Notes to Accounts of Shri Keshav Cements & Infra Ltd.

Mar 31, 2025

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 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.

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.

Minimum Alternate Tax (MAT) Credits are in the form of unused tax credits that are carried forward by the Company for a
specified period of time, hence it is grouped with Deferred Tax Asset. MAT is recognised as an asset only when and to the extent there
is convincing evidence that the Company will pay normal income tax during the specified period.

M Employee Benefits
Defined Benefit 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 benefits such as gratuity and
Compensated absences 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
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.

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

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 company 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 ''non-current or current financial liability''
in statement of financial position depending on the terms of payment.

Short term Lease and Lease of low value: The Company has elected not to recognise right of use assets and lease liabilities for
short term leases that have lease term of 12 months or less and leases of low value assets including IT Equipment''s. The Company
recognises the lease payments associated with leases as and when incurred as rent expense over the lease term.

A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease
liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised
discount rate at the effective date of the modification.

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
of tax 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 liabilities in the balance
sheet.

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.1

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
arm''s length basis.

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
revenue.

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.

W Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified

Ind AS — 117 Insurance Contracts and amendments to Ind AS 116 — Leases, relating to sale and leaseback transactions, applicable to
the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined
that it does not have any significant impact in its financial statements.

(g) Nature and purpose of other equity:

(i) General reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve
pursuant to the earlier provision of Companies Act, 1956. Mandatory transfer to general reserve is not required under
the Companies Act, 2013.

(ii) Securities premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. It can only be
utilised for limited purposes in accordance with the provisions of the Companies Act, 2013.

(iii) Retained earnings

The amount represents the surplus/ (deficit) in profit and loss account and appropriations.

(iv) Other comprehensive income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income. These changes are accumulated in the FVOCI equity investments reserve. The Company
transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised or sold.
Any impairment loss on such instruments is reclassified to the Statement of Profit and Loss.

37 Segment information

The company''s operating segments are established on the basis of those components that are evaluated regularly by the
Executive Committee (the ''Chief Operating Decision Maker'' as defined in Ind AS 108- ''Operating Segments''), in
deciding how to allocate resources and in assessing performance. These have been identified taking into account nature
of products and services, the deferring risks and returns and internal business reporting systems.

The company has Three principal operating segments; viz. 1. Cements, 2. Petrol and Diesel , and 3. Solar Energy.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with
following additional policies for segment reporting.

i. Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the
segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on
reasonable basis have been disclosed as "Unallocable".

ii. Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax
related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been
disclosed as "Unallocable".

iii. The business, which were not reportable segments during the year, have been grouped under the "Others" segment.

39 Contingent liabilities and commitments

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such
claims and assertions and monitors he legal environment on an on-going basis with the assistance of external legal counsel,
wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being
estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but
not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless
the loss becomes probable.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company believes
that none of the contingencies described below would have a material adverse effect on the Company''s financial condition,
results of operations or cash flows.

Litigations

The Company is involved in legal proceedings, both as plaintiff and as defendant. There are claims which the Company does not
believe to be of a material nature, other than those described below:

The financial instruments are categorised into two levels based on the inputs used to arrive at fair value measurement as
described below:

Level 1: It includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The
fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models
based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar
instruments.

2) Financial Risk Management Objective and policies:

Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company''s
principal financial assets include Security deposits, trade and other receivables, and cash and cash equivalents that derive
directly from its operations.

The Company is exposed to market risk, credit risk & liquidity risk. The Company senior management oversees the management
of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

2.1. Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risks a) commodity price risk b) currency risk and c) interest rate risk.
Financial instruments affected by market risk include borrowings

The sensitivity analyses in the following sections relate to the position as at March 31, 2025 and March 31, 2024.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of
the debt.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post
retirement obligations; provisions; and the non-financial assets and liabilities.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on
the financial assets and financial liabilities held at March 31, 2025 and March 31, 2024.

2.1.1 Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the
Company''s long-term debt obligations with floating interest rates.

The exposure of the company''s borrowing to interest rate changes at the end of the reporting period are as follows:
2.1.2 Commodity Price Risk Management:

Commodity price risk for the Company is mainly related to fluctuations in coal and pet coke prices linked to various external factors,
which can affect the production cost of the Company. Since the Energy costs is one of the primary costs drivers, any adverse
fluctuation in fuel prices can lead to drop in operating margin. To manage this risk, the company enter into long-term supply
agreement for pet coke, identifying new sources of supply etc. The pet coke has to be procured at spot prices. Additionally,
processes and policies related to such risks are reviewed and controlled by senior management and fuel requirement are
monitored by the central procurement team.

Credit risk arises when a customer or counterparty does not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing / investing activities, including deposits with banks and financial institutions. The Company has no significant
concentration of credit risk with any counterparty.

The Company''s credit risk is primarily to the amount due from customers and loans. The Company maintains a defined credit
policy and monitors the exposures to these credit risks on an ongoing basis. Credit risk on cash and cash equivalents is limited as
the Company generally invests in deposits with scheduled commercial banks with high credit ratings assigned by domestic credit
rating agencies.

Trade Receivable

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables consists of
large number of customers. Trade receivables are unsecured and are derived from revenue earned from customers
primarily located in India. The Company does monitor the economic environment in which it operates and the Company
manages its Credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of
customers to which the Company grants credit terms in the normal course of business.

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

As per policy, receivables are classified into different buckets based on the overdue period ranging from 6 months - one year to
two years to three years to more than three years. There are different provisioning norms for each bucket which are ranging from
25% to 100%

The gross carrying amount of trade receivables is Rs.673.64 Lakhs (March 31, 2024: Rs.539.59 Lakhs). Trade receivables are
generally realised within the credit period. The Company believes that the unimpaired amounts that are past due by more than 30
days are still collectible in full, based on historical payment behaviour.

Cash and Cash Equivalent and Deposits with Banks

Credit Risk on cash and cash equivalent, deposits with the banks is generally low as the said deposits have been made with the
banks who have been assigned high credit rating by rating agencies

2.4 Liquidity Risk:

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on time. Prudent liquidity risk
management implies maintaining sufficient stock of cash and marketable securities. Company accesses domestic financial
markets, Banks and Financial Institutions to meet its liquidity requirements. The company''s liquidity is managed centrally with
operating units forecasting their cash and liquidity requirements.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The company''s policy is to keep the gearing ratio between 40%
and 60%. The gearing ratio of the company during the reporting period (including previous period) is substantially high due to
substantial long term debt fund raised for the purpose of expansion of cement plant capacity and solar power generation plant
set up. The management is of the opinion that the new investment will reduce the cost of production and increase the
profitability of the company in near future and reduce the debt. The company includes within net debt, borrowings, trade and
other financial liabilities, less Cash and bank balances (including Non-current), excluding discontinued operations.

The company has spent the above amount mainly for projects relating to the following fields/areas which fall under Schedule VII
of the Companies Act, 2013. 1. Promoting Education 2. Eradicating hunger, poverty and malnutrition 3. Safeguarding
environmental sustainability 4. Protection of flora and fauna

43 Disclosure on Government Grants

(a) Sales Tax deferment loan has been considered as a government grant and the difference between the fair value and nominal
value as on date is recognized as an income over the life of the grant. Every year, interest expense is accounted based on the fair
interest rate used for determining the fair value of the loan on the date of receipt of the loan.

(b) Accordingly, an amount of Rs. 114.82 Lakhs (PY - 84.66 Lakhs) has been accounted as Other Income in respect of the same.

(c) Additionally, an amount of Rs. 83.65 (PY - 57.42 Lakhs) has been accounted as Interest Expense on account of the changes in
the Fair Value.

Note:

The Company has the practice of submitting the quarterly statements to the bank as per the date agreed upon by the banker.
However, the books are not closed by the same date due to practical difficulties. Therefore, the reporting to the bank was on
a estimated basis. Company has drawn lesser than the drawing power as per published results.

Further the Company submits the reviewed quarterly results immediately after the publishing of the same to the banker to
make good of the differences.

46 Additional disclosures as mentioned under Schedule III to the Act

(a) Utilisation of borrowed funds and share premium

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

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

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

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

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

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

(b) Details of benami property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under Benami Transaction (Prohibition) Act, 1988 and rules made
thereunder.

(c) Utilisation of borrowings availed from banks and financial institutions

The Company has used the borrowings obtained from bank and financial institutions for the specific purpose for which
they were taken during the period.

(d) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

(e) Relationship with struck off companies

The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act,

2013 or section 560 of the Companies Act, 1956.

(f) Compliance with number of layers of companies

The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies act
read with the Companies (Restriction on number of Layers) Rules, 2017

(g) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme or arrangements in terms of sections 230 to 237 of the Companies Act,

2013 in the current year or previous year.

(h) Undisclosed income

There is no income surrendered or disclosed as income during the current in the tax assessments under the Income Tax
Act, 1961, that has not been recorded in the books of account.

(i) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(j) Registration of charges or satisfaction with Registrar of Companies

The Company does not have any charges on assets or satisfaction thereof which is yet to be registered with Register of
Companies (ROC) beyond the statutory period.

(k) Core investment companies (CIC)

The Company does not have any CICs which are registered/ required to be registered with the Reserve Bank of India.

(l) Social security plans

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

Reasons for more than 25% Variance in the Ratios:

1 Owing to availability of funds through raising of pref.allotment of shares no OD limit was utilised during the last week of March 2024 and Enhancement in OD Limit was effected from Rs.26.7 Cr to
Rs.50 Cr FY 2025.

2 TL 5 - Cement Expansion Loan is fully disbursed and OD limit Increased hence Borrowings stood at higher side.

3 Term Loan and OD limit increased and Margin Took a hit owing to low realisations from both Cement and Solar segment owing to less demand and more supply in the market.

4 Low Operating income and enhanced overheads in Current Year.

5 Average trade Payable was increased in Current Year.

6 In Current year Profits was reduced.

7 Avg Working capital was reduced in CY due to higher current portion of Borrowings.

8 In Current year EBIT was reduced due to lower realisation in Cements.

9 In Current Year the Fair market value of Investment was reduced.

As per our report of even date attached

For Singhi & Co. For and on behalf of the Board of Directors of

Chartered Accountants Shri Keshav Cements and Infra Limited

ICAI Firm Registration No. : 302049E

Sd/- Sd/- Sd/- Sd/-

Vijay Jain Vilas Katwa Hanamantsa Deepak Katwa Hanamantsa Nikita Jayant Karnani

Partner Managing Director CFO & Director Company Secretary

Membership No. : 077508 DIN : 00206015 DIN : 00206445 Membership No.: A55609

Place : Bengaluru Place : Belagavi Place : Belagavi Place : Belagavi

Date : May 27, 2025 Date: May 27, 2025 Date: May 27, 2025 Date: May 27, 2025

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Mar 31, 2024

Company has only one class of shares referred to as equity shares having par value of Rs.10 each. Each holder of shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts.

^12.7 The company has no holding company.

12.8 No shares have been reserved for issue under options and contracts or commitments for the sale of shares or dis investment.

12.9 No class of shares have been allotted as fully paid up pursuant to contract(s) without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the period of 5 years immediately preceding the Balance Sheet date.

Nature and purpose of other equity:

13.1 General Reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provision of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

13.2 Securities premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. It can only be utilised for limited purposes in accordance with the provisions of the Companies Act, 2013.

13.3 Surplus in Statement of Profit and Loss

The amount represents the surplus/ (deficit) in profit and loss account and appropriations.

13.4 Other comprehensive income

The Company has elected to recognise changes in the fair value of certain inve stments in equity securities in other comprehensive income. These changes are accumulated in the FVOCI equity investments reserve. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised or sold. Any impairment loss on such instruments is reclassified to the Statement of Profit and Loss.

i) &ii) Term Loan 3 &4 - 3373 Lakhs & 767 Lakhs Te rm Loans from Canara Bank

Loan of Rs.3373 Lakhs and subsequent additional facility of Rs.767 Lakhs have been secured by mortgage of 850TPD Cement Plant II, along with mortgage of 35 Acres and 15 Guntas land and building at Plant II (Lokapur plant) owned and maintained by the Company and 14 Acres 8 Guntas land and building and machinery of cement plant at Kaladgi. Fixed deposits of Rs.8 Lakhs are an additional security on the loan along with Rs.8000 Lakhs loan.

iii) Term Loan 5 - 8000 Lakhs Loan from Canara Bank

The loan of Rs.8000 Lakhs is secured by a First Charge on Project Land 103 Acres 34 Gunta acquired in the names of (1) Vilas Katwa & his wife Smt. Tina V Katwa (2) Deepak Katwa & his wife Smt. Prajakta Katwa, valued at Rs.6.84 crores including cost of converted land with development and civil works. All the owners will join as guarantors and execute mortgage in favour of bank, along with hypothecation on 20MW AC supply unit

and associated equipments and Collateral security on First Charge on Mortgage & Hypothecation of Cement plant 1 including 14 acres 8 guntas and building and Machinery of Cement plant at Kaladgi, Dist. Bagalkot. P&M valued at Rs.17.47 crore by Mr. S B Kalkundri vide valuation report dt 15.05.2017. Land & Building having market value at 6.47 crore & Realizable value of Rs.5.82 crore dt 05.06.2017 by Mr. Basavaraj G H and the project land of 95 Acres and 6 Guntas at S. No. 241, 242, 243/1, 243/3, 243/2, 244, 246, 250/1, 250/3, 250/4, 250/5, 251, 255/1, 255/2, 256/1, 256/2, 256/3, 256/4, 257/1, 257/2, 257/3, 257/4, 258/1, 258/2, 258/3 and 258/4 (located at Bisarhalli Taluka and District Koppal, Karnataka),. Fixed deposits of Rs.8 Lakhs are an additional security on the loan along with Rs.4140 Lakhs loan.

iv) Term loan 6 - 2000 Lakhs Working Capital Term Loan under GECL Scheme

The company has availed working capital term loan from Canara Bank under GECL Scheme 2.0.

Mortgage/ Hypothecation of 850 TPD Cement Plant II , Mortgage on 35 Acres of Land and building at

Naganapur, Lokapur Plant of SKCIL.

Project Land of 97 Acres 5 Gunthas of SKCIL located at S. No.243/1,2&3, 250/1,3,4&5, 251, 257/1,2,3&4, Bisarhalli, Taluk and District Koppal, Karnataka

Hypothecation on 20 MW AC supply unit: Module, power conditioning unit, transformer, module mounting structure, associated balance equipment, electrical unit and power evacuation located at Village: Bisarhalli, Dist Koppal, Karnataka & Fixed Deposits.

v) Term Loan 7 - 1900 Lakhs Working Capital Term Loan under GECL Scheme

The company has availed working capital term loan from Canara Bank under GECL Scheme 2.0.

All the piece & parcel of land bearing R.S. Nos. 255/1, 255/2, 256/1, 258/1, 258/2, 258/3, 258/4, 241, 242, 243/1,

243/2, 243/3, 244, 246, 250/1, 250/3, 250/4, 250/5, 251, 257/1, 257/2, 257/3, 257/4, 256/2, 256/3, 256/4, 245, 248/2, 249/1, 249/2, 250/2, 255/3, 255/4, 255/5, 255/6 admeasuring 139 acres 30 gunthas thereon and plant and machinery situated at Bisaralli Taluka, Koppal Dist.

All the piece & parcel of land bearing R.S No. 346, admeasuring 14 acre 08 Guntas and plant and machinery Situated at Kaladgi Village, Tal & Dist. Bagalkot.

All the piece & parcel of land bearing 1. R.S.No. 15/4, R.S.No. 88/1, R.S.No. 88/2, R.S.No. 88/3, R.S.No. 88/4, R.S.No. 88/5, R.S.No. 88/6 totally 35 acre 15 guntas and plant and machinery situated in Naganapur Village, Tal : Modhol, Dist. Bagalkot, within the limits of Sub Registrar, Mudhol.

vi) Term Loan 8 - 4000 Lakhs Loan from Canara Bank

This loan is secured by a first charge on land & Building (Civil Construction) situated at Bisarhalli of 47 acres 06 gunta owned by the company, bearing S.No. 245, 248/2, 249/1, 249/2, 250/2, 255/3, 255/4, 255/5 and 255/6, along with charge of Plant & Machinery located at Bisarahalli.

vii) Term Loan 9 - 10 Lakhs Bolero Vehicle Loan from Canara Bank

This loan is secured by hypothecation of Mahindra Bolero Vehicle.

viii) Term Loan 10 - 8000 Lakhs new Loan from Canara Bank

This loan is secured by a Exclusive Charge on the Plant of the comapny situated in Bi saralli Village Koppal, Lokapur and Kalagdi inclusive of Land and building and Fixed Assets more particularily described in the Mortgage and Hypothecation Deed

ix) Sales tax Deferment Loan

The company has received four tranches of Interest free SGST loan from State Government of Karnataka granted under SGST promotion scheme. The same has been considered as a Government grant. This is secured by bank guarantees. The loans have a moratorium period of 10 Years and shall be repaid at the end of the moratorium period, maturing in the calendar year 2032 for three tranches and in Jan-34 for the fourth tranche and an additional security of fixed deposit of Rs.18.51 lakhs.

x) Unsecured Loan from Directors & Other Related Parties

This loan represents unsecured loans received from various directors and individual related parties, carrying an interest rate at the rate of 6% (Classified as Current Borrowings). Long-term loans obtained from Neel Holistic Infra Private Limited (formerly known as Katwa Constructions Company Private Limited) represent unsecured loans carrying an interest rate of 10% on Rs.900 Lakhs obtained on 29th March 2023 and 8% on other balances. However, if the Rs.900 Lakhs loan is prepaid within 1 year from the date of disbursement, the interest rate shall be 8%.

The terms of these loans were amended at the Board Meeting dated 16th March 2023 (and subsequent Extraordinary General Meeting dated 12th April 2023) of the company granting the right to the lenders to get the outstanding unsecured loan (as on 16th March 2023) converted into equity shares of the company at such price and on such date/time as may be determined by the Board after complying with the requisite sections/provisions/rules etc. as may be applicable to the Borrower Company'' for such conversion and subject to the approval of Shareholders and such other regulatory authority, as may be applicable from time to time.

As per the same, loans amounting to Rs.2400 Lakhs has been converted into equity shares at the valuation of Rs.125 per equity share, basis the resolution passed by the members in the EGM dated 12th April 2023. Consequently, this portion of the loan has been classified under ''Other Equity'' as on 31st March 2023 as per the principals laid down in IND AS 109. Further other equity amounting to Rs.2400 Lakhs has been coverted into Equity share capital during the FY 23-24 by issuing 19,20,000 shares of Face value Rs.10/- and securities premium of Rs. 115/- on 28th April,2024.

xi) Bank Overdraft

This loan is secured by a first charge on mortgage & hypothecation of stock and book debts of the company.

Common Collateral for both Work Capital Loans (Bank Overdrafts) and Term Loan Facilities

All loans (Working Capital & Term loans) have a common collateral - First charge of Mortgage & Hypothecation of Cement Plant I at Kaladgi (Dist. Bagalkot) including Land measuring 14 Acres and 8 Gunta, buildings and machinery at the same location.

Additionally, th e loans carry the following guarantees -

Personal Guarantee of Mr. Venkatesh H Katwa (Chairman), Mr. Vilas H Katwa (MD & CEO), Mr. Deepak H Katwa (Executive Director) and Mr. H D Katwa (Chairman Emeritus)

Corporate Guarantee of M/s Katwa Infotech Ltd

(b) The amount of interest paid by the buyer in terms of section 16 of the Act

(c) The amount of the payment made to the supplier beyond the appointed day during the year

(d) The amounts of interest accrued and remaining unpaid at the end of financial year

(e) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the due date during the year) but without adding the interest specified under this Act.

(f) The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.

Sensitivities due to mortality is not material and hence impact of change is not calculated.

Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are not applicable being a lump sum benefit on retirement.

Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such the Company is exposed to various risks as follows:

a) . Salary increase: Actual salary increases will increase plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

b) . Investment risk: If plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

c) . Discount rate: Reduction in discount rate in subsequent valuations can increase the plan’s liability.

d) . Mortality & disability: Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

e) . Withdrawals: Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact the plan’s liability.

Sensitivities due to mortality is not material and hence impact of change is not calculated.

Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are not applicable being a lump sum benefit on retirement.

Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such the Company is exposed to various risks as follows:

a) . Salary increase: Actual salary increases will increase plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

b) . Investment risk: If plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

c) . Discount rate: Reduction in discount rate in subsequent valuations can increase the plan’s liability.

d) . Mortality & disability: Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

e) . Withdrawals: Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact the plan’s liability.

The financial instruments are categorised into two levels based on the inputs used to arrive at fair value measurement as described below:

Level 1: It includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments.

2. Financial Risk Management Objective and policies:

Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include Security deposits, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company.

2.1. Market Risk:

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

2.1.1 Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument which will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

The exposure of the company’s borrowing to interest rate changes at the end of the reporting period are as follows:

2.1.2 Commodity Price Risk Management:

Commodity price risk for the Company is mainly related to fluctuations in coal and pet coke prices linked to various external factors, which can affect the production cost of the Company. Since the Energy costs is one of the primary costs drivers, any adverse fluctuation in fuel prices can lead to drop in operating margin. To manage this risk, the company enter into long-term supply agreement for pet coke, identifying new sources of supply etc. The pet coke has to be procured at spot prices. Additionally, processes and policies related to such risks are reviewed and controlled by senior management and fuel requirement are monitored by the central procurement team.

Credit risk arises when a customer or counterparty does not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing / investing activities, including deposits with banks and financial institutions. The Company has no significant concentration of credit risk with any counterparty.

The Company''s credit risk is primarily to the amount due from customers and loans. The Company maintains a defined credit policy and monitors the exposures to these credit risks on an ongoing basis. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with scheduled commercial banks with high credit ratings assigned by domestic credit rating agencies.

Trade Receivable

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are unsecured and are derived from revenue earned from customers primarily located in India. The Company does monitor the economic environment in which it operates and the Company manages its Credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of customers to which the Company grants credit terms in the normal course of business.

On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade receivable. The management uses a simplified approach (i.e. based on lifetime ECL) for the purpose of impairment loss allowance, the Company estimates amounts based on the business environment in which the Company operates, and management considers that the trade receivables are in default (credit impaired) when counter party fails to make payments as per terms of sale/service agreements. However the Company based upon historical experience determine an impairment allowance for loss on receivables.

When a trade receivable is credit impaired, it is written off against trade receivables and the amount of the loss is recognised in the income statement. Subsequent recoveries of amounts previously written off are credited to the income statement.

The gross carrying amount of trade receivables is Rs.539.59 Lakhs (March 31, 2023: Rs.434.63 Lakhs). Trade receivables are generally realised within the credit period. The Company believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour.

Refer Note 7 for the company''s exposure to Credit risk for Trade Receivables (Ageing).

2.3 Liquidity Risk:

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities.Company accesses domestic financial markets, Banks and Financial Institutions to meet its liquidity requirements. The company’s liquidity is managed centrally with operating units forecasting their cash and liquidity requirements.

43. CAPITAL MANAGEMENT

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company''s policy is to keep the gearing ratio between 40% and 60%. The gearing ratio of the company during the reporting period (including previous period) is substantially high due to substantial long term debt fund raised for the purpose of expansion of plant capacity and solar power generation plant set up. The management is of the opinion that the new investment will reduce the cost of production and increase the profitability of the company in near future and reduce the debt. The company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the Company''s capital management is to maximise the shareholder value.

High Gearing ratio is mainly attributed to the significant borrowings for solar power plant at Bisarhalli and cement plant expansion at Lokapur and Kaladgi. These expansion project have been completed resulting in depreciation charge and Interest cost to the equity.

44 SEGMENT INFORMATION

The company''s operating segments are established on the basis of those components that are evaluated regularly by the Executive Committee (the ''Chief Operating Decision Maker'' as defined in Ind AS 108- ''Operating Segments''), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the deferring risks and returns and internal business reporting systems.

The company has four principal operating segments; viz. 1. Cements, 2. Petrol and Diesel , and 3. Solar Energy. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

i. Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment.

Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

ii. Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

iii. The business, which were not reportable segments during the year, have been grouped under the “Others” segment.

45 Leases

On adoption of IND AS-116, the Company recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IND AS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 April 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 April 2019 was 12.0% p.a.

48 OTHER EXPLANATORY INFORMATION

1 The Company does not have any transactions with companies struck-off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

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

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

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

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

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

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

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

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

6 The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies ("ROC") beyond the statutory period.

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

8 The Company has not been declared a wilful defaulter by any bank or financial institutions or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

9 The Company has not used any borrowings from banks and financial institutions for purpose other than for which it was taken.

10 These financial statements were approved for issue by the Board of Directors on May 24, 2024.

11 During the year the company has complied with section 2(87) of the Companies Act 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

12 During the year no scheme of arrangements has been approved by the Competent Authority in terms of section 230 to 270 of the Companies Act 2013.

51 Disclosure on Government Grants

(a) Sales Tax deferment loan has been considered as a government grant and the difference between the fair value and nominal value as on date is recognized as an income over the life of the grant. Every year, interest expense is accounted based on the fair interest rate used for determining the fair value of the loan on the date of receipt of the loan.

(b) Accordingly, an amount of Rs. 84.66 Lakhs (PY - 65.12 Lakhs) has been accounted as Other Income in respect of the same.

(c) Additionally, an amount of Rs. 57.42 Lakhs (PY - 41.00 Lakhs) has been accounted as Interest Expense on account of the changes in the Fair Value.

---

Mar 31, 2023

Company has only one class of shares referred to as equity shares having par value of Rs.10 each. Each holder of shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts.

Shares held by promoters at the end of the year

The company has no holding company.

No shares have been reserved for issue under options and contracts or commitments for the sale of shares or disinvestment.

No class of shares have been allotted as fully paid up pursuant to contract(s) without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the period of 5 years immediately preceding the Balance Sheet date.

iii) 3373 Lakhs & 767 Lakhs Term Loans from Canara Bank

Loan of Rs.3373 Lakhs and subsequent additional facility of Rs.767 Lakhs have been secured by mortgage of 850TPD Cement Plant II, along with mortgage of 35 Acres and 15 Guntas land and building at Plant II (Lokapur plant) owned and maintained by the Company. Fixed deposits of Rs.8 Lakhs are an additional security on the loan along with Rs.8000 Lakhs loan.

iv) 8000 Lakhs Loan from Canara Bank

The loan of Rs.8000 Lakhs is secured by a first charge on the project land of 95 Acres and 6 Guntas at S. No. 241, 242, 243/1, 243/3, 243/2, 244, 246, 250/1, 250/3, 250/4, 250/5, 251,255/1, 255/2, 256/1, 256/2, 256/3, 256/4, 257/1, 257/2, 257/3, 257/4, 258/1, 258/2, 258/3 and 258/4 (located at Bisarhalli Taluka and District Koppal, Karnataka), along with hypothecation on 20MW AC supply unit and associated equipments. Fixed deposits of Rs.8 Lakhs are an additional security on the loan along with Rs.4140 Lakhs loan.

v) 2000 Lakhs Working Capital Term Loan under GECL Scheme

The company has availed working capital term loan from Canara Bank under GECL Scheme 2.0. A secondary charge on the assets which have been offered as security to the bank for the other loans of the company.

vi) 1900 Lakhs Working Capital Term Loan under GECL Scheme

The company has availed working capital term loan from Canara Bank under GECL Scheme 2.0. A secondary charge on the assets which have been offered as security to the bank for the other loans of the company.

vii) 4000 Lakhs Loan from Canara Bank

This loan is secured by a first charge on land & Building (Civil Construction) situated at Bisarhalli of 47 acres 06 gunta owned by the company, bearing S.No. 245, B248/2, 249/1, 249/2, 250/2, 255/3, 255/4, 255/5 and 255/6, along with charge of Plant &

Machinery located at Bisarahalli.

viii) Sales tax Deferment Loan

The company has received three tranches of Interest free SGST loan from State Government of Karnataka granted under SGST promotion scheme. The same has been considered as a Government grant. This is secured by bank guarantees. The loans have a moratorium period of 10 Years and shall be repaid at the end of the moratorium period, maturing in the calendar year 2032 for all the three tranches.

ix) Unsecured Loan from Directors & Other Related Parties

This loan represents unsecured loans received from various directors and individual related parties, carrying an interest rate at the rate of 6% (Classified as Current Borrowings). Long-term loans obtained from Neel Holistic Infra Private Limited (formerly known as Katwa Constructions Company Private Limited) represent unsecured loans carrying an interest rate of 10% on Rs.900 Lakhs obtained on 29th March 2023 and 8% on other balances. However, if the Rs.900 Lakhs loan is prepaid within 1 year from the date of disbursement, the interest rate shall be 8%.

The terms of these loans were amended at the Board Meeting dated 16th March 2023 (and subsequent Extraordinary General Meeting dated 12th April 2023) of the company granting the right to the lenders to get the outstanding unsecured loan (as on 16th March 2023) converted into equity shares of the company at such price and on such date/time as may be determined by the Board after complying with the requisite sections/provisions/rules etc. as may be applicable to the Borrower Company'' for such conversion and subject to the approval of Shareholders and such other regulatory authority, as may be applicable from time to time.

As per the same, loans amounting to Rs.2400 Lakhs has been converted into equity shares at the valuation of Rs.125 per equity share, basis the resolution passed by the members in the EGM dated 12th April 2023. Consequently, this portion of the loan has been classified under ''Other Equity'' as on 31st March 2023 as per the principals laid down in IND AS 109.

x) Bank Overdraft

This loan is secured by a first charge on mortgage & hypothecation of stock and book debts of the company.

Common Collateral for both Work Capital Loans (Bank Overdrafts) and Term Loan Facilities

All loans (Working Capital & Term loans) have a common collateral - First charge of Mortgage & Hypothecation of Cement Plant I at Kaladgi (Dist. Bagalkot) including Land measuring 14 Acres and 8 Gunta, buildings and machinery at the same location.

Additionally, the loans carry the following guarantees -

Personal Guarantee of Mr. Venkatesh H Katwa (Chairman), Mr. Vilas H Katwa (MD), Mr. Deepak H Katwa (Executive Director & CFO) and Mr. H D Katwa (Chairman Emeritus)

Corporate Guarantee of M/s Katwa Infotech Ltd

27. CONTINGENT LIABILITIES AND COMMITMENTS
Particulars	Brief Description of the Matter	As At March 31, 2023	As At March 31, 2022
GST	Advance payments made by the company in resposne to Search & Seizure proceedings, conducted by GST Intelligence at company premises. [The same is appearing as part of Other Current Assets in the Financial Statements]	859.63	-
Cash outflows/asset write offs in respect of the above are determinable only on the receipt of judgements pending at various forums/authorities
Particulars	Brief Description of the Commitment	As At March 31, 2023	As At March 31, 2022
Capital Commitments	Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances)	141.24	-

The financial instruments are categorised into two levels based on the inputs used to arrive at fair value measurement as described below: Level 1: It includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments.

2) Financial Risk Management Objective and policies:

Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include Security deposits, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

2.1. Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of risk interest rate risk. Financial instruments affected by market risk include loans and borrowings and deposits. The sensitivity analyses in the following sections relate to the position as at March 31, 2023 and March 31,2022.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions; and the non-financial assets and liabilities.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2023 and March 31, 2022.

2.2 Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

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

The Company''s credit risk is primarily to the amount due from customers and loans. The Company maintains a defined credit policy and monitors the exposures to these credit risks on an ongoing basis. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with scheduled commercial banks with high credit ratings assigned by domestic credit rating agencies.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are unsecured and are derived from revenue earned from customers primarily located in India. The Company does monitor the economic environment in which it operates and the Company manages its Credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of customers to which the Company grants credit terms in the normal course ofbusiness.

On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade receivable. The management uses a simplified approach (i.e. based on lifetime ECL) for the purpose of impairment loss allowance, the Company estimates amounts based on the business environment in which the Company operates, and management considers that the trade receivables are in default (credit impaired) when counter party fails to make payments as per terms of sale/service agreements. However the Company based upon historical experience determine an impairment allowance for loss on receivables.

When a trade receivable is credit impaired, it is written off against trade receivables and the amount of the loss is recognised in the income statement. Subsequent recoveries of amounts previously written off are credited to the income statement.

The gross carrying amount of trade receivables is Rs.434.63 Lakhs (March 31, 2022: Rs.547.48 Lakhs). Trade receivables are generally realised within the credit period. The Company believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour.

2.3 Liquidity Risk:

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities.

Company accesses domestic financial markets, Banks and Financial Institutions to meet its liquidity requirements. The company’s liquidity is managed centrally with operating units forecasting their cash and liquidity requirements.

29. CAPITAL MANAGEMENT

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company''s policy is to keep the gearing ratio between 40% and 60%. The gearing ratio of the company during the reporting period (including previous period) is substantially high due to substantial long term debt fund raised for the purpose of expansion of plant capacity and solar power generation plant set up. The management is of the opinion that the new investment will reduce the cost of production and increase the profitability of the company in near future and reduce the debt. The company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the Company''s capital management is to maximise the shareholder value.

High Gearing ratio is mainly attributed to the significant borrowings for solar power plant at Bisarhalli and cement plant expansion at Lokapur. These expansion project have been completed resulting in depreciation charge and Interest cost to the equity.

30 SEGMENT INFORMATION

The company''s operating segments are established on the basis of those components that are evaluated regularly by the Executive Committee (the ''Chief Operating Decision Maker'' as defined in Ind AS 108- ''Operating Segments''), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the deferring risks and returns and internal business reporting systems.

The company has four principal operating segments; viz. 1. Manufacturing and trading in Cements (MTC), 2. Trading in Coal (TC), 3. Dealers of Petrol and Diesel (TPD), and 4. Solar Energy generation and Sale (SP).

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

i. Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

ii. Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

31 Leases

On adoption of IND AS-116, the Company recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IND AS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 April 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 April 2019 was 12.0% p.a.

32 OTHER EXPLANATORY INFORMATION

1 Dues to Micro, Small and Medium enterprises

The Company has Rs. 105.10 Lakhs (PY Rs.165.62 Lakhs) dues to micro and small enterprises as at 31st March 2023. However the same is not outstanding for more than 45 Days. The information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

2 Subsequent events:

The company has converted a portion of the loans obtained from the Promoter Group into Equity Shares vide the Extraordinary General Meeting held on 12th April 2023 (Board Meeting dated 16th March 2023), amounting to Rs.2400 Lakhs at the valuation of Rs.125 per equity share. Additionally, the company has also issued equity shares and share warrants to other investors in the same meeting.

3 All amounts have been rounded off to nearest rupee in lakhs and due to this rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.

4 The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current requirements.

5 The Company does not have any transactions with companies struck-off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

6 The Company does not have any immovable property (other than properties where the Company is a lessee and the lease agreements are duly executed in the favour of the lessee) whose title deeds are not held in the name of the Company.

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

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

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

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

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

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

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

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

11 The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies ("ROC") beyond the statutory period.

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

13 The Company has not been declared a wilful defaulter by any bank or financial institutions or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

14 The Company has not used any borrowings from banks and financial institutions for purpose other than for which it was taken.

15 These financial statements were approved for issue by the Board of Directors on May 25, 2023.

35 Disclosure on Government Grants

(a) Sales Tax deferment loan has been considered as a government grant and the difference between the fair value and nominal value as on date is recognized as an income over the life of the grant. Every year, interest expense is accounted based on the fair interest rate used for determining the fair value of the loan on the date of receipt of the loan.

(b) Accordingly, an amount of Rs. 65.12 Lakhs (PY - 19.24 Lakhs) has been accounted as Other Income in respect of the same.

(c) Additionally, an amount of Rs.41.00 Lakhs (PY - 19.24 Lakhs) has been accounted as Interest Expense on account of the changes in the Fair Value.

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Mar 31, 2018

A.1 Corporate information and significant accounting policies

Corporate information

Shri Keshav Cements and Infra Limited (Formerly Katwa Udyog Limited) (''the Company'') 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.

2. Company has only one class of shares referred to as equity shares having par value of Rs.10each. Each holder of shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential a mounts.

i) Loan from Syndicate Bank (1350 lakhs)

This loan is secured by a first charge on all the fixed assets (both present and future)of the company in respect of Unit I & II. This loan is repayable full on 31st August 2016 and hence it is classified under other current financial liabilities. (Also refer note 14)

ii) Axis Bank Loan 704 Lakhs

a) 454 Lakhs loan

This loan is secured on all the fixed assets of the company along with Syndicate bank and it is taken to take over the existing term loan of Karnataka bank. This loan is repaid full on 31st August 2018 hence classified under other current financial liabilities. (Also refer Note 14)

b) 250 Lakhs loan

This loan is secured on the personal property and on personal guarantee of the directors. This loan preclosed on 31st March 2018 hence classified under other current financial liabilities. (Also refer Note 14)

iii) 7.3 Lakhs of loan for Bolero

This loan is secured by hypothecation of Bolero car.

iv) 500 lakhs loan from Sarawat Bank for business needs

This loan is secured on all piece and parcel of the property comprising land with building, bearing plot no. 2 out of Sy no. 215/2, situated at 6th cross, Nazar camp, Madhavpur, Vadagaon, Belgaum - 590005. This loan is repayable in 120 equated monthly installments.

v) 24 lakhs of loan for Innova

This loan is secured by hypothecation of Innova car.

vi) 4140 Lakhs Term Loan from Syndicate Bank for Project Expansion

Loan of Rs. 3373 Lakhs is secured by a first charge on the hypothecation of RM, WIP, Stock in trade, assignments of both units and mortgage / hypothecation of entire block of fixed assets incl 35 acres of land at Lokapur plant. This loan is taken to enhance the grinding capacity of the cement mill at lokapur plant from 200 TPD to 1100 TPD . Repayment period of this loan is 9 Years and 3 Months. An additional loan of Rs.767 Lakhs has been taken on the same terms ans conditions to meet the additional cost of pollution control equipment and additional crusher units.

vii) 8000 Lakhs Loan from Syndicate Bank for Solar Project

This loan is secured by a first charge on project land 103 acres 34 gunta in the name of Vilas Katwa, his wife Smt. Tina V Katwa and Deepak Katwa and his wife Smt. Prajyokta Katwa, valued at Rs 684 Lakhs, hypothecation of 20 MW AC supply unit valued at 99.52 crores and associated securities like power excavation, bay extension erection worth Rs 876 Lakhs. This loan is taken for setting up 20MW captive solar power at Bisarahalli with the cost of Rs 11922 Lakhs. Repayment term is 13 years including the moratorium period of 1 year.

viii) Bank Overdraft

This loan is secured by a first charge on mortgage & hypothecation of block of fixed assets incl land 14 acres 8 guntas and building and machinery of cement plant at plant Kaladgi.

There are no amounts outstanding to Micro, Small and Medium Enterprises as at March 31, 2018 and no amount were over due during the year for which disclosure requirements under Micro, Small and Medium Enterprises Development Act, 2006 are applicable.

3. CONTINGENT LIABILITIES AND COMMITMENTS

i. Contingent liabilities and Commitments as at 31 March 2018: Nil (Previous year As at 31 March 2017: Nil).

ii. The Sale Tax officer Kolhapur, Maharastra has raised a demand related to FY 2012-13 amounting to Rs 34.95 Lakhs (Incl interest and penalty), however the company has filed an appeal against the order by depositing 10% of the disputed MVAT amount of Rs 1.75 Lakhs and the management is of the view that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

The financial instruments are categorised into two levels based on the inputs used to arrive at fair value measurement as described below:

Level 1: Quoted Prices (Unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

1) Financial Risk Management Objective and policies:

"Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include Security deposits, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company senior management oversees the management of these risks.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below."

1.1. Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of risk interest rate risk. Financial instruments affected by market risk include loans and borrowings and deposits.

The sensitivity analyses in the following sections relate to the position as at March 31, 2018 and March 31, 2017.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt.

"The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions; and the non-financial assets and liabilities."

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

2.2 Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

2.3 Credit Risk:

"Credit risk is the risk that a customer or counter party to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises from company''s outstanding receivables from customers."

"The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Sales made to dealers on credit are generally secured through Security deposit amount received from dealers."

2.4 Liquidity Risk:

"Liquidity risk arises from the Company''s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities. Company accesses domestic financial markets, Banks and Financial Institutions to meet its liquidity requirements. The company''s liquidity is managed centrally with operating units forecasting their cash and liquidity requirements."

Maturity Profile of Financial Liabilities based on contractual undiscounted amounts:

4. CAPITAL MANAGEMENT

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company''s policy is to keep the gearing ratio between 40% and 60%. The gearing ratio of the company during the reporting period (including previous period) is substantially high due to substantial long term debt fund raised for the purpose of expansion of plant capacity and solar power generation plant set up. The management is of the opinion that the new investment will reduce the cost of production and increase the profitability of the company in near future and reduce the debt. The company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholder value.

5. SEGMENT INFORMATION

The company''s operating segments are established on the basis of those components that are evaluated regularly by the Executive Committee (the ''Chief Operating Decision Maker'' as defined in Ind AS 108- ''Operating Segments''), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the deferring risks and returns and internal business reporting systems.

The company has three principal operating segments; viz.

1. Manufacturing and trading in Cements (MTC), 2. Trading in Coal (TC) and 3. Dealers of Petrol and Diesel (TPD).

"The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting."

"i. Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”."

"ii. Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”."

"iii. The business, which were not reportable segments during the year, have been grouped under the “Others” segment. This mainly comprises of sale of Clinker, Fly ash and other anciliary products."

Explanations to the reconciliation of Statement of Profit and loss as previously reported under IGAAP to Ind AS:

I. Revenue from operations:

"As per Schedule III Division II of Companies Act, 2013, revenue from sale of products should be inclusive of Excise Duty. Further, reclassification of Other operative income to Other income made. There is no adjustment as per Ind AS."

II. Coast of material consumed and other manufacturing expenses:

Reclassification of raw material, packing material, work in progress, stores and spares and stock in trade inventory and their consumption made as per revised Schedule II format. There is no adjustment for the value as per Ind AS.

III. Employee Benefit Expenses:

Gratuity provision is accounted as per Ind AS 19- "Employee Benefits". Further, Directors remuneration is reclassified from Sitting Fees under Other expenses.

IV. Finance Costs

"Amount includes adjustment regarding interest recognition as per EIR method, considering net cash flow in relation to the respective borrowing."

V. Depreciation and amortisation expenses

The shown reduction to charge of depreciation is due to revised estimate of useful life of the asset as per Schedule II of The Companies Act 2013.

VI. Other Expenses:

Director remuneration and Excise Duty paid is reclassified from Other expenses and Revenue from operation respectively.

VII. Other comprehensive income:

Actuarial Gain/(Loss) is recognised as Other comprehensive income as per IndAS 19- "Employee Benefits".

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Mar 31, 2015

A) 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. 3,39,383/- during the year Company has availed modvat credit of Rs. 1,02,17,373 /- comprises of modvat credit on capital goods Rs. 11,61,820/- and modvat credit on raw material Rs. 83,55,814/-, and on Service Tax Rs. 6,99,739/-. 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. 2,28,35,284/- and it is shown under the head Other Current Assets as 'MAT Credit entitlement.

b) 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.

c) BORROWING COSTS AS-16 :

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

d) 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:

e) 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)

f) 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, 2015 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, 2014

A) 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, 2014 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.

1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT

PROVIDED FOR)_

As at 31 As at 31 Particulars March 2014 March 2013

(A) Contingent Liabilities

(a) Claims against the company not acknowledged as debts

(b) Guarantees Nil Nil

(c) Other money for which company is contingently liable -Bills discounted with banks

(B) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Nil Nil

(b) Uncalled liability on shares and other investments partly paid

(c) Others

TOTAL HA) (B)]

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Mar 31, 2013

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. 95,20,145/- comprises of modvat credit on capital goods Rs. 20,40,154/- and modvat credit on raw material Rs. 74,79,991/-, The Company has deducted modvat credit of Rs. 20,40,154/- from the plant and machinery & Rs. 74,79,991/- from the raw materials. Balance amount of modvat of Rs. 19,03,946/-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. 1,68,22,620/- and it is shown under the head Loans and Advances as''MAT Credit C/fd.''.

a) 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.

b) BORROWING COSTS AS-16:

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

c) 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)

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Mar 31, 2012

(1) Investments valued at other than cost All the above investments stated at cost except the following:

(i) Investments in partnership firms are stated at amount invested as capital contributions from time to time as adjusted by interest on capital, share or profit/loss from firm and drawings by the company from the firm

(ii] Investments in shares of a subsidary) shown as traded investments has been valued at cost less other than temporary diminution in value .

(2) Quoted Investments -

Aggregate amount Market value

(3) Unquoted Investments

Aggregate amount

Note:

Mode of Valuation :

(a} Raw Materials, Stores and Spares, Loose Tools and Packing materials are valued at cost

(b) Work-in-Progress are valued at cost or Net Realisable Value, whichever is lower

(c]Finished Goods and stock-in-trade are valued at cost or Net Realisable Value, whichever is lower

(A) Trade receivables outstanding for more than six months from the date they became due for pay- ment

(i) Secured, considered good

(ii) Unsecured considered good

(iii) Doubtful

Less: Allowance for bad and doubtful advances

(B) Trade Receivables (others)

(i) Secured, considered good

(ii) Unsecured considered good

(iii) Doubtful

Less: Allowance for bad and doubtful advances

4 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Rs. Rs.

As at 31 As at 31 Particulars March 2012 March 2011

(A) Contingent Liabilities

(a) Claims against the company not acknowledged as debts

(b) Guarantees

(c) Other money for which company is contingently liable -Bills discounted with banks

(B) Commitments

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

(b) Uncalled liability on shares and other investments partly paid

(c) Others

TOTAL (A) (B)l

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Mar 31, 2010

I) The previous years figures have been reworked, regrouped, rearranged and re-classified wherever necessary. h) The sundry debtors, sundry creditors and advances are subject to Confirmation and are stated at book balances thereof.

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 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. 41,88,044/-comprises of modvat credit on capital goods Rs. 13,07,4191- and modvat credit on raw material Rs. 25,94,999/-, and Service Tax of Rs. 2,85,622/- The Company has deducted modvat credit of Rs. 24,04,118/- from the plant and machinery & Rs. 48,3 8,945/- from the raw materials. Balance amount of modvat of Rs. 2,69,668/-is carried forwarded.

b 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.

c. BORROWING COSTS AS-16:

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

d. RELATED PARTY DISCLOUSERSAS-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:

L Key Management Personnel

1. Mr. H.D. Katwa, Chairman

2. Mr. Venkatesh Katwa Chairman

3. Mr. Vilas H. Katwa Managing Director

4. Mr. Deepak Katwa Director

II. Relative of Key Management Personnel

1. Mrs. N.H. Katwa Director

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)