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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Visaka Industries Ltd.

Mar 31, 2025

(D) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a face value of H 2 /- each. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(E) The Company has not issued any share as fully paid up without payment being received in cash or as bonus shares nor any share has been bought back by the Company since its incorporation.

(F) The shareholders of the Company approved split of one fully paid up equity share of the Company having face value of H 10 each into 5 fully paid up equity shares having a face value of H 2 each and same has been given effect to on 15 May 2023 (record date).

Nature and purpose of other reserves

(i) Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Act.

(ii) General Reserve

General reserve is used for strengthening the financial position and meeting future contingencies and losses.

(i) Term loans from banks include

- Loan taken from HDFC Bank Limited for boards & panel project at Udumalpet, Tamilnadu State and an additional production line of cement roofing sheets at Raebareli, Uttar Pradesh State. The loan sanctioned and drawn is H 7,500.00 lakhs during the year 2022-23 and is repayable in 24 quarterly installments at the rate of H 312.50 lakhs each quarter from the financial year 2022-23 to 2028-29 (i.e., from Decemberâ 2022 to Septemberâ 2028).The current rate of interest is 8.35% p.a(2024-8.78%p.a) (linked to treasury bill rate). This loan is secured by first mortgage and charge in favour of the Bank on all the Companyâs fixed assets both present and future and second charge on the current assets of the Company on pari passu basis with other lenders. The amount outstanding as at balance sheet date is H 4,375.00 lakhs (2024- H5,625.00 lakhs) repayable in 14 quarterly installments (out of which H 1,250.00 lakhs (2024- H1,250.00 lakhs) are included in Borrowings (current)).

- Loan taken from ICICI Bank Limited for boards & panel project at Udumalpet, Tamilnadu State and an additional production line of cement roofing sheets at Raebareli, Uttar Pradesh State. The loan sanctioned is H 7,500.00 lakhs during the year 2022-23 at the current rate of interest of 8.52% p.a(2024-8.92%p.a) (linked to treasury bill rate). Out of which

(a) H 5,000.00 lakhs is drawn in September 2022, which is repayable in 22 quarterly installments at the rate of H 22727 lakhs each quarter from financial year 2022-23 to 2027-28 (i.e., from Decemberâ 2022 to Marchâ 2028).

(b) H 2,500.00 lakhs is drawn in January 2023 which is repayable in 21 quarterly installments at the rate of H 119.05 lakhs from the financial year 2022-23 to 2027-28 (i.e., from Marchâ 2023 to Marchâ 2028).

This loan is secured by first mortgage and charge in favour of the Bank on all the Companyâs fixed assets both present and future and second charge on the current assets of the Company on pari passu basis with other lenders. The amount outstanding as at balance sheet date is H 4,155.84 lakhs (2024- H5,541.13 lakhs) repayable in 12 quarterly installments (out of which H 1,385.28 lakhs (2024- H1,385.28 lakhs)are included in Borrowings (current)).

- Loan taken from IDBI Bank Limited for boards project at Midnapur, West Bengal State. The loan sanctioned and drawn is H 9,000.00 lakhs during the year 2023-24 and is repayable in 20 quarterly installments at the rate of H 450.00 lakhs each quarter from the financial year 2024-25 to 2029-30 (i.e., from July 2024 to June 2029).The current rate of interest is 9.05% p.a. This loan is secured by first mortgage and charge in favour of the Bank on all the Companyâs fixed assets both present and future and second charge on the current assets of the Company on pari passu basis with other lenders. The amount outstanding as at balance sheet date is H 7,199.95 lakhs repayable in 16 quarterly installments (out of which H 1,800.00 lakhs are included in Borrowings (current)).

(ii) Loans from others include interest free loans of H 6,570.36 lakhs availed ( H 809.99 lakhs in 2014-15, H 814.44 lakhs in 2016-17, H 973.03 lakhs in 2017-18, H 2,125.12 lakhs in 2019-20, H731.61 lakhs in 2022-23 , H81.29 lakhs in 2023-24 and H1034.88 lakhs in 202425 ) from The Pradeshiya Industrial & Investment Corporation of U.P Ltd (PIC UP) for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme, 2003. The loan is secured by first charge on all assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company and personal guarantee of Mrs. G Saroja Vivekanand, Managing director of the Company. The loans are repayable (each installment drawn) after 10 years from the date of disbursement. During the year the Company has repaid the loan of H809.90 lakhs. As per Ind AS requirements, these loans have been recognised at fair value and the difference between fair value and transaction value is recognised as Deferred Revenue Grant.

(iii) Public deposits represent deposits accepted from public carrying interest varying from 9.5% to 11.5% p.a. The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits matured and remaining unpaid as on the balance sheet date.

(iv) There are no borrowings from banks and financial institutions not used for specific purpose for which it was taken as at balance sheet date.

21.1 Working capital loans from banks are loans from State Bank of India. The loans are repayable on demand which are secured on pari-passu basis by hypothecation of the Companyâs entire current assets including raw materials, work-in-progress, stores & spares, finished goods and book debts, present and future, and second charge by way of hypothecation on all fixed assets present and future. Working capital demand loan carries interest rate of 7.50% to 770% p.a (2024- 7.50% to 7.70%p.a) and cash credit carries interest of 9.40% p.a(2024-8.70%p.a).

21.2 Short term loans include

- Loan from HDFC amounting to H 5,976.88 lakhs (2024- H4,925.61 lakhs) at an interest rate of 7.52% to 8.00% p.a (2024-7.60% to 8.00%p.a).

- Loan from ICICI amounting to H 3,000.00 lakhs (2024- H4,000.00 lakhs) at an interest rate of 8.00% to 8.65% p.a(2024-770% to 8.70%p.a).

- Standby letter of credit availed from various banks at an rate of interest ranging from 6.00% to 6.50% p.a(2024-6.00% to 6.50%p.a). The balance outstanding as at year end comprise of credit availed from :

(a) HDFC amounting to H 2,558.03 lakhs (2024- H1,043.32 lakhs)

(b) ICICI amounting to H Nil lakhs (2024- H68750 lakhs)

(ii) Defined contribution plans

The Company has defined contribution plans namely provident fund, super annuation fund and employee state insurance corporation (ESI). Contributions are made to provident fund at the rate of 12% of basic salary as per regulations. The contributions

are made to registered provident fund administered by the Government. The Company has created an approved superannuation fund and accounts for the contribution made to LIC of India against an insurance policy taken with them. Contributions are made to state insurance scheme for employees at the rate of 3.25%. The contributions are made to employee state Insurance corporation (ESI), a corporation administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plans is as follows:

(iii) Post- employment obligations Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to LIC of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The above sensitivity analysis is based on a change in each assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

v) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

35. Fair Value Measurement Fair values

1. The carrying amounts of trade payables, other financial liabilities(current), other financial assets(current), borrowings (current), trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short term nature.

2. Borrowings(non-current) consists of loans from banks and government authorities, other financial liabilities(non-current) consists of interest accrued but not due on deposits and other financial assets(non-current) include employee advances where the fair value is considered based on the discounted cash flow.

The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

*Fair value of instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Level 1 hierarchy 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 significant inputs required to fair value an instruments are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3.

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

36. Financial risk management

The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company

(A) Market risk

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 31 March 2025 and 31 March 2024.

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables, trade/other receivables The risks primarily relate to fluctuations in US Dollar and Euro against the functional currencies of the Company. The Company''s exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

The following tables demonstrate the sensitivity to a reasonably possible change in US dollars and Euros exchange rate, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.

The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in US dollars and Euros, which is different from the functional currency of the entity

(iii) 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 change in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

As the Company has no significant floating interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and noncurrent held-to maturity financial assets.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Cash and other collaterals are obtained from customers when considered necessary under the circumstances.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents Companyâs maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk.

i. Credit risk on cash and cash equivalents, deposits with banks and other bank balances is limited as the Company generally invest in deposits with banks with high credit ratings assigned by external agencies.

ii. The Company follows âsimplified approachâ for recognition of impairment of loss allowance on trade receivable.

(iii) Significant estimates and judgements Impairment of financial assets:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Companyâs past history existing market conditions as well as forward looking estimates at the end of each reporting period.

(C) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Companyâs treasury maintains flexibility in funding by maintaining availability under deposits in banks.

37. Capital management

A. Capital management and Gearing Ratio

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is debt divided by total capital. The Company includes within debt, interest bearing loans and borrowings.

38. Segment information

The Companyâs Managing Director and Joint Managing Director examines the Companyâs performance from a product perspective and has identified two reportable segments namely Building products and Synthetic Yarn.

Segment revenue and expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated expenses or income and adjusted only against the total income of the Company Segment result includes the respective other income.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Assets which are not allocable to the segments have been disclosed as ''unallocated assetsâ. Liabilities which are not allocable to the segments have been disclosed as ''unallocated liabilitiesâ. Segment assets and liabilities do not include deferred income taxes.

39. Contingent liabilities The Company has following contingent liabilities as at:
Particulars	31 March 2025	31 March 2024
(i) VAT/CST*	72.33	80.48
(ii) Excise duty/Service tax*	208.08	222.94
(iii) GST*	324.25	29.31
Total	604.66	332.73
''Includes H 42.54 lakhs (2024 H 62.31 lakhs) paid under protest.

The Company has created a provision with respect to contingencies for which loss is probable or estimatable (Refer Note 25). While the ultimate resolution of and liability and cost relatable to these matters cannot be determined with certainty the management does not believe any of these pending actions, individually or in the aggregate, will materially impact operations or materially affect financial condition or liquidity.

40. Commitments Capital commitments Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:
Particulars	31 March 2025	31 March 2024
Property, plant and equipment	758.31	596.53
Total	758.31	596.53

46. Title deeds of immovable properties

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in the favour of the lessee), as disclosed in note 4.1, 4.2 & 4.3 to the standalone financial statements, are held in the name of the Company.

47. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment including Right -of -Use Asset or intangible assets or both during the current or previous year.

49. Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and rules made thereunder.

50. Borrowing secured against current assets

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.

51. Wilful defaulter

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

52. Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

53. Registration of charges or satisfaction with Registrar of Companies (ROC)

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

54. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

55. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

56. Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity including foreign entities (âIntermediariesâ) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

57. Undisclosed income

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

58. 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

59. Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.

Mar 31, 2024

During the previous year the Company had setup V Panel manufacturing unit at Udumalpet in Tamilnadu state which commenced its commercial production on July 20, 2022 and an additional production line of cement roofing sheets had commenced commercial production at Raebareli, Uttar Pradesh on May 05, 2022.

During the previous year the Company had closed operations of cement roofing sheets unit at Patancheru in Hyderabad, Telangana state on September 15, 2022. As at date the Company is evaluating various proposals for utilisation of assets at the said unit.

12.1. During the year, Sushee Infra & Mining Limited has repaid the inter corporate deposit of H2,500.00 lakhs along with interest.

12.2. During the year, the Company has provided inter corporate deposit to Atum life Private Limited of H146.50 lakhs at an interest rate of 10.00% p.a for the purpose of short term business requirement which is repayable on demand.

During the year the ICD has been converted into equity by allotment of 14.65 lakhs equity shares by Atum life Private Limited at face value of H10/- each.

(D) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a face value of H2 /- each. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(E) The Company has not issued any share as fully paid up without payment being received in cash or as bonus shares nor any share has been bought back by the Company since its incorporation.

(F) The shareholders of the Company approved split of one fully paid up equity share of the Company having face value of H10 each into 5 fully paid up equity shares having a face value of H2 each and same has been given effect to on 15 May 2023 (record date).

Nature and purpose of other reserves

(i) Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Act.

(ii) General Reserve

General reserve is used for strengthening the financial position and meeting future contingencies and losses.

(i) Term loans from banks include

- Loan taken from IDBI Bank Limited for the Textile unit near Mouda Taluk, Nagpur in Maharashtra. The loan sanctioned is H6,035.00 lakhs during the year 2016-17, out of which H3,500.00 lakhs is drawn in 2016-17 and H2,535.00 lakhs is drawn in 2017-18 and is repayable in 24 quarterly installments at the rate of H251.46 lakhs each quarter from the financial year 2017-18 to 2023-24 (i.e., from September'' 2017 to June'' 2023). The rate of interest was 7.95% p.a(2023-7.95%p.a). This loan was secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company. The amount outstanding as at balance sheet date is H Nil . (2023-H251.46 lakhs)

- Loan taken from HDFC Bank Limited for boards & panel project at Udumalpet, Tamilnadu State and an additional production line of cement roofing sheets at Raebareli, Uttar Pradesh State. The loan sanctioned and drawn is H7,500.00 lakhs during the year 2022-23 and is repayable in 24 quarterly installments at the rate of H312.50 lakhs each quarter from the financial year 2022-23 to 2028-29 (i.e., from December'' 2022 to September'' 2028). The current rate of interest is 8.78% p.a(2023-8.83%p.a) (linked to treasury bill rate). This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company . The amount outstanding as at balance sheet date is H5,625.00 lakhs (2023- H6,875.00 lakhs) repayable in 18 quarterly installments (out of which H1,250.00 lakhs (2023- H1,250.00 lakhs) are included in Borrowings (current)).

- Loan taken from ICICI Bank Limited for boards & panel project at Udumalpet, Tamilnadu State and an additional production line of cement roofing sheets at Raebareli, Uttar Pradesh State. The loan sanctioned is H7,500.00 lakhs during the year 2022-23 at the current rate of interest of 8.92% p.a(2023-8.83%p.a) (linked to treasury bill rate). Out of which

(a) H5,000.00 lakhs is drawn in September 2022, which is repayable in 22 quarterly installments at the rate of H227.27 lakhs each quarter from financial year 2022-23 to 2027-28 (i.e., from December'' 2022 to March'' 2028).

(b) H2500.00 lakhs is drawn in January 2023 which is repayable in 21 quarterly installments at the rate of H119.05 lakhs from the financial year 2022-23 to 2027-28 (i.e., from March'' 2023 to March'' 2028).

This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company. The amount outstanding as at balance sheet date is H5,541.13 lakhs (2023- H6,926.41 lakhs) repayable in 16 quarterly installments (out of which H1,385.28 lakhs (2023- H1,385.28 lakhs)are included in Borrowings (current)).

- Loan taken from IDBI Bank Limited for boards project at Midnapur, West Bengal State. The loan sanctioned and drawn is H9,000.00 lakhs during the year 2023-24 and is repayable in 20 quarterly installments at the rate of H450.00 lakhs each quarter from the financial year 2024-25 to 2029-30 (i.e., from July 2024 to June 2029). The current rate of interest is 8.60% p.a. (linked to repo rate). This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company . The amount outstanding as at balance sheet date is H9,000.00 lakhs repayable in 20 quarterly installments (out of which H1,350.00 lakhs are included in Borrowings (current)).

(ii) Loans from others include interest free loans of H5,535.48 lakhs availed (H809.99 lakhs in 2014-15, H814.44 lakhs in 2016-17, H973.03 lakhs in 2017-18, H2,125.12 lakhs in 2019-20, H731.61 lakhs in 2022-23 , H81.29 lakhs in 202324) from The Pradeshiya Industrial & Investment Corporation of U.P. Ltd (PIC UP) for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme, 2003. The loan is secured by first charge on all assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company and personal guarantee of Mrs. G Saroja Vivekanand, Managing director of the Company. The loans are repayable (each installment drawn) after 10 years from the date of disbursement.

As per Ind AS requirements, these loans should be recognised at fair value and the difference between fair value and transaction value is recognised as Deferred Revenue Grant.

21.1 Working capital loans from banks are loans from State Bank of India. The loans are repayable on demand which are secured on pari-passu basis by hypothecation of the Company''s entire current assets including raw materials, work-in-progress, stores & spares, finished goods and book debts, present and future, and second charge by way of hypothecation on all fixed assets present and future. Working capital demand loan carries interest rate of 7.50% to 7.65% p.a (2023-7.00%p.a) and cash credit carries interest of 8.70% p.a(2023-7.80%p.a).

21.2 Short term loans include

- Loan from HDFC amounting to H4,925.61 lakhs (2023- H4,074.51 lakhs) at an interest rate of 7.60% to 8.00% p.a (2023-7.4% to 8.00%p.a).

- Loan from ICICI amounting to H4,000.00 lakhs (2023- H593.43 lakhs) at an interest rate of 7.70% to 8.70% p.a(2023-8.5% to 9.00%p.a).

- Standby letter of credit availed from various banks at an rate of interest ranging from 6.00% to 6.50% p.a(2023-5.00% to 5.50%p.a). The balance outstanding as at year end comprise of credit availed from :

(ii) Defined contribution plans

The Company has defined contribution plans namely Provident fund and Super annuation fund. Contributions are made to provident fund at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the Government. The Company has created an approved superannuation fund and accounts for the contribution made to LIC of India against an insurance policy taken with them. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plans is as follows:

(iii)Post- employment obligations

a) Gratuity

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

v) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

35. Fair Value Measurement Fair values

1. The carrying amounts of trade payables, other financial liabifities(current), other financial assets(current), borrowings (current), trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short term nature.

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

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3.

36. Financial risk management

The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

(A) Market risk

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables, trade/other receivables . The risks primarily relate to fluctuations in US Dollar against the functional currencies of the Company. The Company''s exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

The following tables demonstrate the sensitivity to a reasonably possible change in US dollars exchange rate, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.

The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in US dollars , where the functional currency of the entity is a currency other than US dollars .

(iii) 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 change in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

As the Company has no significant floating interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

The assumed increase/decrease in interest rate for sensitivity analysis is based on the currently observable market environment.

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents Company''s maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk.

ii. The Company follows "simplfied approach" for recognition of impairment of loss allowance on trade receivable.

(iii) Significant estimates and judgements Impairment of financial assets:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(C) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Company''s treasury maintains flexibility in funding by maintaining availability under deposits in banks.

Management monitors cash and cash equivalents on the basis of expected cash flows.

37. Capital management

A. Capital management and Gearing Ratio

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. The primary objective of the Company''s capital management is to maximise the shareholder value.

38. Segment information

The Company''s Managing Director and Joint Managing Director examines the Company''s performance from a product perspective and has identified two reportable segments namely Building products and Synthetic Yarn.

They primarily uses a measure of profit before tax to assess the performance of the operating segments.

Segment revenue and expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/ Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses or income and adjusted only against the total income of the Company. Segment result includes the respective other income.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Assets which are not allocable to the segments have been disclosed as ''unallocated corporate assets''. Liabilites which are not allocable to the segments have been disclosed as ''unallocated corporate liabilities''. Segment assets and liabilities do not include deferred income taxes.

Major customer

Revenue from any customer of the Company''s Building product and Synthetic yarn does not exceed 10% of the total revenue reported and hence, the Management believes there are no major customers to be disclosed.

39. Contingent liabilities The Company has following contingent liabilities as at:	All amounts in H lakhs
Particulars	31 March 2024	31 March 2023
(i) VAT/CST/Entry tax*	80.48	80.48
(ii) Excise duty/Customs duty/Service tax*	222.94	5,983.91
(iii) GST*	29.31	-
Total	332.73	6,064.39
*Includes H62.31 lakhs (2023 H144.13 lakhs) paid under protest.

The Company has established a liability with respect to contingencies for which loss is probable or estimatable (Refer Note 25). While the ultimate resolution of and liability and cost relatable to these matters cannot be determined with certainity, the management does not believe any of these pending actions, individually or in the aggregate, will materially impact operations or materially affect financial condition or liquidity.

40. Commitments
Capital commitments Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:
	All amounts in H lakhs
Particulars	31 March 2024	31 March 2023
Property, plant and equipment	596.53	7,454.62
Total	596.53	7,454.62

46. Title deeds of immovable properties

The title deeds of alt the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in the favour of the lessee), as disclosed in note 4.1 & 4.2 to the standalone financial statements, are held in the name of the Company.

47. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment including Right -of -Use Asset or intangible assets or both during the current or previous year.

48. Loans or advances to specified persons

No loans or advances in the nature of loans which is outstanding as at balance sheet date are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

49. Details of benami property held

50. Borrowing secured against current assets

51. Wilful defaulter

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

52. Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

53. Registration of charges or satisfaction with Registrar of Companies (ROC)

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

54. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

55. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

56. Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

57. Undisclosed income

58. Exceptional item as disclosed in the Statement of Profit & Loss represents retrenchment compensation paid to workers of Patancheru factory during the previous year.

59. 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."

60. Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.

Mar 31, 2023

v) Provisions

Provisions for legal claims and returns are recognised when the Company has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provisions due to the passage of time is recognized as interest expense.

w) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave is not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured at the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligations. Remeasurements as a result of the experience adjustments and changes in actuarial assumptions are recognized in profit or loss. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity; and

(b) Defined contribution plans such as provident fund and superannuation fund.

Gratuity obligations

The liability or assets recognized in the balance sheet in respect of gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in statement of profit or loss as per past service cost.

Defined contribution plans

The Company pays provident fund contributions to publicly administered funds as per local regulations and superannuation fund to LIC. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due.

(iv) Bonus plans

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

x) Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Money received against share warrants are reflected as a separate line item - ''Money received against share warrants'' under ''Other equity''.

y) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

z) Earning per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

â¢ The profit attributable to owners of the Company

â¢ By the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

â¢ The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

â¢ The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

aa) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest two decimal places of lakhs as per the requirement of Schedule III, unless otherwise stated.

3. Critical estimates and Judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

1. Estimation of defined benefit obligation - Refer Note 24

2. Useful lives of fixed assets - Refer Note 2(q) and Note 32

3. Impairment of trade receivables - Refer Note 9

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

(i) Term loans from banks include

- Loan taken from IDBI Bank Limited for the Textile unit near Mouda Taluk, Nagpur in Maharashtra. The loan sanctioned is H 6,035.00 lakhs during the year 2016-17, out of which H 3,500.00 lakhs is drawn in 2016-17 and H 2,535.00 lakhs is drawn in 2017-18 and is repayable in 24 quarterly installments at the rate of H 251.46 lakhs each quarter from the financial year 2017-18 to 2023-24 (i.e., from September'' 2017 to June'' 2023)The current rate of interest is 7.95% p.a. This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company. The amount outstanding as at balance sheet date is H 251.46 lakhs repayable in June 23 which is included in Borrowings (current).

- Loan taken from HDFC Bank Limited for boards & panel project at Udumalpet, Tamilnadu State and an additional production line of cement roofing sheets at Raebareli, Uttar Pradesh State. The loan sanctioned and drawn is H 7,500.00 lakhs during the year 2022-23 and is repayable in 24 quarterly installments at the rate of H 312.50 lakhs each quarter from the financial year 2022-23 to 2028-29 (i.e., from December'' 2022 to September'' 2028). The current rate of interest is 8.83% p.a. (linked to treasury bill rate). This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company . The amount outstanding as at balance sheet date is H 6,875.00 lakhs repayable in 22 quarterly installments (out of which H 1,250.00 lakhs are included in Borrowings (current)).

- Loan taken from ICICI Bank Limited for boards & panel project at Udumalpet, Tamilnadu State and an additional production line of cement roofing sheets at Raebareli, Uttar Pradesh State. The loan sanctioned is H 7,500.00 lakhs during the year 2022-23 at the current rate of interest of 8.83% p.a. (linked to treasury bill rate). Out of which

(a) H 5 ,000.00 lakhs is drawn in Septemeber 2022, which is repayable in 22 quarterly installments at the rate of H 227.27 lakhs each quarter from financial year 2022-23 to 2027-28 (i.e., from December'' 2022 to March'' 2028).

(b) H 2500.00 lakhs is drawn in January 2023 which is repayable in 21 quarterly installments at the rate of H 119.05 lakhs from the financial year 2022-23 to 2027-28 (i.e., from March'' 2023 to March'' 2028).

This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company . The amount outstanding as at balance sheet date is H 6,926.41 lakhs repayable in 20 quarterly installments (out of which H 1,385.28 lakhs are included in Borrowings (current)).

(ii) Loans from others include interest free loans of H 6,977.94 lakhs availed (H 1,523.75 lakhs in 2012-13, H 809.99 lakhs in 2014-15, H 814.44 lakhs in 2016-17, H 973.03 lakhs in 2017-18, H 2,125.12 lakhs in 2019-20, H731.61 lakhs in 202223) from The Pradeshiya Industrial & Investment Corporation of U.P. Ltd (PIC UP) for the cement asbestos unit at

17. Borrowings (non-current) (Contd.)

Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme, 2003. The loan is secured by first charge on all assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company and personal guarantee of Mrs. G Saroja Vivekanand, Managing director of the Company. The loans are repayable (each installment drawn) after 10 years from the date of disbursement. During the year the Company has repaid the loan of H 1523.75 lakhs.

As per Ind AS requirements, these loans should be recognised at fair value and the difference between fair value and transaction value is recognised as Deferred Revenue Grant.

20. Borrowings (current) (Contd.)

20.1 Working capital loans from banks are loans from State Bank of India. The loans are repayable on demand which are secured on pari-passu basis by hypothecation of the Company''s entire current assets including raw materials, work-in-progress, stores & spares, finished goods and book debts, present and future, and second charge by way of hypothecation on all fixed assets present and future. The loan carries floating rate of interest and present interest rate is 7.00% p.a.

20.2 Short term loans include

- Loan from HDFC amounting to H 4,074.51 lakhs at an interest rate of 7.40% to 8.00% p.a

- Loan from ICICI amounting to H 593.43 lakhs at an interest rate of 9.00% p.a.

- Standby letter of credit availed from various banks at an rate of interest ranging from 5% to 5.5%. The balance outstanding as at year end comprise of credit availed from :

(a) HDFC amounting to H 374.76 lakhs

(b) ICICI amounting to H 2234.75 lakhs

35. Fair Value Measurement (Contd.)

36. Financial risk management

(A) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analysis in the following sections relate to the position as at 31 March 2023 and 31 March 2022. 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 31 March 2023 and 31 March 2022.

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables, trade/other receivables .The risks primarily relate to fluctuations in US Dollar, GBP against the functional currencies of the Company. The Company''s exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

The following tables demonstrate the sensitivity to a reasonably possible change in US dollors and GBP exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.

(ii) Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments and from foreign forward exchange contracts:

36. Financial risk management (Contd.)

The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in US dollars and GBP, where the functional currency of the entity is a currency other than US dollars and GBP.

(iii) Interest rate risk

As the Company has no significant floating interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

36. Financial risk management (Contd.)

impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk.

ii. The Company follows "simplfied approach" for recognition of impairment of loss allowance on trade receivable.

38. Segment information

The Company''s Managing Director and Joint Managing Director examines the Company''s performance from a product perspective and has identified two reportable segments:

1. Building products - The building products division produces asbestos sheets, solar panels accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors.

2. Synthetic Yarn - Synthetic yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. They primarily uses a measure of profit before tax to assess the performance of the operating segments.

Segment revenue and expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses or income and adjusted only against the total income of the Company.Segment result includes the respective other income.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as ''unallocated corporate assets''. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as ''unallocated corporate liabilities''.

Inter segment transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment.

46. Title deeds of immovable properties

47. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment including Right -of -Use Asset or intangible assets or both during the current or previous year.

48. Loans or advances to specified persons

49. Details of benami property held

50. Borrowing secured against current asset

51. Wilful defaulter

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

52. Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

53. Registration of charges or satisfaction with Registrar of Companies (ROC)

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

54. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

55. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

56. Utilisation of borrowed funds and share premium

56. Utilisation of borrowed funds and share premium (Contd.)

lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

57. Undisclosed income

58. Exceptional item as disclosed in the Statement of Profit & Loss represents retrenchment compensation paid to workers of Patancheru factory during the year.

59. 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.

60. Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date.

For Price Waterhouse & Co Chartered On behalf of Board of Directors

Accountants LLP

Firm Registration Number: 304026E/E-300009

sd/- sd/- sd/-

N.K.Varadarajan Dr. G. Vivekanand Smt. G. Saroja Vivekanand

Partner Chairman Managing Director

Membership Number: 090196 DIN : 00011684 DIN : 00012994

sd/- sd/-

S. Shafiulla K. Ramakanth

Chief Financial Officer Company Secretary &

Assistant Vice President Membership No:F5539

Place: Secunderabad Place: Secunderabad

Date: May 19, 2023 Date: May 19, 2023

Mar 31, 2019

1. Background

Visaka Industries Limited was incorporated in 1981 having itâs registered office in Survey No.315, Yelumala Village, R.C. Puram Mandal, Sangareddy District - 502 300, Telangana State. The Company is into the business of manufacture of cement fibre sheets, fibre cement boards & panels, solar panels and synthetic yarn. The Company has twelve manufacturing locations spread across India.

2. Critical estimates and Judgements

The areas involving critical estimates or judgements are:

1. Estimation of defined benefit obligation - Refer Note 24

The Company has setup two manufacturing units during the year. One is Solar Roofing panels (ATUM) unit in the premises of the V Board plant at Miryalaguda in Telangana State. The unit commenced commercial production on 28 September 2018.

The other one is Fibre cement boards unit at Jhajjar district, Haryana state. It commenced commercial production on 11 March 2019.

(a) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs.10 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(D) The Company has not issued any share as fully paid up without payment being received in cash or as bonus shares nor any share has been bought back by the Company since its incorporation.

Nature and purpose of other reserves

(i) Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

(ii) General Reserve

General reserve is used for strengthening the financial position and meeting future contingencies and losses.

(i) Term loan is taken from IDBI Bank Limited for the Textile unit near Mouda Taluk, Nagpur in Maharashtra. The loan sanctioned is Rs.6,035.00 lakhs during the year 2016-17, out of which Rs.3,500 lakhs is drawn in 2016-17 and Rs.2,535 lakhs is drawn in 2017-18 and is repayable in 24 quarterly installments at the rate of Rs.251.46 lakhs each quarter from the financial year 2017-18 to 2022-23 (i.e., from Septemberâ 2017 to Juneâ 2023).The current rate of interest is 10.25%. This loan is secured by first mortgage and charge in favour of the Bank on all the Companyâs fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Dr G Vivekanand, Director of the Company. The amount outstanding as at balance sheet date is Rs.4,274.79 lakhs repayable in 17 quarterly installments (out of which Rs.1,005.83 lakhs are included in other financial liabilities (current)).

(ii) Loans from others include interest free loans of Rs.4,121.21 lakhs availed (Rs.1,523.75 lakhs in 2012-13 , Rs.809.99 lakhs in 2014-15, Rs.814.44 lakhs in 2016-17, Rs.973.03 lakhs in 2017-18) from The Pradeshiya Industrial & Investment Corporation of U.R Ltd (PIC UP) for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme, 2003. The loan is secured by first charge on all assets of the company both present and future, by way of first pari-passu charge with all the secured lenders of the Company and personal guarantee of Mrs. G Saroja Vivekanand, Managing director of the company. The loans are repayable (each installment drawn) after 10 years from the date of disbursement.

As per Ind AS requirements, these loans should be recognised at fair value and the difference between fair value and transaction value is recognised as Deferred Revenue Grant. Consequently, the Company has fair valued these loans using an effective interest rate of 10.30% p.a. and as at balance sheet date Rs.1,543.26 lakhs(2018- Rs.1,800.86 lakhs) is shown as Deferred Revenue Grant.

(iii) Deferred payment liabilities represent sales tax deferment relating to cement asbestos unit at Patancheru, Sangareddy District. This loan is interest free and repayable at Rs.200.18 lakhs in the year 2019-20 and Rs.21.07 lakhs in the year 2020-21. As per Ind AS requirements, these loans should be recognised at fair value and the difference between fair value and transaction value is recognised as Deferred Revenue Grant. Consequently, the Company has fair valued these loans using an effective interest rate of 10.30% p.a. and as at balance sheet date Rs.1.79 lakhs (2018- Rs.21.94 lakhs) is shown as Deferred Revenue Grant.

(iv) Public deposits represent deposits accepted from public carrying interest varying from 11% to 11.5% . The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits matured and remaining unpaid as on the balance sheet date.

3.1 Working capital loans from banks are loans from State Bank of India . The loans are repayable on demand which are secured on pari-passu basis by hypothecation of the Companyâs entire current assets including raw materials, work-in-progress, stores & spares, finished goods and book debts, present and future, and second charge by way of hypothecation on all fixed assets present and future. The loan carries floating rate of interest and present interest rate is 8.7%.

3.2 Short term loans are availed from various banks with a maximum maturity period of six months. The rates of interest vary from bank to bank also within a given bank for various installments of credit.

(i) Leave obligations

The leave obligation covers the Companyâs liability for earned leave. The Company has created a fund with LIC for earned leave encashment of employees for future payment.

(ii) Defined contribution plans

The Company has defined contribution plans namely Provident fund and super annuation fund. Contributions are made to provident fund at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the Government. The Company has created an approved superannuation fund and accounts for the contribution made to LIC against an insurance policy taken with them. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plans is as follows:

(iii) Post-employment obligations

a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Company operates post retirement gratuity plan with LIC of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The Company has no legal obligation to settle deficit in the funded plan with an immediate contribution or additional one off contribution. The Company intends to contribute as any request for contribution is made by LIC.

The net liability disclosed above relating to funded and unfunded plans are as follows:

Expected contributions to post- employment benefit plans of gratuity for the year ending 31 March 2020 are Rs. 327.61 Lakhs.

iv) Significant estimates and sensitivity Analysis

The sensitivity of the defined benefit obligation to changes in key assumptions is:

v) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

4. Financial instruments and risk management Fair values

1. The carrying amounts of trade payables, other financial liabilities(current), other financial assets(current), borrowings (current),trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short term nature.

2. Borrowings(non-current) consists of loans from banks and government authorities, other financial liabilities(non-current) consists of interest accrued but not due on deposits other financial assets consists of employee advances where the fair value is considered based on the discounted cash flow.

3. The fair value of forward foreign exchange contracts is calculated as the present value determined using forward exchange rates, currency basis spreads between the respective currencies and interest rate curves.

Set out below, is a comparision by class of the carrying amounts and fair value of the Companyâs financial instruments, other than those with carrying amounts that are reasonable approximation of fair values:

*Fair value of instruments is classified in various fair value hierarchies based on the following three levels:

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

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3. Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date. In respect of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years of operations obtaining necessary regulatory approvals to commence their business.

5. Financial risk management

(A) Market risk

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables, trade/other receivables and derivative assets/liabilities. The risks primarily relate to fluctuations in US Dollar, EURO, GBP against the functional currencies of the Company. The Companyâs exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

The following tables demonstrate the sensitivity to a reasonably possible change in US dollars, EURO and GBP exchange rates, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.

(ii) Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments and from foreign forward exchange contracts:

The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in US dollars, EURO and GBF| where the functional currency of the entity is a currency other than US dollars, EURO and GBR

(iii) Interest rate risk

Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

As the Company has no significant interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:

The assumed increase/decrease in interest rate for sensitivity analysis is based on the currently observable market environment

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents companyâs maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk.

i. Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally invest in deposits with banks with high credit ratings assigned by external agencies.

ii. Expected credit loss provision created for trade receivable primarily comprise of specific provisions created towards certain receivables as the Company considers the life time credit risk of these financial assets to be very low.

Impairment of financial assets:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

Management monitors cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements:

The company had access to the following undrawn borrowing facilities at the end of the reporting period

(iii) Management expects finance cost to be incurred for the year ending 31 March 2020 is Rs.1,956.81 Lakhs.

6. Capital management

A. Capital management and Gearing Ratio

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

In order to achieve this overall objective, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2019 and 31 March 2018.

7. Segment information

The Companyâs Managing Director and Joint Managing Director examines the Companyâs performance from a product perspective and has identified two reportable segments:

1. Building products - The building products division produces asbestos sheets, solar panels, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors.

Segment revenue and expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses or income and adjusted only against the total income of the company. Segment result includes the respective other income.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as âunallocated corporate assetsâ. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as âunallocated corporate liabilitiesâ.

Inter segment transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment.

Includes Rs.40.61 lakhs (2018 - Rs.46.77 lakhs) paid under protest in relation to (ii) and (iii) above.

The Company is in the process of evaluating the impact of the recent Supreme Court Judgment in case of âVivekananda Vidyamandir And Others Vs The Regional Provident Fund Commissioner (II) West Bengalâ and the related circular (Circular No. C-l/1 (33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employeesâ Provident Fund Organisation in relation to non-exclusion of certain allowances from the definition of âbasic wagesâ of the relevant employees for the purposes of determining contribution to provident fund under the Employeesâ Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the management the aforesaid matter is not likely to have a significant impact and accordingly, no provision has been made in these Financial Statements.

8. Commitments

(a) Capital commitments

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

(b) Finance leases

The Company has taken Data Processing Equipments on financial lease as mentioned in Property, Plant and Equipment. The details of the same are as under:

9. Assets pledged as security

The carrying amounts of assets pledged as security for current and non-current borrowings are:

Mar 31, 2018

34. Financial instruments and risk management Fair values

1. The carrying amounts of trade payables, other financial liabilities(current), borrowings (current), trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short term nature.

2. Borrowings (non-current) consists of loans from banks and government authorities, other financial liabilities (non-current) consists of interest accrued but not due on deposits other financial assets consists of employee advances where the fair value is considered based on the discounted cash flow.

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

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date. In respect of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years of operations obtaining necessary regulatory approvals to commence their business.

35. Financial risk management

(A) Market risk

The analysis exclude the impact of movements in market variables on the carrying values of financial assets and liabilities.

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the trade/other payables, trade/other receivables and derivative assets/liabilities. The risks primarily relate to fluctuations in US Dollar, EURO, GBP against the functional currencies of the Company. The Companyâs exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

The following tables demonstrate the sensitivity to a reasonably possible change in US dollors, EURO and GBP exchange rates, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.

The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in US dollars, EURO and GBP, where the functional currency of the entity is a currency other than US dollars, EURO and

(iii) Interest rate risk

As the Company has no significant interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimize collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Cash and other collaterals are obtained from customers when considered necessary under the circumstances.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest < receivable on deposits represents companyâs maximum exposure to the credit risk. No other financial asset carry a s significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk.

i. Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally invest in I deposits with banks with high credit ratings assigned by external agencies.

Expected credit loss for financial assets where general model is applied

The financial assets which are exposed to credit are loans, employee advances and advance against share application money.

(iii)Significant estimates and judgments Impairment of financial assets:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(iii) Management expects finance cost to be incurred for the year ended 31 March 2019 is n,74.7.53 lakhs

36. Capital management

A. Capital management and Gearing Ratio

For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the companyâs capital management is to maximize the shareholder value.

37- Segment information

The Companyâs Managing Director, Joint Managing Director and Chief financial Officer, examines the Companyâs performance from a product perspective and has identified two reportable segments:

1. Building products - The building products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors.

2. Synthetic Yarn - Synthetic yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric.

They primarily uses a measure of profit before tax to assess the performance of the operating segments. Segment revenue and expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/ Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses or income and adjusted only against the total income of the company. Segment result includes the respective other income.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as âunallocated corporate assetsâ. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as âunallocated corporate liabilitiesâ.

Inter segment transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment.

4.0. Related party transactions

Names of related parties and nature of relationships:

Names of the related parties Nature of relationship

i) Key Managerial Personnel (KMP):

Mrs. G.Saroja Vivekanand Managing Director

Mr. G.Vamsi Krishna Joint Managing Director

Mr. V.Vallinath Whole Time Director & CFO

Mr. J.Pruthvidhar Rao Whole Time Director

Mr. I. Srinivas Company Secretary & Vice-President (Corporate

Affairs)

ii) Non-whole-time Directors

Mr. Bhagirat B. Merchant Director

Dr. G.Vivekanand Director

Mr. Nagam Krishna Rao (Expired on 25/05/2017) Director

Mr. Gusti Noria Director

Mr. V. Pattabhi Director

Mr. P. Abraham (Resigned w.e.f 11/11/2017) Director

Mr. P. Srikar Reddy Director

iii) Relatives of key managerial personnel:

Mrs. G.Vritika Daughter of Mrs. Saroja Vivekanand

Ms. G.Vaishnavi Daughter of Mrs. Saroja Vivekanand

Mr. G.Venkat Krishna Son of Mrs. Saroja Vivekanand

Mrs. B.L. Sujata Spouse of Mr. V.Vallinath

Mrs. K.Vimala Mother of Mrs. Saroja Vivekanand

Mr. Subramanyam Kasinadhuni Father of Mrs. Saroja Vivekanand

iv) Enterprises in which key managerial personnel and/or their relatives have control:

a) Visaka Thermal Power Limited

b) Visaka Charitable Trust

c) VIL Media Pvt Ltd

d) Ecovav Construction Private Limited

e) A-Bond Strands Private Limited

4.2. First-time adoption of Ind AS Transition to Ind AS

These are the Companyâs first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended

31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 01 April 2016 (date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting standards) Rules, 2006 (as amended) and other relevant provisions of the Act(previous GAAP or Indian GAAP). An explanation on how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and Exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Ind AS optional exemptions

(i) Deemed cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant & Equipment as recognized in the Financial Statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition, after making necessary adjustments for decommissioning liabilities. This exemption can also be used for Intangible Assets covered by Ind AS 38.

Accordingly, the Company has elected to measure all of its Property, Plant & Equipment and Intangible Assets at their previous GAAP carrying value.

(ii) Impairment of financial assets

The Company has applied the exception related to impairment of financial assets given in Ind AS 101. It has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial assets were initially recognized and compared that to the credit risk as at 01 April 2016.

B. Ind AS mandatory exceptions

(i) Estimates

An entityâs estimates in accordance with Ind ASs at the date of transition to Ind As shall be consistent with the estimates made for the same date in accordance with previous GAAP(after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following item in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

-Investment in equity instruments carried at Fair value through Profit and Loss.

-Impairment of financial asset based on expected credit loss model.

(ii) Classification and measurement of Financial Assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Reconciliation between previous GAAP and Ind AS (as at 31 March 2017 and 1 April 2016)

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

D. Notes to first-time adoption:

1) Borrowings

The benefit of a government loan at below current market rate of interest is treated as a government grant. The loan is recognized and measured in accordance with Ind AS 109. The benefit of the below market rate of interest is measured as the difference between the initial carrying value of the loan determined in accordance with Ind AS 109 (at Fair Value) and the proceeds received. Government grant is recognized in profit or loss on a systematic basis over the periods in which the entity recognizes as expenses, the related costs for which the grants are intended to compensate. As a result other income has increased by Rs,194.34 Lakhs towards government grant amortisation and finance cost has increased by Rs,154.94 lakhs towards interest expense on government loan and accordingly the overall net profit has increased by Rs,39.40 lakhs for the year ended 31 March 2017. Consequently the borrowings have been restated to Rs,5,225.20 lakhs and Rs,7,677.27 lakhs as at 1 April 2016 and 31 March 2017 respectively.

2) Deferred tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS12 requires entities to account for deferred taxes using the Balance Sheet approach, which focuses on differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. It requires recognition of tax consequences of differences between the carrying amounts of assets and liabilities and their tax base. As a result Deferred tax liability has been decreased by Rs,294.io lakhs as at 1 April 2016 and Rs,296.44 lakhs as at 31 March 2017 with a corresponding increase in retained earnings and net profit respectively.

3) Fair valuation of forward contracts

Under previous GAAP, the premium or discount arising at the inception of a forward exchange contract should be amortized as expense or income over the life of the contract. Any profit or loss arising on cancellation or renewal of such a forward exchange contract should be recognized as income or as expense for the period.

Under Ind AS 109, such forward contracts have to be carried at fair value through profit and loss. The profit for the year ended 31 March 2017 has decreased by Rs,7-42 lakhs on account of fair value loss.

4) Expenses directly attributable to revenue

Under the previous GAAP, cash discounts, sales promotion expenses and breakages and damages amounting to Rs,6i6.65 lakhs directly attributable to sales were recognized as part of other expenses which have been adjusted against the revenue from sale of goods under Ind AS during the year ended 31 March 2017. There is no impact on the total equity and profit.

5) Excise duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 by Rs,9,4.99.22 lakhs. There is no impact on the total equity and profit.

6) Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. Actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. There is no impact on the total equity as at 31 March 2017.

7) Proposed Dividend

Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as an adjusting event. Accordingly, provision for proposed dividend and corporate dividend tax was recognized as liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend and corporate dividend tax of 7382.28 lakhs included under provisions as at 1 April 2016 has been reversed with corresponding adjustments to retained earnings. Consequently the total equity increased by an equivalent amount.

8) Other equity

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments on the date of transition.

The company has transferred on April 1,2016 an amount of Rs,169.29 lakhs from capital reserve to general reserve as the conditions attached to it are fulfilled as at the date of transition. However there is no impact on other equity on account of this adjustment.

9) Other comprehensive income

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

10) Cash flow from financing activities

Other bank balances (disclosed under Note 10) are not considered as part of cash and cash equivalents under Ind AS and the movement of other bank balances amounting to Rs,30.02 lakhs is the variance in net increase/decrease in cash and cash equivalents as at 31 March 2017.

Mar 31, 2017

1 Rights attached to equity shares

(a) The Company has only one class of equity shares having a face value of Rs,10 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(b) In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Dividend : The Board of Directors, in its meeting on 31st March,2017, have proposed a final dividend of ''6/-per equity share for the financial year ended March 31, 2017. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on 20th June, 2017 and if approved would result in a cash outflow of Rs,1146.84 Lacs including corporate dividend tax.

Note.3. : The Company has transferred capital reserve of Rs,45.00 Lacs to Surplus in the Statement of Profit & Loss since all the conditions in relation to the said reserve are complied with. The Company also transferred Rs,124.90 Lacs representing advance received against Share Warrants which are lapsed to Surplus in the Statement of Profit & Loss .

4. (i) Term loans from banks include loan taken from HDFC Bank Limited for the fibre cement boards project near

Daund Taluk, Pune District in Maharashtra. The current rate of interest is 10.25% as at the balance sheet date. The loan is secured by first charge on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Vice-chairman Dr G Vivekanand of the Company. Outstanding amount are repayable Rs,1374.00 lacs (as shown in Other Current Liabilities in Note No.8) in 2017-18 and Rs,1030.50 lacs in 2018-19.

5 (ii) Term loans from banks include loan taken from IDBI Bank Limited for the Textile unit near Mouda Taluk, Nagpur in

Maharashtra. The loan sanctioned is Rs,6035.00 lacs during the year 2016-17, out of which Rs,3500 lacs is drawn which is repayable in 24 quarterly installments commencing from JuneRs,17. The current rate of interest is 10.25% as at the balance sheet date. This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Vice-chairman Dr G Vivekanand of the Company. Outstanding amount of Rs,3500.00 lacs is repayable @ Rs,145.83 lacs each quarter from the financial year 2017-18 to 2022-23 (upto December, 2022). Amount repayable in 2017-18 of Rs,583.33 Lacs shown in Other Current Liabilities in Note No 8.

6 i) Loans from others include interest free loans of Rs,3148.18 lacs availed (Rs,1523.75 lacs in 2012-13, Rs,809.99 lacs in 2014-15 and Rs,814.44 lacs in 2016-17) from The Pradeshiya Industrial & Investment Corporation of U.P Ltd for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme, 2003. The loan is secured by first charge on the entire fixed assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company. The loans are repayable (each installment drawn) after 10 years from the date of disbursement. i.e Rs,1523.75 lacs in 2022-23 and Rs,809.99 lacs in 2024-25 and Rs,814.44 lacs in 2026-27

7 ii) Loans from others include Rs,102.90 lacs obtained from Life Insurance Corporation of India against key man insurance policy at 9% which matures on 28-03-2018. This loan has no specific terms of repayment.

8 Deferred payment liabilities represent sales tax deferment relating to cement asbestos unit at Patancheru, Sangareddy District. This loan is interest free and repayable at Rs,200.18 lacs in the year 2019-20 and Rs,21.07 lacs in the year 2020-21.

9 Public deposits represent deposits accepted from public carrying interest varying from 11% to 12%. The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits matured and remained unpaid as on the balance sheet date.

10 Working capital loans from State Bank of India and State Bank of Hyderabad (under consortium arrangement) are repayable on demand which are secured on pari-passu basis by hypothecation of the Company''s entire movable assets including stocks, all raw materials, work-in-progress, stores & spares, finished goods and book debts, present and future, and personal guarantee of the Vice-Chairman, Dr G.Vivekanand of the Company.

11 Buyers credit and short term loans availed from various banks with a maximum maturity period of six months. The rates of interest vary from bank to bank also within a given bank for various installments of credit. These loans are backed by personal guarantee of Vice-Chairman, Dr G.Vivekanand of the Company.

12 Loan from related party represents loan taken from Vice-Chairman Dr. G.Vivekanand of the company.

13. Trade payables represents sundry creditors for goods and others.

14 Expense payable represents amount payable to various parties like transporters, advertising, security and other contractors. These also include provision for current salaries, wages and other employee benefits.

15 Statutory liabilities include sales tax, value added tax, service tax, excise duty and tax deducted at source.

16 Sundry deposits include security deposits from stockiest, agents and transporters etc.

*a) Gross amount required to be spent by the company during the year Rs,66.17 lacs

b) Amount spent during the year on :

** includes Rs,15.18 lacs contributed to Visaka Charitable Trust.

17 Defined Benefit plans:

The Company operates post retirement gratuity plan with LIC of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation of leave encashment is recognized in the same manner as gratuity.

i) Key Managerial Personnel (KMP):

Mrs. G.Saroja Vivekanand, Managing Director

Mr. G.Vamsi Krishna, Whole Time Director

Mr. V.Vallinath, Whole Time Director & Chief Financial Officer

Mr. J.Pruthvidhar Rao, Whole Time Director

Mr. I. Srinivas, Company Secretary & Assistant Vice-President (Corporate Affairs)

ii) Non-whole-time Directors

Mr. Bhagirat B. Merchant

Dr. G.Vivekanand

Mr. Nagam Krishna Rao

Mr. Gusti Noria

Mr. V. Pattabhi

Mr. P. Abraham

Mr. P. Srikar Reddy

iii) Relatives of key managerial personnel:

Dr. G.Vivekanand (Spouse of Mrs. Saroja Vivekanand)

Mrs. G.Vritika (Daughter of Mrs. Saroja Vivekanand)

Ms. G.Vaishnavi (Daughter of Mrs. Saroja Vivekanand)

Mr. G.Venkat Krishna (Son of Mrs. Saroja Vivekanand)

Mrs. B.L. Sujata (Spouse of Mr. V.Vallinath)

Mrs. K.Vimala (Mother of Mrs. Saroja Vivekanand)

iv) Enterprises in which key managerial personnel and/or their relatives have control:

a) Visaka Thermal Power Limited

b) Visaka Charitable Trust

Business Segments:

The Company''s activities are organized into two operating segments namely, Building Products and Textile Synthetic Yarn. The segments are the basis on which the company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income.

Financial Information about business segments is presented as above.

Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the company as Domestic and Exports.

Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses'' or income and adjusted only against the total income of the company.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as ''unallocated corporate assets''. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as ''unallocated corporate liabilities''.

Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment.

Figures for the previous year are reclassified / regrouped and rearranged wherever necessary.

Mar 31, 2016

1 rights attached to equity shares

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

During the year ended, dividend per share recognized as distributions to equity shareholders was ''5 /- including interim dividend of Rs,3/- (Previous Year Rs,5/- including interim dividend of Rs, Nil).

In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Term loans from banks represent loan taken from HDFC Bank Limited for the fibre cement boards project near Daund Taluk, Pune District in Maharashtra. The loan sanctioned is Rs,6870.00 lacs in the year 2012-13, which is repayable in 20 quarterly installments commencing from JanRs,14. The current rate of interest is 10.30% as at the balance sheet date. This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Vice-chairman Dr G Vivekanand of the Company. Outstanding amount is repayable @ Rs,343.50 lacs each quarter from the financial year 2016-17 to 2018-19 (up to December, 2018).

3. (i) Loans from others include interest free loans of Rs,2333.74 lacs availed (Rs,1523.75 lacs in 2012-13 and Rs,809.99 lacs in 2014

4) from The Pradeshiya Industrial & Investment Corporation of U.P. Ltd for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme, 2003. The loan is secured by first charge on the entire fixed assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company. The loans are repayable (each installment drawn) after 10 years from the date of disbursement. i.e Rs,1523.75 lacs in 2022-23 and Rs,809.99 lacs in 2024-25

5. (ii) Loans from others include Rs,102.90 lacs obtained from Life Insurance Corporation of India against key man insurance policy at 9% which matures on 28-03-2018. This loan has no specific terms of repayment.

6. Deferred payment liabilities represent sales tax deferment relating to cement asbestos unit at Patancheru, Medak District. This loan is interest free and repayable at Rs,200.18 lacs in the year 2019-20 and Rs,21.07 lacs in the year 2020-21.

7. Public deposits represent deposits accepted from public carrying interest varying from 11% to 12%. The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits matured and remained unpaid as on the balance sheet date.

8. Security deposits include deposits received from stockists (i.e Dealers) Rs,3099.17 Lacs (P.Y Rs,2575.16 lacs), transporters Rs,34.34 lacs (P.Y Rs,28.34 lacs) , sales agents Rs,54.30 lacs (P.Y Rs,52.04 lacs) as collateral at the time of agreement/contract. These have no specific maturity date and are not repayable as long as they continue business with the company. These deposits carry interest at the rate of 9% per annum.

9. Working capital Loans from State Bank of India and State Bank of Hyderabad (under consortium arrangement) are repayable on demand which are secured on pari-passu basis by hypothecation of the Company''s entire movable assets including stocks, all raw materials, work-in-process, stores & spares, finished goods and book debts, present and future, and personal guarantee of the Vice-chairman Dr G. Vivekanand of the Company.

10. Unsecured short term loans from banks include buyers credit availed from a) Kotak Mahindra Bank Limited of Rs,1183.33 lacs (P.Y Rs,2442.50 lacs), b) HDFC Bank Limited of Rs,2743.23 Lacs (P.Y Rs,2066.16 lacs), c) Yes Bank Limited of Rs,1409.92 lacs (P.Y Rs,654.61 lacs) d) RBL Bank Ltd of Rs,1015.47 lacs (P.Y Rs,1706.57) and e) short term loan of Rs,5000 lacs (P.Y Rs,4000 lacs) from ICICI Bank ltd, f) short term loan of Rs,2000 lacs (P.Y Rs, Nil lacs) from HDFC Bank ltd. These loans are backed by the personal guarantee of Vice-Chairman Dr G Vivekanand of the Company. All these buyers credit loans are repayable within six months from the date of availment. The short term loan taken from ICICI Bank Limited is repayable in May''16 and the short term loan taken from HDFC Bank Limited is repayable Rs,1000 lacs in JuneRs,16 and Rs,1000 lacs in Sep''16.

11. Loan from related party represents unsecured loan taken from Vice-chairman of the Company.

12.. Expense payable represents amount payable to various parties like transporters, advertising, security and other contractors. These also include provision for current salaries, wages and other employee benefits.

13. During the year, the Company has transferred unclaimed dividend of Rs,8.84 Lacs (P.Y Rs,6.90 Lacs) to the Investor Education and Protection Fund on expiry of 7 years

14. The Company has given an inter corporate deposit to Yeshwant Realtors Private Limited, Secunderabad for its short term working capital requirements.

15. defined Benefit plans:

QQg 28 [RÂ£agd|2gH3^|33|Bg3B3EÂ§9ASDSB]D39E29E9DB13A33E0D9

i) Key Managerial personnel (KMp):

Mrs. G. Saroja Vivekanand, Managing Director

Mr. G. Vamsi Krishna, Whole-time Director

Mr. V. Vallinath, Whole-time Director & Chief Financial Officer

Mr. J. P. Rao, Whole-time Director (From 7th May,2015)

Mr. I. Srinivas, Company Secretary & Assistant Vice-President (Corporate Affairs)

ii) Non whole-time Directors

Mr. Bhagirat B. Merchant

Dr. G. Vivekanand

Mr. Nagam Krishna Rao

Mr. Gusti J Noria

Mr. V. Pattabhi

Mr. P. Abraham

Mr. P. Srikar Reddy

iii) relatives of key managerial personnel:

Dr. G. Vivekanand (Spouse of Mrs. Saroja Vivekanand)

Mr. G. Vamsi Krishna, Son of Mrs. Saroja Vivekanand (KMP from 1st June, 2014)

Mrs. G. Vritika (Daughter of Mrs. Saroja Vivekanand)

Mrs. G. Vaishnavi (Daughter of Mrs. Saroja Vivekanand)

Mrs. B. L. Sujata (Spouse of Mr. V. Vallinath)

Mrs. K. Vimala (Mother of Mrs. Saroja Vivekanand)

iv) enterprises in which key managerial personnel and/or their relatives have control:

a) Aslesha Constructions Private Limited

b) Visaka Thermal Power Limited

c) Visaka Charitable Trust

Includes Rs,2647.70 lacs(P.Y. Rs,2647.70 lacs) disputed excise duty including penalty for purported under utilization of fly-ash in the product to be eligible for concessional rate of duty. This is in appeal against which a deposit of Rs,450 lacs (P.Y Rs,450 lacs) has been made.

16. In view of the Honourable High Courts stay on the applicability of amendments to the Payment of Bonus Act retrospectively from 01-04-2014, the Company has not made any provision for the increase in liability for the year 2014-15.

segments are the basis on which the company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income.

Financial Information about business segments is presented as above.

Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the company as Domestic and Exports. Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses'' or income and adjusted only against the total income of the company.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as ''unallocated corporate assets''. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as ''unallocated corporate liabilities''.

Inter segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

qo3938|

Figures for the previous year are reclassified /regrouped and rearranged wherever necessary

Mar 31, 2015

1 Rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs.10 /- each. Each holder of equity share is entiltled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended, dividend per share recognised as distributions to equity shareholders was Rs.5 /- (Previous Year Rs.2.5).

In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Consequent to the enactment of the Companies Act, 2013 , the company has charged depreciation based on the useful life of the assets as prescribed as per Schedule II of the companies Act 2013. Accordingly, where the remaining uselful life of the assets expired as on 1st April, 2014 the carrying amount of those assets has been adjusted against the opening retained earnings by Rs.1286.45 lacs (net of deferred tax of Rs.662.42 lacs).

3 Term loans from banks represent loan taken from HDFC Bank Limited for the fibre cement boards project near Daund Taluk, Pune District in Maharastra. The loan sanctioned is Rs.6870.00 lacs in the year 2012-13, which is repayable in 20 quarterly installments commencing from Jan'14. The current rate of interest is 11% as at the balance sheet date. This loan is secured by first mortgage and charge in favour of the Bank on all the Company's fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Vice-chairman Dr G Vivekanand of the Company. During the year 2014-15,the company has repaid an amount of Rs.1374 lacs and Rs.343.50 lacs is repayable each quarter from the financial year 2015-16 to 2018-19 (upto December, 2018).

4 (i) Loans from others include interest free loans of Rs.2333.74 lacs availed (Rs.1523.75 lacs in 2012-13 and Rs.809.99 lacs in 2014- 15) from The Pradeshiya Industrial & Investment Corporation of U.P. Ltd for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme, 2003. The loan is secured by first charge on the entire fixed assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company and personal guarantee of Managing Director. The loan is repayable (each installment drawn) after 10 years from the date of disbursement.

(ii) Loans from others include Rs.102.90 lacs obtained from Life Insurance Corporation of India against key man insurance policy at 9% which matures on 28-03-2018. This loan has no specific terms of repayment.

5 Deferred payment liabilities represent sales tax deferment relating to Cement Asbestos Unit at Patancheru, Medak District. This loan is interest free and repayable at H200.18 lacs in the year 2019-20 and Rs.21.07 lacs in the year 2020-21.

6 Public deposits represent deposits accepted from public carrying interest varying from 11% to 12% . The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits matured and remained unpaid as on the balance sheet date.

7 Security deposits include deposits received from stockists (i.e Dealers) Rs.2575.16 Lacs (P.Y Rs.2267.58 lacs), transporters Rs.28.34 lacs (P.Y Rs.26.34 lacs) , sales agents Rs.52.04 lacs (P.Y Rs.50.36 lacs) as collateral at the time of agreement/contract. These have no specific maturity date and are not repayable as long as they continue business with the company. These deposits carry interest at the rate of 9% per annum.

8 Working capital Loans from State Bank of India and State Bank of Hyderabad (under consortium arrangement) are repayable on demand which are secured on pari-passu basis by hypothecation of the Company's entire movable assets including stocks, all raw materials, work-in-process, stores & spares, finished goods and book debts, present and future, and personal guarantee of the Vice-chairman Dr G.Vivekanand of the Company.

9 Unsecured short term loans from banks include buyers credit availed from a) Kotak Mahindra Bank Limited of Rs.2442.50 lacs (P.Y Rs.670.88lacs), b) HDFC Bank Limited of Rs.2066.16 Lacs (P.Y Rs.2466.86 lacs) , c) Yes Bank Limited of Rs.654.61 lacs (P.Y Rs.903.17 lacs) d)RBL Bank Ltd of Rs.1706.57 lacs (P.Y Rs. Nil) and e) short term loan of Rs.4000 lacs (P.YRs.5000 lacs) from ICICI Bank ltd. These loans are backed by the personal guarantee of Vice-Chairman Dr G Vivekanand of the Company. All these buyers credit loans are repayable within six months from the date of availment. The short term loan taken from ICICI Bank Limited is repayable in June'15.

10 The Company has taken Inter Corporate Deposit of Rs.400.00 Lacs from Vinutha Infrastructure Pvt Ltd.

11 Expense payable reperesents amount payable to various parties like transporters, advertising, security and other contractors. These also include provisions for current salaries, wages and other employee benefits.

12 Statutory liabilites include liabilites accounted towards sales tax,value added tax, service tax,excise duty and tax deducted at source.

13 Consequent to the enactment of the Companies Act, 2013, the company has charged depreciation based on the useful life of the assets as prescribed as per Schedule II of the companies Act 2013. Accordingly, where the remaining uselful life of the assets expired as on 1st April, 2014 the carrying amount of those assets has been adjusted.

14 The Company has provided depreciation as per Schedule II of the Companies Act, 2013. Had the Company followed Schedule XIV of the companies Act 1956, the depreciation would have been lower by Rs.1821.74 lacs.

15 During the year, the Company has transferred unclaimed dividend of Rs.6.90 Lacs pertaining to the financial year 2006-07 to the Investor Education and Protection Fund on expiry of 7 years.

16 The Company has given an inter corporate deposit to Yeshwant Realtors Private Limited for its short term working capital requirements.

17 Interest income represents Interest on electricity deposits, bank deposits and on overdue bills from the customers.

18 During the year the company has contributed an amount of Rs.97 Lacs to Visaka Charitable trust towards Corporate Social Responsibility (CSR)activities in Compliance to the Provisions of Sec 135 of the Companies Act, 2013.

19 During the year the company has contributed an amount of Rs.200.00 Lacs to Indian National Congress, a political party registered with Election Commission of India.

20 During the year, the Company has set up a Solar Photovoltaic (SPV) Power Plant of 2.5 MW at Miryalguda, Nalgonda District in Telangana. The unit has started generating power from 26th May 2014. The Power generated is used for captive use of cement fibre sheet plant at Miryalaguda and Rs.158.21 Lacs being the value of power units generated during the period upto 31st March 2015 is reduced from the power cost.

21 Related Party Disclosures

i) Key management personnel:

Mrs. G.Saroja Vivekanand, Managing Director

Mr. M.P.Venkateswara Rao, Whole time Director (Upto 31st July, 2014)

Mr.G.Vamsi Krishna, Whole Time Director (From 1st June, 2014)

Mr.V.Vallinath, Whole Time Director (From 9th September,2014) & Chief Financial Officer

Mr.I. Srinivas, Company Secretary & Assistant Vice-President (Corporate Affairs)

ii) Non-whole-time Directors

Mr. Bhagirat B. Merchant

Dr. G.Vivekanand

Mr. Nagam Krishna Rao

Mr. Gusti Noria

Mr. V. Pattabhi

Mr. P. Abraham

Mr. P. Srikar Reddy (From 6th September, 2014)

iii) Relatives of key management personnel:

Dr. G.Vivekanand (Spouse of Mrs. Saroja Vivekanand)

Mr. G.Vamsi Krishna,Son of Mrs. Saroja Vivekanand (Upto 31st May, 2014)

Mrs. G.Vritika (Daughter of Mrs. Saroja Vivekanand)

Mrs. G.Vaishnavi (Daughter of Mrs. Saroja Vivekanand)

Mrs. B.L. Sujata (Spouse of Mr. V.Vallinath)

iv) Enterprises in which key management personnel and their relatives have control:

a) Aslesha Constructions Private Limited

b) Visaka Thermal Power Limited

c) Visaka Charitable Trust

22 Provisions, contingent Liabilities and Contingent Assets:

Disclosures required by AS-29 "Provisions, Contingent Liabilities & Contingent Assets"

Contingent Liabilities:

(Rs. Lacs)

Particulars 31st March, 2015 31st March, 2014

Income tax 19.14 72.61

VAT/CST 231.01 93.26

Excise duty/Service Tax* 2,839.50 2,806.96

Total 3,089.65 2,972.83

*Includes Rs.2647.70 lacs( P.Y. Rs.2647.70 lacs) disputed excise duty including penalty for purported under utilization of fly-ash in the product to be eligible for concessional rate of duty. This is in appeal against which a pre -deposit of Rs.450 lacs( P.Y Rs.450 lacs) has been made.

23 Business Segments:

The Company's activities are organized into two operating segments namely, Building Products and Textile Synthetic Yarn. The segments are the basis on which the company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income.

Financial Information about business segments is presented as above.

24 Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the company as Domestic and Exports. Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses' or income and adjusted only against the total income of the company.

25 Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as 'unallocated corporate assets'. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as 'unallocated corporate liabilities'.

26 Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

27 Figures for the previous year are reclassified /regrouped and rearranged wherever necessary.

Mar 31, 2014

Note 1.1 Rights attached to equity shares

The Company has only one class of equity shares having a face value of H10/- each . Each holder of equity share is entiltled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended, the amount of dividend per share recognised as distributions to equity shareholders was H2.50/- (Previous Year H6/- including interim dividend of H2.50).

In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 1.2

Term loans from banks represent loan taken from HDFC Bank Limited for the fibre cement boards project near Daund Taluk, Pune District in Maharastra. The loan sanctioned is H6,870.00 lacs in the year 2012-13, drawn H1,000.00 lacs in 2012-13 and H5,870.00 lacs in 2013-14, which is repayable in 20 quarterly installments commencing from Jan''14. The current rate of interest is 11% as at the balance sheet date. This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Vice-chairman Dr. G. Vivekanand of the Company. During the year 2013-14,the company has repaid an amount of H343.50 lacs and H1,374 lacs is repayable each year from the financial year 2014-15 to 2018-19 (upto December, 2018).

Note 1.3

(i) Loans from others include H102.90 lacs obtained from Life Insurance Corporation of India against key man insurance policy at 9% which matures on 28-03-2018. This loan has no specific terms of repayment.

(ii) The company has availed an interest free loan of H1,523.74 lacs in the financial year 2012-13 from The Pradeshiya Industrial & Investment Corporation of U.P. Ltd for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme 2003 . The loan is secured by first charge on the entire fixed assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company. The loan is repayable (each installment drawn) after 10 years from the date of disbursement. The outstanding amount is repayable in the financial year 2022-23.

Note 1.4

Deferred payment liabilities represent sales tax deferment relating to Cement Asbestos Unit at Patancheru, Medak District in Andhra Pradesh. This loan is interest free and repayable at H200.18 lacs in the year 2019-20 and H21.07 lacs in the year 2020-21.

Note 1.5

Public deposits represent deposits accepted from public carrying interest varying from 11% to 12% . The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits matured and remained unpaid as on the balance sheet date.

Note 1.6

The company has obtained data process equipments on finance lease which is payable in quarterly installments. The rate of interest varies from 10% to 13% per annum.

Note 1.7

Security deposits include deposits received from stockists (i.e Dealers) H2,267.58 lacs (P.Y. H2,032.56 lacs), transporters H26.34 lacs (P.Y. H27.09 lacs) , sales agents H50.36 lacs (P.Y. H41.55 lacs) as collateral at the time of agreement/contract. These have no specific maturity date and are not repayable as long as they continue business with the company. These deposits carry interest at the rate of 9% per annum.

Note 1.8

Working capital Loans from State Bank of India and State Bank of Hyderabad (under consortium arrangement) are repayable on demand which are secured on pari-passu basis by hypothecation of the Company''s entire movable assets including stocks, all raw materials, work-in-process, stores & spares, finished goods and book debts, present and future, and personal guarantee of the Vice- chairman Dr. G. Vivekanand of the Company.

Note 1.9

Unsecured short term loans from banks include buyers credit availed from a) Kotak Mahindra Bank Limited of H670.88 lacs (P.Y. H3,087.99 lacs), b) HDFC Bank Limited of H2,466.86 lacs (P.Y. H3,925.69 lacs) , c) Yes Bank Limited of H903.17 lacs (P.Y. H1,250.02 lacs) and d) short term loan of H5,000 lacs (P.Y. 5000 lacs) from ICICI Bank ltd. These loans are backed by the personal guarantee of Vice-Chairman Dr. G. Vivekanand of the Company. All these buyers credit loans are repayable within six months from the date of availment. The short term loan taken from ICICI is repayable in June''14.

Note 1.10

Expense payable reperesents amount payable to various parties like transporters, advertising, security and other contractors. These also include provisions for current salaries, wages and other employee benefits.

Note 1.11

Statutory liabilites include liabilites accounted towards sales tax, service tax,excise duty and TDS.

Note 1.12 Defined Benefit plans:

The company operates post retirement gratuity plan with LIC. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation of leave encashment is recognised in the same manner as gratuity.

Note 2

During the year the Company has set up a new fibre cement sheet (Non-Asbestos) plant near Pune. The plant has commenced commercial production from 4th October, 2013. The Cost of fixed assets including pre-operative expenditure has been capitalized.

Note 3

Capital work in progress includes H2029.80 lacs incurred for Solar Photovoltaic (SPV) Power Plant of 2.5 MV at Miryalguda, Nalgonda District in Andhra Pradesh.

Note 4

We have recorded all known liabilities in the financial statements. The Company has not received any intimations from suppliers regarding their status under the micro, small and medium enterprises development act, 2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid or payable as required under the said Act have not been given.

Note 5 Related Party Disclosures

i) Key management personnel:

Mrs. G. Saroja Vivekanand - Managing Director

Mr. M. P. Venkateswara Rao - Whole time Director

ii) Relatives of key management personnel:

Dr. G. Vivekanand - Vice Chairman (Spouse of Mrs. Saroja Vivekanand)

Mr. G. Vamsi Krishna (Son of Mrs. Saroja Vivekanand)

iii) Enterprise in which key management personnel and their relatives have control: a) Aslesha Constructions Private Limited

iv) Associate Company:

a) Visaka Thermal Power Limited

Note 6 Provisions, Contingent Liabilities and Contingent Assets

Disclosures required by AS-29 "Provisions, Contingent Liabilities & Contingent Assets"

(Rs.in Lacs)

Particulars 31st March, 2014 31st March, 2013

Contingent Liabilities:

Income tax 72.61 97.61

VAT/CST 93.26 52.41

Excise duty/Service Tax* 2,806.96 2,806.96

Total 2,972.83 2,956.98

* Includes H2,647.70 lacs (P.Y. H2,647.70 lacs) disputed excise duty including penalty for purported under utilization of fly-ash in the product to be eligible for concessional rate of duty. This is in appeal against which a pre -deposit of H450 lacs (P.Y. H450 lacs) has been made.

Business Segments:

The Company''s activities are organized into two operating segments namely, Building Products and Textile Synthetic Yarn. The segments are the basis on which the company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income.

Financial Information about business segments is presented as above.

Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the company as Domestic and Exports.

Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses'' or income and adjusted only against the total income of the company.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as ''unallocated corporate assets''. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as ''unallocated corporate liabilities''.

Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

Note 7

Figures for the previous year are reclassified /regrouped and rearranged wherever necessary.

Mar 31, 2013

Note 1 Rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs.10 /- each . Each holder of equity share is entiltled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting

Note 2

Term loans from banks represent loan taken from HDFC Bank Limited for the fibre cement boards project near Daund Taluk, Pune District in Maharastra. The loan sanctioned is Rs.6870.00 lacs out of which Rs.1000 lacs is drawn during the year 2012-13. The loan is repayable in 20 quarterly installments commencing from Jan''14. The current rate of interest is 10.70% as at the balance sheet date. This loan is secured by first mortgage and charge in favour of HDFC Bank Ltd on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Vice-chairman Dr G Vivekanand of the Company. Out of the above Rs.50.00 lacs is repayable in the financial year 2013-14 and Rs.200.00 lacs each year from the financial year 2014-15 to 2018-19 (upto December, 2018)

Note 3

(i) Loans from others include Rs.102.90 lacs obtained from Life Insurance Corporation of India against key man insurance policy at 9% which matures on 28-03-2018. This loan has no specific terms of repayment

(ii)The company has availed an interest free loan of Rs.1523.74 lacs during the financial year from The Pradeshiya Industria & Investment Corporation of U.P. Ltd for the cement asbestos unit at Raebareli, U.P which is sanctioned under the ndustrial Investment Promotion Scheme 2003 . The loan is secured by first charge on the entire fixed assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company. The ban is repayable (each installment drawn) after 10 years from the date of disbursement. The outstanding amount is repayable in the financial year 2022-23

Note 4

Deferred payment liabilities represent sales tax deferment relating to Cement Asbestos Unit at Patancheru, Medak District in Andhra Pradesh. This loan is interest free and repayable at Rs.200.18 lacs in the year 2019-20 and Rs.21.07 lacs in the year 2020-21.

Note 5

Public deposits represent deposits accepted from public carrying interest varying from 11% to 12% . The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits which matured and remained unpaid as on the balance sheet date.

Note 6

The company has taken data process equipments on finance lease which is payable in quarterly instalment. The rate of interest varies from 10% to 13% per annum

Note 7

Security deposits include deposits received from stockists (i.e Dealers) Rs.2032.56 Lacs (P.Y Rs.1723.73 Lacs), transporters Rs.27.09 lacs (P.Y. Rs.24.59 Lacs), sales agents Rs.41.55 lacs (P.Y. Rs.37.15 lacs) as collateral at the time of agreement/contract. These have no specific maturity date and are not repayable as long as they continue business with the company. These deposits carry interest at the rate of 9% per annum

Note 8

Working capital Loans from State Bank of India and State Bank of Hyderabad (under consortium arrangement) are repayable on demand which are secured on pari-passu basis by hypothecation of the Company''s entire movable assets including stocks, all raw materials, work-in-process, stores & spares, finished goods and book debts, present and future, and personal guarantee of the Vice-chairman Dr G.Vivekanand of the Company.

Note 9

Unsecured short term loans from banks include buyers credit availed from a) Kotak Mahindra Bank Limited of Rs.3087.99 lacs (P.Y Rs. 2492.88 lacs), b) HDFC Bank Limited of Rs.3925.69 Lacs (P.YRs.829.31 lacs) , c) Yes Bank Limited of Rs.1250.02 lacs (P.Y. Rs. Nil) and d) short term loan of Rs.5000 lacs from ICICI Bank ltd. These loans are backed by the personal guarantee of Vice- Chairman Dr G Vivekanand of the Company. All these loans are repayable within six months from the date of availment. The short term loan is repayable in June 13

Note 10

Expense payable reperesents amount payable to various parties like transporters, advertising, security and other contractors These also include provisions for current salaries, wages and other employee benefits.

Note 11

Statutory liabilites include liabilites accounted towards sales tax, service tax,excise duty and TDS

Note 12

Capital advances include Rs.2330.42 lacs paid for fibre cement boards project at Daund Taluk, Pune District in Maharashtra

Note 13

Interest income represents Interest on electricity deposits, Bank deposits and on over due bills from customers

Note 14

Miscellaneous income includes sales tax refund, rental income and sale of advertisement rights etc.

Note 15 Employee Benefits:

As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below:

Note 16 Defined Benefit plans:

The company operates post retirement gratuity plan with LIC. The present value of obligation is determined based on actuaria valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation of leave encashment is recognised in the same manner as gratuity.

Note 17

Capital work in progress includes Rs.1519.46 lacs (including borrowing cost of Rs.64.05 lacs on Rs.1000 lacs drawn from HDFC Bank Ltd) incurred for fibre cement boards plant near Daund, Pune district in Maharastra state

Note 18

We have recorded all known liabilities in the financial statements. The Company has not received any intimations from suppliers regarding their status under the micro, small and medium enterprises development act, 2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid or payable as required under the said Act have not been given

Note 19 Related Party Disclosures i) Key management personnel:

Mrs. G.Saroja Vivekanand - Managing Director Mr. M.P.Venkateswara Rao - Whole time Director

ii) Relatives of key management personnel:

Dr.G.Vivekanand - Vice Chairman (Spouse of Mrs. Saroja Vivekanand) Mr.G.Venkat Krishna (Son of Mrs.Saroja Vivekanand) Mr.G.Vamsi Krishna (Son of Mrs.Saroja Vivekanand) Miss.G.Vrithika (Daughter of Mrs. Saroja Vivekanand) Miss.G.Vaishnavi (Daughter of Mrs. Saroja Vivekanand)

iii) Enterprise in which key management personnel and their relatives have control:

a) Aslesha Constructions Private Limited

iv) Associate Company:

a) Visaka Thermal Power Limited

Notes:

Business Segments:

The Company''s activities are organized into two operating segments namely, Building Products and Textile Synthetic Yarn The segments are the basis on which the company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income.

Financial Information about business segments is presented as above.

Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the company as Domestic and Exports

Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses'' or income and adjusted only against the total income of the company.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as ''unallocated corporate assets''. Segment liabilities include all operating liabilities and consist principally of creditors and accrued ''labilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as ''unallocated corporate liabilities''

Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

Note 30

Figures for the previous year are reclassified /regrouped and rearranged wherever necessary.

Mar 31, 2011

1) Disclosures required by AS-29 ÃProvisions, Contingent Liabilities & Contingent AssetsÃ.

a) Contingent Liabilities: (Rs. in lakhs)

2010-11 2009-10

In respect of

Income tax 41.75 19.75

Value added tax 14.16 10.93

Excise duty/Service tax ** 2654.80 2654.80

**Includes Rs.2647.70 lakhs disputed excise duty including penalty for purported underutilization of fly-ash in the product to be eligible for concessional rate of duty.

Nature of Provision:

Disputed sales tax liability on procurement of fly ash from Thermal Power Stations and others in Tamil Nadu state.

2) We have recorded all known liabilities in the financial statements. The company has not received any intimation from Ãsuppliers' regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

3) a) Aggregate Related Party Disclosures :

i) Key Management personnel:

Mrs. G. Saroja Vivekanand Ã Managing Director

Mr. M. P. Venkateswara Rao Ã Wholetime Director

ii) Relatives of key management personnel:

Dr. G. Vivekanand Ã Vice Chairman(Spouse of Mrs. Saroja Vivekanand)

Mr. G. Venkata Krishna Ã (Son of Mrs. Saroja Vivekanand)

Mr. G. Vamsi Krishna Ã (Son of Mrs. Saroja Vivekanand)

Miss. G. Vrithika Ã (Daughter of Mrs. Saroja Vivekanand

Miss. G. Vaishnavi Ã (Daughter of Mrs. Saroja Vivekanand)

iii) Other entities under control:

Visaka Charitable Trust

iv) Enterprise in which key management personnel and their relatives have control:

a) Aslesha Constructions Private Limited.

v) Associate

a) Visaka Thermal Power Private Limited

4) During the year the company has created deferred tax liability of Rs.73.61 Lakhs (Previous year Rs. 43.19 Lakhs) on account of timing difference on depreciation, reversed deferred tax Asset of Rs.4.92 Lakhs on account of allowances in the income tax previously disallowed (previous year created of Rs.24.62 lakhs) and created deferred tax asset of Rs 0.80 on account of disallowance of provision for doubtful debts (previous year Nil).

5) Capital WIP includes Rs.2482.20 Lakhs incurred for Cement Asbestos plant at Sambalpur, Orissa which is under implementation.

6) Segment information for the year ended 31st March, 2011

NOTES:

Business Segments:

The Company's activities are organized into two operating segments namely, Building Products and Textile Synthetic Yarn. The segments are the basis on which the company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income.

Financial Information about business segments is presented as above.

Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the company as Domestic and Exports.

Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses' or income and adjusted only against the total income of the company.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as Ãunallocated corporate assets'. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as Ãunallocated corporate liabilities'.

Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

7) Figures for the previous year are regrouped and rearranged wherever necessary.

Mar 31, 2010

1) Disclosures required by AS-29 "Provisions, Contingent Liabilities & Contingent Assets".

a) Contingent Liabilities: (Rs. in lakhs) 2009-10 2008-09 In respect of Income tax 19.75 68.80 Value added tax 10.93 10.93 Excise duty/Service tax ** 2654.80 5.45

** Includes Rs.2647.70 lakhs disputed excise duty including penalty for purported under utilisation of flyash in the product to be eligible for concessional rate of duty.

2) We have recorded all known liabilities in the financial statements. The Company has not received any intimation from suppliers regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

3) a) Aggregate Related Party Disclosures :

i) Key Management personnel:

Mrs.G.Saroja Vivekanand - Managing Director Dr.G.Vivekanand - Vice Chairman (Part of the year) Mr.M.P.Venkateswara Rao - Wholetime Director

ii) Relatives of key management personnel:

Mrs.P.Vishwashanthi - Sister Mr.G.Venkata Krishna- Son Mr.G.Vamsi Krishna - Son Miss.G.Vrithika - Daughter Miss.G.Vaishnavi - Daughter

iii) Other entities under control:

Visaka Charitable Trust

iv) Enterprise in which key management personnel and their relatives have control:

a) Aslesha Constructions Private Limited.

v) Associate

a) Visaka Thermal Power Private Limited

4) Basic earnings per equity share has been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the period. Diluted earnings per equity share has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period. The reconciliation between basic and diluted earnings per equity share is as follows:

5) During the year the Company has created deferred tax liability of Rs.43.19 lakhs (Previous year Rs. 192.15 lakhs) on account of timing difference on depreciation and reversed deferred tax Asset Rs.24.62 lakhs on account of allowances in the income tax previously disallowed (previous year created of Rs.30.81 lakhs).

6) The Company has setup a sandwich panel manufacturing unit within the premises of the V-boards plant at Miryalguda in Andhra pradesh. The unit has commenced commercial production on 1st January 2010.

7) Depreciation for the year includes Rs.254.40 lakhs amortised in respect of the balance of advertisement rights, existing in the beginning of the year. The amount has been charged to profit & loss in the year as the management is of the opinion that the value of future economic benefits is uncertain.

8) Fixed assets written off includes Rs.175.99 lakhs scrapped in the cement asbestos unit at Pune consequent to modernisation.

NOTES:

Business Segments:

The Companys activities are organised into two operating segments namely, Building Products and Textile Synthetic Yarn. The segments are the basis on which the Company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income. Financial Information about business segments is presented as above.

Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the Company as Domestic and Exports.

Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses or income and adjusted only against the total income of the Company.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as unallocated corporate assets. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as unallocated corporate liabilities.

Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

9) Figures for the previous year are regrouped and rearranged wherever necessary.

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