Accounting Policies of Shri Keshav Cements & Infra Ltd. Company

Mar 31, 2025

2.1 Material Accounting Policies A Statement of Compliance

These financial statements are prepared in accordance with the Indian Accounting Standards ("Ind AS") as per the Companies (Indian
Accounting Standards) Rules, 2015 and presentation requirements of Division II of Schedule III notified under Section 133 of Companies
Act, 2013 ("the Act''''), amendments thereto and other relevant provisions of the Act and guidelines issued by the Securities and
Exchange Board of India ("SEBI"), as applicable.

The financial statements were authorised for issue by Board of Directors of the Company at their meeting held on May 27, 2025
B Basis of Preparation and presentation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under historical cost convention on
the accrual basis except for certain financial instruments which are measured at fair values as per IND AS 109 and employee''s
defined benefit plan as per the actuarial valuations as per IND AS 19. The Ind AS are prescribed under Section 133 of the
Companies Act 2013 ("the Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant
amendment rules issued thereunder.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date under current market conditions, regardless of whether that price is directly observable
or estimated using another valuation technique. In determining the fair value of an asset or a liability, the Company takes into
account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the
asset or liability at the measurement date.

Accounting policies have been continuously applied except where a newly-issued accounting standard is initially adopted or a revision
to an existing accounting standard requires a change in the accounting policy hitherto in use.

Financial Statement are prepared on Going concern basis.

Company''s financial statements are presented in Indian Rupees, which is also its functional currency.

Operating segment are reported in the manner consistent with the internal reporting provided to the chief operating decision maker.

The Company has ascertained its operating cycle as twelve months for the purpose of Current / Non-Current classification of its
Assets and Liabilities.

For the purpose of Balance Sheet, an asset is classified as current if:

(i) It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or

(ii) It is held primarily for the purpose of trading; or

(iii) It is expected to realise the asset within twelve months after the reporting period; or

(iv) The asset is a cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

Similarly, a liability is classified as current if:

(i) It is expected to be settled in the normal operating cycle; or

(ii) It is held primarily for the purpose of trading; or

(iii) It is due to be settled within twelve months after the reporting period; or

(iv) The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the
counterparty does not affect this classification.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current only.

C Use of estimates

The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities,
at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events
and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods.

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

D Critical Accounting Estimates

D.1 Defined Benefit plan

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

D.2 Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The Charge in respect of periodic
depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of
its life. The useful lives and residual values are determined based on the Schedule II of the companies Act 2013 and reviewed
periodically, including at each financial year end.

D.3 Recognition and Measurement of Deferred tax Assets & Liabilities

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax losses for which there is
probability of utilisation against the future taxable profit. The Company uses judgement to determine the amount of deferred tax
liability / asset that can be recognised, based upon the likely timing and the level of future taxable profits and business developments.

D.4 Litigation and Contingences

The Company has ongoing litigations with various regulatory authorities. Where an outflow of funds is believed to be probable and a
reliable estimate of the outcome of the dispute can be made based on management''s assessment of specific circumstances of each
dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature
complex and can take number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided
in notes to the financial statements

E Revenue Recognition

Company derives revenue from manufacture and sale of Cement, Trading in Petrol & Diesel and generation and sale of solar energy.
Revenue is recognised upon transfer of control of promised products or services to customer in an amount that reflects the
consideration we expect to receive in exchange for those products or services. The following specific recognition criteria must also be
met before revenue is recognized:

Sale of Goods (Including Solar Energy)

Revenue is recognized on the basis of approved contracts regarding the transfer of goods or services to a customer for an amount that
reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue from sale of goods
is recognised at the point in time when control of the goods is transferred to the customer, which is generally on dispatch/ delivery of
the goods.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration)
allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration and
outgoing taxes on sale.

Variable consideration - This includes incentives, volume rebates, discounts etc. It is estimated at contract inception
considering the terms of various schemes with customers and constrained until it is highly probable that a significant revenue reversal in
the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is
subsequently resolved. It is reassessed at end of each reporting period.

Significant financing component - Generally, the Company receives short-term advances from its customers. Using the practical
expedient in Ind AS 115, the Company does not adjust the promised amount of consideration for the effects of a significant financing
component if it expects, at contract inception, that the period between the transfer of the promised good or service to the
customer and when the customer pays for that good or service will be one year or less.

Contract balances

a Trade Receivables and Contract Assets

A trade receivable is recognised when the products are delivered to a customer and consideration becomes unconditional. Contract
assets are recognized when the company has a right to receive consideration that is conditional other than the passage of time.

a) Contract liabilities:

Contract liabilities are Company''s obligation to transfer goods or services to a customer for which the entity has already received
consideration. Contract liabilities are recognised as revenue when the company satisfies its performance obligation under the contract.

Interest

Interest income is recognised on time basis, to the extent that it is probable that the economic benefits associated with the transaction
will flow to the entity; and the amount of interest income can be measured reliably. Interest income is included under the head
"other income" in the statement of profit and loss.

Dividend

Dividend income is recognised when the right to receive payment is established.

E.1 Property, plant and equipment

Property, plant and equipment except Land are stated at cost, net of accumulated depreciation and accumulated impairment losses, if
any. Freehold Land is stated at cost less impairment losses, if any. The cost comprises the purchase price, non-refundable
purchase taxes, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the Property, plant and
equipment to the working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase
price.

Subsequent expenditure related to an item of Property, plant and equipment is added to its book value only if it increases the
future benefits from the existing Property, plant and equipment beyond its previously assessed standard performance. All other
expenses, on the Property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing
parts (which does not meet the capitalisation criteria), are charged to the statement of profit and loss for the period during which
such expenses are incurred.

Gains or losses arising from derecognition of Property, plant and equipment are measured as the difference between the net
disposal proceeds and the carrying amount of the Property, plant and equipment and are recognized in the statement of profit and loss
when the Property, plant and equipment is derecognized.

Expenses incurred relating to project, prior to its intended use, are considered as pre - operative expenses and disclosed under Capital
Work - in - Progress.

Long-term lease arrangements in respect of land are treated as Property, plant and equipment, in case such arrangements result in
transfer of control and the present value of the lease payments is likely to represent substantially all of the fair value of the land.
Expenditure incurred during Construction Period

Expenditure / Income during construction period (Including financing cost related to borrowed funds for construction (or) acquisition of
qualifying PPE) is included under capital work-in-progress (CWIP), and the same is allocated to the respective PPE on the completion of
their construction. Advance given towards acquisition (or) construction of PPE outstanding at each reporting date are disclosed as
capital advances under "Other Non Current Assets".

E.2 Depreciation

Depreciation is the systematic allocation of the depreciable amount of PPE over its useful life and is calculated on the straight¬
line basis using the rates arrived at based on the useful lives estimated by the management. Generally, the useful life estimate
coincides with the life prescribed under the Schedule II to the Companies Act, 2013.

In case of certain classes of PPE, the Company uses different useful lives than those prescribed in Schedule II to the Act. The useful lives
have been assessed based on technical advice, taking into account the nature of the PPE and the estimated usage of the asset on the
basis of management''s best estimation of obtaining economic benefits from those classes of assets, based on technical reports
received from Chartered Engineers and relevant industry experts. The estimated useful life is reviewed periodically, with the
effect of any changes in estimate being accounted for on a prospective basis.

Such classes of assets and their estimated useful lives are as under:

Depreciable amount for PPE is the cost of PPE less its estimated residual value. Depreciation on additions is provided on a pro-rata basis
from the date of installation (or) acquisition and in case of projects from the date of commencement of commercial production.
Depreciation on deduction/ disposal is provided on a pro-rata basis up to the date of deduction/ disposal.

F.1 Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost and are amortized on the straight line basis
over the estimated useful economic life.

F.2 Amortization

The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of
the asset is significantly different from previous estimates, the amortization period is changed accordingly. If there has been a
significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the
changed pattern.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and
the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

G Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of
such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalisation.

H Financial Instruments

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

H.1 Initial Recognition

The company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the
instrument. All financial assets and liabilities are recognized at fair value on initial recognition. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or
loss, are added to or deducted from the fair value on initial recognition.

Transaction cost directly attributable to the acquisition of financial assets (or) financials liabilities at fair value through profit or
loss are charged to the statement of profit(or) loss over the tenure of financial asset or liability. However, trade receivables that do not
contain a significant financing component are measured at transaction price (net of variable consideration).

H.2 Subsequent Measurement

a. Non-derivative Financial instruments

(i) Financial Assets carried at amortised cost

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

In case of financial assets classified and measured at amortised cost, any interest income and impairment losses are recognised in the
Statement of Profit and Loss.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model
whose objective is achieved by both collecting contractual cash flows and by selling the financial assets, and the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. Further, in cases where the Company has made an irrevocable election based on its business model, for its
investments which are classified as equity instruments, the subsequent changes in fair value are recognised in other comprehensive
income.

(iii) Financial assets through profit or loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest method (other than loans received as
Grants, which are accounted as per the specific Significant Accounting Policy. For trade and other payables maturing within
one year from the Balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

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

Interest expense based on the Effective Interest Rate method is recognised in the Statement of Profit and Loss, as finance cost.

H.3 Derecognition of financial instruments

The company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers
the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial
liability) is derecognised from the Company''s balance sheet when the obligation specified in the contract is discharged or cancelled or
expires.

H.4 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on
market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted
cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general
approximation of value, and such value may never actually be realized.

Refer to note 28 in for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities
maturing within one year from the balance sheet date and which are not carried at fair value, the carrying amounts approximate
fair value due to the short maturity of these instruments.

H.5 Classification of Financial Liabilities and
Equity Classification as debt or equity

Debt and equity instruments issued by the 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.

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 a Company are recognised at the proceeds received.

I Impairment

a. Financial Assets

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL
category. For financial assets other than trade receivables, as per Ind AS 109, the Company recognises 12 month expected
credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not
increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the
credit risk on financial asset increases significantly since its initial recognition.

The Company''s trade receivables do not contain significant financing component and as per simplified approach, loss allowances on
trade receivables are measured using provision matrix at an amount equal to life time expected losses i.e. expected cash shortfall.

The impairment losses and reversals are recognised in Statement of Profit and Loss.

b. Non Financial Assets

(i) Intangible assets and property, plant and equipment

At the end of each reporting period, the company reviews the carrying amounts of non financial assets to determine whether there is
any indication that those assets have suffered an impairment loss. When it is not possible to estimate the recoverable amount of an
individual asset the company estimates the recoverable amount of cash generating unit to which the asset belongs.

Intangible assets and Property, Plant and equipment are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e.
the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does
not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined
for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognised in the statement of profit and loss is measured by the
amount by which the carrying value of the assets exceeds the estimate recoverable amount of the asset. An impairment loss is
reversed in the statement of profit and loss if there is a change in the estimates used to determine the recoverable amount. The
carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying
amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years.

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Mar 31, 2024

A. 1 Corporate information and material accounting policies

Corporate information

Shri Keshav Cements and Infra Limited (Formerly Katwa Udyog Limited) (''the Company''), having its registered address at Jyoti Towers, No 215/2, 6th Cross, Nazar Camp, Karbhar Galli, Madhavpur, Vadgaon, Belgaum is a public limited company domiciled in India and registered under the Companies Act, 1956. The Company was incorporated on March 17, 1993 and is engaged in the business of manufacturing and trading in cements, trading in coal, trading in petroleum products and in the business of generation and distribution of solar energy. The company''s shares are listed on the Bombay Stock Exchange (BSE).

B Material Accounting Policies

B. 1 Statement of Compliance

These financial statements are prepared in accordance with the Indian Accounting Standards (“Ind AS”) as per the Companies (Indian Accounting Standards) Rules, 2015 and presentation requirements of Division II of Schedule III notified under Section 133 of Companies Act, 2013 (“the Act’’), amendments thereto and other relevant provisions of the Act and guidelines issued by the Securities and Exchange Board of India (“SEBI”), as applicable.

The financial statements were authorised for issue by the Board of Directors of the Company at their meeting held on 24th May, 2024.

B.2 Basis of Preparation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values as per IND AS 109 and employee''s defined benefit plan as per the actuarial valuations as per IND AS 19. The Ind AS are prescribed under Section 133 of the Companies Act 2013 ("the Act”) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereunder.

Accounting policies have been continuously applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Financial Statement are prepared on Going concern basis.

Company’s financial statements are presented in Indian Rupees, which is also its functional currency.

Operating segment are reported in the manner consistent with the internal reporting provided to the chief operating decision maker.

The Company has ascertained its operating cycle as twelve months for the purpose of Current / Non-Current classification of its Assets and Liabilities.

For the purpose of Balance Sheet, an asset is classified as current if:

(i) It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or

(ii) It is held primarily for the purpose of trading; or

(iii) It is expected to realise the asset within twelve months after the reporting period; or

(iv) The asset is a cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

Similarly, a liability is classified as current if:

(i) It is expected to be settled in the normal operating cycle; or

(ii) It is held primarily for the purpose of trading; or

(iii) It is due to be settled within twelve months after the reporting period; or

(iv) The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the counterparty does not affect this classification.

Deferred tax assets and liabilities are classified as non-current only.

B. 3 Use of estimates

The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

C Critical Accounting Estimates

C. 1 Income Taxes

The Only Tax jurisdiction for the Company is India. Significant judgements are involved in determining the provision for the income taxes including judgement on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time periods.

C.2 Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The Charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values are determined based on the Schedule II of the companies Act 2013 and reviewed periodically, including at each financial year end.

C.3 Recognition and Measurement of Deferred tax Assets & Liabilities

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax losses for which there is probability of utilisation against the future taxable profit. The Company uses judgement to determine the amount of deferred tax liability / asset that can be recognised, based upon the likely timing and the level of future taxable profits and business developments.

D Revenue Recognition

Company derives revenue from manufacture and sale of Cement, Trading in Petrol & Diesel and generation and sale of solar energy. Revenue is recognised upon transfer of control of promised products or services to customer in an amount that reflects the consideration we expect to receive in exchange for those products or services. The following specific recognition criteria must also be met before revenue is recognized:

Sale of Goods (Including Solar Energy)

Revenue is recognized on the basis of approved contracts regarding the transfer of goods or services to a customer for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue from sale of goods is recognised at the point in time when control of the goods is transferred to the customer, which is generally on dispatch/ delivery of the goods.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration and outgoing taxes on sale.

Variable consideration - This includes incentives, volume rebates, discounts etc. It is estimated at contract inception considering the terms of various schemes with customers and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. It is reassessed at end of each reporting period.

Significant financing component - Generally, the Company receives short-term advances from its customers. Using the practical expedient in Ind AS 115, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one year or less.

Contract balances

a Trade Receivables and Contract Assets

A trade receivable is recognised when the products are delivered to a customer and consideration becomes unconditional. Contract assets are recognized when the company has a right to receive consideration that is conditional other than the passage of time.

a Contract liabilities:

Contract liabilities are Company’s obligation to transfer goods or services to a customer for which the entity has already received consideration. Contract liabilities are recognised as revenue when the company satisfies its performance obligation under the contract.

Interest

Interest income is recognised on time basis, to the extent that it is probable that the economic benefits associated with the transaction will flow to the entity; and the amount of interest income can be measured reliably. Interest income is included under the head "other income” in the statement of profit and loss.

Dividend

Dividend income is recognised when the right to receive payment is established.

E.1 Property, plant and equipment

Property, plant and equipment except Land are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Freehold Land is stated at cost less impairment losses, if any. The cost comprises the purchase price, non-refundable purchase taxes, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the Property, plant and equipment to the working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of Property, plant and equipment is added to its book value only if it increases the future benefits from the existing Property, plant and equipment beyond its previously assessed standard performance. All other expenses, on the Property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts (which does not meet the capitalisation criteria), are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from derecognition of Property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the Property, plant and equipment and are recognized in the statement of profit and loss when the Property, plant and equipment is derecognized.

Expenses incurred relating to project, prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work - in - Progress.

Expenditure incurred during Construction Period

Expenditure / Income during construction period (Including financing cost related to borrowed funds for construction (or) accuquisition of qualifying PPE) is included under capital work-in-progess (CWIP), and the same is allocated to the respective PPE on the completion of their construction. Advance given towards acquisition (or) construction of PPE outstanding at each reporting date are disclosed as capital advances under "Other Non Current Assets".

E.2 Depreciation

Depreciation is the systematic allocation of the depreciable amount of PPE over its useful life and is calculated on the straight-line basis using the rates arrived at based on the useful lives estimated by the management. Generally, the useful life estimate coincides with the life prescribed under the Schedule II to the Companies Act, 2013.

In case of certain classes of PPE, the Company uses different useful lives than those prescribed in Schedule II to the Act. The useful lives have been assessed based on technical advice, taking into account the nature of the PPE and the estimated usage of the asset on the basis of management’s best estimation of obtaining economic benefits from those classes of assets, based on technical reports received from Chartered Engineers and relevant industry experts. The estimated useful life is reviewed periodically, with the effect of any changes in estimate being accounted for on a prospective basis.

Such classes of assets and their estimated useful lives are as under:

Nature of Asset	Estimated Useful Life (in Years)
Plant and Machinery	15 to 25

Depreciable amount for PPE is the cost of PPE less its estimated residual value. Depreciation on additions is provided on a pro-rata basis from the date of instalation (or) acquisition and in case of projects from the date of commencement of commercial production. Depreciation on deduction/ disposal is provided on a pro-rata basis up to the date of deduction/ disposal.

F.1 Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost and are amortized on the straight line basis over the estimated useful economic life.

F.2 Amortization

The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

G Borrowing Costs

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

H Financial Instruments

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

H.1 Initial Recognition

The company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.

Transaction cost directly attributable to the acquisition of financial assets (or) financials liabilities at fair value through profit or loss are charged to the statement of profit(or) loss over the tenure of financial asset or liability. However, trade receivables that do not contain a significant financing component are measured at transaction price (net of variable consideration).

H.2 Subsequent Measurement

a. Non-derivative Financial instruments

(i) Financial Assets carried at amortised cost

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

In case of financial assets classified and measured at amortised cost, any interest income and impairment losses are recognised in the Statement of Profit and Loss.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and by selling the financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognised in other comprehensive

(iii) Financial assets through profit or loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest method (other than loans received as Grants, which are accounted as per the specific Significant Accounting Policy. For trade and other payables maturing within one year from the Balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

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

Interest expense based on the Effective Interest Rate method is recognised in the Statement of Profit and Loss, as finance cost.

H.3 Derecognition of financial instruments

The company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognised from the Company''s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

H.4 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.

Refer to note 28 in for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the balance sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

H.5 Classification of Financial Liabilities and Equity Classification as debt or equity

Debt and equity instruments issued by the 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.

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 a Company are recognised at the proceeds received.

I Impairment

a. Financial Assets

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category. For financial assets other than trade receivables, as per Ind AS 109, the Company recognises 12 month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition.

The Company’s trade receivables do not contain significant financing component and as per simplified approach, loss allowances on trade receivables are measured using provision matrix at an amount equal to life time expected losses i.e. expected cash shortfall.

The impairment losses and reversals are recognised in Statement of Profit and Loss.

b. Non Financial Assets

(i) Intangible assets and property, plant and equipment

At the end of each reporting period, the company reviews the carrying amounts of non financial assets to determine whether there is any indication that those assets have suffered an impairment loss. When it is not possible to estimate the recoverable amount of an individual asset the company estimates the recoverable amount of cash generating unit to which the asset belongs.

Intangible assets and Property, Plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognised in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimate recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there is a change in the estimates used to determine the recoverable amount. The

J Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

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

K Earnings per equity share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding du ring the period. Diluted earnings per equity share are computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e.. the average market value, of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

L Income taxes

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income. Current income tax for the current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date A deferred income asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

M Employee Benefits Defined Benfit Plan

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out by a qualified independent actuary at the end of each annual reporting period. Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognised in Other Comprehensive Income (OCI) in the period in which they occur. Past service cost, both vested and unvested, is recognised as an expense on the plan amendment or when the curtailment or settlement occurs. The gain or loss on curtailment or settlement, is recognized immediately in the Statement of Profit or Loss when the plan amendment or when a curtailment or settlement occurs.

The retirement benefit obligations recognised in the balance sheet represents the present value of the defined benefit obligations reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme. The Company provides enefits such as gratuity and provident fund to its employees which are treated as defined benefit plans.

M.1 Gratuity

The Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan”) covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the Company. The Company contributes gratuity liabilities to scheme with the Life Insurance Corporation of India as permitted by Indian law.

Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market risk.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/ (asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the Statement of Profit and Loss.

M.2 Compensated Absences

The Company has a policy on compensated absences which are accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an external actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

M.3 Defined contribution plan: Provident fund

All employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Both the employee and the employer make monthly contributions to the plan at a predetermined rate as per the provisions of The Employees Provident Fund and Miscellaneous Provisions Act, 1952. These contributions are made to the fund administered and managed by the Government of India. The Company has no further obligations under the plan beyond its monthly contributions. Obligation for contribution to defined contribution plan are recognised as an employee benefit expense in statement of profit and loss in the period during which the related services are rendered by the employees.

N Cash flow Statement

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

O Other income

Other income is comprised primarily of interest income, gain on fair valuation of assets / liabilities and on translation of other assets and liabilities. Interest income and gain on fair valuation of assets / liabilities are recognised using the effective interest method. Dividend income is recognised when the right to receive payment is established.

P Leases

The company has adopted Ind AS 116 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under Ind AS 17 as permitted under the specific transition provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 April 2019.

New Policy applicable from 1 April 2019:

At inception of a contract, the company assesses whether a contract is, or contains, a lease. A contract is or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company assesses whether:

-The contract involves the use of an identified asset.

-The Company has the right to obtain substantially all of the economic benefit from the use of the asset throughout the period of use; and

- The Company has right to control the use of the asset.

As a lessee the Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost and is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. In addition, the right of use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurement of the lease liability.

Lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group’s incremental borrowing rate. Subsequently measured at amortised cost using the effective interest method. It is remeasured when there is change in future lease payments

Q Inventories

Inventories compromise of Raw material, Work in Progress, Finished Goods, Stock of traded goods, Stores and Spares and Packing Materials. Inventories are valued at cost or Net Realizable Value (NRV), whichever is lower.

Raw Materials, stores and spares, Stock in trade and packing material held for use in production of inventories are not written down below cost if the finished product in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a first in first out basis, which includes expenditure incurred for acquiring inventories like purchase price, import duties, taxes (net oftax credit) and other costs incurred in bringing the inventories to their present location and condition.

Cost of Finished goods and WIP includes cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition

Net Realizable value is estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

R Accounting Policy on Government Grant and Interest Free Loans

When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value. The government grant is measured as the difference between the initial carrying value of the loan and the proceeds received, and recognised under Other Non-Current Liability / Other Current Liability, as the case may be.

Over the life of the grant, the grant amount is recognised as income in the Statement of Profit and Loss on time proportion basis. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

S Cash & Cash Equivalents

Cash and cash equivalents consist of cash, bank balances in current accounts and short term highly liquid investments that are readily convertible to cash with original maturities of three months or less at the time of purchase and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current financial

T Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

In accordance with Ind AS 108 - Operating Segments, the operating segments used to present segment information are identified on the basis of internal reports used by the Company''s Management to allocate resources to the segments and assess their performance.

Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an The operating segments have been identified on the basis of the nature of products/services. Further:

1. Segment revenue includes sales and other income directly identifiable with / allocable to the segment including inter-segment

2. Expenses that are directly identifiable with / allocable to segments are considered for determining the segment result. Expenses which relate to the Company as a whole and not allocable to segments are included under unallocable expenditure.

3. Income which relates to the Company as a whole and not allocable to segments is included in unallocable income.

4. Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.

The Board of Director(s) are collectively the Company''s ''Chief Operating Decision Maker'' or ''CODM'' within the meaning of Ind AS 108.

U Foreign exchange transactions and translations Initial recognition:

Foreign currency transactions are recorded in the reporting currency, by applying the foreign currency amount of exchange rate between the reporting currency and foreign currency at the date of transaction.

Conversion:

Foreign currency monetary assets and liabilities outstanding as at balance sheet date are restated/translated using the exchange rate prevailing at the reporting date. Non-monetary assets and liabilities which are measured in terms of historical cost denomination in foreign currency, are reported using the exchange rate at the date of transaction except for non-monetary item measured at fair value which are translated using the exchange rates at the date when fair value is determined.

Exchange difference arising on the settlement of monetary items or on restatement of the Company''s monetary items at rates different from those at which they initially recorded during the year or reported in previous financials statement (other than those relating to fixed assets and other long term monetary assets) are recognised as income or expenses in the year in which they arise.

V Material Accounting Policy Information

The Company adopted Disclosure of accounting policies (Amendments to Ind AS 1) from 1 April 2023. Although the amendments did not result in any changes in the accounting policies themselves, they impacted the accounting policy information disclosed in the financial statements.

The amendments require the disclosure of “material” rather than “significant” accounting policies. The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy information that users need to understand other information in the financial statements.

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Mar 31, 2023

A. 1 Corporate information and significant accounting policies

Corporate information

Shri Keshav Cements and Infra Limited (Formerly Katwa Udyog Limited) (''the Company''), having its registered address at Jyoti Towers, No 215/2, 6th Cross, Nazar Camp, Karbhar Galli, Madhavpur, Vadgaon, Belgaum is a public limited company domiciled in India and registered under the Companies Act, 1956. The Company was incorporated on March 17, 1993 and is engaged in the business of manufacturing and trading in cements, trading in coal, trading in petroleum products and in the business of generation and distribution of solar energy. The company''s shares are listed on the Bombay Stock Exchange (BSE).

B Significant Accounting Policies

B. 1 Statement of Compliance

These financial statements are prepared in accordance with the Indian Accounting Standards (“Ind AS”) as per the Companies (Indian Accounting Standards) Rules, 2015 and presentation requirements of Division II of Schedule III notified under Section 133 of Companies Act, 2013 (“the Act’’), amendments thereto and other relevant provisions of the Act and guidelines issued by the Securities and Exchange Board of India (“SEBI”), as applicable.

The financial statements were authorised for issue by the Board of Directors of the Company at their meeting held on 25th May, 2023.

B.2 Basis of Preparation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values as per IND AS 109 and employee''s defined benefit plan as per the actuarial valuations as per IND AS 19. The Ind AS are prescribed under Section 133 of the Companies Act 2013 ("the Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereunder.

Accounting policies have been continuously applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Financial Statement are prepared on Going concern basis.

Company’s financial statements are presented in Indian Rupees, which is also its functional currency.

Operating segment are reported in the manner consistent with the internal reporting provided to the chief operating decision maker.

The Company has ascertained its operating cycle as twelve months for the purpose of Current / Non-Current classification of its Assets and Liabilities.

For the purpose of Balance Sheet, an asset is classified as current if:

(i) It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or

(ii) It is held primarily for the purpose of trading; or

(iii) It is expected to realise the asset within twelve months after the reporting period; or

(iv) The asset is a cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

Similarly, a liability is classified as current if:

(i) It is expected to be settled in the normal operating cycle; or

(ii) It is held primarily for the purpose of trading; or

(iii) It is due to be settled within twelve months after the reporting period; or

(iv) The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the counterparty does not affect this classification.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current only.

B. 3 Use of estimates

The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

C Critical Accounting Estimates

C. 1 Income Taxes

The Only Tax jurisdiction for the Company is India. Significant judgements are involved in determining the provision for the income taxes including judgement on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time periods.

C.2 Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The Charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and

residual values are determined based on the Schedule II of the companies Act 2013 and reviewed periodically, including at each financial year end.

D Revenue Recognition

Company derives revenue from manufacture and sale of Cement, Trading in Coal and generation and sale of solar energy.

Effective from 1 April 2018, the company adopted Ind AS 115, Revenue from Contract with customers using modified retrospective transition method. In accordance with this transition method the comparatives have not been retrospectively adjusted. The effect on adoption of Ind AS 115 was insignificant.

Revenue is recognised upon transfer of control of promised products or services to customer in an amount that reflects the consideration we expectto receive in exchange for those products or services. The following specific recognition criteria must also be met before revenue is recognized: Sale of Material

Revenue from sale of goods is recognized when all control of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The Company collect sales taxes or other indirect taxes on behalf of government and, therefore, these are not economic benefits flowing to the company. Hence they are excluded from revenue.

Interest

Interest income is recognised on time basis, to the extent that it is probable that the economic benefits associated with the transaction will flow to the entity; and the amount of interest income can be measured reliably. Interest income is included under the head "other income" in the statement of profit and loss.

Revenue in excess of invoicing are classified as contract assets while invoicing in excess of revenue are classified as contract liability. E.1 Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises the purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the Property, plant and equipment to the working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of Property, plant and equipment is added to its book value only if it increases the future benefits from the existing Property, plant and equipment beyond its previously assessed standard performance. All other expenses, on the Property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts (which does not meet the capitalisation criteria), are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from derecognition of Property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the Property, plant and equipment and are recognized in the statement of profit and loss when the Property, plant and equipment is derecognized.

Expenses incurred relating to project, prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work - in -Progress.

Long-term lease arrangements in respect of land are treated as Property, plant and equipment, in case such arrangements result in transfer of control and the present value of the lease payments is likely to represent substantially all of the fair value of the land.

E.2 Depreciation

Depreciation on Property, plant and equipment is calculated on the straight-line basis using the rates arrived at based on the useful lives estimated by the management. Generally, the useful life estimate coincides with the life prescribed under the Schedule II to the Companies Act, 2013.

In case of certain classes of PPE, the Company uses different useful lives than those prescribed in Schedule II to the Act. The useful lives have been assessed based on technical advice, taking into account the nature of the PPE and the estimated usage of the asset on the basis of management’s best estimation of obtaining economic benefits from those classes of assets, based on technical reports received from Chartered Engineers and relevant industry experts. The estimated useful life is reviewed periodically, with the effect of any changes in estimate being accounted for on a prospec ive basis.

Such classes of assets and their estimated useful lives are as under:

Nature of Asset	Estimated Useful Life
	(in Years)
Plant and Machinery	15 to 25

F.1 Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost and are amortized on the straight line basis over the estimated useful economic life.

F.2 Amortization

The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

I Borrowing Costs

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost ofsuch assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred. j Financial Instruments

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

J.1 Initial Recognition

The company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.

J.2 Subsequent Measurement

a. Non-derivative Financial instruments

(i) Financial Assets carried at amortised cost

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

In case of financial assets classified and measured at amortised cost, any interest income and impairment losses are recognis ed in the Statement of Profit and Loss.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and by selling the financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognised in other comprehensive income.

(iii) Financial assets through profit or loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest method (other than loans received as Grants, which are accounted as per the specific Significant Accounting Policy. For trade and other payables maturing within one year from the Balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

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

Interest expense based on the Effective Interest Rate method is recognised in the Statement of Profit and Loss, as finance cost.

J.3 Derecognition of financial instruments

The company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognised from the Company''s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

J.4 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may neveractually be realized.

Refer to note 28 in for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the balance sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

J.5 Classification of Financial Liabilities and Equity Classification as debt or equity

Debt and equity instruments issued by the 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.

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 a Company are recognised at the proceeds received.

K Impairment

a. Financial Assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, ECLs are measured at an amount equal to the 12-month ECL, unless there has been significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of eECLs (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in profit or loss.

b. Non Financial Assets

(i) Intangible assets and property, plant and equipment

Intangible assets and Property, Plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognised in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimate recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there is a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.

L Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

M Earnings per equity share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share are computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e.. the average market value, of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all the periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

N Income taxes

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income. Current income tax for the current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date A deferred income asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

O Employee Benefits O.1 Gratuity

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

Liabilities with regard to Gratuity plan are determined by actuarial estimate at each Balance sheet date using the projected unit credit method. The Company contributes to the Gratuity fund of Life Insurance Corporation (LIC) group gratuity plan, for providing for the gratuity liabilities in atimely and effective manner.

The company recognises the net obligation of a defined benefit plan in its Balance Sheet as an Asset or Liability. Gains or Losses through remeasurement of the net defined benefit Liability or asset are recognised in other comprehensive Income, and are not reclassified to profit or loss in subsequent periods. The actual return of the plan asset in excess of the yield computed by applying the discount rate used to measure the defined benefit obligation is recognised in other comprehensive income. The effect of any plan amendment are recognised in the Statement of Profit and Loss.

Provident Fund

The company provides for Provident Fund, a defined contribution plan, as an expense when the employees (eligible as per the "The Employees'' Provident Funds and Miscellaneous Provisions Act, 1952") have rendered services entitling them to such benefits.

^P Cash flow Statement

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

^Q Other income

Other income is comprised primarily of interest income, and gain/loss on investments and on translation of other assets and liabilities. Interestincome is recognised using the effective interest method. Dividend income is recognised when the right to receive payment is established.

^R Leases

The company has adopted Ind AS 116 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under Ind AS 17 as permitted under the specific transition provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 April 2019.

New Policy applicable from 1 April 2019:

At inception of a contract, the company assesses whether a contract is, or contains, a lease. A contract is or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company assesses whether:

-The contract involves the use of an identified asset.

-The Company has the right to obtain substantially all of the economic benefit from the use of the asset throughout the period of use; and

- The Company has right to control the use of the asset.

As a lessee the Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost and is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. In addition, the right of use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurement of the lease liability.

Lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group’s incremental borrowing rate. Subsequently measured at amortised cost using the effective interest method. It is remeasured when there is change in future lease payments

Company presents right-of-use assets that do not meet the definition of investment property in Statement of Financial position under Non-current assets separately from Property Plant and equipment and Lease liabilities in ‘other non-current or current financial liability’ in statement of financial position depending on the terms of payment.

S Inventories

Inventories compromise of Raw material, Work in Progress, Finished Goods and Stock of traded goods. Inventories are valued at cost or Net Realizable Value (NRV), whichever is lower. Materials and other supplies held for use in production of inventories are not written down below cost if the finished product in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a first in first out basis.

Net Realizable value is estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

^T Accounting Policy on Government Grant and Interest Free Loans

When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value. The government grant is measured as the difference between the initial carrying value of the loan and the proceeds received, and recognised under Other Non-Current Liability / Other Current Liability, as the case may be. Over the life of the grant, the grant amount is recognised as income in the Statement of Profit and Loss on time proportion basis. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

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Mar 31, 2018

A Significant Accounting Policies

A.1 Basis of Preparation

These financial statements Are prepared in accordance with Indian Accounting Standards (Ind AS) under historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (''The Act'') (to the extent notified). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The Company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101, First-Time Adoption of Indian Accounting Standards. The transaction was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. Reconciliations and descriptions of the effect of the transition have been summarized in Note 2.1

Accounting policies have been continuously applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Company’s financial statements are presented in Indian Rupees, which is also its functional currency.

B.2 Use of estimates

The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

C Critical Accounting Estimates

C.1 Income Taxes

The Only Tax jurisdiction for the Company is India. Significant judgements are involved in determining the provision for the income taxes including judgement on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time periods.

C.2 Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The Charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values are determined based on the Schedule II of the companies Act 2013 and reviewed periodically, including at each financial year end.

D Revenue Recognition

"Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized: Sale of Material Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The Company collect sales taxes or other indirect taxes on behalf of government and, therefore, these are not economic benefits flowing to the company. Hence they are excluded from revenue. Interest Interest revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the entity; and the amount of revenue can be measured reliably. Interest income is included under the head ""other income"" in the statement of profit and loss."

E Property, plant and equipment

"Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises the purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the Property, plant and equipment to the working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure related to an item of Property, plant and equipment is added to its book value only if it increases the future benefits from the existing Property, plant and equipment beyond its previously assessed standard performance. All other expenses, on the Property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts (which does not meet the capitalisation criteria), are charged to the statement of profit and loss for the period during which such expenses are incurred. Gains or losses arising from derecognition of Property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the Property, plant and equipment and are recognized in the statement of profit and loss when the Property, plant and equipment is derecognized. Expenses incurred relating to project, prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work - in - Progress."

Depreciation on Property, plant and equipment is calculated on the straight-line basis using the rates arrived at based on the useful lives estimated by the management which coincides with the life prescribed under the Schedule II to the Companies Act, 2013.

F Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost and are amortized on the straight line basis over the estimated useful economic life.

"The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized."

I Borrowing Costs

"Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use."

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

"All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred."

J Financial Instruments

J.1 Initial Recognition

The company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

J.2 Subsequent Measurement

a. Non-derivative Financial instruments

"(i) Financial Assets carried at amortised cost A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows, and the contractual terms of the financial asset give rises on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding."

"(ii) Financial assets at fair value through other comprehensive income A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognised in other comprehensive income."

"(iii) Financial assets through profit or loss A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss."

"(iv) Financial liabilities Financial liabilities are subsequently carried at amortised cost using the effective interest method, except for contingent consideration recognised in a business combination which is subsequently measured at fair value through profit or loss. For trade and other payables maturing within one year from the Balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments."

b. Share Capital

Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.

J.3 Derecognition of financial instruments

The company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognised from the Company''s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

J.4 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.

Refer to note 28 in for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the balance sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

K Impairment

a. Financial Assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, ECLs are measured at an amount equal to the 12-month ECL, unless there has been significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of eECLs (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in profit or loss.

b. Non Financial Assets

"(i) Intangible assets and property, plant and equipment Intangible assets and Property, Plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognised in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimate recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there is a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years."

L Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

M Earnings per equity share

"Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. Diluited earnings per equity share are computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (ie. the average market value, of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all the periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors."

N Income taxes

"Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income. Current income tax for the current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date A deferred income asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. "

O Employee Benefits

O.1 Gratuity

"The Company provides for gratuity, a defined benefit retirement plan (''The Gratuity Plan'') covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the Company. Liabilities with regard to Gratuity plan are determined by acturial estimate at each Balance sheet date using the projected unit credit method. The Company fully contributes all ascertained liabilities to the Gratuity fund of Life Insurance Corporation (LIC) group gratuity plan."

P Cash flow Statement

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

Q Other income

Other income is comprised primarily of interest income, and gain/loss on investments and on translation of other assets and liabilities. Interest income is recognised using the effective interest method. Dividend income is recognised when the right to receive payment is established.

R Leases

Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalised at fair value or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognised as an expense on a straight line basis in net profit in the statement of profit and loss over the lease term.

S Inventories

"Inventories compromise of Raw material, Work in Progress, Finished Goods and Stock of traded goods. Raw material is valued at cost and other materials are valued at lower of cost and net realizable value. Cost is determined on a first in first out basis.Net Realizable value is estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale."

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Mar 31, 2016

The Financial statements have been prepared in accordance with the applicable Accounting Standards under the Companies (Accounting Standards) Rules, 2006 and are based on the historical cost convention. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The Significant Accounting Policies followed are stated below:

a) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and modvat. There are no intangible assets.

b) DEPRECIATION:

Depreciation on Fixed Assets has been calculated as per Schedule II of Companies Act, 2013.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVAT). The coke is valued at average price. The cost of semi-finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

The income assessable under the Income Tax Act, is Rs.5,80,00,000/- However, provision for income tax of Rs.1,92,00,000/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale of cement is exclusive of sales tax and inclusive of excise duty, sale of coke is exclusive sale tax, sale of diesel & petrol is tax free.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2012-13 Thereafter Self Assessments have been completed till 2013-14

I) EMPLOYEE BENEFITS:

Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post-employment benefits:

a) Defined contribution plans

The company has defined contribution plans for post employments benefits in the form of provident fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution plans as the company has no further obligation beyond making the contributions. The companies'' contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred.

b) Funded Plan:

The Company has defined benefit plan for post-employment benefit in the form of gratuity, which is administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method. The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

c) The Company has adopted the Accounting Standards (AS-15) on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

j) CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k) REMUNERATION U/S 134:

Remuneration paid more than Rs. 5,00,000/- per month when employed for part of the year or Rs. 60,00,000/- per annum is NIL.

l) Consumption of imported Raw materials and components: NIL

m) C.I.F. Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n) ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from “timing differences” between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 5,76,95,617 /- in the Balance Sheet which comprises of Rs. 5,62,09,687/- relating to net deferred tax liability as on 14-2015. Company has worked out net deferred tax liability of Rs. 14,85,930/- for the current year, towards timing differences.

0) EARNING PER SHARE: AS-20

Net Profit after taxes 4,22,18,125

Number of Equity shares 51,24,200 =>8.53 Per Share

(No issue during the year, number of equity shares as on 01-04-2015 and 31-03-2016 are 51,24,200).

p) AUDITORS REMUNERATION:

Audit Fees Rs. 54,000/- (including Tax & other professional work)

q) AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore, no other separate statement is made.

r) NOTES ON ACCOUNTS:

1) The previous year''s figures have been reworked, regrouped, rearranged and re-classified wherever necessary.

ii) The sundry debtors, sundry creditors and advances are subject to Confirmation and are stated as per books.

ii) In the opinion of the Directors, current assets, loans and advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

iii) The unit is cement-manufacturing unit. During the year Company has manufactured cement. Company was also engaged in coke & Cement trading and petrol pump activities. The various quantity of raw material consumption and other inputs required for production of cement and consumption of electricity and other manufacturing expenses are highly technical in nature therefore; we have totally relied on the statement given by the management.

iv) Inventory valuation is as valued and certified by the management.

v) The previous year''s modvat balance brought forward is Rs. 3,42,808/- during the year Company has availed modvat credit of Rs. 1,60,65,674 /- comprises of modvat credit on capital goods Rs. 25,91,929/and modvat credit on raw material Rs. 1,15,18,616/-, and on Service Tax Rs. 19,55,129/-. The Company has deducted modvat credit and balance is carried forwarded.

vi) As per the guidance note issued by the Institute of Chartered Accountants of India the Company has worked out MAT credit of Rs. 1,64,87,191/- and it is shown under the head Other Current Assets as ''MAT Credit entitlement.

s) IMPAIRMENT OF ASSETS AS -28:

On the aspect of compliance of AS-28 on impairment of assets, the management asserts that its assets have not undergone by impairment. Therefore, no provision is called for the impairment of assets.

t) BORROWING COSTS AS-16:

There are no items of borrowing cost hence nothing is reportable.

u) RELATED PARTY DISCLOUSERS AS-18:

It is reported by the management and as per the information and explanations given to us. In our verification of books of accounts there are related party transactions:

As per Accounting Standard (AS-18) “Related Party Disclosures” notified in the Companies (Accounting Standards) Rules 2006, the disclosures of transactions with the related as defined in AS-18 are given below:

I. Key Management Personnel

1. Mr. Venkatesh Katwa Chairman

2. Mr. Vilas H. Katwa Managing Director

3. Mr. Deepak Katwa Director

4. Mrs. N.H. Katwa Director

II. Relative of Key Management Personnel

1. Mr. H.D. Katwa

2. Mr. Y. M. Katwa HUF

3. Mr. P.G. Katwa HUF

III. Enterprises where key management personnel have significant influence

1. Katwa Infotech Limited

2. Katwa Construction Co. Ltd.

3. Katwa Inc. (100% subsidiary of Katwa Infotech Ltd)

4. Katwa Consulting Service Inc. USA

v) AMOUNT DUE TO MICRO SMALL AND MEDIUM ENTERPRISES: DISCLOSER UNDER MSMED ACT 2006:

It is reported by the management that based on the information so far available with company up to 30th April, 2016 in respect of MSEs (as defined in “The Micro Small and Medium Enterprises Development Act 2006”) the payments have been made to MSEs as per the terms and conditions of payments and on the agreed dates, hence interest provision is not made.

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Mar 31, 2015

A) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and modal. There are no intangible assets.

b) DEPRECIATION:

Depreciation on Fixed Assets has been calculated as per Schedule II of Companies Act, 2013.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVAT). The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of unabsorbed depreciation/ business loss carried from earlier years the income assessable under the Income Tax Act, is Rs.2,82,83,890/- However, provision for income tax of Rs. 83,70,000/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale of cement is exclusive of sales tax and inclusive of excise duty, sale of coke is exclusive sale tax, sale of diesel & petrol is tax free.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2012-13 Thereafter Self Assessments have been completed till 2013-14

i) EMPLOYEE BENEFITS:

Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a) Defined contribution plans

The company has defined contribution plans for post employments benefits in the form of provident fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution plans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred.

b) Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method. The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

c) The Company has adopted the Accounting Standards (AS-15) on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

j) CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k) REMUNERATION U/S 134:

Remuneration paid more than Rs. 5,00,000/- per month when employed for part of the year or Rs. 60,00,000/- per annum is NIL.

l) Consumption of imported Raw materials and components: NIL

m) C.I.F. Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n) ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 5,62,09,687 /- in the Balance Sheet which comprises of Rs. 5,18,14,687/- relating to net deferred tax liability as on 1- 4-2014. Company has worked out net deferred tax liability of Rs. 43,95,000/- for the current year, towards timing differences.

p) AUDITORS REMUNERATION:

Audit Fees Rs. 54,000/- (including Tax & other professional work)

q) AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.

---

Mar 31, 2014

The Financial statements have been prepared in accordance with the applicable Accounting Standards under the Companies (Accounting Standards) Rules, 2006 and are based on the historical cost convention. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The Significant Accounting Policies followed are stated below:

a) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and modvat. There are no intangible assets.

b) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. The depreciation has been calculated on pro rata basis considering the month of acquisition/installations of the assets.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVAT). The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of unabsorbed depreciation/ business loss carried from earlier years the income assessable under the Income Tax Act, is Nil. However, a MAT provision of Rs. 68,20,259/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale of cement is exclusive of sales tax and inclusive of excise duty, sale of coke is exclusive sale tax, sale of diesel & petrol is tax free.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2006-07. Thereafter Self Assessments have been completed till 2012-13.

i) EMPLOYEE BENEFITS:

Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a) Defined contribution plans

The company has defined contribution plans for post employments benefits in the form of provident fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution plans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred.

b) Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method. The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

c) The Company has adopted the Accounting Standards (AS-15) on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

j) CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k) REMUNERATION U/S 217(1A):

Remuneration paid more than Rs. 5,00,000/- per month when employed for part of the year or Rs. 60,00,000/- per annum is NIL.

I) Consumption of imported Raw materials and components: NIL

m) C.I.F. Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n) ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 5,18,14,687/- in the Balance Sheet which comprises of Rs. 4,07,54,687/- relating to net deferred tax liability as on 1 -4-2013. Company has wbrked out net deferred tax liability of Rs. 1,10,60,000/- for the current year, towards timing differences.

p) AUDITORS REMUNERATION:

Audit Fees Rs. 54,000/- (including Tax & other professional work)

q) AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.

r) NOTES ON ACCOUNTS:

i) The previous year''s figures have been reworked, regrouped, rearranged and re-classified wherever necessary.

ii) The sundry debtors, sundry creditors and advances are subject to Confirmation and are stated as per books.

ii) In the opinion of the Directors, current assets, loans and advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

iii) The unit is cement-manufacturing unit. During the year Company has manufactured cement. Company was also engaged in coke & Cement trading and petrol pump activities. The various quantity of raw material consumption and other inputs required for production of cement and consumption of electricity and other manufacturing expenses are highly technical in nature therefore; we have totally relied on the statement given by the management.

iv) Inventory valuation is as valued and certified by the management.

v) The previous year''s modvat balance brought forward is Rs. 4,24,053/- during the year Company has availed modvat credit of Rs. 73,91,859/- comprises of modvat credit on capital goods Rs. 14,65,510/- and modvat credit on raw material Rs. 49,44,007/-, and on Service Tax Rs. 9,82,342/-. The Company has deducted modvat credit of Rs. 15,22,838/- from the plant and machinery, Rs. 49,97,452/- from the raw materials and Rs. 9,56,239/- from the Service Tax. Balance amount of modvat of Rs. 3,39,383/-is carried forwarded.

vi) As per the guidance note issued by the Institute of Chartered Accountants of India the Company has worked out MAT credit of Rs. 2,36,42,879/- and it is shown under the head Loans and Advances as ''MAT Credit C/fd.''.

s) IMPAIRMENT OF ASSETS AS-28:

On the aspect of compliance of AS-28 on impairment of assets, the management asserts that its assets have not undergone by impairment. Therefore no provision is called for the impairment of assets.

t) BORROWING COSTS AS-16 :

There are no items of borrowing cost hence nothing is reportable.

u) RELATED PARTY DISCLOUSERS AS-18 :

It is reported by the management and as per the information and explanations given to us. In our verification of books of accounts there are related party transactions:

As per Accounting Standard (AS-18) "Related Party Disclosures" notified in the Companies (Accounting Standards) Rules 2006, the disclosures of transactions with the related as defined in AS-18 are given below:

I. Key Management Personnel

1. Mr. Venkatesh Katwa Chairman

2. Mr. Vilas H. Katwa Managing Director

3. Mr. Deepak Katwa Director

II. Relative of Key Management Personnel

1. Mr. H.D. Katwa

2. Mrs. N.H. Katwa

3. Mr. Y. M. Katwa HUF

4. Mr. P.G. Katwa HUF

III. Enterprises where key management personnel have significant influence

1. Katwa Finlease Limited

2. Katwa Infotech Limited

3. Katwa Construction Co. Ltd.

4. Katwa Oil Limited

5. Katwa Finance & Investment Co. Ltd.

6. Katwa Inc (100% subsidiary of Katwa Infotech Ltd)

---

Mar 31, 2013

The Financial statements have been prepared in accordance with the applicable Accounting Standards under the Companies (Accounting Standards) Rules, 2006 and are based on the historical cost convention. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The Significant Accounting Policies followed are stated below:

a) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and modvat. There are no intangible assets.

b) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. The depreciation has been calculated on pro rata basis considering the month of acquisition/installations of the assets.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of-conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVAT). The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of unabsorbed depreciation/ business loss carried from earlier years the income assessable under the Income Tax Act, is Nil. However, a MAT provision of Rs. 74,04,152/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale of cement is exclusive of sales tax and inclusive of excise duty, sale of coke is exclusive sale tax, sale of diesel & petrol is tax free.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2006-07. Thereafter Sell Assessments have been completed till 2011-12.

i) EMPLOYEE BENEFITS:

Short term employee benefits: >

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a) Defined contribution plans

The company has defined contribution plans for post employments benefits in the form of providenl fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution plans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred.

b) Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method. The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

c) The Company has adopted the Accounting Standards (AS-15) on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

j) CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k) REMUNERATION U/S 217(1A):

Remuneration paid more than Rs.2,00,000/- per month when employed for part of the year or Rs. 24,00,000/- per annum is NIL.

1) Consumption of imported Raw materials and components: NIL

m) C.I.F. Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n) ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 4,07,54,687/- in the Balance Sheet which comprises of Rs. 2,87,54,687/- relating to net deferred tax liability as on 1-4-2012. Company has worked out net deferred tax liability of Rs. 1,20,00,000/- for the current year, towards timing differences.

p) AUDITORS REMUNERATION:

Audit Fees Rs. 54,000/- (including Tax & other professional work)

q) AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.

---

Mar 31, 2012

The Financial statements have been prepared in accordance with the applicable Accounting Standards and relevant presentational requirement of the Companies Act, 1956 and are based on the historical cost convention. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The Significant Accounting Policies followed are stated below:

a) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and modvat.

b) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. The depreciation has been calculated on pro rata basis considering the month of acquisition/installations of the assets.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVATJ. The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of unabsorbed depreciation/ business loss carried from earlier years the income assessable under the Income Tax Act, is Nil However, a MAT provision of Rs. 46,62,420/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sate of cement is exclusive of sales tax and inclusive of excise duty, sate of coke is exclusive sate tax, sale of diesel & petrol is tax free.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2006-07.

i) EMPLOYEE BENEFITS:

Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a) Defined contribution plans

The company has defined contribution plans for post employments benefits in the form of provident fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution plans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred

b) Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is

administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

c ) The Company has adopted the Accounting Standards (AS-15] on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

2. The above report is not certification under AS-15 revised 2005 read with Actuaries Act, 2006. It is simply a report generated to help companies for proper accounting of employee's liabilities.

j) CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k) REMUNERATION U/S 217(1A):

Remuneration paid more than Rs.2,00,000/- per month when employedfor part of the year or Rs. 24,00,000/ - per annum is NIL.

I) Consumption of imported Raw materials and components: NIL

m) C.I.F. Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n) ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 2,87,54,687/- in the Balance Sheet which comprises ofRs. 2,28,70,387/- relating to net deferred tax liability as on 1-4-2011. Company has worked out net deferred tax liability of Rs. 58,84,300/- for the current year, towards timing differences. In order to give net effect in the Balance Sheet the Deferred tax asset has been transferred to deferred tax liability and Net deferred tax liability is shown in the Balance Sheet under head deferred tax liability.

p) AUDITORS REMUNERATION:

Audit Fees Rs. 35,000/-

q) AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.

r) NOTES ON ACCOUNTS:

i) The previous year's figures have been reworked, regrouped, rearranged and re-classified wherever necessary.

ii) The sundry debtors, sundry creditors and advances are subject to Confirmation and are stated as per books.

ii) In the opinion of the Directors, current assets, loans and advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

iii) The unit is cement-manufacturing unit. During the year Company has manufactured cement. Company was also engaged in coke & Cement trading and petrol pump activities. The various quantity of raw material consumption and other inputs required for production of cement and consumption of electricity and other manufacturing expenses are highly technical in nature therefore; we have totally relied on the statement given by the management.

iv) Inventory valuation is as valued and certified by the management.

v) Company has availed modvat credit of Rs. 61,22,000/-comprises of modvat credit on capital goods Rs. 16,10,396/- and modvat credit on raw material Rs. 45,11,604/-, The Company has deducted modvat credit of Rs. 16,10,396/- from the plant and machinery & Rs. 45,11,604/- from the raw materials. Balance amount of modvat of Rs. 3,69,543/-is carried forwarded it includes service tax.

vi) As per the guidance note issued by the Institute of Chartered Accountants of India the Company has worked out MAT credit of Rs. 94,18,468/- and it is shown under the head Loans and Advances as 'MAT Credit Entitlement'. *

s) IMPAIRMENT OF ASSETS AS-28:

On the aspect of compliance of AS-28 on impairment of assets, the management asserts that its assets have not undergone by impairment. Therefore no provision is called for the impairment of assets.

t) BORROWING COSTS AS-16 :

There are no items of borrowing cost hence nothing is reportable. .

u) RELATED PARTY DISCLOUSERS AS-18 :

It is reported by the management and as per the information and explanations given to us. In.our verification of books of accounts there are related party transactions:

As per Accounting Standard (AS-18) "Related Party Disclosures" notified in the Companies (Accounting Standards) Rules 2006, the disclosures of transactions with the related as defined in AS-18 are given below:

I. Key Management Personnel

1. Mr. Venkatesh Katwa Chairman

2. Mr. Vilas H. Katwa Managing Director

3. Mr. Deepak Katwa Director

II. Relative of Key Management Personnel

1. Mr. H.D. Katwa

2. Mrs. N.H. Katwa

3. Mr. Y. M. Katwa HUF

4. Mr. P.G Katwa HUF

III. Enterprises where key management personnel have significant influence

1. Katwa Finlease Limited

2. Katwa Infotech Limited

3. Katwa Construction Co. Ltd.

4. Katwa Oil Limited

5. Katwa Finance & Investment Co. Ltd.

6. Katwa Inc (100% subsidiary of Katwa Infotech Ltd) "

v) AMOUNT DUE TO MICRO SMALL AND MEDIUM ENTERPRISES: DISCLOSER UNDER MSMED ACT 2006

It is reported by the management that based on the information so far available with company up to 30th April, 2012 in respect of MSEs (as defined in "The Micro Small and Medium Enterprises Development Act 2006") the payments have been made to MSEs as per the terms and conditions of payments and on the agreed dates, hence interest provision is not made.

---

Mar 31, 2010

The Financial statements have been prepared in accordance with the applicable Accounting Standards and relevant presentational requirement of the Companies Act, 1956 and are based on the historical cost convention. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The Significant Accounting Policies followed are stated below:

a) FIXEDASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and mod vat.

b) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. The depreciation has been calculated on pro rata basis considering the month of acquisition/installations of the assets.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVAT). The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of claim of depreciation under the Income Tax Act, the assessable income is loss. Hence the tax payable is NIL. However, a MAT provision of Rs. 20,00,000/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale of cement is exclusive of sales tax and excise duty, sale of coke is exclusive sale tax.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2006-07.

i. EMPLOYEE BENEFITS: Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a. Defined contribution plans.

The company has defined contribution plans for post employments benefits in the form of provident fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution p lans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred.

b. Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method. The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

C. The Company has adopted the Accounting Standards (AS-15) on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

Note:

1. The report issued by LIC of India[P&GS] Dharwad for the year 2009-10, while verifying it appears that there is difference in present value obligations at the beginning of the year i.e., on 01-04-2009 and the closing balance as per the previous year certificate differs of Rs. 455878/- and Rs. 499783/-

2. The above report is not certification under AS-15 revised 2005 read with Actuaries Act, 2006. It is simply a report generated to help companies for proper accounting of employees liabilities.

j. CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k. REMUNERATION U/S 217(1 A):

Remuneration paid more than Rs.2,00,000/- per month when employed for part of the year or Rs. 24,00,000/- per annum is NIL.

L Consumption of imported Raw materials and components: NIL

m. CLE Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n. ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 1,49,10,587/- in the Balance Sheet which comprises of Rs. 1,55,60,587/- relating to net deferred tax liability as on 1 -4-2009. Company has worked out net deferred tax asset of Rs. 6,50,000/- for the current year, towards timing differences i.e., of depreciation which has been credited to profit and loss appropriation Account under head deferred tax asset and debited to deferred tax asset. In order to give net effect in the Balance Sheet the Deferred tax asset has been transferred to deferred tax liability and Net deferred tax liability is shown in the Balance Sheet under head deferred tax liability.

Calculation of Deferred Tax Liability: -

Particulars of Deferred tax As on 1-4-2009 For the year As on Closing

liability 2009-10 31-03-2010

"Deferred Tax Asset 1,55,60,587 6,50,000 1,49,10,587 towards timing differnces"

u. AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.