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Notes to Accounts of Bheema Cements Ltd.

Mar 31, 2013

I. Contingent Liabilities not provided for:

a) Bank guarantees given for Rs.137.47 (Previous Year Rs. 37.33)

b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.25.00 (Previous Year Rs.809.74)

c) Claims against the Company not acknowledged as debts: Rs. 31.56 (Previous Year Rs. 31.56) d) Arrears of fixed cumulative Dividend is Rs 98.68 (Previous Year Rs. 23.86)

II. Pursuant to sanctioning of a Debt Restructuring package in terms of CDR LOA , the company has entered into a Master Restructuring Agreement (MRA) with all bankers during the FY 2011-12. In terms of the MRA, the Bankers have restructured and rescheduled the existing term loans and other facilities and their terms of repayment. Further the company was also sanctioned fresh term loans, which were fully drawn and utilized towards the completion of the expansion project. The breakup of such loans and the particulars of the terms and conditions of payment of interest and repayment of loans are given in Note No. 4.

III. During the year the company completed its expansion project and commenced production from the expanded project. The date of commencement was 31/03/2013. Accordingly the expenditure incurred on the project upto that date Rs.27,575.22, including pre-operative expenditure and interest during construction period, had been capitalized and included in fixed assets under appropriate heads. The preoperative expenditure Rs.530.92 relatable to the project incurred upto the date and the Interest on the loans borrowed for expansion attributable to the period upto the date had been allocated to various fixed assets on pro- rata basis. The depreciation has been provided accordingly.

IV. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs.10,725.59 on account of Mineral Deposits and Rs.2,933.41 on account of Mining Rights totaling to Rs.13,659.00 During the year an amount of Rs.728.32 (previous year Rs.728.32) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

V. SEGMENT REPORTING:

In terms of the Accounting Standard 17 relating to "Segment Reporting" , the company operated only in Cement business segments during the year and operates only in one geographical segment viz. India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there-under are not applicable to the company for the year.

VI. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel of Rs.24.00 each (Previous Year of Rs. 24.00 each) respectively. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs.2.00 (Previous Year Rs.1.44) as Directors Sitting fee to all the Directors.

VII. DEFERRED TAXATION:

Deferred Tax Liability included in the Balance Sheet comprises the following:

VIII. HOUSING SUBSIDY:

The Company has received a sum of Rs.10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

IX. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

X. REALIZATION OF ASSETS:

The Board is of the opinion that the Assets other than Fixed Assets have a value on realization in the ordinary course of business at least to the amount at which they are stated.

XI. Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 293.38 (previous year Rs. 233.57).

XII. Previous Year figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts.

XIII. The amounts except the Share data and quantitative information have been rounded off to the nearest Lakh rupees and fraction thereof up to two decimals.


Mar 31, 2012

1) The Term Loans from banks, of Rs.17,326.41 lakhs, out of which Rs.14,430.17 Lakhs carries an interest rate @ 13.25% (Part of the interest @ 9% per annum till 31-03-2013 and @ 10% per annum during 01-04- 2013 to 31-03-2016 would be paid on due dates on cash basis and the balance of 4.25% per annum up to 31-03-2013 and 3.25% per annum of interest from 01-04-2013 to 31-03-2016 will be capitalized into equity shares in case of ICICI Bank and United Bank of India and other lenders CRPS (Zero Coupon) will be allocated and be redeemable after 2020) and the loan is repayable in 31 structured quarterly installments commencing from 30-09-2012 to 31-03-2020 with moratorium of two years from 01-07-2010 to 30-06-2012 and balance of Rs. 2,896.24 Lakhs carries an interest rate of @ 13.25% (Part of the interest @ 10% per annum during 01-04-2011 to 31-03-2016 would be paid on due dates on cash basis and the balance of 3.25% per annum up to 31-03-2016 will be capitalized into CRPS (Zero Coupon) will be allocated and be redeemable after 2020) and the loan is repayable in 28 structured quarterly installments commencing from 30.06.2013 to 31-03-2020 with a moratorium from the date of disbursement to 31-03- 2013.

All the aforementioned term loans are secured by equitable mortgage by deposit of title deeds by creating First Pari-Passu charge on immovable properties and second Pari-Passu charge by hypothecation of all current assets both present and future subject to First Pari-Passu charge on current assets infavour of companies bankers for working capital and also guaranteed by Promoter Directors in their individual capacities and also by pledge of 1,27,01,781 shares belonging to promoters as additional security.

I. Contingent Liabilities not provided for:

a) Bank guarantees given for Rs.37.33 (Previous Year Rs. 50.70)

b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.809.74 (Previous Year Rs.3,456.00)

c) Claims against the Company not acknowledged as debts: Rs. 31.56 (Previous Year Rs. 31.56)

d) Arrears of fixed cumulative Dividend is Rs23.86 (Previous Year Rs. NIL)

II. Pursuant to sanctioning of a Debt Restructuring package in terms of CDR LOA during the previous year, the company has entered into a Master Restructuring Agreement (MRA) with all bankers during the current year. In terms of the MRA, the Bankers have restructured and rescheduled the existing term loans and other facilities and their terms of repayment. Further the company has also been sanctioned fresh term loans, a major portion of which has been released, to complete the expansion project. The breakup of such loans and the particulars of the term and conditions of payment of interest and repayment of loans are given in Note No. 4.

III. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs. 10,725.59 on account of Mineral Deposits and Rs. 2,933.41 on account of Mining Rights totaling to Rs. 13,659.00 During the year an amount of Rs.728.32 (previous year Rs.728.32) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

IV. SEGMENT REPORTING:

In terms of the Accounting Standard 17 relating to "Segment Reporting", the company operated only in Cement business segments during the year and operates only in one geographical segment viz. India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there-under are not applicable to the company for the year.

V. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director and Whole time Director among the key management personnel of Rs. 24.00 each (Previous Year of Rs. 122.88 each) respectively. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs. 1.44 (Previous Year Rs.0.84) as Directors Sitting fee to all the Independent Directors.

VI. HOUSING SUBSIDY:

The Company has received a sum of Rs. 10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

VII. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

VIII. REALIZATION OF ASSETS:

The Board is of the opinion that the Assets other than Fixed Assets have a value on realization in the ordinary course of business at least to the amount at which they are stated.

IX. The following table set out the status of the gratuity plan as required under AS 15 (Revised).

X. Previous Year figures have been regrouped as per New Revised Schedule VI to conform to the groupings adopted in these accounts.

XI. The amounts except the Share data and quantitative information have been rounded off to the nearest Lakh rupees and fraction thereof up to two decimals.


Mar 31, 2011

(Rs in ''000)

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.5,069.97 (Previous Year Rs. 6,431.05)

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.3,45,600.00 (previous year Rs.3,00,000.00)

(c) Claims against the Company not acknowledged as debts: Rs. 3,155.66 (Previous Year Rs. 3,155.66)

2. SECURED LOANS:

a) The Term loans in respect of Cement business from Axis Bank Limited, ICICI Bank Ltd, State Bank of Hyderabad, United Bank of India and Karnataka Bank Ltd are secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favour of Company''s Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) Cash Credit from the Axis Bank Limited, Corporation Bank and Karnataka Bank Ltd is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

c) Deferred liabilities include the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

3. During the year the company has been sanctioned a Debt Restructuring Package by the CDR EG Cell vide their letter dated 28/03/2011. In terms thereof the company and the lending bankers had to enter into a Master Restructuring Agreement which is under progress. Further, in terms thereof, the company has been sanctioned a fresh term loan by majority of the bankers and the bankers had agreed to restructure the existing loans and facilities, for funding of interest from a cut-off date and upto 31st December, 2011, and rescheduling of loans. Further the promoters have to bring in additional share capital as their margin and have brought in a part thereof, which has been shown under share application money. Pending completion of all formalities as envisaged under the scheme like entering into MRA etc, the company has accounted in this balance sheet, the interest payable, i.e. Funded Interest Term Loan (FITL), for the period between the cut-off date and the balance sheet date of Rs.1,43,942.39, as Capital Work in Progress to the extent of Rs.97,616.21 and as a charge off to Profit & Loss a/c. to the extent of the balance amount. These amounts are however subject to reconciliation and confirmation by the bankers. The same will be reviewed and necessary entries would be passed once all the formalities in terms of the scheme are completed.

4. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C. Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S. Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs.1072558.92 on account of Mineral Deposits and Rs. 293341.10 on account of Mining Rights totaling to Rs.1365900.00. During the year an amount of Rs. 72832.38 (previous year Rs. 72832.38) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

5. SEGMENT REPORTING:

In terms of the Accounting Standard 17 relating to "Segment Reporting”, the company operated only in Cement business segments during the year and operates only in one geographical segment viz. India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there- under are not applicable to the company for the year.

6. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 14(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs. 84.00 (Previous Year Rs.138.00 as Directors Sitting fee to all the Directors.

7 CONVERTIBLE WARRANTS:

During an earlier year, the company under a scheme had issued a total of 20,00,000 Convertible Warrants of Rs.10/- each at a premium of Rs.230/- per warrant, by passing necessary resolutions, convertible into an equal number of equity shares of Rs.10/- each at a premium of Rs.230/- each, within a period of 18 months from the date of allotment of Warrants. The promoters were required to bring in 10% of the amount as application money, which had been brought in during such earlier year, and the balance amount within the specified period. However they have not brought in the balance amount in terms thereof and the company forfeited the 10% amount brought in as application money. The amount so forfeited has been accounted as Capital Reserve in the balance sheet.

8 HOUSING SUBSIDY:

The Company has received a sum of Rs.10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

9. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

10. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated

11. The following table set out the status of the gratuity plan as required under AS 15 (Revised).

Reconciliation of opening and closing balances of the deferred benefit obligation:

12. PROFIT & LOSS ACCOUNT :

a) The company is not liable for income tax under regular provisions of the Act as well as in terms of sec.115JB of the act in view of current year losses and allowances.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs.23356.615 (previous year Rs.12733.84).

c) Particulars of Remuneration paid/provided to the, Chairman, Managing Director and Whole Time Director:

The Central Government has accorded its approval for the above remuneration in terms of the relevant provisions of the Companies Act, 1956

However the remuneration for a part of the year has been paid as agreed by the promoters in terms of the above referred restructuring package.

(13) Figures indicated in brackets relates to previous year.

14. Previous year figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts.

15. The amounts except the Share data and quantitative information have been rounded off to the nearest thousand rupees and fraction thereof up to two decimals.


Mar 31, 2010

(Rsin000)

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.6431.05 (Previous Year Rs. 6301.75).

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs. 300000.00, (previous year Rs.246390.00)

(c) Claims against the Company not acknowledged as debts: Rs. 3155.66 (Previous Year Rs. 5137.45)

2. SECURED LOANS:

a) The Term loans in respect of Cement business from Axis Bank Limited, ICICI Bank Ltd, State Bank of Hyderabad, United Bank of India and Karnataka Bank Ltd are secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favour of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) Cash Credit from the Axis Bank Limited, Corporation Bank and Karnataka Bank Ltd is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

c) Deferred liabilities include the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

3. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs. 1072558.92 on account of Mineral Deposits and Rs.293341.10 on account of Mining Rights totaling to Rs. 1365900.00. During the year an amount of Rs.72832.38 (previous year Rs.72832.38) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

5. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 13(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition the Company has paid Rs.1, 38,000 (Previous Year Rs.1,92,000) as Directors Sitting fee to all the Directors.

8. CONVERTIBLE WARRANTS:

During an earlier year, the company under a scheme had issued a total of 20,00,000 Warrants of Rs.10/- each at a premium of Rs.230/- per warrant convertible into an equal number of equity shares of Rs10/- each at a premium of Rs.230/- each, by passing necessary resolutions, within a period of 18 months. The promoters were required to bring in 10% of the amount along with the application and the balance amount within the specified period. The amounts brought in as on the date of balance sheet but within the specified period, pending compliances with all terms and conditions of the scheme, are shown under the application money for warrants in the balance sheet. The shares are to be allotted at the end of the specified period upon receipt of the entire amount. The promoters have brought in a total of Rs.292030.00, as on the date of balance sheet, under the scheme and the same has been shown underthe application money for warrants.

9. HOUSING SUBSIDY:

The Company has received a sum of Rs. 10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

10. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

11. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated

13. PROFIT & LOSS ACCOUNT :

a) The provision for Income Tax has been made in terms of the provisions of Sec.115 JB of Income Tax Act 1961.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 12733.84 (previous year Rs.6066.18).

15. Previous period figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts.

16. The amounts except the Share data and quantitative information have been rounded off to the nearest thousand rupees and fraction thereof.


Mar 31, 2009

1. The company changed its name from Ckoramaandel Cements Ltd to Bheema Cements Ltd with effect from September 29,2008.

2. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.6301.75 (Previous Year Rs.9207.32).

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.246390.00 (Net of Advances) (previous year Rs.350563.67)

(c) Claims against the Company not acknowledged as debts: Rs.5137.45 (Previous Year Rs.4529.03)

3. SECURED LOANS:

a) The Term loans in respect of Cement business from Axis Bank Limited, ICICI Bank Ltd, State Bank of Hyderabad and United Bank of India are secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favoui* of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The term loans in respect of Wind Farms from Axis Bank Ltd and ICICI Bank Ltd are secured by first charge on the three wind energy machines i.e. fixed assets purchased out of Axis Bank Ltd and ICICI term loan and second charge on all current assets of the company with the existing bankers and also guaranteed by Promoter Directors, in their individual capacities.

c) Cash Credit from the Axis Bank Limited and Corporation Bank is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

d) Deferred liabilities include the assets acquired under Hire purchase system and are secured by hypothecation of those assets.

4. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted such value in respect of mineral deposits and mining rights, during the previous financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs.1072558.92 on account of Mineral Deposits and Rs.293341.10 on account of Mining Rights totaling to Rs.1365900.00. An amount of Rs.72832.38 (previous year Rs.72832.38) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalisation Reserve.

5. SEGMENT REPORTING

In terms of the Accounting Standard 17 relating to "Segment Reporting", the company operates in two business segments viz. cement manufacturing and wind power generation and operates only in one geographical segment viz .India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. The segment revenues and the assets and liabilities are stated below:

6. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 14(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs. 192.00 (Previous Period Rs.64.00) as Directors Sitting fee to all the Directors.

7. CONVERTIBLE WARRANTS:

During the current year, the company under another scheme had issued a total of 20,00,000 Warrants of Rs.10/- each at a premium of Rs.230/- per warrant convertible into an equal number of equity shares of Rs10/- each at a premium of Rs.230/- each by passing necessary resolutions within a period of 18 months. The promoters were required to bring in 10% of the amount along with the application and the balance amount within the specified period. The amounts brought in as on the date of balance sheet but within the specified period are shown under the application money for warrants in the balance sheet. The shares are to be allotted at the end of the specified period upon receipt of the entire amount.. The promoters have brought in a total of Rs.247730.00 under the scheme and the same has been shown under the applications money for warrants.

8. HOUSING SUBSIDY:

The Company has received a sum of Rs. 10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

9. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

10. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated

11. The following table set out the status of the gratuity plan as required under AS 15 (Revised). Reconciliation of opening and closing balances of the deferred benefit obligation:

12. PROFIT & LOSS ACCOUNT :

a) The provision for Income Tax has been made in terms of the provisions of Sec.115 JB of Income Tax Act 1961.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs.6066.18 (previous period Rs. 19162.08).

c) Particulars of Remuneration paid/provided to the Chairman, Managing Director and Whole Time Director:

The Central Government has accorded its approval for the above remuneration in terms of the relevant provisions of the Companies Act, 1956

() Figures indicated in brackets relates to previous period.

(d) Employee cost includes gratuity payment of Rs.4288.09 towards employees benefits for earlier years.

13. The information required as per Clause 4 (c) and 4(d) and notes thereon Part II of Schedule VI of the Companies Act, 1956 (as certified by the Management).

14. Previous period figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts and are not comparable as they represent 6months period from 01/10/2007 to 31/03/2008 as against the current year period of 12 months ending 31/03/2009.

15. The amounts except the Share data and quantitative information have been rounded off to the nearest thousand rupees and fraction thereof.


Mar 31, 2008

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs. 92,07,315/- (Previous Period Rs. 64,11,750/-.

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.35,05,63,665 (Net of Advances) (previous year Rs. 8,77,23,069)

(c) Claims against the Company not acknowledged as debts: Rs. 31, 41,000/- (Previous Year Rs. 31,41,000/-)

2. SECURED LOANS:

a) The Term loans from Centurion Bank of Punjab Limited, Axis Bank Limited secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favour of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The term loans from Axis Bank Ltd and ICICI Bank Ltd are secured by first charge on the three wind energy machines i.e. fixed assets purchased out of Axis Bank Ltd and ICICI term loan and second charge on all current assets of the company with the existing bankers and also guaranteed by Promoter Directors, in their individual capacities.

c) Cash Credit from the Centurion Bank of Punjab Limited and Axis Bank Limited is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

d) Other liabilities include the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

3. ACCOUNTING OF THE VALUE OF MINERAL DEPOSITS AND RIGHTS:

The company owns lands and has leasehold rights in respect of other lands, beneath which lie Limestone deposits. The Limestone is excavated and used as a raw material in the production of Clinker. The lands are owned and held on lease for many years and the relevant costs had been accounted, during the relevant years, either as capital or revenue expenditure as the case may be. However, the minerals lying beneath the lands were not valued earlier. During the year the management reviewed and felt that the minerals have a long term commercial value adding benefit to the business of the company and that they should have been accounted & brought into books. Consequently it considered appropriate to value them and account for it in the books of account during the year.

Accordingly the company made an estimate of the quantity of minerals based on a report by M/s. C C Geo Engineering Consultants Pvt Ltd, Hyderabad, Hyderabad, independent Geological Consultants, and of the realizable value at Rs. 136, 59, 00,000 of those minerals based on a report by M/s. G.S.Sekhar, Hyderabad, independent Chartered Accountants. The value of minerals so estimated has been accounted in two parts namely Mineral Deposits to the extent of lands owned at Rs. 107, 25, 58,915 and Mineral Rights to the extent of lands held on lease at Rs.29,33,41,085. The said values have been debited and shown as a Mineral Deposits and Mineral Rights, as the case may be, under the Fixed Assets. A corresponding liability at Rs.136, 59, 00,000 has been credited as a Capital Reserve under the Reserves and Surplus. The value of assets so accounted has been depreciated, in accordance with the accounting policy mentioned hereinabove, by withdrawing an equal amount from the Capital Reserve.

The above accounting of mineral deposits resulted in change in accounting policy to the extent of preparing and presenting financials statements on and recording fixed assets at estimated realizable value in respect of mineral deposits and providing depreciation thereon. The change however has no impact on the profit of the company for the period but the net value of the assets has been overstated by an amount of Rs.129, 30, 67,619.

4. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 10(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition the Company has paid Rs. 64,000/- as Directors Sitting fee to all the Directors.

5. CONVERTIBLE WARRANTS:

During the current period a total amount of Rs.3, 55, 05,000 (previous year Rs. 9, 00,000) has been received from the promoters. It represents the monies receivable from them towards 41, 96,790 Convertible Warrants issued and allotted to them, during the previous period 2006-07. In terms of the relevant scheme, the promoters have an option to convert the warrants into shares within a period of 18 months from the date of allotment of warrants. An amount of Re.1 per warrant was paid by them at the time of allotment and the remaining amount is to be paid before the exercise of the said option. The amount so received till the date of balance sheet has been included under the Share Application Money.

6. HOUSING SUBSIDY :

The Company has received a sum of Rs.10, 75,000/- from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

7. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

There are no outstanding dues to SSI units for more than 30 days as at 31.03.08.

8. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated.

9. PROFIT & LOSS ACCOUNT:

a) The provision for Income Tax has been made in terms of the provisions of Sec. 115 JB of Income Tax Act 1961. The company is not liable to Income Tax under regular provisions of the Act in view of brought forward losses and allowances.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 60, 66,185/- (previous period Rs. 1,91,62,079).

c) Particulars of Remuneration paid/provided to the, Chairman, Managing Director and Whole Time Director: .

10. Previous period figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts and are not comparable as they repregent 18 months period from 01/04/2006 to 30/09/2007 as against the current year period of 6 months ending 31/03/2008.

11. The amounts have been rounded off to the nearest rupee.


Mar 31, 2006

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.41,06,823 (Previous Year Rs.57,00,000)

2. Claims against the Company not acknowledged as debts: Rs.31,41,000 (previous Year Rs. 31,41,000)

3. Secured Loans:

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with State Bank of India in favour of participating Banks as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable assets in favour of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from State Bank of India & State Bank of Hyderabad and Lord Krishna Bank rank pari-passu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

d) Other liabilities includes the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

4. In the opinion of the management there is no indication that any of the assets of the company has been impaired. Accordingly no loss on account of impairment has been recongnised during the year in terms of Accounting Standard 28-Impairment of Assets

5. (a) There are no reportable segments for the company in terms of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, as there are no varying risks and returns for the products of the company and geographical areas in which the company operates.

(b) The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the note no. 8(d) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition the Company has paid Rs. 20,000/- as Directors Sitting fee to all the Directors.

(c) In terms of the provisions of Accounting Standard 22-"Accounting for taxes on incomer, The company has not recognised deferred tax asset/liability in view of the companys brought forward business losses and unabsorbed depreciation and in view of lack of future taxable income against which the Deferred tax asset can be realised.

(d) Earnings Per Share

The Computation of Earnings Per Share is set out below:

2005-06 2004-05

(a) Earnings 90,60,985 77,63,766

(b) Shares Weighted average No.of Equity Shares outstanding During the year 51,03,210 51,03,210

(c) Earnings per Share of face value of Rs10/- each (a/b) 1.78 1.52

6. During the year the Company has received an amount of Rs.2,11,25,000 (Previous Year Rs.90,59,850) as a Share Application money from the Promoters and their Associates. The allotment of shares against such Share Application money, which is pending as on the date of the Balance Sheet, is subject to approval of Shareholders and relevant statutory compliances.

7. Housing Subsidy: The Company has received a sum of Rs.10,75,000 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

8. There are no outstanding dues to SSI units for more than 30 days as at 31st March 2006.

9 Current Assets & Loans and Advances:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated.

10. Profit & Loss Account:

a) The provision for Income Tax has been made in terms of the provisions of Sec. 115 JB of Income Tax Act 1961. The company is not liable to Income Tax under regular provisions of the Act in view of brought forward tosses and allowances.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 90,35,992 (previous year Rs. 84,22,000).

c) Particulars of Remuneration paid/provided to the, Chairman, Managing Director and Whole Time Director:

S. Chandra S.R.B.Ramesh S.Kishore Mohan Chandra Chandra Chairman Managing Director Wholetime Director Current Year Current Year Current Year (Rupees) (Rupees) (Rupees)

Remuneration 12,00,000 11,40,000 10,80,000

(8,60,645) (8,00,645) (7,83,065)

Rent Free Accommodation 1,20,000 1,14,000 1,08,000

(86,065) (80,065) (78,307)

Provident Fund 9,360 9,360 9,360

(9,360) (9,360) (9,360)

Total 13,29,360 12,63,360 11,97,360

(9,56,070) (8,90,070) (8,70,732,)

() Figures indicated in brackets relates to Previous year.

12. Previous year figures have been regrouped wherever necessary to confirm to the classification adopted in the current year.


Mar 31, 2003

1. Contingent Liabilities not provided for:

(a) Rs.18.02 lacs in respect of Mineral Revenue Tax & Cess (Previous Year Rs.18.02 lacs).

(b) Bank guarantees given for Rs.25.10 lacs (Previous Year Rs.3.25 lacs)

2. Claims against the Company not acknowledged as debts: Rs. 31.41 lacs (previous Year Rs.31.41 lacs)

3. Secured Loans:

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with State Bank of India in favour of participating Banks as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable assets in favour of Company's Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from State Bank of India & State Bank of Hyderabad rank pari-passu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts, etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of charge on fixed assets.

4 (a) There are no reportable segments for the company in terms of Accounting Standard 17 "Segment Reporting" issued by the institute of Chartered Accountants of India, as there are no varying risks and returns for the products of the company and geographical areas in which the company operates.

(b) The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Managing Director, Joint Managing Director and Executive Director among the key management personnel. The particular's of such remuneration are furnished in the note no. 8(e) hereunder. The company has no related party transitions with the relatives of key management personnel.

(c) In terms of the provisions of Accounting Standard 22 in respect of "Accounting for taxes on income" the company has not recognized deferred tax asset/liability in view of the company's brought forward business losses and unabsorbed depreciation.

(d) Leave encashment is accounted for on payment basis.

5. Housing Subsidy: The Company has received a 6 sum of Rs. 10.75 lacs from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government Of India for a period of 20 years.

6. There are no out standings to SSI units for more than 30 days as at 31st March 2003.

7. Current Assets & Loans and Advances:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realisation in the Ordinary Course of Business at least to the amount at which they are stated.

8. Profit & Loss Account:

a) The Company has not provided depreciation for the year 1988-89 to 1993-94 amounting to Rs.304.66 laces, in view of Losses during those years.

b) The provision for Income Tax has been made to terms of the provisions of Sec. 115 JB of Income Tax Act 1961. The company is not liable to Income Tax under regular provisions of the Act in view of brought forward losses and allowances.

c) Prior period items (net) include Rs.2,45,483 towards additional charges levied by APCPDCL.

d) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 76.39 lacs (previous year Rs. 74.80 lacs).

9. Previous year figures have been regrouped wherever necessary to conform to the classification adopted in the current year.


Mar 31, 2002

1. Contingent Liabilities not provided for:

(a) Rs. 18.02 lacs in respect of Mineral Revenue Tax & Cess (Previous Year Rs.15.02 lacs).

(b) Bank guarantees given for Rs. 3.25 lacs (Previous Year Rs. 30.00 lacs)

2. Claims against the Company not acknowledged as debts: Rs. 31.41 lacs (previous Year Rs. 31.41 lacs)

3. Secured Loans:

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with State Bank of India in favour of participating Banks as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable assets in favour of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from State Bank of India & State Bank of Hyderabad rank paripassu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts, etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of charge on fixed assets.

4 (a) The Company has only one business segment and one geographical segment in terms of Accounting Standard 17 in respect of Segment Reporting. Hence, keeping in view the objective of the Accounting Standard, the Segment Reporting is not applicable to the Company.

(b) The Company has no related parties in terms of the Accounting Standard 18, except the key management personnel and other relatives. However, the Company has no related party transactions as referred to in the Accounting Standard.

(c) In view of the unabsorbed depreciation and brought forward losses under Tax Law, the Company has not made any provision towards deferred tax, and accordingly, deferred tax asset has not been recognized in terms of the Accounting Standard 22.

(d) Leave encashment is accounted for on payment basis.

5. Housing Subsidy : The Company has received a sum of Rs.10.75 lacs from Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for & period of 20 years.

6. There are no SSI Units to whom amounts in excess of Rs. 1.00 lac each is due for more than 30 days as at 31st March, 2002.

7. Current Assets & Loans and Advances:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realisation in the Ordinary Course of Business at least to the amount at which they are stated.

8. Profit & Loss Account:

a) The Company has not provided depreciation for the year 1988-89 to 1993-94 amounting to Rs. 304.66 lacs, in view of previous year Losses.

b) Provision for regular taxation has not been made in view of carry forward losses. However provision for taxation is made as per section 115 JB of the income Tax Act.

c) Prior period items(net) includes Rs. 1,62,195/- towards excess provision of depreciation written back as it relates to earlier years.

d) In the previous year figures interest waiver from Financial institutions has been netted off against the Loss brought forward from the previous years.


Mar 31, 2001

1. Contingent Liabilities not provided for :

(a) Rs.15.02 lacs in respect of Mineral Revenue Tax & Cess (Previous Year Rs.15.02 lacs).

(b) Bank guarantees given for Rs.30.00 lacs (Previous Year Rs.32.60 lacs)

2. Claims against the Company not acknowledged as debts: Rs.31.41 lacs (Previous Year Rs.31.41 lacs)

3. Secured Loans :

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable properties in favour of Company's Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from all the Financial Institutions rank paripassu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process and Finished Goods, Book Debts, etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets and sanctioned limit Rs.340 lacs (Previous Year Rs.365 lacs)

4. The Company was declared as a Sick Company with in the meaning of Section 3(1)(O) of Sick Industrial Companies (Special Provisions) Amendment Act 1993 vide Regn. No. 141/94 dated 15-09-994.

The revised sanctioned package was also could not be implemented and the company's revised settlement proposal submitted has been accepted by the Financial Institutions for an amount of Rs. 608.88 lacs towards full and final settlement of their dues. In view of the acceptance, the company has written back an amount of Rs. 1009.79 lacs as interest waiver including funded interest. The said relief /waiver is subject to fulfillment of the terms and conditions stipulated by the Financial Institutions. The Company has paid an amount of Rs. 52.2 lacs out of Rs. 608.88 lacs and the same is adjusted towards the outstanding amount. The balance amount along with interest is to be paid before 31st December 2001.

The Company has not provided interest on Term Loans for the period from 01-10-1998 to 31-03-2000 amounting to Rs. 462.95 lacs and for this year amounting to Rs. 273.16 lacs including penal interest in view of the sanction of scheme by Financial Institutions and waiver of interest till 31.03.2001.

5. Housing Subsidy : The Company has received a sum of Rs. 10.75 lacs from Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

6. There are no SSI Units to whom amounts in excess of Rs. 1.00 lac each is due for more than 30 days as at 31st March, 2001.

7. Current Assets & Loans and Advances:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realisation in the Ordinary Course of Business at least to the amount at which they are stated.

8. Profit & Loss Account :

a) The Company has not provided depreciation for the year 1988-89 to 1993-94 amounting to Rs. 305.27 lacs, in view of Losses.

b) Provision for taxation has not been made in view of carry forward losses and also the taxable income as per section 115JB is nil for the year.


Mar 31, 2000

1. Contingent Liabilities not provided for :

a) Rs.15.02 lacs in respect of Mineral Revenue Tax & Cess (Previous Year 15.02 lacs).

b) Bank Guarantees given for Rs.32.60 lacs (Previous Year Rs.1 lac)

2. Claims against the Company not acknowledged as debts : Rs.31.41 lacs (Previous Year Rs.48.31 lacs)

3. Secured Loans :

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable properties by the Company's Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from all the Financial Institutions rank paripassu among themselves.

c) Deffered Compound Interest amounting to Rs.140.75 lacs, is carrying Zero rate of Interest.

d) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process and Finished Goods, Book Debts, etc., and is guaranteed by Promoters in their personal capacity and is further secured by way of Second Charge on fixed assets and sanctioned limit Rs.365 lacs (Previous year Rs.340 lacs).

e) The company was declared as a Sick Company with in the meaning of Section 3(1) (O) of Sick Industrial Companies (Special Provisions) Amendment Act 1993 vide Regn.No.141/94 dated 15-09-1994. In consequence thereof BIFR has sanctioned a package on 8th August, 1996. Further BIFR has sanctioned a Modified Rehabilitation Scheme vide their letter dated 05-03-1999 approving One Time Settlement (OTS) of Financial Institutions dues.

4. Housing Subsidy : The Company has received a sum of Rs.10.75 lacs from the Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

5. a) Sundry Creditors includes dues to Small Scale Industrial Undertakings amounting to Rs.2.97 lacs.

b) Small Scale Industrial Undertaking whose dues are in excess of Rs.1 lac and is outstanding for more than 30 days is M/s.Panchavati Polyfibres Ltd. - Rs.1.64 lacs.

c) The above information is complied based on the information available with the Company which has been relied upon by the Auditors

6. Current Assets & Loans and Advances

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realisation in the Ordinary Course of Business at least to the amount at which they are stated.


Mar 31, 1996

Secured Loans:

a) All the Term Loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future; subject to prior charge on movable properties by the Company's Bankers for Working Capital and also Guaranteed by Promoter Directors and a former Director in their individual capacities.

b) The Term Loans from all the Financial Institutions rank pari passu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-progress and Finished Goods, Book Debts, etc. and is guaranteed by Promoters in their personal capacity (limit Rs. 290 lakhs Previous year Rs.290 lakhs)

Housing Subsidy : The Company has received a sum of Rs.10.75 lakhs from Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

Profit & Loss Account:

a) The Company has not provided depreciation for the years 1988-89 to 1993-94 amounting to Rs.305.57 lakhs.

d) No provision for taxation has been made in view of carried forward losses and depreciation as per Income Tax Act, 1961.


Mar 31, 1995

4. Secured Loans

a) All the Term Loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future; subject to prior charge on movable properties by the Company's Bankers for Working Capital and also Guaranteed by Promoter Directors and a former Director in their individual capacities.

b) The Term Loans from all the Financial Institutions rank paripassu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-progress and Finished Goods.Book Debts, etc. and is guaranteed by Promoters in their personal capacity (limit Rs. 290 lacs Previous year Rs. 290 lacs)

5. Housing Subsidy : The Company has received a sum of Rs.10.75 lacs (Previous Year 10.75 lacs) from Government of India for the purpose of constructing 50 tenements for housing to the personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

6. Profit & Loss Account:

a) The Company has lot provided depreciation for the Year 1988-89 to 1993-94. Amounting Rs. 366.62 lacs.

b) The Company has recomputed the Depreciation provided in 1986-87 and 1987-88 as per the amendment to the Schedule XIV of the Companies Act as per Notification dated 16th December, 1993. This has resulted an excess provision amounting to Rs. 31.89 lacs which has been written back in this account.

c) The Company has provided depreciation of Rs. 70.35 lacs for the Accounting year as per the notification mentioned above.

7. Profit & Loss Account

a) The Company's Special Leave Petition before the Honourable Supreme Court of India challenging the increase in power tariff by Andhra Pradesh State Electricity Board was dismissed by its judgment and order Dated 1.3.1995. The provision made for Disputed power tariff is written off.

b) Particulars of Remuneration paid/provided to the Managing Director and Joint Managing Director.

The remuneration paid to Sri S Chandra Mohan as Joint Managing Director is subject to the approval of shareholders and Financial Institutions.

c) Investment allowance reserve of earlier years amounting to Rs. 187.76 lacs has not been provided due to absence of taxable profits.

d) No provision for taxation has been made in view of carried forward losses and depreciation as per Income Tax Act, 1961.

e) The Company has not provided an amount of Rs. 1.91 lacs (Previous year Rs. 1.17 lacs) towards penal interest on the interest due to Financial Institutions.

8. The information required as per Clause 4(C) and 4(D) and notes thereon part II of Schedule VI of the Companies Act, 1956 (as certified by the Management)


Mar 31, 1994

Secured Loans:

All the Term Loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future subject to prior charge on movable properties by the Company's Bankers for Working Capital and also Guaranteed by a Promoter Director and a former Director in their individual capacities.

The Term Loans from all the Financial Institutions rank paripassu among themselves.

Cash Credit from all the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-progress and Finished Goods, Book Debts, etc. and is guaranteed by Promoters in their personal capacity (limit Rs.290 lacs Previous Year Rs.290 lacs).

Housing Subsidy:

The Company has received a sum of Rs.10.75 lacs (Previous Year 9.67 lacs) from Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

Fixsed Assets:

No Depreciation (calculated as per the amendment to Schedule XIV vide Notification dated 16th December, 1993) has been provided for the year amounting to Rs.68.43 lacs (Previous Year Rs.101.90 lacs) in view of accumulated loss. The total amount of Depreciation that has not been provided upto 31st March, 1994 is Rs.523.72 lacs.

Loans and Advances:

Deposits includes Rs.53.85 lacs towards Consumption Deposit paid to Andhra Pradesh State Electricity Board calculated inclusive of the disputed tariff.

Profit & Loss Account:

The Company's Special Leave Petition before the supreme Court challenging the increase in power tariff by APSEB is still pending. The Company's liability has not ceased inspite of the pendency of the petition. The Company's Legal Advisor after considering the latest judicial thinking on the said subject has opined that the Company out of abundant caution should provide for the disputed power tariff in the accounts. The provisions of the disputed amount in the accounts without prejudice to the Company's right to recover the said sum from Andhra Pradesh State Electricity Board in the event, the petition is decided in favour of the Company.

The amounts provided amounting to Rs.453.84 lacs comprises of Rs.150.37 lacs pertaining to the Accounting Year 1993-94 and Rs.303.47 lacs pertaining to previous years.

The Company has paid and charged to revenue a sum of Rs.18.17 lacs to Andhra Pradesh State Electricity Board towards Fuel Cost Adjustment demanded by the Board from 1986 to 1993. Aggrieved against this the Company has filed a Writ Petition in the Andhra Pradesh High Court. The Andhra Pradesh High Court has passed interm orders directing Andhra Pradesh State Electricity Board to refund/adjust against future power bills payable. A sum of Rs.5.27 lacs has been adjusted upto 31.3.1994 which has been shown under other income.


Mar 31, 1993

The Authorised equity share capital of the company has been increased from 2.95 crores to Rs. 4.70 crores, vide resolution passed at the AGM held on 21st September 1992

A sum of Rs. 292.14 lakhs has been paid to the Andhra Pradesh state electricity board under protest by the company towards increase in Powe tariff. The company's special leave petition is pending before the Supreme court. In order to avoid disconnection of lines the company has paid this amount subject to their right to claim refund in the event the petition being decided in favour of the company. No provision has been made in the accounts for the above amount and the same has been shown under loans and advances as recoverable due to the favorable opinion given regarding the outcome of the case by the company's legal adviser.


Mar 31, 1992

The Company's special Leave Petition before the supreme Court against the increase in Power Tariff by A.P.S.E.B. is still pending. The company's Legal Adviser has opined that its case before the said Court would be ruled in favour of the company.

Hence, no provision has been considered in the accounts for an amount of Rs. 178.91 lakhs (w.e.f. 15-7-1987 to 31-3-1992) including Rs 79.08 lakhs for the current year. Out of this an amount of Rs 171.95 lakhs has been paid to the APSEB under protest and the same has been shown as an advance paid to the APSEB.

Investment allowance reserve of earlier years amounting to RS.187.76 lakhs has not been provided due to absence of taxable profits.

No provision for taxation has been made in view of carried forward losses and business losses as per Income- Tax Act, 1961.

The company has not provided an amount of Rs. 0.30 lakhs towards penal interest on the interest due to Financial Institutions.


Mar 31, 1991

Profit & Loss Account : a) No provision has been made for accruing liability upto 31.03.91, for gratuity payable to employees in future as per Gratuity Act, amounting to Rs 3.05 lakhs (Previous Year Rs 2.25 lakhs).

b) The Company's Legal Adviser has opined that its case before the Supreme Court regarding the Power tariff increased by APSEB would be ruled in favour of the Company.

Hence, no provision has been considered in the accounts for an amount of Rs 99.83 lakhs (w.e.f. 15-7-1987 to 31-3-1991) including Rs 50.35 lacs for the current year. Out of this an amount of Rs 95.85 lacs has been paid to the APSEB under protest and the same has been shown as an advance paid to the APSEB.


Mar 31, 1990

No provision has been made for accruing liability upto 31-3-90 for gratuity payable to employees in future as per gratuity act amounting to Rs. 2.25 lakhs

General expenses includes Rs. 97,729 towards the sales tax pertaining to the previous year.

An amount of Rs.97,120 has been credited to general expenses being the provision of the previous years for contribution to NCCBM which is no longer required.

The company has not provided an amount of Rs. 4.16 lakhs towards Penal interest on the interest due to financial institutions as the matter is pening with the lead financia institution ie IDBI

Other income includes an amount of Rs. 27.77 lakhs being the differential tariff charged in the earlier years.

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