one class of Preference Shares. These shares carry non cumulative dividend @ 9% These NCRP Shares are redeemable in four installments by 2014-15 with an option to the holders & the company to mutually alter and vary the terms of these NCRP's before and after their allotment.

(ii) Details of shares held by each shareholder holding more than 5% shares:

(iii) Shares reserved for issue

There were 50,00,000 Equity shares warrants outstanding as on the balance sheet date (Previous year 1,26,36,028 Equity shares warrants) issued at a price of Rs. 11/- each convertible into Equity shares of face value of Rs. 21- each at a premium of Rs.9/- per share (Refer Note 28.1).

(v) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date:

1,65,00,000 equity shares (Previous year-1,57,36,397 equity shares) out of the issued .subscribed and up share capital were alloted as bonus shares in the last five years.

Security and Terms of repayment of Term Loans as under :

(a) Term loan from IDBI Bank carries interest @ 14.75% p.a. and is repayable in 14 quarterly installments (9 instalments of Rs. 70 lacs, 4 instalments of Rs. 90 lacs and one instalment of Rs. 91 lacs along with interest commencing from 01-06-2009. The loan is secured by first charge on movable and immovable assets of the company as per agreement dated 25 May, 2010. Further, the loan is also secured by personal guarantee of Mr. R. P Gupta, MD and Mr. Akash Gupta, ED of the company. The period of maturity as on Balance Sheet date is six months.

(b) Term Loan (FITL)from IPICOL Ltd carries interest 11% p.a. and repayable in 12 quarterly installments of Rs. 2.89 Lakhs each along with interest, from May, 2011. The loan is secured by hypothecation of Fixed assets of the company. The period of maturity as on Balance Sheet date is two years.

(c) Term loan from Bank of Baroda (Personal guarantee of Mr. R. P. Gupta MD and Mr. Akash Gupta ED provided) and is :

- Secured by the hypothecation of Maruti SX4 Car and as per loan agreement executed on 22-04-2009. The loan is repayable in 48 monthly instalments of Rs. 0.18 Lakhs each and carries floating rate of interest @ 12.75%. The period of maturity as on Balance Sheet date is 1 year 1 month.

- Secured by the hypothecation of Toyota Car as per the loan agreement executed on 03-02-2009.The loan is repayable in 48 monthly instalments of Rs.0.28 Lakhs each and carries floating rate of interest @ 12.75%. The period of maturity as on Balance Sheet date is 11 months.

-Secured by the hypothication of Mahindra Scorpio Car as per loan agreement executed on 15-11-2011. The loan is repayable in 48 monthly instalments of Rs.0.24 Lakhs each. It carries floating rate of interest@13%. The period of maturity as on balance sheet date is 3 years 8 months.

Notes:

(ii) (a) The working capital loan is secured by personal gurantee of Mr. R.P.Gupta, MD and Mr. Akash Gupta, ED of the company.

(ii) (b) Working capital loan from banks is secured against entire current assets including book debt of the company and second charge on the entire movable & immovable fixed assets of the company, as per agreement dated 13th Jan, 2012 , the loan is further secured by lien over Fixed deposits of Rs. 55 lacs and pledge of 5 lacs nos. of equity shares by the promoters and personal guarantee of Shri R.RGupta, MD and Shri Akash Gupta, ED. The working capital loan is repayable on demand and carries rate of interest of 16.25%.

-Trade payables as on 31-03-2012 includes amount aggregating to Rs.36.49 Lakhs due to small Scale Industries undertaking. Out of the above amount due to exceeds Rs. 1.0 Lakhs & outstanding for more than 30 days is Rs.3.51 Lakhs as listed below:-

Names : Proton Steels Ltd., Jagannath Plastic Packs Ltd

Disclosure of Trade Payables under current liabilities is based on the information available with the company/firm regarding the status of suppliers as defined under the Micro, Small & Medium Enterprises Development Act, 2006. Amount overdue as on 31st march,2012 to Micro & Small Enterprises on account if Principal Amount Rs. nill(Previous Year Rs.Nill) and interest Rs. Nill (Previous year Rs. Nill)

Note :

(i) Depreciation on Plant & Machinery, Elect.lnstallation/DG Set and Pollution Control Equipment has not been provided for 100 days of Kiln unit and 10 days on Cement plant on which respective units/items were not used due to operational shutdown of the respective units for maintenance / other purposes.

(ii) The land at Kalunga on which Factory has been built is taken on 90 years lease from Industrial Developments Corporation of Orissa. The land atTeleghana on which factory has been built is taken on 90 years lease from Orissa Industrial Infrastructure Development Corporation.

(iii) The Kalunga plant of the company was closed since 27th September, 2002, hence no depreciation is Provided.

2.1 Amount received against share warrants

The Board of Directors of the Company at their meeting held on 7 December, 2010 and as approved at its Extra Ordinary General Meeting held on 29 November, 2010 have alloted 1,10,36,028 warrants, convertible into 1,10,36,028 equity shares of Rs. 21- each at a premium of Rs. 9/- per share on preferential allotment basis, pursuant to Section 81(1 A) of the Companies Act, 1956, at a conversion price of Rs. 11/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard to the promoters and the 25% application money amounting to Rs. 303.49 lakhs was received from them, out of which 60,36,028 equity shares warrants were converted into equity on 16th Sep, 2011. The balance 50,00,000 warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before 6th June, 2012. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

31/03/2012 31/03/2011

Particulars Period Demand Paid under Demand Paid under Protest Protest

2.2 Contingent liabilities

(i) Orissa Sales Tax

1995-96* 47.25 8.00 47.25 8.00

1992-93 to 1995-96 9B(3) 9.99 4.35 9.99 4.35

1998-99 1.89 1.00 1.89 1.00

2003-04 57.84 27.50 57.84 27.50

2004-05 69.71 8.00 69.71 8.00

June 03 to Sept 03 1.44 - 1.44 -

Central Sales Tax

1995-96* 8.69 - 8.69 -

1998-99 0.27 0.08 0.27 0.08

2003-04 3.01 1.130 3.01 1..30

Entry Tax

1999-2000 0.58 0.20 0.58 0.20

2001-02 4.20 2.60 4.20 2.60

2002-03 1.48 0.40 1.48 0.40

2003-04 1.60 1.20 1.60 1.20

2004-05 1.27 0.35 1.27 0.35

Apr'05to June'08 O.30 0.12 0.30 0.12

Orissa VAT Tax

Apr'05 to Mar'07 8.60 2.07 8.60 2.07

Total 218.10 57.17 218.10 57.17

* Total demand has been stayed by Hon'ble Odisha High Court. As per leagal opinion obtained by the Company the liability of the company shall be Nil.

(ii) Commitments

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

Tangible assets

2.3. Balances in personal accounts are subject to confirmation from parties concerned.

2.4. Own consumption of cement by the unit for its expansion and testing work has been provided at estimated cost as determined by the management.

2.5. Sale of products (Note No.20) include Rs.2901.44 lakhs traded goods, similarly cost of materials (Note No.22 (a) includes Rs.2297.04 lakhs traded goods.

2.6. MAT credit entitlement of Rs. 207.59 Lakhs (including earlier years Rs.146.85 Lakhs is treated as an asset which shall be adjusted against future income tax liability in coming years.

The Gratuity Liability as per Actuarial valuation is Rs. 74.44 lakhs as on 31/03/2012.

2.7. The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

Mar 31, 2011

1. The Company is Cement manufacturing Company dealing in Cement and allied products. All activities of the company revolve around main business. As such there are no reportable segments as defined by Accounting Standard(AS)- 17 (Segment Reporting) issued by the Institute of Chartered Accountants of India.

2. The Company has made preferential Issue of 110.36 lakh Equity Share Warrants of Rs.2/- each at a premium of Rs.9/- per warrant to Promoters Group and has received Rs.303.49 Lakhs towards application money.

3. The Company has made provision for Gratuity during the year. However Acturial valuation Certificate for the same has not been obtained. Gratuity Provision of Rs. 86.05 Lacs is shown under Unsecured Loans being Long term Liability.

4. The present value of obligation is determined based on valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measurement each unit separately to build up the final obligation.

5. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 387.00 Lacs (Previous year - Rs. 375.00 Lacs).

6. MAT Credit Entitlement of Rs. 146.85 Lacs (including earlier years Rs. 79.53 Lacs) is treated as an asset which shall be adjusted against future income tax liability in coming years.

7. Balances in personal accounts are subject to confirmation from parties concerned.

8. The land at Kalunga on which Factory has been built is taken on 99 years lease from Industrial Developments Corporation of Odisha. The land at Teleghana on which factory has been built is taken on 90 years lease from Orissa Industrial Infrastructure Development Corporation.

9. The Kalunga plant of the company was closed since 27th September, 2002.

10. Previous years figure have been re-arranged, re-grouped, re-worked & re-classified wherever considered necessary.

11. Related party disclosure as required by Accounting Standard (AS)-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are given below :-

(a) Particulars of Associated Companies Shivom Minerals Limited

(b) Key Management Personnel

Sri R P. Gupta Managing Director

Sri Akash Gupta Executive Director

Sri B. K. Mangaraj Director (Works)

(c) Relatives of Key Management Personnel

Name of related Party Nature of relationship

Anubha Bhoir Daughter of Managing Director

Raghav Gupta Son of Executive Director Shilpi Agarwal Daughter of Managing Director

12. Contingent Liabilities for:

Particulars Period Demand Paid under Protest

Orissa Sales Tax 1995-96* 47.25 8.00

1992-93 to 1995-96 9B (3) 9.98 4.35

1998-99 1.89 1.00

2003-04 57.84 27.50

2004-05 69.71 8.00

June03 to Sept03 1.44 -

Central Sales Tax 1995-96* 8.69 -

1998-99 0.27 0.08

2003-04 3.01 1.30

Entry Tax 1999-2000 0.57 0.20

2001-02 4.20 2.60

2002-03 1.48 0.40

2003-04 1.60 1.20

2004-05 1.27 0.35

Apr05 to June08 0.30 0.12

Orissa VAT Tax Apr05 to Mart07 8.60 2.07

Total 218.10 57.17

* Total Demand has been stayed by Honble Orissa High Court. As per legal opinion obtained by the Company, the liability of the Company shall be NIL.

13. Own consumption of cement by the unit for its expansion and testing work has been provided at estimated cost as determined by the management.

14. Sundry Creditors for the year ended 31/03/2011 includes amount aggregating to Rs. 38.74 Lacs due to Small Scale Industrial undertaking. Out of the above amount due exceeding Rs. 1.00 Lacs and outstanding for more than 30 days is Rs. 14.84 Lacs as listed below :-

Names : Proton Steels Ltd., Mittal Polypacks Pvt. Ltd.

Disclosure of Sundry Creditors under Current Liabilities is based on the information available with the Company/firm regarding the status of suppliers as defined under the Micro, Small & Medium Enterprises Development Act, 2006. Amount overdue as on 31st March 2011 to Micro and Small Enterprises on account of Principal Amount Rs. NIL (Previous year Rs.NIL) and Interest Rs.NIL (Previous year Rs.NIL).

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article