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Notes to Accounts of Birla Corporation Ltd.

Mar 31, 2023

Gross carrying amount of Freehold Land includes ? 2.86 Crores (Previous Year ? 2.86 Crores) and gross carrying amount of Building includes ? 7.00 Crores (Previous Year ? 7.00 Crores) under Co-ownership basis and also ? 0.00 Crore (Previous Year ? 0.00 Crore) being value of investments in Shares of a Private Limited Company.

5.2 The Company has adopted revaluation model for one class of Property, Plant and Equipment i.e. Freehold Land and have revalued as on 1st April, 2017 and 1st April, 2021 on the basis of valuation reports made by independent registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. Carrying amount of Freehold Land as on 1st April, 2022 include revaluation surplus of ? 1,054.56 Crores and ? 153.96 Crores on account of revaluation made on 1st April, 2017 and 1st April, 2021 respectively. In the opinion of the management, as there is no significant change in the fair value indicators, no fair valuation is done as on 31st March 2023. During the current year, the Company has transferred certain portion of freehold land from Property, Plant and Equipment to Investment Property at cost resulting in reversal of earlier years revaluation gain amounting to ? 30.50 Crores. This reversal has been recognized and presented under "Other Comprehensive Income".

The fair valuation was based on current prices in the active market for similar properties. The main inputs used were quantum, area, location, demand, restrictive entry to the land. This valuation was based on valuations performed by accredited independent registered valuer. Fair valuation was based on depreciated open market price method. The fair value measurement was categorized in level 2/ level 3 fair value hierarchy.

All the title deeds of the immovable property are held in the name of the Company.

Title deed for freehold land amounting to ? 11.89 Crores (Previous year ? 11.89 Crores), although in the name of Company, is in dispute and is pending resolution before the Court of Civil Judge, Rajgurunagar (Khed) and Additional Division Commissioner, Pune.

No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

Right of Use Assets includes:

(a) "Leasehold Land" represents land obtained on long term lease from various Government and other authorities.

(b) "Plant & Machinery" represents:

- Machinery recognized as per long term power purchase agreement in accordance with the principles of IND AS 116 "Leases" (Refer Note No. 62); and

- Railway Wagons recognized as per long term wagon leasing agreement in accordance with the principles of IND AS 116 "Leases".

5.10 Refer Note No. 43 for disclosure of contractual commitments for the acquisition of Property, Plant and Equipment.

6.1 During the year, freehold land of ? 0.70 Crore (Previous year ? 0.27 Crore) have been transferred to Investment Property from Property, Plant and Equipment as the same have been considered by the management as not for further use for business purposes and held for capital appreciation.

6.2 Fair value of the Company''s Investment Properties as at 31st March, 2023 and 31st March, 2022 are ? 59.30 Crores and ? 27.46 Crores respectively. The fair value has been arrived on the basis of valuation performed by independent registered valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, who are specialist in valuing these types of Investment Properties, having appropriate qualifications and recent experience in the valuation of properties in relevant locations.

6.3 The fair valuation is based on current prices in the active market for similar properties and rental income of similar type of property in the same locality. The main inputs used are quantum, area, location, demand, restrictive entry to the land and building, age of the building and trend of fair market rent in the locality. This valuation is based on valuations performed by accredited independent registered valuers. Fair valuation is based on depreciated open market price method and rental method. The fair value measurement is categorized in level 3 fair value hierarchy.

16.1 Trade receivables are non-interest bearing and are generally on terms of 0 to 90 days. Refer Note No. 44 for information on amount of trade receivables pledged as securities by the Company.

16.2 No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person. No trade receivables are due from firms or private companies respectively in which any director is a partner, a director or a member, except ? 17.87 Crores (Previous year ? 42.94 Crores) is receivable from a private company in which directors of the Company are directors.

19.1 Unit Auto Trim Division: Suspension of Operation was declared of the Company''s unit Auto Trim Division at Birlapur, West Bengal w.e.f. 18th February, 2014. There have been no operations at Chakan Plant, Maharashtra and at Gurgaon Plant, Haryana since August, 2007 and November, 2007 respectively. A resolution was passed by the Board of Directors of the Company on 3rd May, 2019 for disposal of remaining assets of the Unit situated at Birlapur (West Bengal), Chakan (Maharashtra) and Gurgaon (Haryana). The Board has also passed resolutions and declared "Closure of Manufacturing Establishments” for Biralpur Unit and Gurgaon Unit from 30th July, 2021 and 1st September, 2022 respectively. During the year, Company has disposed off the major portion of Plant and Machinery of Birlapur unit and sale balance items of Birlapur Unit and Other Units are expected to be completed by March, 2024. The assets of the Unit comprising Plant & Machineries are presented within total assets of the "Other Segment Assets” under Segment Reporting.

Non recurring fair value measurements

The fair value of the Plant & Machineries, classified as held for sale, was determined using the sales comparison approach. This is level 2 measurement as per the fair value hierarchy set out in accounting policies related to fair value measurement. The key inputs under this approach are price of the similar Plant & Machineries at the same location, condition and age.

20.4 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.

20.5 Terms/ Rights attached to Equity Shares :

The Company has only one class of issued shares i.e., Ordinary Shares having par value of ? 10 per share. Each holder of the Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

20.6 Shareholding Pattern in respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.

20.9 No ordinary shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

20.10 The Company has neither allotted any equity shares against consideration other than cash nor has issued any bonus shares nor has bought back any shares during the period of five years preceding the date at which the Balance Sheet is prepared.

20.11 No securities convertible into Equity/ Preference shares have been issued by the Company during the year.

20.12 No calls are unpaid by any Director or Officer of the Company during the year.

21 OTHER EQUITY (Refer Statement of Change in Equity) (? in Crores)

The Description of the nature and purpose of each reserve within equity is as follows:

21.1 Capital Reserve: Capital reserve are mainly the reserve created during business combination for the gain on bargain purchase.

21.2 Debenture Redemption Reserve (DRR): The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share Capital and Debentures) Rules, 2014 (as amended), requires the Company to create DRR out of profits of the Company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued. However, this requirement is no more applicable as per the amendment in the Companies (Share capital and Debentures) Rules, 2014. Accordingly, the Company has not made any new addition in the said reserve and accounted the reversal of outstanding reserve linked to payment of specific non-convertible debentures.

21.3 General Reserve: General reserve is created out of retained earnings and being used for appropriation purposes.

21.4 Retained Earnings: Retained earnings represents the undistributed profit of the Company.

21.5 Debt Instrument through Other Comprehensive Income: This reserve is created on account of fair valuation of selected debt instrument and will be transferred to statement of profit and loss on liquidation of respective instruments.

21.6 Effective Portion of Cashflow Hedges: The Company has designated certain hedging instruments as cash flow hedges and any effective portion of cashflow hedge is maintained in the said reserve. In case the hedging becomes ineffective or instruments settled, the amount will be transferred to the Statement of Profit and Loss.

21.7 Equity Instrument through Other Comprehensive Income: This reserve is created on account of fair valuation of equity instruments other than investments in subsidiaries. This will be directly transferred to retained earnings on disposal of respective equity instruments.

21.8 Revaluation Surplus: Revaluation surplus arises on account of fair valuation of freehold land. This will be directly transferred to retained earnings at the time of sale/disposal/transfer (if any) of the respective portion of freehold land.

27.1 The Company has been sanctioned working capital facilities (fund and non-fund based) from various Banks, secured by way of first charge on hypothecation of Company''s Current Assets viz. Raw Materials, Stock-in-Trade, Consumable Stores and Books Debts, both present & future and further secured by way of second charge on pari-passu basis on movable and immovable Property, Plant and Equipment and Intangible Assets of the Company''s Cement Division. In addition to this, the Company has also availed unsecured working capital facilities from various banks.

27.2 The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities, which are in agreement with the books of account.

27.3 There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

27.4 The Company has not been declared as a Wilful Defaulter by any bank or financial institution or other lender.

39.2 "The Government of India, on 20th September 2019, vide the Taxation Laws (Amendment) Ordinance 2019, inserted a new Section 115BAA in the Income Tax Act, 1961, which provides an option to a corporate for paying Income Tax at reduced rates as per the provisions/ conditions defined in the said section. The Company is continuing to provide for income tax at old rates, based on the available outstanding MAT credit entitlement and various exemptions and deductions available to the Company under the Income Tax Act, 1961. However, the Company has applied the lower income tax rates on the deferred tax assets / liabilities to the extent these are expected to be realised or settled in the future period when the Company would be subjected to lower tax rate and accordingly as on 31st March, 2023 and 31st March, 2022 the Company has created / (reversed) deferred tax liability of ? 5.70 Crores and (-) ? 4.37 Crores respectively. Applicable Indian Statutory Income Tax Rate for both the Fiscal Years 2023 and 2022 is 34.944%.

39.3 There is no income or transaction which has not been disclosed or recorded in the books of accounts which has been surrendered or disclosed as income in the tax assessment during the year 31st March, 2023 and 31st March, 2022.

41 CONTINGENT LIABILITIES :

41.1 Claims/Disputes/Demands against the Company not acknowledged as debt :

Sl. No.

Particulars

As at

31st March, 2023

As at

31st March, 2022

41.1.1

Sales Tax, VAT, CST and Entry Tax matters

111.17

111.17

41.1.2

Excise Duty, Service Tax, Goods & Service Tax and Custom Duty matters

135.87

135.71

41.1.3

Income Tax matters

27.99

28.45

41.1.4

Electricity Duty and Renewable Energy Surcharge matters

21.52

21.52

41.1.5

Royalty on Limestone

-

67.91

41.1.6

Others (Primarily related to demand for Alleged Impermissible Mining, Water Supply Charges, Stamp Duty, House Tax, Education Cess, etc.)

46.40

37.55

41.2 The Company is subject to electricity tariff notified by the relevant authorities. As there is substantial time lag in notifying such changes, the difference, if any, is accounted for at the time of notification of changes in tariff.

41.3 In respect of the matters in Note No. 41.1 to 41.2, future cash outflows are determinable only on receipt of judgements/decisions pending at various forums/ authorities. Furthermore, there is no possibility of any reimbursements to be made to the Company from any third party.

41.4 The Company has provided corporate guarantee in the nature of financial guarantee to the lenders of one of its wholly owned subsidiary amounting to ? 24.53 Crores (Previous Year ? 295.34 Crores) against the long term loans availed by the Subsidiary. As on the Balance Sheet date, the balance of such loans outstanding of ? 24.53 Crores (Previous Year ? 295.34 Crores).

41.5 Other Contingent Liabilities

(? in Crores)

Sl.

Particulars

As at

As at

No.

31st March, 2023

31st March, 2022

41.5.1

Bills discounted with Banks remaining outstanding

3.26

2.37

41.5.2

Customs Duty including interest thereon, which may have to be paid on account of nonfulfillment of Export Obligation under EPCG and Advance License Scheme

0.25

-

42 DIVIDEND

The Board of Directors at its meeting held on 9th May, 2023 have recommended a payment of final dividend of ? 2.50 per equity share of face value of ? 10 each for the financial year ended 31st March, 2023. The same amounts to ? 19.25 Crores.

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

43 COMMITMENTS

Capital Commitments

Particulars

As at

As at

31st March, 2023

31st March, 2022

Estimated amount of contracts remaining to be executed on Capital Account (Net of Advances) and

125.02

54.63

not provided for

44 Assets Pledged as Security

The carrying amounts of Assets Pledged as Security for Current and Non-Current Borrowings are:

Particulars

Refer Note

As at

As at

No.

31st March, 2023

31st March, 2022

Current

Financial Assets

Trade Receivables

16

227.19

221.77

227.19

221.77

Non-Financial Assets

Inventories

14

754.74

602.71

Others

13

0.03

0.03

754.77

602.74

Total Current Assets Pledged as Security

981.96

824.51

Non-Current

Land

5

1,242.99

1,225.37

Buildings

5

195.58

180.91

Plant & Machinery

5

1,793.21

1,671.44

Others Tangible Assets

5

44.26

37.60

Capital work-in progress

5

113.64

198.16

Other Non Current Assets (including Intangible Assets)

7 & 13

48.07

58.28

Total Non-Current Assets Pledged as Security

3,437.75

3,371.76

Total Assets Pledged as Security

4,419.71

4,196.27

46 LEASES

46.1 As Lessee

46.1.1 The Company''s significant leasing arrangements are in respect of leases for premises (residential, manufacturing facilities, office, stores, godown, etc.) These leasing arrangements which are cancellable ranging between 11 months and 99 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms.

46.1.2 The following is the summary of practical expedients used for lease accounting:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

(b) Applied the exemption not to recognize right of use assets and liabilities for leases with less than 12 months of lease term and low value of assets.

(c) Used hindsight in determining the lease term whether the contract contained options to extend or terminate the lease.

46.1.8 The weighted average incremental borrowing rate applied to lease liabilities for leasehold land is 8.00% and for plant and machinery is 7.78% and 11.77%.

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

46.2 As Lessor

46.2.1 The Company leased out its investment property on operating lease basis on cancellable basis. Rental income earned and direct operating expenses incurred on property letting on lease has been disclosed in Note No 6.

48.2 Defined Benefit Plan:

The following are the types of defined benefit plans:

48.2.1 Gratuity Plan

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

48.2.2 Pension Plan

Pension is payable to certain categories of employees who are eligible under the Company''s Pension Scheme.

48.2.3 Provident Fund

Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

48.2.4 Risk Exposure Defined Benefit Plans

Defined benefit plans expose the Company to actuarial risks such as Interest Rate Risk, Salary Risk and Demographic Risk.

a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the defined benefit obligation will tend to increase.

b) Salary risk: Higher than expected increases in salary will increase the defined benefit obligation.

c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that includes mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on 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 the short career employee typically costs less per year as compared to a long service employee.

The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India, Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Limited, HDFC Life Group variable employee benefit plan offered by HDFC Standard Life Insurance Company Limited, IndiaFirst New Corporate Benefit plan for gratuity offered by IndiaFirst Life Insurance Company Limited, Bajaj Allianz Group Employee Care plan offered by Bajaj Allianz Life Insurance Company Limited, ICICI Pru Group Unit Linked Employee Benefit Plan offered by ICICI Prudential Life Insurance Company Limited and Kotak Secure Return Employee Benefit Plan offered by Kotak Mahindra Life Insurance Limited. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available.

48.2.11 Asset-Liability Matching Strategy

The Company''s investment is in Cash Accumulation Plan/Traditional Plan/ULIP of various Insurance Companies, the investments are being managed by these Insurance Companies and at the year end interest is being credited to the fund value. The Company has not changed the process used to manage its risk from previous periods. The Company''s investments are fully secured and would be sufficient to cover its obligations.

48.2.18 Provident Fund

Provident fund for certain eligible employees is managed by the Company through the various Provident Fund Trusts, namely "M P Birla Group Provident Fund Institution", "Satna Cement Works Employees'' Provident Fund Trust", "Birla Cement Works Staff Provident Fund Trust", "Birla Jute Mills Workers'' Provident Fund Trust", "Soorah Jute Mills Employees'' Provident Fund Trust", "Durgapur Cement Works Employees'' Provident Fund Trust"" and "Birla Industries Provident Fund” in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

The Company has an obligation to fund any shortfall on the yield of the trust''s investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by the Trust has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall in current year and previous year. The details of fund and plan asset position are given below:

50. The Board of Directors of the Company at its meeting held on 25 th July, 2013 had approved the Scheme of Amalgamation to amalgamate Talavadi Cements Limited, a 98.01% subsidiary company, with the Company with an appointed date of 1st April, 2013. The Scheme is pending for approval of the National Company Law Tribunal, Kolkata.

51. The Ministry of Coal had allocated Bikram and Brahampuri Coal Blocks in the state of Madhya Pradesh through E-Auction process vide CMDPA (Coal Mine Development and Production Agreement) dated 18th December, 2019 and Vesting Order dated 10th February, 2020. Further, Ministry of Coal also allocated Markibaraka Coal Blocks in the state of Madhya Pradesh vide CMDPA (Coal Mine Development and Production Agreement) dated 17th October 2022 and Vesting Order dated 17th January, 2023. The Company is in process to develop these blocks for extraction of Coal. Till 31st March 2023 and 31st March 2022, Company has spent ? 40.02 Crores and ? 18.20 Crores respectively and shown under Capital Work-In-Progress.

52.1 As a policy, the Company annually assesses the impairment of property plant and equipment (PPE) and other non-current assets by comparing the carrying value of PPE and other non-current assets with its fair value. In case the fair value is less than the carrying value an impairment charge is created. Management has concluded that there is no impairment of PPE and other assets during the current year and in previous year.

52.2 Certain Trade Receivables, Loans & Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Loans & Advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

53.1 The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

53.2 The Company''s Unit Birla Vinoleum and Auto Trim Division at Birlapur, are under Suspension of Operations since 18th February, 2014. Further, the Board has also passed resolutions and declared "Closure of Manufacturing Establishments” for Biralpur Unit and Gurgaon Unit of Auto Trim Division from 30th July, 2021 and 1st September, 2022 respectively.

53.3 In respect of mining matter of Company''s unit Chanderia before the Hon''ble Supreme Court, a comprehensive report has been submitted by Central Building Research Institute (CBRI) on full scale mining. The matter is in the final stage of hearing.

54. FAIR VALUE MEASURMENT:

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

54.1 The following methods and assumptions were used to estimate the fair values:

54.1.1 The equity shares, bonds, non-convertible debentures and government securities being listed, the fair value has been taken at the market rates of the same as on the reporting dates. They are classified as Level 1 fair values in fair value hierarchy. Fair value of mutual funds are based on net assets value as on the reporting dates and classified as Level 1 fair values in fair value hierarchy. Fair value of investments in unquoted equity instruments are based on the Net Assets Book Value of the investee companies and same is classified as Level 3 fair values in fair value hierarchy.

54.1.2 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. Debentures are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the balance sheet date to be insignificant.

54.1.3 The management has assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables, other current financial assets (except derivative financial instruments), trade payables, short term borrowings and other current financial liabilities (except derivative financial instruments) approximates their carrying amounts largely due to the short-term maturities of these instruments. The management has assessed that the fair value of floating rate instruments approximates their carrying value.

54.2 Fair Value Hierarchy

The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the Standalone Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement". An explanation of each level follows underneath the tables.

54.5 During the year ended 31st March, 2023 and 31st March, 2022, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

55 FINANCIAL RISK MANAGEMENT

The Company has a Risk Management Policy which covers risk associated with the financial assets and liabilities. The Risk Management Policy is approved by the Board of Directors. The different types of risk impacting the fair value of financial instruments are as below:

55.1 Credit Risk

The credit risk is the risk of financial loss arising from counter party failing to discharge an obligation. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits placed with banks and financial institutions and other financial instruments.

a) The Company is entitled to receive incentive in the form of Industrial Promotional Assistance (IPA) under the West Bengal Incentive Scheme, 2000 for a period of 10 years with effect from FY 2005-06 in relation to the cement manufacturing unit- Durga Hi-Tech Cement ("DHTC”) located at Durgapur. The Company has received eligibility certificate No. INC-2000/EC-386 (B) dated 30th August, 2005, from the Government of West Bengal confirming the eligibility of claim of incentive. The outstanding claim balance as on 31st March, 2023 is ? 138.58 Crores (after netting of provision made for processing fees of ? 3.53 Crores).

Aggrieved by the indefinite delay by the Government of West Bengal in disbursal of the funds, the Company filed a writ petition dated 22nd September, 2017 before Hon''ble High Court of Calcutta. The Hon''ble High Court by way of Order dated 22nd September, 2022 has directed the concerned department of the State Government to dispose of the representation made by the Company within six weeks from the date of the Order. Despite the direction of the Hon''ble High Court, the concerned departments of the State Government have failed to comply with the Order and hence, the Company has filed a contempt petition on 13th January, 2023 before the Hon''ble High Court of Calcutta.

b) The Company is entitled to receive incentive in the form of Industrial Promotional Assistance (IPA) under the West Bengal State Support for Industries, Scheme, 2008 for a period of 8 years with effect from FY 2012-13 in relation to the cement manufacturing unit- Durgapur Cement Works (DCW) located at Durgapur. The Company had received from the Government of West Bengal the eligibility certificate No. DI/2008/151(B) [39/334/Burdwan (Durgapur)/ 72(2)/1971]/Pt-II dated 1st March, 2013, confirming the eligibility of claim for incentive. In accordance with the eligibility certificate and provision of the Scheme, the total incentive accrued to the company under scheme is ? 28.58 Crores (after netting of provision made for processing fees of ? 0.73 Crore).

Based on the Company''s internal assessment and the legal advice, the Company is confident about the ultimate realisation of the dues from the State Government. However, as a matter of caution based on its assessment of the expected time for recovery of the incentives receivables, a provision of ? 32.62 Crores on account of time value of money based on the expected credit loss method has been made in the earlier years.

55.2 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term and long term needs.

The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds, bonds, NCDs and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

c) The amounts are gross and undiscounted (except for lease liability) and exclude the impact of netting agreements (if any). The future cash flows on derivative instruments may be different from the amount in the above tables as exchange rates change. Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

55.3 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 four type of risks: Commodity Price Risk, Foreign Currency Risk, Interest Rate Risk and Other Price Risk.

55.3.1 Commodity Price Risk

The Company primarily imports coal, pet coke, gypsum and raw jute. It is exposed to commodity price risk arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where considered necessary.

The Company has Foreign Currency Exchange Risk on imports of input materials, capital equipments and also borrows funds in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. Such interest rate risk is actively evaluated and is managed through portfolio diversification and exercise of prepayment/refinancing options where considered necessary.

The Company is also exposed to interest rate risk on surplus funds parked in fixed deposits and investments viz. mutual funds, bonds. To manage such risks, such investments are done mainly for short durations, in line with the expected business requirements for such funds.

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance Sheet either at fair value through other comprehensive income or at fair value through profit and loss. Having regard to the nature of securities, intrinsic worth, intent and long term nature of securities held by the Company, fluctuation in their prices are considered acceptable and do not warrant any management.

55.4 Hedge Accounting - Cash Flow Hedges

The objective of cross currency swap and interest rate swaps is to hedge the cash flows of the foreign currency denominated debt related to variation in foreign currency exchange rates and interest rates. The hedge provides for exchange of notional amount at agreed exchange rate of principle at each repayment date and conversion of variable interest rate into fixed interest rate as per notional amount at agreed exchange rate. The Company is following hedge accounting for cross currency & interest rate swaps and Interest rate swaps based on qualitative approach. The Company is having risk management objectives and strategies for undertaking these hedge transactions. The Company has maintained adequate documents stating the nature of the hedge and hedge effectiveness test. The Company assesses hedge effectiveness based on following criteria:

i. An economic relationship between the hedged item and the hedging instrument

ii. The effect of credit risk

iii. Assessment of the hedge ratio

The Company designates cross currency swaps and interest rate swaps and some foreign currency forward contracts to hedge its currency and interest risk and generally applies hedge ratio of 1:1.

All these derivatives have been marked to market to reflect their fair value and the fair value differences representing the effective portion of such hedge have been taken to equity.

57. GOVERNMENT GRANTS DURING THE YEAR COMPRISING INCENTIVE AND SUBSIDIES INCLUDE:

57.1 Tax incentive for capital investments under various State Investment Promotion Schemes of ? 3.98 Crores (Previous Year ? 0.00 Crore).

57.2 Amortisation of the deferred revenue of ? 1.90 Crores (Previous Year ? 1.27 Crores) arising due to difference between the fair value & nominal value of interest free loan granted under State Investment Promotion Scheme.

57.3 Amortisation of the deferred revenue of ? 0.23 Crore (Previous Year ? 0.42 Crore) on account of investment in plant & machineries under various State Investment Promotion Schemes.

57.4 Renewable energy certificates for generation of power from solar power plant under Central Electricity Regulatory Commission (Terms and Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 of ? 0.42 Crore (Previous Year ? 0.42 Crore).

57.5 The Company has also recognised income from export benefits of ? 2.65 Crores (Previous Year ? 2.61 Crores).

59.2 Compliance with number of layers of companies:

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

59.3 Loans or Advances to Promoters, Directors, KMPs and the related parties

The Company has not given any loan or advance in the nature of loan to promoters, directors, KMPs and the related parties (as defined under the Act), either severally or jointly with any other person during the year ended 31st March, 2023 and the year ended 31st March, 2022 except as disclosed in Note No. 11.

59.4 Utilisation of Borrowed Funds and Share Premium

The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities including foreign entities (intermediaries) with the understanding that the Intermediaries shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

The Company has not received any fund from any persons or entities, including foreign entities (funding party) with the understanding that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

C) Other Disclosures

The Company''s operations predominantly relate to Cement. Other products are Jute Goods and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in the standalone financial statements.

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based on cost plus profit.

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

61.5 Terms and Conditions of transactions with Related Parties:

All Related Party Transactions are net off taxes and duties. The sales to and purchases from related party are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. The Loans and Advances as well as Corporate Guarantee issued to related parties are on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and settlement occurs in cash, the Company has recorded the receivable relating to amount due from related parties net of impairment (if any). This assessment is undertaken each financial year through examining the financial position of the related parties and the market in which the related party operates.

62 The Company had investment in AMP Solar Clean Power Private Limited (''AMP'') by way of purchase of 2,54,946 fully paid up equity shares having face value of ? 10 each, amounting of ? 0.25 Crore (7.80% holding in AMP) and in 22,945 compulsorily convertible debentures having face value of ? 1000 each, amounting of ? 2.29 Crores under Share Purchase, Subscription and Shareholders Agreement. Further, the Company had entered into a long-term power purchase agreement (''PPA'') with the AMP which is engaged in the business of generating and sale of solar power. The PPA has a lock-in period of 15 years wherein the Company (alongwith the subsidiary company) is required to purchase the entire contracted power capacity from the said plant.

The investment in equity shares in AMP together with the Subsidiary Company is 26%. Considering the substance of the transactions, in the opinion of the management, it was not considered as a related party under Ind AS 24/28. Accordingly, the investment in equity shares and compulsorily convertible debentures was recognized at amortised cost under "Deposits” at ? 0.43 Crore as per the provision of Ind AS 109 and the difference between amortised cost and investment value of ? 2.11 Crores was considered for valuation of "Right of Use Assets- Plant and Machinery".

Taking into consideration the terms and conditions of PPA, it was considered that the arrangement in respect of long term power purchase agreement satisfies all the conditions of the lease as per IND AS 116. Consequently, Right of Use Assets and Lease Liabilities was recognized.

63 Managerial Remuneration paid to two Non-Promoter Wholetime / Managing Directors for the year ended 31st March, 2023, exceeded the permissible limits as prescribed under section 197 read with Schedule - V of the Companies Act, 2013 by ? 1.53 Crores. The Company is in the process of obtaining necessary approval from its shareholders at the forthcoming Annual General Meeting for such excess remuneration paid or provided.

64 The Code on Social Security, 2020 which received the President''s assent on 28th September 2020 subsumes nine laws relating to Social security, retirement and employee benefits, including the Provident Fund and Gratuity. The effective date of the Code and rules thereunder are yet to be notified. The impact of the changes, if any, will be assessed and recognized post notification of the relevant provisions.

65 Previous year figures have been regrouped/ rearranged/ reclassified wherever necessary. Further, there are no material regroupings/ reclassifications during the year.


Mar 31, 2022

Gross carrying amount includes ? 2.86 Crores (Previous Year ? 1.59 Crores) in Freehold Land and ? 7.00 Crores (Previous Year ? 7.00 Crores) in Building under Co-ownership basis and also ? 0.00 Crore (Previous Year ? 0.00 Crore) being value of investments in Shares of a Private Limited Company.

The Company has adopted revaluation model for one class of Property, Plant and Equipment i.e. Freehold land and have revalued as on 1st April, 2017 and 1st April, 2021 on the basis of valuation reports made by independent registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. Carrying amount of Freehold Land as on 1st April, 2021 include revaluation surplus of ? 1,054.56 Crores and ? 153.96 Crores on account of revaluation made on 1st April, 2017 and 1st April, 2021 respectively. The resulting revaluation surpluses has been recognized and presented under "Other Comprehensive Income".

The fair valuation was based on current prices in the active market for similar properties. The main inputs used were quantum, area, location, demand, restrictive entry to the land. This valuation was based on valuations performed by accredited independent registered valuer. Fair valuation was based on depreciated open market price method. The fair value measurement was categorized in level 2/ level 3 fair value hierarchy.

5.6 All the title deeds of the immovable property are held in the name of the Company.

5.7 Title deed for freehold land amounting to ? 11.89 Crores (Previous year ? 9.49 Crores), although in the name of Company, is in dispute and is pending resolution before the Court of Civil Judge, Rajgurunagar (Khed) and Additional Division Commissioner, Pune.

5.8 No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

5.9 Other Adjustments also include finance costs capitalized during the year on the qualifying assets as required by IND AS 23 Borrowing Costs amounting to Nil (Previous Year ? 2.91 Crores), (Refer Note No. 35).

5.10 Right of Use Assets includes:

(a) "Leasehold Land" represents land obtained on long term lease from various Government and other authorities.

(b) "Plant & Machinery" represents:

- Machinery recognized as per long term power purchase agreement in accordance with the principles of IND AS 116 "Leases" (Refer Note No. 62); and

- Railway Wagons recognized as per long term wagon leasing agreement in accordance with the principles of IND AS 116 "Leases".

5.11 Refer Note No. 43 for disclosure of contractual commitments for the acquisition of Property, Plant and Equipment.

5.12 Refer Note No. 44 for information on property, plant and equipment pledged as securities by the Company.

During the year, freehold land having book value of ? 0.27 Crore have been transferred to Investment Property from Property, Plant and Equipment as the same have been considered by the management as not for further use for business purposes and held for capital appreciation.

In previous year, certain portion of a property was started to be used by the Company for its normal business purpose. Hence, this portion of building was transferred from Investment Property to Property, Plant and Equipment.

6.2 Fair value of the Company''s Investment Properties as at 31st March, 2022 (including Freehold Land transferred from Property, Plant & Equipment) and 31st March, 2021 (excluding proportionate portion transferred to Property, Plant & Equipment) are ? 27.46 Crores and ? 15.74 Crores respectively. The fair value has been arrived on the basis of valuation performed by independent registered valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, who are specialist in valuing these types of Investment Properties, having appropriate qualifications and recent experience in the valuation of properties in relevant locations.

6.3 The fair valuation is based on current prices in the active market for similar properties and rental income of similar type of property in the same locality. The main inputs used are quantum, area, location, demand, restrictive entry to the land and building, age of the building and trend of fair market rent in the locality. This valuation is based on valuations performed by accredited independent registered valuers. Fair valuation is based on depreciated open market price method and rental method. The fair value measurement is categorized in level 3 fair value hierarchy.

7.2 There is no intangible assets under development as on 31st March 2022 and 31st March 2021, whose completion is overdue or has exceeded its cost compared to its original plan.

7.3 The Company has not revalued its intangible assets.

7.4 Refer Note No. 43 for disclosure of contractual commitments for the acquisition of intangible assets.

7.5 Refer Note No. 44 for information on intangible assets pledged as securities by the Company.

The Company owns Bearer Biological Assets i.e., livestock from which milk is produced. The livestock is maintained by the Company at Satna and Birlapur. The milk produced from the live stock are internally consumed and not sold commercially.

I Trade receivables are non-interest bearing and are generally on terms of 0 to 90 days. Refer Note No. 44 for information on amount of trade receivables pledged as securities by the Company.

! No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person. No trade receivables are due from firms or private companies respectively in which any director is a partner, a director or a member, except ? 42.94 Crores (Previous year ? 12.34 Crores) are receivables from a private company in which directors of the Company are directors.

19.1 Plant & Machinery related to:

Unit Birla Carbide & Gases: Suspension of operations was declared of the Company''s unit Birla Carbide & Gases, Birlapur, West Bengal w.e.f. 29th October, 2001. Subsequently, closure of the Unit was declared w.e.f. 31st January, 2005. A resolution was passed by Board of Directors of the Company on 4th November, 2015 for disposal of assets of the Unit. All Plant & Machineries has been disposed off during the year ended 31st March, 2022.

Unit Auto Trim Division: Suspension of operations was declared of the Company''s unit Auto Trim Division at Birlapur, West Bengal w.e.f. 18th February, 2014. There have been no operations at Gurgaon plant, Haryana and at Chakan plant, Maharashtra since November, 2007 and August, 2007 respectively. All Plant & Machineries, except some Machineries were transferred to other units of the Company till April, 2019. A resolution was passed by Board of Directors of the Company on 3rd May, 2019 for disposal of remaining assets of the Unit. It was expected that the sale of the assets to be completed by March, 2022. However, due to Covid 19 Pandemic the complete disposal could not take place and now the Company expects to carry out the same by March, 2023. The assets of the unit comprising remaining Plant & Machineries are presented within total assets of the "Others Segment Assets” under Segment Reporting.

Non recurring fair value measurements

The fair value of the Plant & Machineries, classified as held for sale, was determined using the sales comparison approach. This is level 2 measurement as per the fair value hierarchy set out in accounting policies related to fair value measurement. The key inputs under this approach are price of the similar Plant & Machineries at the same location, condition and age.

20.4 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.

20.5 Terms/ Rights attached to Equity Shares :

The Company has only one class of issued shares i.e., Ordinary Shares having par value of ? 10 per share. Each holder of the Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

20.6 Shareholding Pattern in respect of Holding or Ultimate Holding Company The Company does not have any Holding Company or Ultimate Holding Company.

('' in Crores)

20.10 The Company has neither allotted any equity shares against consideration other than cash nor has issued any bonus shares nor has bought back any shares during the period of five years preceding the date at which the Balance Sheet is prepared.

20.11 No securities convertible into Equity/ Preference shares have been issued by the Company during the year.

20.12 No calls are unpaid by any Director or Officer of the Company during the year.

21 OTHER EQUITY (Refer Statement of Change in Equity)

The Description of the nature and purpose of each reserve within equity is as follows:

21.1 Capital Reserve: Capital reserve are mainly the reserve created during business combination for the gain on bargain purchase.

21.2 Debenture Redemption Reserve (DRR): The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share Capital and Debentures) Rules, 2014 (as amended), requires the Company to create DRR out of profits of the Company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued. However, this requirement is no more applicable as per the amendment in the Companies (Share capital and Debentures) Rules, 2014. Accordingly from previous year, the Company has not made any new addition in the said reserve and accounted the reversal of outstanding reserve linked to payment of specific nonconvertible debentures.

21.3 General Reserve: General reserve is created out of retained earnings and being used for appropriation purposes.

21.4 Retained Earnings: Retained earnings represents the undistributed profit of the Company.

21.5 Debt Instrument through Other Comprehensive Income: This reserve is created on account of fair valuation of selected debt instrument and will be transferred to statement of profit and loss on liquidation of respective instruments.

21.6 Effective Portion of Cashflow Hedges: The Company has designated certain hedging instruments as cash flow hedges and any effective portion of cashflow hedge is maintained in the said reserve. In case the hedging becomes ineffective or instruments settled, the amount will be transferred to the statement of profit and loss.

21.7 Equity Instrument through Other Comprehensive Income: This reserve is created on account of fair valuation of equity instruments other than investments in subsidiaries. This will be directly transferred to retained earnings on disposal of respective equity instruments.

21.8 Revaluation Surplus: Revaluation surplus arises on account of fair valuation of freehold land. This will be directly transferred to retained earnings at the time of sale/disposal/transfer (if any) of the respective portion of freehold land.

e) Non-Convertible Debentures are redeemable fully at par as under

i) 9.25% NCD 2026 of ? 250.00 Crores, includes ? 60.00 Crores repayable in August 2024, ? 15.00 Crores repayable in September 2024, ? 60.00 Crores repayable in August 2025, ? 15.00 Crores repayable in September 2025, ? 80.00 Crores repayable in August 2026 and ? 20.00 Crores repayable in September 2026.

ii) 7.05% NCD 2024 of ? 150.00 Crores, includes ? 30.00 Crores repayable in December 2022, ? 60.00 Crores repayable in December 2023 and ? 60.00 Crores repayable in December 2024.

iii) 5.75% NCD 2027 of ? 150.00 Crores, repayable in February 2027.

f) Foreign Currency Loan from Bank (SGD: 2.58 Crores) is repayable as under:-Term Loan ? 146.94 Crores (rate of interest @ 1.58% p.a.)

i) ? 19.86 Crores repayable in 5 equal quarterly installments starting from June 2022 to June 2023.

ii) ? 127.08 Crores repayable in 12 equal quarterly installments starting from September 2023 to June 2026.

g) Rupee Loan from Bank is repayable as under:-

Term Loan ? 252 Crores (6.75% p.a. upto 5th November, 2022 and thereafter @ 6 months MCLR 15 bps)

? 56.00 Crores repayable in 8 equal quarterly installments from June 2022 to March 2024.

'' 70.00 Crores payable in 8 equal quarterly installments from June 2024 to March 2026.

'' 84.00 Crores repayable in 8 equal quarterly installments from June 2026 to March 2028.

'' 42.00 Crores repayable in 2 equal quarterly installments from June 2028 to September 2028.

The above loans (e) (i), (e) (ii), (f) and (g) are secured by first charge on the movable and immovable Property, Plant and Equipment & Intangible Assets of the Company''s Cement Division, ranking pari-passu with debenture holders and other lender banks. Non-Convertible Debentures referred in (e) (iii) is secured by first charge on freehold land belongs to Company''s unit Soorah Jute Mills situated at Narkeldanga, Kolkata.

h) Rupee Loan from Bank is repayable as under:-

Term Loan ? 72.48 Crores, (6.75% p.a. upto 5th November, 2022 and thereafter @ 6 months MCLR)

'' 22.50 Crores repayable in 6 equal quarterly installments from June 2022 to September 2023.

'' 24.96 Crores repayable in 6 equal quarterly installments from December 2023 to March 2025.

'' 25.02 Crores repayable in 6 equal quarterly installments from June 2025 to September 2026.

The loan is secured by first charge on the movable and immovable Property, Plant and Equipment & Intangible Assets of the Company''s Jute Division and land situated at Birlapur and Narkeldanga, ranking pari-passu with debenture holders.

i) Rupee Loans from Other is repayable as under:-

Interest free Term Loans ? 33.01 Crores from Pradeshiya Industrial & Investment Corporation of U.P. Ltd.

'' 33.01 Crores includes, ? 2.82 Crores repayable in January 2025, ? 2.42 Crores repayable in March 2025, ? 6.67 Crores repayable in May 2025,

? 9.08 Crores repayable in March 2028 and ? 12.02 Crores repayable in March 2029.

The loans are secured by Bank Guarantees.

22.2 The borrowings obtained by the Company from banks and proceedings from issue of Non-Convertible Debentures have been applied for the purpose for which such borrowings were taken and Non-Convertible Debentures were issued.

Deferred tax assets and Deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income tax levied by the same taxation authority.

During the previous year, the Company had recognized unused tax credits (MAT credit entitlements) of ? 50.01 Crores related to Financial Year 2010-11 and 2011-12, which were earlier not recognized on account of prudence.

The Company has been sanctioned working capital facilities (fund and non-fund based) from various Banks, secured by way of first charge on hypothecation of Company''s Current Assets viz. Raw Materials, Stock-in-Trade, Consumable Stores and Books Debts, both present & future and further secured by way of second charge on pari-passu basis on movable and immovable Property, Plant and Equipment and Intangible Assets of the Company''s Cement Division.

The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities, which are in agreement with the books of account.

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

The Company has not been declared as a Wilful Defaulter by any bank or financial institution or other lender.

The Government of India, on 20th September 2019, vide the Taxation Laws (Amendment) Ordinance 2019, inserted a new Section 115BAA in the Income Tax Act, 1961, which provides an option to a corporate for paying Income Tax at reduced rates as per the provisions/conditions defined in the said section. The Company is continuing to provide for income tax at old rates, based on the available outstanding MAT credit entitlement and various exemptions and deductions available to the Company under the Income Tax Act, 1961. However, the Company has applied the lower income tax rates on the deferred tax assets / liabilities to the extent these are expected to be realised or settled in the future period when the Company may be subjected to lower tax rate and accordingly as on 31st March, 2022 and 31st March, 2021 the Company has reversed net deferred tax liability of ? 4.37 Crores and ? 74.97 Crores respectively.

Applicable Indian Statutory Income Tax Rate for both the Fiscal Years 2022 and 2021 is 34.944%.

There is no income or transaction which has not been disclosed or recorded in the books of accounts which has been surrendered or disclosed as income in the tax assessment during the year 31st March, 2022 and 31st March, 2021.

The Company is subject to electricity tariff notified by the relevant authorities. As there is substantial time lag in notifying such changes, the difference, if any, is accounted for at the time of notification of changes in tariff.

In respect of the matters in Note No. 41.1, future cash outflows are determinable only on receipt of judgements/decisions pending at various forums/ authorities. Furthermore, there is no possibility of any reimbursements to be made to the Company from any third party.

The Company has provided corporate guarantee in the nature of financial guarantee to the lenders of one of its wholly owned subsidiary amounting to ? 295.34 Crores (Previous Year ? 340.75 Crores) against the long term loans availed by the Subsidiary. As on the Balance Sheet date, the balance of such loans outstanding of ? 295.34 Crores (Previous Year ? 340.75 Crores).

Dividend

The Board of Directors at its meeting held on 11th May, 2022 have recommended a payment of final dividend of ? 10.00 per equity share of face value of ? 10 each for the financial year ended 31st March, 2022. The same amounts to ? 77.01 Crores.

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

Leases As Lessee

1 The Company''s significant leasing arrangements are in respect of leases for premises (residential, manufacturing facilities, office, stores, godown, etc.) These leasing arrangements which are cancellable ranging between 11 months and 99 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms.

2 The following is the summary of practical expedients used for lease accounting:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

(b) Applied the exemption not to recognized right of use assets and liabilities for leases with less than 12 months of lease term and low value of assets.

(c) Used hindsight in determining the lease term whether the contract contained options to extend or terminate the lease.

The weighted average incremental borrowing rate applied to lease liabilities for leasehold land is 8.00% and for plant and machinery is 7.78% and 11.77%.

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

As Lessor

The Company leased out its investment property on operating lease basis on cancellable basis. Rental income earned and direct operating expenses incurred on property letting on lease has been disclosed in Note No 6.

Defined Benefit Plan

The following are the types of defined benefit plans:

1 Gratuity Plan

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

2 Pension Plan

Pension is payable to certain categories of employees who are eligible under the Company''s Pension Scheme.

3 Provident Fund

Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

48.2.4 Risk ExposureDefined Benefit Plans

Defined benefit plans expose the Company to actuarial risks such as Interest Rate Risk, Salary Risk and Demographic Risk.

a) Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the defined benefit obligation will tend to increase.

b) Salary risk : Higher than expected increases in salary will increase the defined benefit obligation.

c) Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that includes mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on 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 the short career employee typically costs less per year as compared to a long service employee.

The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India, Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Limited, HDFC Life Group variable employee benefit plan offered by HDFC Standard Life Insurance Company Limited, IndiaFirst New Corporate Benefit plan for gratuity offered by IndiaFirst Life Insurance Company Limited and Bajaj Allianz Group Employee Care plan offered by Bajaj Allianz Life Insurance Company Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available.

48.2.11 Asset-Liability Matching Strategy

The Company''s investment is in Cash Accumulation Plan/Traditional Plan of various Insurance Companies, the investments are being managed by these Insurance Companies and at the year end interest is being credited to the fund value. The Company has not changed the process used to manage its risk from previous periods. The Company''s investments are fully secured and would be sufficient to cover its obligations.

48.2.18 Provident Fund

Provident fund for certain eligible employees is managed by the Company through the various Provident Fund Trusts, namely "M P Birla Group Provident Fund Institution”, "Satna Cement Works Employees''Provident Fund Trust”, "Birla Cement Works Staff Provident Fund Trust” "Birla Jute Mills Workers'' Provident Fund Trust”, "Soorah Jute Mills Employees'' Provident Fund Trust”, "Durgapur Cement Works Employees'' Provident Fund Trust” and "Birla Industries Provident Fund” in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

The Company has an obligation to fund any shortfall on the yield of the trust''s investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by the Trust has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall in current year. In previous year, there was shortfall in one Trust ? 0.10 Crore.

The Board of Directors of the Company at its meeting held on 25th July, 2013 had approved the Scheme of Amalgamation to amalgamate Talavadi Cements Limited, a 98.01% subsidiary company, with the Company with an appointed date of 1st April, 2013. The Scheme is pending for approval of the National Company Law Tribunal, Kolkata.

The Ministry of Coal had allocated Bikram and Brahampuri Coal Blocks in the state of Madhya Pradesh through E-Auction process vide CMDPA (Coal Mine Development and Production Agreement) dated 18th December, 2019 and Vesting Order dated 10th February, 2020. The Company is in process to develop these blocks for extraction of Coal. Till 31st March 2022 and 31st March 2021, Company has spent ? 18.20 Crores and ? 15.11 Crores respectively and shown under Capital Work-In-Progress.

11 1 V-l \J1 CJj

52.1 As a policy, the Company annually assesses the impairment of property plant and equipment (PPE) and other non-current assets by comparing the carrying value of PPE and other non-current assets with its fair value. In case the fair value is less than the carrying value an impairment charge is created. Management has concluded that there is no impairment of PPE and other assets during the current year and in previous year, except in previous year in case of an investment in a Subsidiary Company (Refer Note No. 9).

52.2 Certain Trade Receivables, Loans & Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Loans & Advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

53.1 The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

53.2 The Company''s Unit Birla Vinoleum and Auto Trim Division at Birlapur, are under Suspension of Operations since 18th February, 2014.

53.3 In respect of mining matter of Company''s unit Chanderia before the Hon''ble Supreme Court, a comprehensive report has been submitted by Central Building Research Institute (CBRI) on full scale mining. The matter is in the final stage of hearing. The Principal Bench of the National Green Tribunal (NGT), New Delhi, on 8th March, 2019 had ordered to stop all mining activities which are being carried out within the municipal limits of Chittorgarh City and within 10 km of Bassi Wildlife Sanctuary or within the eco-sensitive zone of Bassi Wildlife Sanctuary, if finally notified.

The MoEFCC has vide Notification dated 8th April, 2021 duly notified an area to an extent varying from zero to 3.0 kilometres around the boundary of Bassi Wildlife Sanctuary as the Eco-Sensitive Zone (ESZ). National Green Tribunal (NGT), on 24th September, 2021 has passed an Order to continue the interim Order dated 8th March, 2019 on the subject of prohibiting mining in the radius of 10 km from Bassi Wildlife Sanctuary. The said prohibition will continue till the decision is taken after an expert study of impact of mining beyond the boundaries of ESZ as per notification dated 8th April, 2021, subject to further orders of the Hon''ble Supreme Court. The said study will be conducted by an expert Committee constituted vide NGT''s order dated 24th September, 2021 within the time limit of three months from the first meeting of the said Committee. The said committee has visited the area and the study report is expected soon. In the opinion of the management, there is no material impact of such order on the current mining operations of the Company.

54 Fair Value Measurement:

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

54.1 The following methods and assumptions were used to estimate the fair values:

54.1.1 The bonds, non-convertible debentures and government securities being listed, the fair value has been taken at the market rates of the same as on the reporting dates. They are classified as Level 1 fair values in fair value hierarchy.

54.1.2 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. Debentures are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the balance sheet date to be insignificant.

54.1.3 The management has assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, short term borrowings, and other current financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments. The management has assessed that the fair value of floating rate instruments approximates their carrying value.

54.2 Fair Value Hierarchy

The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the Standalone Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement” An explanation of each level follows underneath the tables.

54.5 During the year ended 31st March, 2022 and 31st March, 2021, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

55 Financial Risk Management

The Company has a Risk Management Policy which covers risk associated with the financial assets and liabilities. The Risk Management Policy is approved by the Board of Directors. The different types of risk impacting the fair value of financial instruments are as below:

55.1 Credit Risk

The credit risk is the risk of financial loss arising from counter party failing to discharge an obligation. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits placed with banks and financial institutions and other financial instruments.

55.1.1 Trade Receivables

The credit risk is controlled by analysing credit limits and credit worthiness of customers on continuous basis to whom the credit has been granted, obtaining necessary approvals for credit and taking security deposits from trade channels. Summary of the Company''s exposure to credit risk by age of the outstanding from various customers is as follows:

55.1.2 Incentives receivable from the Government

The Company''s manufacturing units in various states; mainly those in West Bengal, Rajasthan and Madhya Pradesh are eligible for incentives under the respective State Industrial Policy. The Company accrued these incentives as refund claims in respect of VAT/GST paid, on the basis that all attaching conditions were fulfilled by the Company and there was reasonable assurance that the incentive claims will be disbursed by the State Governments. During the previous year, in view of the management re-assessing the expected recovery period for incentives receivables, a charge of ? 32.62 Crores due to time value of money computed based on the expected credit loss method was included in Other Expenses. The Company is confident about the ultimate realisation of the dues from the State Governments.

55.2 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term and long term needs.

The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

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 four type of risks: Commodity Price Risk, Foreign Currency Risk, Interest Rate Risk and Other Price Risk.

55.3.1 Commodity Price Risk

The Company primarily imports coal, pet coke, gypsum and raw jute. It is exposed to commodity price risk arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where considered necessary.

The Company has Foreign Currency Exchange Risk on imports of input materials, capital equipments and also borrows funds in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.

b) The Company uses Cross Currency Swaps to hedge foreign exchange rate and Interest rate of External Commercial Borrowings of SGD 2.58 Crores (Previous Year: SGD 2.79 Crores).

c) Sensitivity Analysis

The Analysis is based on assumption that the increase/decrease in foreign currency by 5% with all other variables held constant, on the unhedged foreign currency exposure. The following table demonstrates the sensitivity in the USD, EUR and GBP to the Indian Rupee with all other variables held constant.

55.3.3 Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. Such interest rate risk is actively evaluated and is managed through portfolio diversification and exercise of prepayment/refinancing options where considered necessary.

The Company is also exposed to interest rate risk on surplus funds parked in fixed deposits and investments viz. mutual funds, bonds. To manage such risks, such investments are done mainly for short durations, in line with the expected business requirements for such funds.

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet either at fair value through other comprehensive income or at fair value through profit and loss. Having regard to the nature of securities, intrinsic worth, intent and long term nature of securities held by the Company, fluctuation in their prices are considered acceptable and do not warrant any management.

55.4 Hedge Accounting - Cash Flow Hedges

The objective of cross currency swap and interest rate swaps is to hedge the cash flows of the foreign currency denominated debt related to variation in foreign currency exchange rates and interest rates. The hedge provides for exchange of notional amount at agreed exchange rate of principle at each repayment date and conversion of variable interest rate into fixed interest rate as per notional amount at agreed exchange rate. The Company also enters into foreign currency forward contracts to hedge the foreign currency exchange risk arising from borrowings, other debt and forecasted purchases/sales. Some of the forward contracts are designated as cash flow hedges. The Company is following hedge accounting for cross currency & interest rate swaps and Interest rate swaps and some foreign currency forward contracts based on qualitative approach. The Company is having risk management objectives and strategies for undertaking these hedge transactions. The Company has maintained adequate documents stating the nature of the hedge and hedge effectiveness test. The Company assesses hedge effectiveness based on following criteria:

i. An economic relationship between the hedged item and the hedging instrument

ii. The effect of credit risk

iii. Assessment of the hedge ratio

The Company designates cross currency swaps and interest rate swaps and some foreign currency forward contracts to hedge its currency and interest risk and generally applies hedge ratio of 1:1.

All these derivatives have been marked to market to reflect their fair value and the fair value differences representing the effective portion of such hedge have been taken to equity.

55.4.3 Foreign Currency Forward Contracts and Overnight Index Swaps

The Company enters into forward contracts with intention to reduce the foreign exchange risk of expected purchases and enters into overnight index swap to manage interest cost on fixed rate borrowings. Certain foreign currency forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally within one year. Similarly, the overnight index swaps are also not designated as cash flow hedges. The fair value of foreign currency forward contracts and overnight index swaps are as under:

56 Capital Management

The Company''s objective to manage its Capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of Capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic Investments. Sourcing of Capital is done through judicious combination of equity/internal accruals and borrowings, both short term and long term. The Company monitors Capital using Gearing Ratio which is Net Debt (total borrowings less current investments, cash and cash equivalents and other bank balances) divided by Total Equity plus Net

57 Government grants during the year comprising Incentive and Subsidies include:

57.1 Tax incentive for capital investments under various State Investment Promotion Schemes of ? 0.00 Crores (Previous Year ? 5.99 Crores).

57.2 Amortisation of the deferred revenue of ? 1.27 Crore (Previous Year ? 0.74 Crore) arising due to difference between the fair value & nominal value of interest free loan granted under State Investment Promotion Scheme.

57.3 Amortisation of the deferred revenue of ? 0.42 Crore (Previous Year ? 0.50 Crore) on account of investment in plant & machineries under various State Investment Promotion Schemes.

57.4 Renewable energy certificates for generation of power from solar power plant under Central Electricity Regulatory Commission (Terms and Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 of ? 0.42 Crore (Previous Year ? 0.40 Crore).

57.5 The Government of India (vide press release dated 31st December, 2020) Introduced the benefit of the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) to all export goods with effect from 1st January, 2021. With the introduction of the RoDTEP scheme, the benefit of ROSCTL scheme stood withdrawn, and the MEIS Scheme was also withdrawn w.e.f. 1st January, 2021. Rates of RoDTEP are notified in the current year only, therefore the Company has accrued income relating to benefits of RoDTEP scheme on the Export Sales made for the period from 1st January, 2021 to 31st March, 2021 in the current year.

59.2 Compliance with number of layers of companies:

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

59.3 Loans or Advances to Promoters, Directors, KMPs and the related parties

The Company has not given any loan or advance in the nature of loan to promoters, directors, KMPs and the related parties (as defined under the Act), either severally or jointly with any other person during the year ended 31st March, 2022 and the year ended 31st March, 2021 except as disclosed in Note No. 11.

59.4 Utilisation of Borrowed Funds and Share Premium

The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities including foreign entities (intermediaries) with the understanding that the Intermediaries shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

The Company has not received any fund from any persons or entities, including foreign entities (funding party) with the understanding that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provided any guarantee, security or the like or on behalf of the Ultimate Beneficiaries.

C) Other Disclosures

The Company''s operations predominantly relate to Cement. Other products are Jute Goods and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in the standalone financial statements.

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based on cost plus profit.

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

Terms and Conditions of transactions with Related Parties:

All Related Party Transactions are net off taxes and duties. The sales to and purchases from related party are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. The Loans and Advances as well as Corporate Guarantee issued to related parties are on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and settlement occurs in cash, the Company has recorded the receivable relating to amount due from related parties net of impairment (if any). This assessment is undertaken each financial year through examining the financial position of the related parties and the market in which the related party operates.

The Company had made an investment in AMP Solar Clean Power Private Limited (AMP'') by way of purchase of 2,54,946 (Previous Year: 2,27,040) fully paid up equity shares having face value of ? 10 each, amounting of ? 0.25 Crore (Previous Year: ? 0.23 Crore) (7.80% holding in AMP) and in 22,945 (Previous Year: 20,433) compulsorily convertible debentures having face value of ? 1000 each, amounting of ? 2.29 Crores (Previous Year: ? 2.04 Crores) under Share Purchase, Subscription and Shareholders Agreement. Further, the Company had entered into a long-term power purchase agreement (''PPA'') with the AMP which is engaged in the business of generating and sales of solar power. The PPA has a lock-in period of 15 years wherein the Company (alongwith the subsidiary company) is required to purchase the entire contracted power capacity from the said plant.

The investment in equity shares in AMP together with the Subsidiary Company is 26%. Considering the substance of the transactions, in the opinion of the management, it is not considered as a related party under Ind AS 24/28. Accordingly, the investment in equity shares and compulsorily convertible debentures is recognized at amortised cost under "Deposits” at ? 0.54 Crore (Previous Year ? 0.43 Crore) as per the provision of Ind AS 109 and the difference between amortised cost and investment value of ? 2.12 Crores (Previous Year: ? 1.90 Crores) is considered for valuation of "Right of Use Assets- Plant and Machinery”

Taking into consideration the terms and conditions of PPA, it is considered that the arrangement in respect of long term power purchase agreement satisfies all the conditions of the lease as per IND AS 116. Consequently, Right of Use Assets and Lease Liabilities is recognized.

The Company has made an assessment of the impact of the continuing COVID-19 pandemic on its current and future operations, liquidity position and cash flow giving due consideration to the internal and external factors. The Company is continuously monitoring the situation and does not foresee any significant impact on its operations and the financials position as at 31st March, 2022.

The Code on Social Security, 2020 which received the President''s assent on 28th September 2020 subsumes nine laws relating to Social security, retirement and employee benefits, including the Provident Fund and Gratuity. The effective date of the Code and rules thereunder are yet to be notified. The impact of the changes, if any, will be assessed and recognized post notification of the relevant provisions.

Previous year figures have been regrouped/ rearranged/ reclassified wherever necessary. Further, there are no material regroupings/ reclassifications during the year.


Mar 31, 2018

4. Significant Judgments and Key sources of Estimation in applying Accounting Policies

Information about Significant judgments and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

- Recognition of Deferred Tax Assets : The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized. In addition, significant judgment is required in assessing the impact of any legal or economic limits.

- Useful lives of depreciable/ amortizable assets (tangible and intangible) : Management reviews its estimate of the useful lives of depreciable/ amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change the utility of plant and equipment.

- Classification of Leases : The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

- Defined Benefit Obligation (DBO) : Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

- Restoration (including Mine closure), rehabilitation and decommissioning : Estimation of restoration/ rehabilitation/ decommissioning costs requires interpretation of scientific and legal data, in addition to assumptions about probability of future costs.

- Provisions and Contingencies : The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best judgment by management regarding the probability of exposure to potential loss.

- Impairment of Financial Assets : The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.

- Allowances for Doubtful Debts : The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

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

Notes :

5.1 Gross Carrying Amount includes Rs, 158.72 Lacs (Previous Year Rs, 8.85 Lacs) in Land and Rs, 700.31 Lacs (Previous Year Rs, 700.31 Lacs) in Building under Co-ownership basis and also Rs, 0.15 Lacs (Previous Year Rs, 0.15 Lacs) being value of investments in Shares of a Private Limited Company.

5.2 During the year, the Company has adopted revaluation model for one class of assets i.e. Freehold Land and accordingly freehold land has been revalued on the basis of valuation report made by independent valuers and effective date of the revaluation is 1st April, 2017. Carrying amount that would have been recognized had the freehold land been carried under the cost model is Rs, 9,755.56 Lacs (Previous Year Rs, 8,877.65 Lacs).The Revaluation Surplus of Rs, 1,05,456.39 Lacs has been recognized and presented under "Other Comprehensive Income".

5.3 The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry to the land. This valuation is based on valuations performed by an accredited independent valuers. Fair valuation is based on depreciated open market price method. The fair value measurement is categorized in level 2 fair value hierarchy.

5.4 Other Adjustments include adjustment on account of foreign exchange differences pursuant to using the optional exemption available under Para D13AA of Ind AS 101 "First Time Adoption" for continuing with the policy adopted for accounting for exchange difference on the Long Term Foreign Exchange Monetary Items recognized under previous GAAP as described in note no. 37.2 to the financial statement. Accordingly, the amount recapitalized during the year with the Property, Plant and Equipment amounts to Rs, 235.13 Lacs (Previous Year recapitalized Rs, 11.93 Lacs).

5.5 Other Adjustments also include finance costs capitalized during the year on the qualifying assets as required by IND AS 23 Borrowing Costs amounting to Rs, 160.09 Lacs (Previous Year Rs, 87.79 Lacs), (Refer Note No. 35).

5.6 Refer note no. 44 for information on property, plant and equipment pledged as securities by the Company.

5.7 Refer note no. 43 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

6.1 The fair value of the Company''s investment properties as at 31st March, 2017 and 31st March, 2018 are Rs, 2,240.48 Lacs and Rs, 2,407.40 Lacs respectively. The fair value has been arrived on the basis of valuation performed by an independent valuer, who is a specialist in valuing these types of investments properties, having appropriate qualifications and recent experience in the valuation of properties in relevant location.

6.2 The amounts recognized in Statement of Profit and Loss in relation to the investment properties :

6.3 The fair valuation is based on current prices in the active market for similar properties and rental income of similar type of property in the same locality. The main inputs used are quantum, area, location, demand, restrictive entry to the land and building, age of the building and trend of fair market rent in the locality. This valuation is based on valuations performed by an accredited independent valuer. Fair valuation is based on depreciated open market price method and rental method. The fair value measurement is categorized in level 3 fair value hierarchy.

6.4 The Company has no restriction on the reliability of it''s investment properties or the remittance of income and proceeds of disposal. There is no Contractual obligations to purchase, construct or development of Investment Property or for repairs, maintenance or enhancements.

7.1 Refer note no. 44 for information on Intangible Assets pledged as securities by the Company.

7.2 Refer note no. 43 for disclosure of contractual commitments for the acquisition of Intangible Assets.

8.1 The Company owns bearer biological assets i.e., livestock from which milk is produced. The livestock is maintained by the company at Satna and Birlapur. The milk produced from the live stock are internally consumed and not sold commercially.

Note :

9.1 Rs,1874.20 Lacs increase on account of further settlement as provided in the Share Purchase Agreement with Reliance Infrastructure Limited. (refer note no. 51).

Notes :

10.1 Deposited with Government Department as Security.

10.2 Shares of Universal Cables Ltd includes 98,157 (Previous Year: 98,157) number of additional shares allotted of which the dispatch of share certificates in physical form and credit in respective Demat account has not been done in view of order dated 18th November, 2015 passed by Hon''ble High Court of Delhi. By said order, status quo has been directed to maintain with respect to 27,05,553 number of additional shares allotted under category ''C'' of basis of allotment.

10.3 Fair valuation not carried out as amounts are not significant.

11.1 No Loans are due from directors or other officers of the company either severally or jointly with any other person. Nor any Loan due from firms or private companies respectively in which any director is a partner, a director or a member except as disclosed in note no 11.2 given below.

11.2 Details of loans and advances to related parties as required by Sec. 186 of the Companies Act, 2013 read with SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015 :

12.1 No other receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member, except Rs, 23.67 Lacs (Previous year Rs, 494.44 Lacs) are receivable from a private company in which directors of the Company are directors.

12.2 Represents deposits marked lien in favour of Govt. Authorities.

16.1 Trade receivables are non-interest bearing and are generally on terms of 0 to 90 days.

16.2 No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade receivables are due from firms or private companies respectively in which any director is a partner, a director or a member, except Rs, 2,855.94 Lacs (Previous year Nil) are receivable from a private company in which directors of the Company are directors.

19.1 Suspension of operations was declared of the Company''s unit Birla Carbide & Gases, Birlapur, West Bengal w.e.f. 29th October, 2001. Subsequently, closure of the Unit was declared w.e.f. 31st January, 2005. A resolution was passed by Board of Directors of the Company on 4th November, 2015 for disposal of assets of the Unit. Due to adverse market prices of M S Steel during the year, the Plant & Machinery could not be disposed off in full. However, major portions of Plant & Machinery were disposed off in the year 2017-18. Currently, there are several interested buyers and it is expected that sale will be completed by December, 2018. The assets of the Unit comprising remaining plant & machineries are presented within total assets of the "unallocated corporate assets” under Segment Reporting.

Non recurring fair value measurements

The fair value of the Plant & Machineries, classified as held for sale, was determined using the sales comparison approach. This is level 2 measurement as per the fair value hierarchy set out in fair value measurement disclosures refer note no. 54. The key inputs under this approach are price of the similar Plant & Machineries at the same location, condition and age.

20.4 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.

20.5 Terms/ Rights attached to Equity Shares

The Company has only one class of issued shares i.e., Ordinary Shares having par value of Rs, 10 per share. Each holder of the Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

20.6 Shareholding Pattern in respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.

20.8 No ordinary shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

20.9 The Company has neither allotted any equity shares against consideration other than cash nor has issued any bonus shares nor has bought back any shares during the period of five years preceding the date at which the Balance Sheet is prepared.

20.10 No securities convertible into Equity/ Preference shares have been issued by the Company during the year.

20.11 No calls are unpaid by any Director or Officer of the Company during the year.

The Description of the nature and purpose of each reserve within equity is as follows:

a) Capital Reserve: Capital Reserves are mainly the reserves created during business combination for the gain on bargain purchase.

b) Debenture Redemption Reserve (DRR): The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share Capital and Debentures) Rules,2014 (as amended), requires the company to create DRR out of profits of the company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issues.

c) General Reserve: The general reserve is created out of retained earnings and being used for appropriation purposes.

d) Foreign Currency Monetary Item Translation Difference Account: Foreign Currency Monetary Item Translation Difference Account represents the exchange differences arising on reporting of long -term foreign currency monetary items at rates different from those at which they were initially recorded or reported in previous financial statements in so far as they related to items other than acquisition of a depreciable capital assets in pursuance of option exercised by the company under para 46A of Accounting standard 11 for all pre-existing long term foreign currency monetary items as at 31st March, 2016.

(e) Non-Convertible Debentures are redeemable fully at par as under :

i) Rs, 25,000.00 Lacs, 9.25% NCD 2026 includes Rs, 6,000.00 Lacs repayable in August, 2024, Rs, 1,500.00 Lacs repayable in September, 2024, Rs, 6,000.00 Lacs repayable in August, 2025, Rs, 1,500.00 Lacs repayable in September, 2025, Rs, 8,000.00 Lacs repayable in August, 2026, Rs, 2,000.00 Lacs repayable in September, 2026.

ii) 9.15% NCD 2021 repayable in August, 2021.

iii) 9.05% NCD 2020 repayable in October, 2020.

iv) 9.10% NCD 2020 repayable in March, 2020.

The Debentures are secured by first charge on the movable and immovable Property, Plant and Equipment & Intangible Assets of the Company''s Cement Division, ranking pari-passu with other term lenders except Rupee Term Lenders.

(f) Rupee Loan from Banks are repayable as under:-

Term Loan Rs, 60,000.00 Lacs, (Rate of Interest MCLR 3M/12M Plus spread of 0.05% to 0.35%)

i) Rs, 1,508.40 Lacs payable in 6 equal quarterly installments from November/December 2018 to February/March 2020.

ii) Rs, 3,000.00 Lacs payable in 2 equal quarterly installments from May/June 2020 to August/September 2020.

iii) Rs, 3,502.80 Lacs payable in 2 equal quarterly installments from November/December 2020 to February/March 2021

iv) Rs, 3,997.20 Lacs payable in 2 equal quarterly installments from May/June 2021 to August/September 2021

v) Rs, 18,000.00 Lacs payable in 8 equal quarterly installments from November/December 2021 to August/September 2023

vi) Rs, 14,996.40 Lacs payable in 6 equal quarterly installments from November/December 2023 to February/March 2025

vii) Rs, 12,507.00 Lacs payable in 5 equal quarterly installments from May/June 2025 to May/June 2026

viii) Rs, 2,488.20 Lacs payable in August/September 2026.

Rupee Term Loans are secured by first pari-passu charge on movable and immovable Property, Plant and Equipment & Intangible Assets of the Company''s Jute Division and land situated at Birlapur and Narkeldanga.

(g) Foreign Currency Loans from Banks are repayable as under :-

Term Loan Rs, 57,081.80 Lacs ( Rate of Interest LIBOR 1M/3M/6M Plus spread of 140 bps to 175 bps) i) Rs, 3,308.30 Lacs repayable in remaining five semi-annual installments The above loan is secured by first charge on the movable and immovable Property, Plant and Equipment & Intangible Assets of the Company''s Cement Unit at Chanderia (Rajasthan), ranking pari-passu with Debenture holders and other term lenders except Rupee Term Lenders.

ii) Rs, 9,893.39 Lacs includes, Rs, 4,073.75 Lacs repayable in September, 2018 and Rs, 5,819.64 Lacs repayable in September, 2019.

iii) Rs, 7,914.72 Lacs includes, Rs, 3,259.00 Lacs repayable in September, 2018 and Rs, 4,655.72 Lacs repayable in September, 2019.

iv) Rs, 26,072.00 Lacs repayable in 8 equal quarterly installments starting from October 2019 to July 2021.

The above loans are secured by first charge on the movable and immovable Property, Plant and Equipment & Intangible Assets of the Company''s Cement Division, ranking pari-passu with Debenture holders and other term lenders except Rupee Term Lenders.

(h) Rupee Loan from Other is repayable as under:-

Interest free Term Loan Rs, 523.79 Lacs from Pradeshiya Industrial & Investment Corporation of U.P. Ltd.

i) Rs, 523.79 Lacs includes, Rs, 282.02 Lacs repayable in January, 2025 and Rs, 241.77 Lacs repayable in March, 2025.

The above loan is secured by Bank Guarantees.

22.2 Finance Lease Obligation

The Company has entered into various finance lease arrangements mainly for land for terms ranging up to 99 years. The legal title to these items vests with the respective lessors. There are no restrictions imposed by lease arrangements. There are no sub-lease arrangements entered into by the Company for these leases.

25.2 Deferred tax assets and Deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income tax levied by the same taxation authority.

25.3 The Company has not recognized deferred tax assets of NIL (Previous year Rs, 21.17 Lacs) on long term capital losses and Unused tax credits of Rs, 4,687.73 Lacs (Previous year Rs, 4,687.73 Lacs) on account of prudence.

27.1 Working Capital Loans of Rs, 745.42 Lacs (Previous year Rs, 1,385.24 Lacs) from banks are secured by way of first charge on hypothecation of Current Assets viz. Raw Materials, Stock-in-Trade, Consumable Stores and Books Debts, both present & future of the Company''s and further by way of second charge on pari-passu basis on movable and immovable Property, Plant and Equipment and Intangible Assets of the Company''s Cement Division.

29.1 Sale of Products including own consumption for the year are not comparable with previous year, since the same are net of Goods and Services Tax (GST) w.e.f. 1st July, 2017, whereas excise duty form part of sales in previous year. Sale of Products including own consumption for the current year includes excise duty up to 30th June, 2017.

41.2 Other Claims/Disputes/Demands (being less than Rs, 100.00 Lacs) pending in various legal forums for Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, Export Tax, Entry Tax including interest thereon and other claims - Rs, 46.34 Lacs, Rs, 536.58 Lacs, Rs, 72.06 Lacs, Rs, 4.91 Lacs, Rs, 0.56 Lacs, NIL, Rs, 82.96 Lacs, Rs, 24.56 Lacs, Rs, 175.76 Lacs (Previous Year Rs, 46.34 Lacs, Rs, 331.98 Lacs, Rs, 72.06 Lacs, Rs, 4.91 Lacs, Rs, 0.56 Lacs, Rs, 59.49 Lacs, Rs, 82.96 Lacs, Rs, 52.75 Lacs and Rs, 170.03 Lacs) respectively.

41.3 Disputed amount of Rs, 68.61 Lacs [Paid under protest Rs, 68.61 Lacs] (Previous Year Rs, 68.61 Lacs [Paid under protest Rs, 68.61 Lacs]) in respect of difference of Fuel Cost Adjustment Charges, Rs, 463.60 Lacs [Paid under protest Rs, 19.77 Lacs] (Previous Year Rs, 463.60 Lacs [Paid under protest Rs, 19.77 Lacs]) in respect of demand of Water Supply Charges, Rs, 355.19 Lacs [Paid under protest Rs, 137.39 Lacs] (Previous Year Rs, 355.19 Lacs [Paid under protest Rs, 137.39 Lacs]) in respect of Surcharge on Electricity, Rs, 2,226.44 Lacs [Paid under protest Rs, 273.24 Lacs] (Previous Year Rs, 1,965.30 Lacs [Paid under protest Rs, 414.28 Lacs]) in respect of MODVAT/CENVAT claims, Rs, 3,500.97 Lacs [Paid under protest Rs, 1,810.33 Lacs] (Previous Year Rs, 3,290.13 Lacs [Paid under protest Rs, 1,707.32 Lacs]) in respect of Sales Tax/VAT, Rs, 400.24 Lacs [paid under protest Rs, 24.27 Lacs] (Previous Year Rs, 358.35 Lacs [paid under protest Rs, 24.62 Lacs]) in respect of Entry Tax, Rs, 193.01 Lacs [Paid under protest Rs, 30.64 Lacs] (Previous Year Rs, 192.17 Lacs [Paid under protest Rs, 30.19 Lacs]) in respect of Service Tax, Rs, 1,225.25 Lacs [Paid under protest Rs, 1,407.22 Lacs] (Previous Year Rs, 3,569.55 Lacs [Paid under protest Rs, 3,751.51 Lacs]) in respect of Income Tax, Rs, 4,360.10 Lacs [Paid under protest Rs, 286.07 Lacs] (Previous Year Rs, 3,868.22 Lacs [Paid under protest Rs, 272.36 Lacs]) in respect of Excise Duty , Rs, 29.08 Lacs [Paid under protest Rs, 10.76 Lacs] (Previous Year Rs, 29.08 Lacs [Paid under protest Rs, 10.76 Lacs]) in respect of Land Diversion Tax impose by SDO Raghuraj Nagar, Rs, 29.70 Lacs [Advance paid Rs, 29.70 Lacs] (Previous Year Rs, 29.70 Lacs [Advance paid Rs, 29.70 Lacs]) in respect of octroi, Rs, 208.20 Lacs [Paid under protest Rs, 15.62 Lacs] (Previous Year Rs, 208.20 Lacs [Paid under protest Rs, 15.62 Lacs]) in respect of custom duty and Nil [Paid under protest Nil] (Previous Year Rs, 2.41 Lacs [Paid under protest Rs, 2.41 Lacs]) in respect of other claims, which have not been provided for, as the matters are subjudice.

41.4 In respect of the matters in note no. 41.1 to 41.3, future cash outflows are determinable only on receipt of judgements/decisions pending at various forums/ authorities. Furthermore, there is no possibilities of any reimbursements to be made to the company from any third party.

41.5 The Company has provided corporate guarantee in the nature of financial gurantee to the lenders of one of its wholly owned subsidiary amounting to Rs, 40,670.72 Lacs (Previous Year Rs, 62,546.90 Lacs) against the long term loans availed by the subsidiary. As on the Balance Sheet date, the balance of such loans was Rs, 40,670.72 Lacs (Previous Year Rs, 2,13,219.24 Lacs).

42. The Board of Directors at its meeting held on 16th May, 2018 have recommended a payment of final dividend of Rs, 6.50 per equity share of face value of Rs, 10 each for the financial year ended 31st March, 2018. The same amounts to Rs, 6,034.21 Lacs (including dividend distribution tax of Rs, 1,028.86 Lacs).

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

46. Operating leases

46.1 As Lessee

The Company''s significant leasing arrangements are in respect of operating leases for premises (residential, manufacturing facilities, office, stores, godown) etc. These leasing arrangements which are cancellable ranging between 11 months and 33 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in the Statement of Profit and Loss.

46.1.2 The Company has entered into leasing agreements under operating lease in respect of Land for original lease period ranging up to 33 years. Total operating lease expenses recognized in the Statement of Profit and Loss for the year is '' 1,492.39 Lacs (previous year '' 1,477.66 Lacs).

46.2 As Lessor

46.2.1 The Company leases out its investment property on operating lease basis on cancellable basis. Rental income earned and direct operating expenses incurred on property letting on lease

48.2.1 Gratuity Plan

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favorable than the provisions of the Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

48.2.2 Pension Plan

Pension is payable to certain categories of employees who are eligible under the Company''s Pension Scheme.

48.2.3 Provident Fund

Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

48.2.4 Risk Exposure Defined Benefit Plans

Defined benefit plans expose the Company to actuarial risks such as: Inertest Rate Risk, Salary Risk and Demographic Risk.

a) Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the defined benefit obligation will tend to increase.

b) Salary risk : Higher than expected increases in salary will increase the defined benefit obligation.

c) Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that includes mortality withdrawal disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on 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 the short career employee typically costs less per year as compared to a long service employee.

The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India, Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Limited, HDFC Life Group variable employee benefit plan offered by HDFC Standard LIfe Insurance Company Limited, IndiaFirst New Corporate Benefit plan for gratuity offered by IndiaFirst Life Insurance Company Limited and Bajaj Allianz Group Employee Care plan offered by Bajaj Allianz Life Insurance Company Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available.

The company’s investment is in Cash Accumulation Plan/Traditional Plan of various Insurance Companies, the investment are being managed by these insurance companies and at the year end interest is being credited to the fund value. The company has not changed the process used to manage its risk from previous periods. The company''s investment are fully secured and would be sufficient to cover its obligations

48.2.13 The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

48.2.15 The Company expects to contribute '' 259.00 Lacs (previous year '' 773.08 Lacs) to its gratuity fund in 2018-19.

48.2.16 The following payments are expected contributions to the defined benefit plan in future years :

48.2.17 In respect of provident fund in the nature of defined benefit plans contribution amounting to '' 565.80 Lacs (Previous Year '' 563.56 Lacs) and the accrued past service liability of NIL ( Previous Year NIL ) as valued by the actuary using Projected Unit Credit Method is recognized as an expenses and included in "Employee Benefit Expenses”

48.2.18 Sensitivity Analysis

The sensitivity analysis below have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:

Sensitivity due to mortality and withdrawal rate are being insignificant, hence ignored.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

50. The Board of Directors of the Company at its meeting held on 25th July, 2013 had approved the Scheme of Amalgamation to amalgamate Talavadi Cements Limited, a 98% subsidiary with Birla Corporation Limited with an appointed date of 1st April, 2013. The Scheme is pending for the approval of the National Company Law Tribunal, Kolkata.

51. Pursuant to the Share Purchase Agreement ("Agreement”), the Company had acquired 100% of Reliance Cement Company Private Limited ("RCCPL”) from Reliance Infrastructure Limited on 22nd August, 2016. In terms of the Agreement, the Company has paid during the year additional amounts aggregating to '' 1,874.20 Lacs towards the purchase consideration and the same has been adjusted to Investment cost.

52. In view of decision of Hon''ble Supreme Court dated 24th September, 2014, the allocation of Bikram Coal Block to the company was cancelled. Subsequently, the Government promulgated The Coal Mines (Special Provisions) Act, 2015, which inter alia provides for compensation to prior allottees against expenditure incurred on the cancelled coal block. The company has submitted its claim for compensation of amount incurred on Coal Block amounting to '' 1,609.54 Lacs. Consequential adjustment shall be made on settlement of the claim.

53. Certain Trade Receivables, Loans & Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Loans & Advances on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

53.1 The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

53.2 The Company''s Unit Birla Vinoleum and Auto Trim Division at Birlapur, are under Suspension of Operations since 18th February, 2014.

53.3 In respect of mining matter of Chanderia before the Hon''ble Supreme Court, a comprehensive report has been submitted by Central Building Research Institute (CBRI) on full scale mining. The matter is in the final stage of hearing.

54. Fair Value Measurment:

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

54.1 The following methods and assumptions were used to estimate the fair values :

54.1.1 The bonds and government securities being listed, the fair value has been taken at the market rates of the same as on the reporting dates. They are classified as Level 1 fair values in fair value hierarchy.

54.1.2 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. Debentures are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the balance sheet date to be insignificant.

54.1.3 The management has assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, short term borrowings, and other current financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments. The management has assessed that the fair value of floating rate instruments approximates their carrying value.

54.2 Fair Value Hierarchy

The following are the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement” An explanation of each level follows underneath the tables.

The Company has a Risk Management Policy which covers risk associated with the financial assets and liabilities. The Risk Management Policy is approved by the Directors. The different types of risk impacting the fair value of financial instruments are as below:

55.1 Credit Risk

The credit risk is the risk of financial loss arising from counter party failing to discharge an obligation. The credit risk is controlled by analyzing credit limits and credit worthiness of customers on continuous basis to whom the credit has been granted, obtaining necessary approvals for credit and taking security deposits from trade channels.

There are no customers who represents more than 10% of the total balance of Trade Receivables.

55.2 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

(c) The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements (if any). The interest payments on variable interest rate loans in the tables above reflect market forward interest rates at the respective reporting dates and these amounts may change as market interest rates change. The future cash flows on derivative instruments may be different from the amount in the above tables as exchange rates change. Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

55.3 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 four type of risks: Commodity Price Risk, Foreign Currency Risk, Interest Rate Risk and Other Price Risk.

55.3.1 Commodity Price Risk

The Company primarily imports coal, pet coke, gypsum and raw jute. It is exposed to commodity price risk arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where considered necessary.

55.3.2 Foreign Currency Risk

The Company has Foreign Currency Exchange Risk on imports of input materials, Capital Equipment(s) and also Borrows funds in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.

The following table demonstrates the sensitivity in the USD, EUR, GBP, CHF and JPY to the Indian Rupee with all other variables held constant.

(b) The company uses interest rate swaps to hedge the Interest rate of External Commercial Borrowings of USD 10 Mn.

(c) Sensitivity Analysis

The Analysis is based on assumption that the increase/decrease in foreign currency by 5% with all other variables held constant, on the unhedged foreign currency exposure.

55.3.3 Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. Such interest rate risk is actively evaluated and is managed through portfolio diversification and exercise of prepayment/refinancing options were considered necessary.

The Company is also exposed to interest rate risk on surplus funds parked in fixed deposits and investments viz. mutual funds, bonds. To manage such risks, such investments are done mainly for short durations, in line with the expected business requirements for such funds.

55.3.4 Other Price Risk

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance Sheet either at fair value through OCI or at fair value through profit and loss. Having regard to the nature of securities, intrinsic worth, intent and long term nature of securities held by the company, fluctuation in their prices are considered acceptable and do not warrant any management.

The Company''s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic Investments. Sourcing of capital is done through judicious combination of equity/internal accruals and borrowings, both short term and long term. Net debt ( total borrowings net of lease obligation less investments and cash and cash equivalents) to equity ratio is used to monitor capital.

57. Government grants during the year comprising Incentive and Subsidies include:

57.1 Tax incentive for Capital investments under various State Investment Promotion Schemes of Rs, 1,719.78 Lacs (Previous Year Rs, 4,711.56 Lacs).

57.2 Amortization of the deferred revenue of Rs, 4.36 Lacs (Previous Year Nil) arising due to difference between the fair value & nominal value of interest free loan granted under State Investment Promotion Scheme.

57.3 Amortization of the deferred revenue of Rs, 84.31 Lacs (Previous Year Rs, 41.72 Lacs) on account of Investment in Plant & Machineries under various State Investment Promotion Schemes.

57.4 Renewable Energy Certificates for generation of power from Solar Power Plant under Central Electricity Regulatory Commission (Terms and conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 Rs, 26.23 Lacs (Previous Year Rs, 174.82 Lacs).

C) Other Disclosures

The Company''s operations predominantly relate to Cement and other products are Jute Goods, Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these financial statements.

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based on cost plus profit.

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

59.2 Other related parties with whom transactions have taken place during the year and previous year are : Nature Name of the Company

Entities exercising significant influence over the Vindhya Telelinks Ltd.

Company August Agents Ltd.

Insilco Agents Ltd.

Laneseda Agents Ltd.

Nature__Name of the Company_

_ Birla Readymix Private Limited (Under Voluntary Winding Up)_

Birla Odessa Industries Private Limited (Under Voluntary Winding Up)

Nature Name Designation

Key Management Personnels Mr. Harsh V.Lodha__Chairman_

Mr. Bachh Raj Nahar__Managing Director_

Mr. Pracheta Majumdar__Whole time Director designated as Chief Management Advisor

Mr. Vikram Swarup_

Mr. Anand Bordia_

Mr. Brij Behari Tandon_

Mr. Dhruba Narayan Ghosh Director

Mr. Deepak Nayyar Ms. Shailaja Chandra Mr. Dilip Ganesh Karnik

Nature__Name of the Company_

Post Employment Benefit Plan Trust Satna Cement Works Employees'' Provident Fund

Soorah Jute Mills Employees'' Provident Fund Trust M. P. Birla Group Provident Fund Institution Birla Cement Works Staff Provident Fund Birla Jute Mills Workers'' Provident Fund Trust Durgapur Cement Works Employees'' Provident Fund Birla Corporation Limited, Employees Gratuity Fund Birla DLW Ltd. Employees Gratuity Fund Birla Corporation Superannuation Fund

59.5 Terms and Conditions of transactions with Related Parties :

All Related Party Transactions are net of taxes and duties. The sales to and purchases from related party are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. The Loans and Advances as well as Corporate Guarantee issued to related parties are on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the yearend are unsecured and settlement occurs in cash, the Company has recorded the receivable relating to amount due from related parties net of impairment (if any). This assessment is undertaken each financial year through examining the financial position of the related parties and the market in which the related party operates.


Mar 31, 2017

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 — Inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 — Inputs which are unobservable inputs for the asset or liability.

External valuers are involved for valuation of significant assets & liabilities. Involvement of external valuers is decided by the management of the company considering the requirements of Ind As and selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

4 Standards Issued but not yet effective

The standard issued but ot yet effective up to the date of issuance of the Company''s Financial Statements is disclosed below. The Company intends to adopt this Standard when it becomes effective.

- Ind-AS 7 - Statement of Cash Flows

The MCA has notified Companies (Indian Accounting Standards) (Amendment) Rules, 2017 to amend the above Ind-AS''s. The amendment will come into force from accounting period commencing on or after 1st April, 2017. The Company is in the process of assessing the possible impact of Ind-AS 7 : Statement of Cash Flows and will adopt the amendments on the required effective date.

5. Significant Judgments and Key sources of Estimation in applying Accounting Policies

Information about Significant judgments and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

- Recognition of Deferred Tax Assets : The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized. In addition, significant judgment is required in assessing the impact of any legal or economic limits.

- Useful lives of depreciable/ amortizable assets (tangible and intangible) : Management reviews its estimate of the useful lives of depreciable/ amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change the utility of plant and equipment.

- Classification of Leases : The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

- Defined Benefit Obligation (DBO) : Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

- Restoration (including Mine closure), rehabilitation and decommissioning : Estimation of restoration/ rehabilitation/ decommissioning costs requires interpretation of scientific and legal data, in addition to assumptions about probability of future costs.

- Provisions and Contingencies : The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best judgment by management regarding the probability of exposure to potential loss.

- Impairment of Financial Assets : The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.

- Allowances for Doubtful Debts : The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

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

Notes :

6 Includes Rs, 8.85 in Land and Rs, 915.26 in Building under Co-ownership basis and also Rs, 0.15 being value of investments in Shares of a Private Limited Company.

7 Other Adjustments include adjustment on account of foreign exchange differences pursuant to using the optional exemption available under Para D13AA of Ind AS 101 "First Time Adoption" for continuing with the policy adopted for accounting for exchange difference on the Long Term Foreign Exchange Monetary Items recognized under previous GAAP as described in note no. 38.2 to the financial statement. Accordingly, the amount recapitalized during the year with the Property, Plant and Equipment amounts to Rs, 11.93 (Previous Year capitalized Rs, 2,648.38) .

8 Other Adjustments also include finance costs capitalized during the year on the qualifying assets as required by IND AS 23 Borrowing Costs amounting to Rs, 87.79 (Previous Year Rs, 257.89). (Refer Note No. 36)

9 Refer note no. 45 for information on property, plant and equipment pledged as securities by the Company.

10 Refer note no. 44 for disclosure of contractual commitments for the acquisition of property, plant and equipment .

11 The fair value of the Company''s investment properties as at 1st April 2015, 31st March 2016 and 31st March 2017 are '' 2009.84, '' 2125.65 and '' 2240.48 Lacs respectively. The fair value has been arrived on the basis of valuation performed by an independent valuer, who is valuing these types of investments properties, having appropriate qualifications and recent experience in the valuation of properties in relevant location.

12 The amounts recognized in Statement of Profit and Loss in relation to the investment properties :

13 The fair valuation is based on current prices in the active market for similar properties and rental income of similar type of property in the same locality. The main inputs used are quantum, area, location, demand, restrictive entry to the land and building, age of the building and trend of fair market rent in the locality. This valuation is based on valuations performed by an accredited independent valuer. Fair valuation is based on depreciated open market price method and rental method. The fair value measurement is categorized in level 3 fair value hierarchy.

14 Refer note no. 45 for information on investment property pledged as securities by the Company.

15 Contractual commitments for the acquisition of Investment Property is NIL (Previous Year-31.3.2016 NIL and 1.4.2015 NIL).

19.1 Suspension of Operations was declared of the Company''s Unit Birla Carbide & Gases, Birlapur, West Bengal w.e.f. 29.10.2001. Subsequently, closure of the Unit was declared w.e.f. 31.01.2005. However, Plant & Machinery could not be disposed off due to absence of any Buyer to purchase the same in view of lot of technological developments taken place after commissioning of the Plant. A resolution was passed by Board of Directors of the Company on 4th November 2015 for disposal of assets of the Unit. Currently, there are several interested buyers and it is expected that sale will be completed by December, 2017.The assets of the Unit comprising plant & machineries is presented within total assets of the "unallocated corporate assets” under Segment Reporting.

Non recurring fair value measurements

The fair value of the Plant & Machineries, classified as held for sale, was determined using the sales comparison approach. This is level 2 measurement as per the fair value hierarchy set out in fair value measurement disclosures refer note no.58. The key inputs under this approach are price of the similar Plant & Machineries at the same location, condition and age.

16 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.

17 Terms/ Rights attached to Equity Shares

The Company has only one class of issued shares i.e., Ordinary Shares having par value of Rs, 10 per share. Each holder of the Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

18 Shareholding Pattern with respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.

iv) Rs, 3,997.20 payable in 2 equal installments from May/June 2021 to August/September 2021

v) Rs, 18,000.00 payable in 8 equal installments from November/December 2021 to August/September 2023

vi) Rs, 14,996.40 payable in 6 equal installments from November/December 2023 to February/March 2025

vii) Rs, 12,507.00 payable in 5 equal installments from May/June 2025 to May/June 2026

viii) Rs, 2,488.20 payable in August/September 2026

Rupee Term Loans are secured by first charge on movable and immovable Property, Plant and Equipment & certain intangible Assets of the Company''s Jute Division and land situated at Birlapur and Narkeldanga, ranking pari-passu.

(f) Foreign Currency Loans from Banks are repayable as under:-

Term Loan Rs, 66,220.77 (Rate of Interest LIBOR 1M/3M/6M Plus spread of 150 bps to 175 bps)

i) Rs, 4,608.52 repayable in remaining seven semi-annual installments.

The above loan is secured by first charge on the movable and immovable Property, Plant and Equipment & certain intangible Assets of the Company''s Cement Units at Chanderia (Rajasthan), ranking pari-passu with Debenture holders and other term lenders except Rupee Term Lenders.

ii) Rs, 25,478.75 includes Rs, 5,790.63 repayable in September, 2017, Rs, 8,106.87 repayable in September, 2018 and Rs, 11,581.25 repayable in September, 2019.

iii) Rs, 10,191.50 includes Rs, 2,316.25 repayable in September, 2017, Rs, 3,242.75 repayable in September, 2018 and Rs, 4,632.50 repayable in September, 2019.

iv) Rs, 25,942.00 repayable in 8 equal quarterly installments starting from October 2019 to July 2021.

The above loans are secured by first charge on the movable and immovable Property, Plant and Equipment & certain intangible Assets of the Company''s Cement Division, ranking pari-passu with Debenture holders and other term lenders except Rupee Term Lenders.

19 Finance Lease Obligation

The Company has entered into various finance lease arrangements mainly for land for terms ranging up to 99 years. The legal title to these items vests with the respective lessors. There are no restrictions imposed by lease arrangements. There are no sub-lease arrangements entered in to by the Company for these leases.

The Company has finance lease contracts and the obligation under finance lease are secured by the lessor''s title to the leased assets. Future minimum lease payments under finance lease contracts together with the present value of the net minimum lease payments.

20 Other Claims/Disputes/Demands (being less than Rs,100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, Export Tax, Entry Tax including interest there on and other claims - Rs,53.44, Rs,331.98, Rs,72.06, Rs, 4.91,Rs, 0.56, Rs, 59.49, Rs, 82.96, Rs, 52.75, Rs, 170.03 (Previous Year - 31st March, 2016 Rs, 44.58, Rs,617.77, Rs, 72.06, Rs,4.91, Rs, 0.56,Rs, 59.49, Rs, 82.96, Rs, 24.56 and Rs, 206.08 (Previous Year - 1st April, 2015 -Rs,111.83, Rs,1101.78, Rs, 72.06, Rs,4.91, Rs, 0.56, Rs, 59.49, Rs, 82.96,Rs, 24.56 and Rs, 209.07) respectively.

21 Disputed amount of Rs,68.61[Paid under protest Rs,68.61] (Previous Year - 31st March, 2016 Rs,68.61[Paid under protest Rs,68.61]) (Previous Year - 1st April, 2015 Rs,68.61[Paid under protest Rs,68.61]) in respect of difference of Fuel Cost Adjustment Charges, Rs,463.60 [Paid under protest Rs,19.77] (Previous Year- 31st March, 2016 Rs,463.60 [Paid under protest Rs,19.77]) (Previous Year - 1st April, 2015 Rs,463.60 [Paid under protest Rs,19.77]) in respect of demand of Water Supply Charges, Rs,355.19 [Paid under protest Rs,137.39] (Previous Year - 31st March, 2016 Rs,355.19 [Paid under protest Rs,137.39]) (Previous Year -1st April,2015 Rs,355.19 [Paid under protest Rs,137.39]) in respect of Surcharge on Electricity, Rs,1965.30 [Paid under protest Rs,414.28] (Previous Year - 31st March,2016 Rs,1804.76 [Paid under protest Rs,377.50]) (Previous Year - 1st April,2015 Rs,1804.76 [Paid under protest Rs,376.00]) in respect of MODVAT/ CENVAT claims, Rs,3283.03 [Paid under protest Rs,1707.32] (Previous Year - 31st March,2016 Rs,4841.98 [Paid under protest Rs,2405.17]) (Previous Year - 1st April,2015 Rs,4516.13 [Paid under protest Rs,2065.36]) in respect of Sales Tax/VAT, Rs,358.35 [paid under protest Rs,24.62] (Previous Year - 31st March, 2016 Rs,2.23 [paid under protest Rs,0.35]) (Previous Year - 1st April, 2015 Rs,NIL [Paid under protest Rs,NIL]) in respect of Entry Tax, Rs,192.17 [Paid under protest Rs,30.19] (Previous Year - 31st March, 2016 Rs,12.99 [Paid under protest Rs,2.00]) (Previous Year - 1st April, 2015 Rs,12.99 [Paid under protest Rs,2.00]) in respect of Service Tax, Rs,3569.55 [Paid under protest Rs,3751.51] (Previous Year - 31st March, 2016 Rs,3569.55 [Paid under protest Rs,3751.51]) (Previous Year - 1st April, 2015 Rs,3231.51 [Paid under protest Rs,3751.51] ) in respect of Income Tax, Rs,3686.37 [Paid under protest Rs,272.36] (Previous Year - 31st March,2016 Rs,3756.97 [Paid under protest Rs,503.13]) (Previous Year - 1st April, 2015 Rs,2887.32 [Paid under protest Rs,240.32] ) in respect of Excise Duty, Rs,29.08 [Paid under protest Rs,10.76] (Previous Year - 31st March, 2016 Rs,29.08 [Paid under protest Rs,10.76]) (Previous Year - 1st April, 2015 Rs,29.08 [Paid under protest Rs,10.76]) in respect of Land Diversion Tax impose by SDO Raghuraj Nagar, Rs,29.70 [Advance paid Rs,29.70] (Previous Year - 31st March, 2016 Rs, 29.70 [Advance paid Rs, 29.70]) (Previous Year - 1st April, 2015 Rs, 29.70 [Advance paid Rs, 29.70]) in respect of octroi, Rs, 208.20 [Paid under protest Rs, 15.62] (Previous Year - 31st March, 2016 Rs,NIL [Paid under protest Rs,NIL]) (Previous Year - 1st April, 2015 Rs,NIL [Paid under protest Rs,NIL]) in respect of custom duty and Rs,2.41 [Paid under protest Rs,2.41] (Previous Year - 31st March, 2016 Rs,NIL [Paid under protest Rs,NIL]) (Previous Year - 1st April, 2015 Rs,NIL [Paid under protest Rs,NIL]) in respect of other claims, which have not been provided for, as the matters are subjudice.

22 In respect of the matters in note no. 42.1 to 42.3, future cash outflows are determinable only on receipt of judgements/decisions pending at various forums/ authorities. Furthermore, there is no possibilities of any reimbursements to be made to the company from any third party.

23. Operating leases

24 As Lessee

The company''s significant leasing arrangements are in respect of operating leases for premises (residential, office, stores, godown) etc. These leasing arrangements which are cancellable ranging between 11 months and 10 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in the Statement of Profit and Loss. The company has also entered into agreement to take certain land on operating lease for manufacturing facilities from a third party. The lease arrangement is for 33 years. The lease rent of ''396.63 (Previous Year ''187.41) on such lease is included in Rent.

25 The Company has entered into leasing agreements under operating lease. Land for original lease period ranging upto 33 years. Amortisation of leasehold land included in the statement of profit and loss for the year is '' 1,477.66 (previous year '' 1,253.75).

26 As Less or

27 The Company leases out its investment property on operating lease basis on cancellable basis. Rental income earned and direct operating expenses incurred on property letting on lease has been disclosed in note no 6.

28 Defined Benefit Plan :

The following are the types of defined benefit plans.

29 Gratuity Plan

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favorable than the provisions of the Paymet of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

30 Pension Plan

Pension is payable to certain categories of employees who are eligible under the Company''s Pension Scheme.

31 Provident Fund

Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

32 Risk Exposure Defined Benefit Plans

Defined benefit plans expose the Company to actuarial risks such as: Interest Rate Risk, Salary Risk and Demographic Risk.

a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the defined benefit obligation will tend to increase.

b) Salary risk : Higher than expected increases in salary will increase the defined benefit obligation.

c) Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that includes mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on 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 the short career employee typically costs less per year as compared to a long service employee.

33 Reconciliation of the net defined benefit (asset)/ liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset)/ liability and its components :

The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India, Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Limited, HDFC Life Group variable employee benefit plan offered by HDFC Standard LIfe Insurance Company Limited, India First New Corporate Benefit plan for gratuity offered by India First Life Insurance Company Limited and Bajaj Allianz Group Employee Care plan offered by Bajaj Allianz Life Insurance Company Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available.

34 Asset-Liability Matching Strategy

The Company''s investment is in Cash Accumulation Plan/Traditional Plan of various Insurance Companies, the investment are being managed by these insurance companies and at the yearend interest is being credited to the fund value. The company has not changed the process used to manage its risk from previous periods . The company''s investment are fully secured and would be sufficient to cover its obligations.

35. The Board of Directors of the Company at its meeting held on 25th July, 2013 had approved the Scheme of Amalgamation to amalgamate Talavadi Cements Limited, a 98% subsidiary with Birla Corporation Limited with an appointed date of 1st April, 2013. The Scheme is presently pending for the approval of the Hon''ble High Court, Kolkata.

36. Pursuant to the Share Purchase Agreement ("Agreement”), the company has acquired 100% equity shares of Reliance Cement Company Private Limited ("RCCPL”) from Reliance Infrastructure Limited on 22nd August,2016 at an enterprise valuation of '' 4,80,000. A sum of '' 2,25,352 has been paid/provided towards purchase consideration of Shares till 31st March, 2017 which may be further adjusted based on terms & condition of the agreement. The company does not envisage any material impact on account of above and there will not be any impact on the Statement of Profit and Loss.

37. In view of decision of Hon''ble Supreme Court dated 24th September 2014, the allocation of Bikram Coal Block to the company was cancelled. Subsequently, the Government promulgated The Coal Mines (Special Provisions) Act, 2015, which inter alia provides for compensation to prior allottees against expenditure incurred on the cancelled coal block. The company has submitted its claim for compensation of amount incurred on Coal Block amounting to '' 1,609.54. Consequential adjustment shall be made on settlement of the claim.

38. Certain Trade Receivables, Loans & Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Loans & Advances on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

39 The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

40 The Company''s Unit Birla Vinoleum and Auto Trim Division at Birlapur, are under Suspension of Operations since 18th February, 2014.

41 In respect of mining matter of Chanderia before the Hon''ble Supreme Court, a comprehensive report has been submitted by Central Building Research Institute (CBRI) on full scale mining. Last hearing was held on 06-09-2016. Next date of hearing has not been fixed as yet.

42. Transition to Ind AS

43 Basis for Preparation

For all period up to and including the year ended 31st March, 2016, the Company has prepared its financial statements in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended 31st March, 2017 are the Company''s first annual IND AS financial statements and have been prepared in accordance with IND AS.

The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended 31st March 2017, the comparative information presented in these financial statements for the year ended 31st March, 2016 and in the preparation of an opening Ind AS balance sheet at 1st April, 2015 (the date of transition). This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.

44Exceptions and Exemptions Applied

IND AS 101 "First-time adoption of Indian Accounting Standards” (hereinafter referred to as Ind AS 101) allows first time adopters certain mandatory exceptions and optional exemptions from the retrospective application of certain IND AS, effective for 1st April, 2015 opening balance sheet. In preparing these Standalone financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

45 Optional Exemptions Availed

a. Business Combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Standard has not been applied to acquisitions of subsidiaries, which are considered businesses for Ind AS, or of interests in associates that occured before the transition date i.e., 1st April, 2015.

b. Property Plant and Equipment, Intangible Assets and Investment Properties

As permitted by para D5-D8B of Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment. The same election has been made in respect of intangible assets and investment property also.

c. Determining whether an arrangement contains a Lease

Para D9-D9AA of Ind AS 101 includes an optional exemption that permits an entity to apply the relevant requirements in Appendix C of Ind AS 17 "Leases” for determining whether an arrangement existing at the date of transition contains a lease by considering the facts and circumstances existing at the date of transition (rather than at the inception of the arrangement). The Company has applied the above transitional provision and has assessed all the arrangements at the date of transition.

d. Investments in Subsidiaries and Associates

As permitted by para D14 & D15 of Ind AS 101, the Company has elected to measure the investments in subsidiaries and associates at Deemed Cost calculated at the previous GAAP carrying amount as on the date of transition, as the company has elected to measure such investments at Cost under Ind AS 27 "Separate Financial Statements”.

e. Designation of previously recognized financial instruments

Para D19B of Ind AS 101 permits an entity to designate particular investments in equity instruments as at fair value through other comprehensive income (FVOCI) based on facts and circumstances at the date of transition to Ind AS (rather at initial recognition). The Company has opted to avail this exemption to designate its investments in equity instruments (other than investment in subsidiaries and associates) as FVOCI on the date of transition.

f. Non-current Assets held for Sale and Discontinued Operations

As per Para D35AA a first time adopter have an option of measuring the non-current assets that meet the criteria of held for sale at lower of the carryin amount and fair value less cost to sales at the date of transition and recognize the difference of the amount so calculated and the previous GAAP carrying amount directly in retained earnings. The Company has elected to adopt this exemption.

46 Mandatory Exceptions

a. Estimates

As per para 14 of Ind AS 101, an entity''s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity''s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per para 16 of the standard, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition or at the end of the comparative period. The Company''s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statement that were not required under the previous GAAP are listed below :

- Fair Valuation of financial instruments carried at FVTPL and/ or FVOCI.

- Fair Valuation of Biological Assets measured at fair value less cost to sell.

- Impairment of financial assets based on the expected credit loss model.

- Determination of the discounted value for financial instruments carried at amortized cost.

- Discounted value of mines restoration liability.

b. De-recognition of financial assets and liabilities

As per para B2 of Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, "Financial Instruments”, prospectively for transactions occurring on or after the date of transition to Ind AS. However, para B3 gives an option to the entity to apply the derecognition requirements from a date of its choice if the information required to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the initially accounting for those transactions. The company has elected to apply the derecognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

c. Classification and measurement of financial assets

Para B8 - B8C of Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost has been done retrospectively.

47 Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101 :

1. Reconciliation of material items of Balance sheet as at 1st April, 2015 (Transition Date) and as at 31st March, 2016

2. Reconciliation of Statement of Profit & Loss for the year ended 31st March, 2016

3. Reconciliation of Equity as at 1st April, 2015 and as at 31st March, 2016

4. Adjustments to Statement of Cash Flows

The presentation requirements under Previous GAAP differs from Ind AS, and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.

48 Explanations to the material adjustments made in the process of IND AS transition from previous GAAP

a. Fair valuation of investments

Under the Indian GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March 2016.

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognized in FVOCI - Equity investments reserve as at the date of transition and subsequently in the other comprehensive income for the year ended 31st March 2016.

b. Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

c. Dividend

Under Indian GAAP, proposed dividends including Dividend Distribution Taxes (DDT) are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid.

Since declaration of dividend occurs after period end in the Company, the Provision for proposed dividend has been derecognized against retained earnings on 1st April 2015 and Liabilities recognized in the year ended 31st March, 2016.

d. Restoration (including Mine closure), rehabilitation and decommissioning

Under IND AS Restoration/ Rehabilitation/ Decommissioning costs are provided for in the accounting period when the obligation arises based on the net present value of the estimated future costs of restoration to be incurred. Under Indian GAAP, the above obligation is not required to be discounted to its present value.

e. Re-Classifications

The Company has done the following reclassifications as per the requirements of Ind-AS :

i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

ii) The Company has re-classified certain leasehold land from Property Plant & Equipment to Mining Rights under Intangible Assets and Prepayment Lease Rental under operating lease.

iii) Under Indian GAAP, Live Stock were presented under Property,Plant & Equipment being measured at cost.Under IND AS the same have been reclassified from Property,Plant & Equipment to Biological Assets other than bearer plants and measured at fair value less cost to sale.

iv) Under Indian GAAP, investment properties were presented as part of non-current investments. Under Ind AS, investment properties have been separately presented on the face of the balance sheet.

v) Remeasurement gain/loss on long term employee defined benefit plans are re-classified from statement of profit and loss to OCI.

vi) The Company has re-classified unpaid dividend balance form cash and cash equivalents to other bank balances.

vii) Excise duty on sales was earlier netted off with Sales, has now been presented separately.

f. Long Term Borrowings

Under Indian GAAP, the Company accounted for long term borrowings measured at transaction value. Under Ind AS, the Company has recognized the long term borrowings at amortized cost using effective interest rate (EIR).

g. Forward Contract

Under IND AS mark to market gain/loss on restatement of forward contract as at the reporting date has been recognized in the statement of profit & loss.

h. Leases

Under Ind AS, where the payments to the less or are structured to increase in line with expected general inflation to compensate for the less or’s expected inflationary cost increases, straight lining of lease is not required. The same was required under AS-19.

The Company has initially recognized security deposit paid to the less or at fair value and subsequently at amortized cost as per Ind AS 109.

i. Expected Credit Loss Model

Ind-AS 109 requires to recognize loss allowances on trade receivable and other financial assets of the Company, at an amount equal to the lifetime expected credit loss or the 12 month expected credit loss based on the increase in the credit risk.

j. Deferred Revenue

Under India GAAP, grants received from government agencies against specific fixed assets (Property, Plant and Equipment) are adjusted to the cost of the assets. Under IND AS the same has been presented as deferred revenue being amortized in the statement of profit & loss on a systematic basis.

k. Leases/Depreciation and Amortization Expenses/Inventory

Under India GAAP, lease agreement to use land was excluded from accounting of leases under AS 19. Under IND AS, use of land is not excluded from accounting of leases. Due to the above, measurement amount of lease, operating or finance has been changed resulting into change in depreciation and amortization expenses and corresponding change in the inventory valuation.

49. Fair Value Hierarchy

The following are the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement”. An explanation of each level follows underneath the tables.

50 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

d. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements (if any). The interest payments on variable interest rate loans in the tables above reflect market forward interest rates at the respective reporting dates and these amounts may change as market interest rates change. The future cash flows on derivative instruments may be different from the amount in the above tables as exchange rates change. Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

51 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 four type of risks : Commodity Price Risk, Foreign Exchange Risk, Interest Rate Risk and Other Price Risk.

52 Commodity Price Risk

The Company primarily imports coal, pet coke, gypsum and raw jute. It is exposed to commodity price risk arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where considered necessary.

53 Foreign Currency Risk

The Company has Foreign Currency Exchange Risk on imports of input materials, Capital Equipment(s) and also Borrows funds in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.

The following table demonstrates the sensitivity in the USD, EUR and JPY to the Indian Rupee with all other variables held constant.

Terms and Conditions of transactions with Related Parties :

The sale to and purchase from Related Party are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. The Loans and Advances as well as Corporate Gurantee isuued to Related Parties are on terms equivalent to those that prevail in arm''s length transactions. Outstanding Balances at the yearend are unsecured and settlement occurs in cash for the year ended 31st March, 2017, the Company has recorded the receivable relating to amount due from Related Parties net of impairment. This assessment is undertaken each Financial Year through examining the Financial position of the Related Parties and the market in which the Related Party operates.

*The figures of the Relience Cement Company Pvt. Ltd. has been taken w.e.f. 22.08.2016.

Note: 1. None of the subsidiaries have reporting period different from the holding company.

54. None of the above mentioned subsidiaries are foreign subsidiaries.

55. a) Names of subsidiaries which are yet to commence operations.

i. M/s Lok Cements Limited.

ii. M/s Birla Cement (Assam) Limited.

iii. M/s M. P. Birla Group Services Pvt. Ltd.

b) Names of subsidiaries which have been liquidated or sold during the year : NIL.


Mar 31, 2015

1.1 Contingent Liabilities not provided for- 2014-15 2013-14

(a) Claims/Disputes/Demands not acknowledged as debts -

i) Demand notice for levying sales tax on packing material at the rate applicable on cement. Writ petition has 161 07 161 07 been filed and the matter is pending before Hon''ble High Court, Chandigarh.

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been 147 16 147 16 filed before the Hon''ble High Court, Rajasthan which has granted stay in the matter.

iii) Additional U. R Sales Tax demanded by enhancing the value of cement. The case has been decided by Tribunal 146 40 146 40 in Company''s favour. Department has filed revision petition before Hon''ble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal.

iv) Demand for interest on delayed payment of Entry Tax raised by the U.R Trade Tax Department, Allahabad. 132 11 132 11 Writ petition has been filed before the Hon''ble High Court, Allahabad which has granted stay in the matter.

v) Cenvat Credit taken on Goods Transporting Agency service on the basis of TR-6 challan disallowed. Appeal 138 36 138 36 filed before the Custom, Excise & Service Tax Appellate Tribunal, New Delhi and stay has been granted in the matter.

vi) Stamp Duty for registration/execution of deed of certain Limestone Mining Lease. The matter is pending before 604 80 604 80 the Hon''ble Supreme Court.

vii) Renewable Energy Surcharge on account of shortfall of energy purchase from renewable energy sources as 1726 67 1726 67 per Rajasthan Electricity Regulatory Commission notification dt. 23.03.2007. The matter is pending before the Hon''ble High Court, Rajasthan.

viii) Appeal filed by the Excise Department before Custom, Excise & Service Tax Appellate Tribunal, New Delhi 141 93 141 93 on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company.

ix) Demand of penalty by Sub Divisional Officer, Raghuraj Nagar, for alleged impermissible mining in Village 1160.00 1160.00 Naina. Writ Petition has been filed and stay has been granted by Hon''ble M.R High Court, Jabalpur.

x) Demand under Income Tax Act, 1961 for Assessment Year 2011-12 & 2012-13, the matter is pending before 2632 09 2612 01 Commissioner of Income Tax (Appeals).

xi) Demand for Entry Tax and Interest there on under U.R VAT Act. Case is pending before Hon''ble Supreme 3349 99 2912 01 Court.

xii) Demand of House Tax under Rajasthan Municipalities (Land and Building Tax) Rules 1961 raised by Municipal 251 73 251 73 Board, Chittorgarh for the period 1987 to 2006. The matter is pending before Hon''ble High Court, Rajasthan.

xiii) Demand for Education cess by the Municipal Corporation, Satna. Appeal filed and pending before Hon''ble 118 29 118 29

M.R High Court, Jabalpur.

xiv) Entry Tax as per The West Bengal Tax on Entry of Goods into Local Areas Act, 2012 on the entry of goods in 708 56 386 64 the state of West Bengal. Matter is pending before Kolkata High Court.

xv) Hon''ble High Court, Rajasthan, levied a compensation for alleged damage to the Chittorgarh Fort. Special 450 00 450 00 Leave Petition has been filed before the Hon''ble Supreme Court and stay has been granted in the matter.

xvi) Cenvat Credit taken on Steel Items disallowed by Excise Authority which has demanded its recovery together 482.76 448.67 with interest. Appeal filed before the Custom Excise & Service Tax Appellate Tribunal, New Delhi. The Tribunal has remanded the case to Commissioner, Central Excise, Jaipur.

xvii) Other Claims/Disputes/Demands (being less than Rs. 100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, Export Tax and other claims - Rs. 111.83, Rs. 624.18, Rs. 72.06, Rs. 4.91, Rs. 0.56, Rs. 59.49, Rs. 82.96, Rs. 209.07 (Previous Year Rs. 130.86, Rs. 699.85, Rs. 72.06, Rs. 4.91, Rs. 0.56, Rs. 99.15, Rs. 82.96 and Rs. 221.20) respectively.

(b) Disputed amount of Rs. 68.61 [Paid under protest Rs. 68.61] (Previous Year Rs. 68.61 [Paid under protest Rs. 68.61]) in respect of difference of Fuel Cost Adjustment Charges, Rs. 463.60 [Paid under protest Rs. 75.00] (Previous Year Rs. 463.52 [Paid under protest Rs. 75.00]) in respect of demand of Water Supply Charges, Rs. 355.19 [Paid under protest Rs. 137.39] (Previous Year Rs. 355.19 [Paid under protest Rs. 137.39]) in respect of Surcharge on Electricity, Rs. 6790.62 [Paid under protest Rs. 4099.71] (Previous Year Rs. 6790.62 [Paid under protest Rs. 4099.71]) in respect of demand of Royalty on Limestone including interest thereon, Rs. 1799.60 [Paid under protest Rs. 376.00] (Previous Year Rs. 1783.18 [Paid under protest Rs. 370.00]) in respect of MODVAT/ CENVAT claims, Rs. 4516.13 [Paid under protest Rs. 2065.36] (Previous Year Rs. 4047.62 [Paid under protest Rs. 1579.91]) in respect of Sales Tax/ VAT, Rs. 24.56 [Paid under Protest Rs. 12.28] (Previous Year Rs. 24.56) [paid under protest Rs. 12.28] in respect of interest on delayed payment of Entry Tax, Rs. 12.99 [Paid under protest Rs. 2.00] (Previous Year Rs. 12.99 [Paid under protest Rs. 2.00]) in respect of Service Tax, Rs. 3231.51 [Paid under protest Rs. 3231.51] (Previous Year Rs. 4506.15 [Paid under protest Rs. 3651.51]) in respect of Income Tax, Rs. 2887.32 [Paid under protest Rs. 240.32] (Previous Year Rs. 2502.26 [Paid under protest Rs. 22.27]) in respect of Excise Duty have not been provided for as the matters are subjudice, Rs. 29.08 [Paid under protest Rs. 10.76] (Previous Year NIL [Paid under protest NIL]) in respect of Land Diversion Tax imposed by Sub-Divisional Officer Raghuraj Nagar and NIL [Paid under protest NIL] (Previous Year Rs. 0.33 [Paid under protest Rs. 0.33]) in respect of Other claims.

In respect of above matters, future cash outflows are determinable only on receipt of judgements/decisions pending at various forums/authorities.

(c) Bills discounted with Banks remaining outstanding - Rs. 452.55 (Previous Year Rs. 789.81).

(d) Amount of Customs Duty including interest thereon, which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme - Rs. 183.53 (Previous Year Rs. 408.01).

1.2 Commitments Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 4666.91 (Previous Year Rs. 6529.97).

1.3 Derivative Instruments and Unhedged Foreign Currency Instruments

(a) Outstanding Forward/ Future Contracts booked for the purpose of hedging receivables/ firm commitments are USD/INR 12.98 (Previous Year USD/INR 34.79) and payables/ firm commitments are USD/INR 190.00 (Previous Year USD/INR 357.66 ) and EURO/INR 0.00 (Previous Year EURO/INR 14.31). Outstanding Interest rate Swap Contracts booked for the purpose of hedging LIBOR against payables are USD Nil (Previous Year USD 3.14)

(b) Unhedged foreign currency receivables are USD 3.72 (Previous Year USD 3.12) and EURO 0.00 (Previous Year EURO 0.89 ) and payables are USD 1131.23 (Previous Year USD 972.64) and EURO 12.77 (Previous Year EURO 2.67).

1.4 Dues to Micro,Small and Medium Enterprises

The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount along with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

(ix) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation.

(x) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(xi) The Company expects to contribute Rs. 1000 (Previous Year Rs. 1000) to its gratuity fund in 2015-16.

(xii) In respect of provident funds in the nature of defined benefit plans contribution amounting to Rs. 543.11 (Previous Year Rs. 618.02) and the accrued past service liability of NIL (Previous Year NIL) as valued by the actuary is recognized as an expense and included in ''Employee Benefits Expense''.

1.5 Charity & Donation includes political donation Rs. 25.00 (Previous Year Rs. 100.00) paid to Bharatiya Janata Party and NIL (Previous Year Rs. 100.00) paid to Indian National Congress.

1.6 The Board of Directors of the Company at its meeting held on 25th July, 2013 had approved the Scheme of Amalgamation to amalgamate Talavadi Cements Limited, a 98% subsidiary with Birla Corporation Limited with an appointed date of 1st April, 2013. The Scheme is presently pending for the approval of the Hon''ble High Court, Kolkata.

1.7 In view of decision of Hon''ble Supreme Court dated 24th September 2014, the allocation of Bikram Coal Block to the company was cancelled. Subsequently, the Government promulgated The Coal mines (Special Provisions) Ordinance, 2014, which inter alia provides for compensation to prior allottees against expenditure incurred on the cancelled coal block. The company has submitted its claim for compensation of amount incurred on Coal Block amounting to Rs. 1609.54 (Rs. 1211.40 appearing as "Other Current Assets" in note no. 2.13 and Rs. 398.14 as Fixed Assets in note no. 2.10). Consequential adjustment shall be made on settlement of the claim.

1.8 There being uncertainties in realization from Insurance Claims, the same are accounted for on settlemenVrealization.

1.9 Certain Trade Receivables, Loans and Advances and Creditors are subject to confirmation.

1.10 a) The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

b) The Company''s Units Birla Vinoleum and Auto Trim Division, at Birlapur, are under Suspension of Operations since 18th February, 2014.

c) In respect of mining matter of Chanderia before the Hon''ble Supreme Court, a comprehensive report has been submitted by Central Building Research Institution (CBRI) on full scale mining. The hearing fixed on 6th May, 2015 did not take place and the date of next hearing is yet to be decided.

1.11 Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

B) Secondary Segment Information

The Company operates mainly in the Indian market and the export turnover being 1.73% (Previous year 2.15%) of the external sales of the Company, there are no reportable geographical segments.

C) Other Disclosures

The Company''s operations predominantly relate to Cement and other products are Jute Goods, Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these financial statements

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based on cost plus profit.

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

1.12 Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2014

For the year ended For the year ended 31st March, 2014 31st March, 2013

1.1 Contingent Liabilities not provided for - 2013-14 2012-13

(a) Claims/Disputes/Demands not acknowledged as debts- - -

i) Demand notice for levying sales tax on packing material at the rate applicable on cement. Writ petition has been filed and the matter is pending before Hon''ble High Court, Chandigarh. 161.07 161.07

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been filed before the Hon''ble High Court, Rajasthan which has granted stay in the matter. 147.16 147.16

iii) Additional U. R Sales Tax demanded by enhancing the value of cement. The case has been decided by Tribunal in Company''s favour. Department has filed revision petition before Hon''ble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal. 146.40 146.40

iv) Demand for interest on delayed payment of Entry Tax raised by the U.R Trade Tax Department, Allahabad. Writ petition has been filed before the Hon''ble High Court, Allahabad which has granted stay in the matter. 132.11 132.11

v) Cenvat Credit taken on Goods Transporting Agency service on the basis of TR-6 challan disallowed. Appeal filed before the Custom Excise & Service Tax Appellate Tribunal, New Delhi and stay has been granted in the matter. 138.36 190.94

vi) Excise Duty rebate of Rs. 969.13 received in earlier year by a Unit of the Company has been contested and disallowed by the Excise Authorities, which has demanded its recovery together with interest, after the matter was remanded to it by the Hon''ble Supreme Court. The company is contemplating to file appeal before the Custom, Excise & Service Tax Appellate Tribunal. 2478.76 2304.32

vii) Stamp Duty for registration/ execution of deed of certain Limestone Mining Lease. The matter is pending before the Hon''ble Supreme Court. 604.80 777.60

viii) Renewable Energy Surcharge on account of shortfall of energy purchase from renewable energy sources as per Rajasthan Electricity Regulatory Commission notification dt. 23.03.2007. The matter is pending before the Hon''ble High Court, Rajasthan. 1726.67 1726.67

ix) Appeal filed by the Excise Department before Custom Excise & Service Tax AppellateTribunal, New Delhi on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company. 141.93 141.93

x) Demand of penalty by Sub Divisional Officer, Raghuraj Nagar, for alleged impermissible mining in Village Naina. Writ Petition has been filed and stay has been granted by Hon''ble M. R High Court, Jabalpur. 1160.00 1160.00

xi) Demand under Income Tax Act, 1961 for Assessment Year 2011 -12, the matter is pending before Commissioner of Income Tax (Appeals). 2612.01 Nil

xii) Demand for Interest on Entry Tax under U.R VAT Act. Case is pending before Hon''ble Supreme Court. 2912.01 2474.03

xiii) Demand of House Tax under Rajasthan Municipalities (Land and Building Tax) Rules 1961 raised by Municipal Board, Chittorgarh for the period 1987 to 2006. The matter is pending before Hon''ble High Court, Rajasthan. 251.73 251.73

xiv) M. R VAT on freight charges incurred in the state of Madhya Pradesh. Appeal filed and pending before the Hon''ble MR High Court, Jabalpur. 433.27 159.44

xv) Demand for Education cess by the Municipal Corporation, Satna. Appeal filed and pending before Hon''ble M. R High Court, Jabalpur. 118.29 97.41

xvi) Entry Tax as per The West Bengal Tax on Entry of Goods into Local Areas Act, 2012 on the entry of goods in the state of West Bengal. Matter is pending before Hon''ble High Court, Kolkata. 386.64 124.40

xvii) Hon''ble High Court, Rajasthan, levied a compensation for alleged damage to the Chittorgarh Fort. Special Leave Petition has been filed before the Hon''ble Supreme Court and stay has been granted in the matter. 450.00 450.00

xviii) Cenvat Credit taken on Steel Items has been disallowed by the Commissioner, Central Excise, Jaipur vide order dated 27.02.2014. The company is contemplating to file appeal before Custom Excise & Service Tax Appellate Tribunal, New Delhi. 448.67 Nil

xix) Other Claims/Disputes/ Demands (being less than Rs. 100.00) pending in various legal forums in regard to Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, Export Tax and other claims - Rs. 130.86, Rs. 699.85, Rs. 72.06, Rs. 4.91, Rs. 0.56, Rs. 99.15, Rs. 82.96, Rs. 221.20 (Previous Year Rs. 123.36, Rs. 648.42, Rs. 169.48, Rs. 4.91, Rs. 0.56, Rs. 99.15, Rs. 82.96 and Rs. 274.44) respectively.

(b) Disputed amount of Rs. 68.61[Paid under protest Rs. 68.61] (PreviousYear Rs. 68.61[Paid under protest Rs. 68.61] ) in respect of difference of Fuel Cost Adjustment Charges, Rs. 463.52 [Paid under protest Rs. 75.00] (Previous Year Rs. 463.52 [Paid under protest Rs. 75.00] ) in respect of demand of Water Supply Charges, Rs. 355.19 [Paid under protest Rs. 137.39] (Previous Year Rs. 355.19 [Paid under protest Rs. 137.39]) in respect of Surcharge on Electricity, Rs. 6790.62 [Paid under protest Rs. 4099.71] (Previous Year Rs. 6115.51 [Paid under protest Rs. 3912.68] ) in respect of demand of Royalty on Limestone including interest thereon, Rs. 1783.18 [Paid under protest Rs. 370.00] (Previous Year Rs. 390.59 [Paid under protest Rs. 20.00] ) in respect of MODVAT/CENVAT claims, Rs. 3614.35 [Paid under protest Rs. 1579.91] (Previous Year Rs. 2498.70 [Paid under protest Rs. 382.36] ) in respect of Sales Tax/VAT, Rs. 24.56 [Paid under Protest Rs. 12.28] (Previous Year Rs. 24.56 [Paid under protest Rs. 12.28]) in respect of interest on delayed payment of Entry Tax, Rs. 12.99 [Paid under protest Rs. 2.00] (Previous Year Rs. 12.99 [Paid under protest S.00]) in respect of Service Tax, Rs. 4506.15 [Paid under protest Rs. 3651.51] (Previous Year Rs. 9159.30 [Paid under protest Rs. 1905.68]) in respect of Income Tax, Rs. 23.50 [Paid under protest Rs. 22.27] (Previous Year Rs. 34.76 [Paid under protest Rs. 23.27] ) in respect of Excise Duty have not been provided for as the matters are subjudice and Rs. 0.33 [Paid under protest Rs. 0.33] (Previous Year Rs. 0.33 [Paid under protest Rs. 0.33]) in respect of Other claims.

(c) Bills discounted with Banks remaining outstanding - Rs. 789.81 (Previous Year Rs. 600.23).

(d) Amount of Customs Duty including interest thereon, which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs. 408.01 and Rs. NIL (Previous Year Rs. 834.96 and Rs. 301.82) respectively.

1.2 Commitments Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 6529.97 (Previous Year Rs. 2496.72).

1.3 Derivative Instruments and Unhedged Foreign Currency Instruments

(a) Outstanding Forward/Future Contracts booked for the purpose of hedging receivables/firm commitments are USD/INR 34.79 (Previous Year USD/INR 2.13) and payables/firm commitments are USD/INR 357.66 and EURO/INR 14.31 and EURO/USD NIL (Previous Year USD/INR 282.00, EURO/INR NIL and EURO/USD 6.55).Outstanding Interest rate Swap Contract booked for the purpose of Hedging LIBOR against payable are USD 313830 ( Previous Year "Nil")

(b) Unhedged foreign currency receivables are USD 3.12 and EURO 0.89 (Previous Year USD 8.53 and EURO 0.23 ) and payables are USD 972.64 and EURO 2.67 (Previous Year USD 681.38 and EURO 2.00).

1.4 Dues to Micro,Small and Medium Enterprises

The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

1.5. Employee Benefits Expense

In accordance with the revised Accounting Standard-15 i.e. Employee Benefits, the requisite disclosure are as follows :

(b) In respect of Defined Benefit Plans, necessary disclosures are as under-

(i) Benefits are of the following types:

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972;

Pension is payable to certain categories of employees as per Company''s Pension Scheme;

Provident Fund (other than government administered) as per the provisions of Employees Provident Funds and Miscellaneous Provisions Act, 1952.

(ix) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation.

(x) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(xi) The Company expects to contribute Rs. 1000.00 (Previous Year Rs. 1500.00) to its gratuity fund in 2014-15.

(xii) In respect of provident funds in the nature of defined benefit plans contribution amounting to Rs. 618.02 (Previous Year Rs. 580.44) and the accrued past service liability of Rs. NIL (Previous Year Rs. 188.33) as valued by the actuary is recognised as an expense and included in''Employee Benefit Expense''.

1.6 Charity & Donation includes political donation Rs. 100.00 (Previous Year Rs. Nil) paid to Bharatiya Janata Party and Rs. 100.00 (Previous Year Rs. Nil) paid to Indian National Congress.

1.7 The Board of Directors of the Company at its meeting held on 25th July, 2013 had approved the Scheme of Amalgamation to amalgamate Talavadi Cements Limited, a 98% subsidiary with Birla Corporation Limited with an appointed date of 1st April, 2013. The Scheme is presently pending for the approval of the Hon''ble High Court, Kolkata.

1.8 Based on the recommendation of Inter Ministerial Group, Bikram Coal Block in the state of Madhya Pradesh has been de-allocated by the Ministry of Coal vide letter dated 7th January, 2014. Pursuant to writ petition filed by the company challenging the same, Hon''ble High Court, Jabalpur has permitted the company to move the court in case any steps are taken by the government for re-allocation of the block and stayed encashment of bank guarantee. The case is pending for further hearing.

1.9 There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlemenVrealisation.

1.10 Certain Trade Receivables, Loans and Advances and Creditors are subject to confirmation.

1.11 a) The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

b) The Company''s Units Birla Vinoleum, Birlapur and Auto Trim Division, Birlapur, are under Suspension of Operations since 18th February, 2014.

c) In respect of mining matter of Chanderia, Central Building Research Institute (CBRI) which was directed to conduct the study of impact of mining on Chittorgarh fort by the Hon''ble Supreme Court, has sought extension of time up to 30th September, 2014 for completion of study as it could not complete the study within 31st March, 2014. Hon''ble Supreme Court has fixed the next date of hearing on 13th October, 2014.

1.11 Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

B) Secondary Segment Information

The Company operates mainly in the Indian market and the export turnover being 2.15 % (Previous year 1.59 %) of the external sales of the Company, there are no reportable geographical segments.

C) Other Disclosures

The Company''s operations predominantly relate to Cement and other products are Jute Goods.Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these financial statements

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based on cost plus profit.

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

1.12 Related Party Disclosure

a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely : Birla Jute Supply Company Ltd. Talavadi Cements Ltd. Lok Cements Ltd. Budge Budge Floorcoverings Ltd. Birla Cement (Assam) Ltd. M.R Birla Group Services Pvt. Ltd. Birla Corporation Cement Manufacturing PLC

b) Other related parties with whom transactions have taken place during the year and previous year are :

i) Associates Birla Readymix Pvt. Ltd.

Birla Odessa Pvt. Ltd.

ii) Key Management Personnel

Shri Bachh Raj Nahar, Managing Director

1.13 Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2013

A) There has been no change/movements in number of shares outstanding at the beginning and at the end of the reporting period.

b) The Company has only one class of issued shares i.e. Ordinary Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

c) The Company does not have any Holding Company/ultimate Holding Company.

d) Details of shareholders holding more than 5% shares in the Company:

e) No Ordinary Shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment as at the Balance Sheet date.

f) No shares have been allotted or has been bought back by the Company during the period of 5 years preceeding the date as at which the Balance Sheet is prepared.

g) No securities convertible into Equity/Preference shares have been issued by the Company during the year.

h) No calls are unpaid by any Director or Officer of the Company during the year.

a) Non-Convertible Debentures are redeemable fully at par as under :

i) 9.05% NCD 2020 on 13th October, 2020;

ii) 9.10% NCD 2020 on 29th March, 2020;

iii) 8.80% NCD 2017 on 6th February, 2017;

iv) 8.65% NCD 2015 on 4th March, 2015.

The Debentures are secured by first charge on the movable and immovable fixed assets of the Company''s Cement Division, ranking pari-passu with the term lenders.

b) Rupee Term Loans from Bank of Rs. 3975.00 is repayable on 30th September, 2013 and is secured by first charge on the movable and immovable fixed assets of the Company''s Cement Units at Satna (Madhya Pradesh) and Chanderia (Rajasthan), ranking pari-passu with Debenture holders and other term lenders.

c) Foreign Currency Loans from Banks of Rs. 8266.68 is repayable in remaining fifteen semi-annual instalments and is secured by first charge on the movable and immovable fixed assets of the Company''s Cement Units at Chanderia (Rajasthan), ranking pari-passu with Debenture holders and other term lenders.

d) Foreign Currency Loans from Banks of Rs. 4071.75 is repayable in July/August, 2016 and Rs. 9500.75 is repayable in December, 2016/January, 2017 and is secured by first charge on the movable and immovable fixed assets of the Company''s Cement Division, ranking pari-passu with Debenture holders and other term lenders.

e) Foreign Currency Loans from Banks of Rs. 19001.50 is repayable in five annual installment of Rs. 2035.87 in September, 2015, Rs. 2035.87 in September, 2016, Rs. 3393.13 in September, 2017, Rs. 4750.38 in September, 2018, Rs. 6786.25 in September, 2019 and is secured by first charge on the movable and immovable fixed assets of the Company''s Cement Division, ranking pari-passu with Debenture holders and other term lenders.

(b) Disputed amount of Rs. 68.61[Paid under protest Rs. 68.61] (PreviousYear Rs. 68.61[Paid under protest Rs. 68.61] ) in respect of difference of Fuel Cost Adjustment Charges, Rs. 463.52 [Paid under protest Rs. 75.00] (Previous Year Rs. 463.52 [Paid under protest Rs. 75.00] ) in respect of demand of Water Supply Charges, Rs. 355.19 [Paid under protest Rs. 137.39] (Previous Year Rs. 355.19 [Paid under protest Rs. 137.39] ) in respect of Surcharge on Electricity, Rs. 6115.51 [Paid under protest Rs. 3912.68] (Previous Year Rs. 4695.10 [Paid under protest Rs. 3912.68] ) in respect of demand of Royalty on Limestone including interest thereon, Rs. 390.59 [Paid under protest Rs. 20.00] (Previous Year Rs. 9.48 [Paid under protest Rs. 9.48] ) in respect of MODVAT/CENVAT claims, Rs. 2106.76 [Paid under protest Rs. 311.29] (Previous Year Rs. 2092.50 [Paid under protest Rs. 261.49] ) in respect of Sales Tax/VAT, Rs. 24.56 [Paid under Protest Rs. 12.28] (Previous Year Rs. 24.56) [Paid under protest Rs. 12.28] in respect of interest on delayed payment of Entry Tax, Rs. 12.99 [Paid under protest Rs. 2.00] (Previous Year Rs. 8.71 [Paid under protest Rs. 2.00] ) in respect of Service Tax, Rs. 2935.31 [Paid under protest Rs. 1905.68] (Previous Year Rs. 1986.18) [Paid under protest Rs. NIL] ) in respect of Income Tax and Rs. 30.67 [Paid under protest Rs. 19.18] (Previous Year Rs. 659.02 [Paid under protest Rs. 152.50] ) in respect of Excise Duty have not been provided for as the matters are subjudice.

(c) Bills discounted with Banks remaining outstanding - Rs. 600.23 (Previous Year Rs. 594.38).

(d) Amount of Customs Duty including interest thereon, which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs. 834.96 and Rs. 301.82 (Previous Year Rs. 1009.30 and Rs. 1116.91) respectively.

1.1 Commitments Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 2496.72 (Previous Year Rs. 3617.25).

1.2 Derivative Instruments and Unhedged Foreign Currency Instruments

(a) Outstanding Forward/Future Contracts booked for the purpose of hedging receivables/firm commitments are USD/INR 2.13 (Previous Year USD/INR2.38) and payables/firm commitments are USD/INR 282.00 and EURO/INR NIL and EURO/USD 6.55 (Previous Year USD/INR 195.00 and EURO/INR 5.00 and EURO/USD NIL).

(b) Unhedged foreign currency receivables are USD 8.53, GBP NIL and EURO 0.23 (Previous Year USD 10.57, GBP 0.24 and EURO 0.23 ) and payables are USD 681.38 and EURO 2.00 (Previous Year USD 653.45 and EURO 0.71).

1.3 Dues to Micro,Small and Medium Enterprises

The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount of with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

(b) In respect of Defined Benefit Plans, necessary disclosures are as under- (i) Benefits are of the following types :

- Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972;

- Pension is payable to certain categories of employees as per Company''s Pension Scheme;

- Provident Fund (other than government administered) as per the provisions of Employees Provident Funds and Miscellaneous ProvisionsAct, 1952.

(ix) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation.

(x) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(xi) The Company expects to contribute Rs. 1500 (Previous Year Rs. 500) to its gratuity fund in 2013-14.

(xii) Provident funds in the nature of defined benefit plans contribution amounting to Rs. 580.44 (Previous Year Rs. 584.95) and the accrued past service liability of Rs. 188.33 (Previous Year Rs. 31.79) as valued by the actuary is recognised as an expense and included in ''Payments to and Provision for Employees''.

1.4 The Board of Directors in its meeting held on 28th July, 2012 has elevated Shri B.R. Nahar from Executive Director & Chief Executive Officer of the company to Managing Director and also revised the maximum limit of Performance Linked Bonus payable to him from Rs. 50 to Rs. 100. The above is subject to the approval of the shareholders of the Company in the ensuing General Meeting.

1.5 Consequent to the implementation of SAP ERP System at Cement and Steel Foundry Units from 1st December, 2012, the method of valuation of Inventory of Raw Materials has been changed from FIFO basis to Weighted Average basis. As a result of this change, Inventory Value as on 31st March, 2013 and profit for the year ended 31st March, 2013 are higher by Rs. 547.15.

1.6 There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlement/realisation.

1.7 Certain Trade Receivables, Loans and Advances and Creditors are subject to confirmation.

1.8 a) The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

b) The Company''s Unit Birla Jute Mills was under Suspension of Operations from 31st March, 2012 to 17th October, 2012.

c) ''Lay Off'' was declared in Auto Trim Division, Birlapur, w.e.f. 28th August, 2012. Birla Vinoleum, Birlapur, continued to remain under ''Lay Off'' during year on account of lack of demand.

d) The Mining Operations of the Chanderia Unit of the Company remained suspended during the year owing to an order of the Hon''ble Rajasthan High Court at Jodhpur. A Special Leave Petition (SLP) was filed by the company before the Hon''ble Supreme Court against the order. While hearing prayer on 8th March, 2013 Hon''ble Supreme Court had permitted mining activities with mechanical means without blasting for a period of four weeks, i.e. from 18th March, 2013 to 14th April, 2013 to enable Central Building Research Institute, Roorkie (CBRI) to study the impact of such mining activities on Chittorgarh Fort. The final report of CBRI on such study is pending submission.

1.9 Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

B) Secondary Segment Information

The Company operates mainly in the Indian market and the export turnover being 1.59% (Previous Year 2.83%) of the external sales of the Company, there are no reportable geographical segments .

C) Other Disclosures

The Company''s operations predominantly relate to Cement and other products are Jute Goods, Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these financial statements.

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based on cost plus profit.

Under the current business environment, generated power is primarily being used for captive consumption. Accordingly, based on the current internal financial reporting structure and having regard to the general industry practices, the Company has decided to consider Power as part of Cement Segment for Segment Reporting purpose.

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

1.10 Related Party Disclosure

a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely : Birla Jute Supply Company Ltd.

Talavadi Cements Ltd.

Lok Cements Ltd.

Budge Budge Floorcoverings Ltd.

Birla Cement (Assam) Ltd.

M.P Birla Group Services Pvt. Ltd.

Birla Corporation Cement Manufacturing PLC

b) Other related parties with whom transactions have taken place during the year and previous year are :

i) Associates Birla Readymix Private Limited

Birla Odessa Industries Private Limited

ii) Key Management Personnel Shri Bachh Raj Nahar, Managing Director

1.11 Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2012

A) There has been no change/movements in number of shares outstanding at the beginning and at the end of the reporting period.

b) The Company has only one class of issued shares i.e. Ordinary Shares having par value of Rs 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

c) The Company does not have any Holding Company/ultimate Holding Company.

d) Details of shareholders holding more than 5% shares in the Company:

e) No Ordinary Shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment as at the Balance Sheet date.

f) No shares have been allotted or has been bought back by the Company during the period of 5 years preceeding the date as at which the Balance Sheet is prepared.

g) No securities convertible into Equity/Preference shares issued by the Company during the year.

h) No calls are unpaid by any Director or Officer of the Company during the year.

a) Non-Convertible Debentures are redeemable fully at par as under :

i) 9.05% NCD 2020 on 13th October, 2020;

ii) 9.10% NCD 2020 on 29th March, 2020;

iii) 8.80% NCD 2017 on 6th February, 2017;

iv) 8.65% NCD 2015 on 4th March, 2015.

The Debentures are secured by first charge on the movable and immovable fixed assets of the Company's Cement Division, ranking pari-passu with the term lenders.

b) Rupee Term Loans from Bank of Rs 3975.00 is repayable on 30th September, 2013 and is secured by first charge on the movable and immovable fixed assets of the Company's Cement Units at Satna (Madhya Pradesh) and Chanderia (Rajasthan), ranking pari-passu with Debentures and other term lenders. Rupee Term Loan from Bank of Rs 855.13 is repayable in quarterly instalments of Rs 73.75 starting from 31st March, 2013 and is secured by specific charge on certain Plant & Machineries of the Company's Unit Birla Jute Mills (West Bengal).

c) Foreign Currency Loans from Banks of Rs 8780.43 is repayable in remaining seventeen semi-annual instalments and is secured by first charge on the movable and immovable fixed assets of the Company's Cement Units at Chanderia (Rajasthan), ranking pari-passu with Debenture holders and other term lenders.

Foreign Currency Loans from Banks of Rs 3816.00 is repayable in July/August, 2016 and Rs 8904.00 is repayable in December, 2016/January, 2017. These Foreign Currency Loans are secured by first charge on the movable and immovable fixed assets of the Company's Cement Division, ranking pari-passu with Debenture holders and other term lenders.

Provision for current tax has been made u/s 115JB of the Income Tax Act, 1961. The company has not accounted for MAT credit u/s 115JAA of Rs 3763 (Previous Year Rs 925) as, in the opinion of the management, the company may continue to pay tax u/s 115JB of the Income Tax Act, 1961 in view of capital expenditure plans.

a) Working Capital Rupee Loans from Banks are secured by hypothecation of Current Assets,viz, Raw Materials,Stock-in-Trade, Consumable Stores and Book Debts, both present & future, and further by way of second charge on movable and immovable fixed assets of the Company's Cement Division.

b) Buyers Credit and Packing Credit in Foreign Currency (Secured) are secured against lien on certain Units of Mutual Funds.

c) Collateralised Borrowing and Lending Obligation is secured by deposit of Government Securities.

(a) Includes Rs 8.85 in Land and Rs 915.26 in Building under co-ownership basis and also Rs 0.15 being value of investments in Shares of a Private Ltd.Co.

(b) Includes Rs 88.50 being cost of Silo on lease hold land and Rs 88.50 being amortisation thereof up to 31st March, 2012.

(c) Includes Rs 590.63 being cost of flyash handling system on lease hold land and Rs 590.63 being amortisation thereof up to 31st March, 2012.

(d) Assets of the Cement Division were revalued during the year ended 31.03.85 and that of other units during the year ended 31.03.89 at 'net current value' on the basis of valuation report made by valuers and the amount added on such revaluation were Rs 7376.84 and Rs 2006.35 respectively.

(e) The Company has mortgaged a portion of land at Birlapur and Chanderia as security for subsidies received under Subsidised Housing Scheme for Industrial Workers.

(f) Other adjustment includes adjustment on account of borrowing costs & exchange differences.

* Amount is below the rounding off norm adopted by the company.

a) Although the market value of Investment in Birla Ericsson Optical Ltd. is lower than cost, considering the long-term and strategic nature of the investment, in the opinion of the management, such decline is temporary in nature and no provision is necessary for the same.

b) Deposited against Collaterized Borrowings and Lending Obligations except face value of Rs 1.00 (Lacs) of 6.05% GOI 2019.

c) Deposited with Government Departments as Security.

d) Lien Marked in favour of Banks.

e) Portion of Long-Term Investments, as defined by Accounting Standard - 13 'Accounting for Investments', which are expected to be realised within twelve months from the Balance Sheet date are disclosed under the head 'Current portion of Long-Term Investments' (See Note. 2.14).

Loans and Advances to Related Parties include :

i) Rs 207.90 (Previous Year Rs 204.36) to Lok Cements Ltd., a subsidiary, being interest free for setting up new projects and will be realised/adjusted on implementation of projects. The maximum amount outstanding at any time during the year Rs 207.90 (Previous Year Rs 204.36).

ii) Rs 3.03 (Previous Year Rs Nil) to Birla Corporation Cement Manufacturing PLC, a subsidiary, being interest free. The maximum amount outstanding at any time during the year Rs 3.03 (Previous Year Rs Nil).

iii) Rs Nil (Previous Year Rs Nil) to Talavadi Cements Limited, a subsidiary, being interest free. The maximum amount outstanding at any time during the year Rs 113.81 (Previous Year Rs 94.36).

iv) Rs Nil (Previous Year Rs Nil) to Budge Budge Floor coverings Limited, a subsidiary, being interest free. The maximum amount outstanding at any time during the year Rs 0.05 (Previous Year Rs 0.07).

* Amount is below the rounding off norm adopted by the company.

a) Portion of Long-Term Investments, as defined by Accounting Standard -13 'Accounting for Investments', which are expected to be realised within twelve months from the Balance Sheet date are disclosed as 'Current portion of Long-Term Investments'.

b) Lien Marked in favour of Banks.

(Rs in lacs)

1 Contingent Liabilities not provided for -

(a) Claims/Disputes/Demands not acknowledged as debts -

2011-12 2010-11

i) Demand notice for levying sales tax on packing material at the rate applicable on cement.

Writ petition has been filed and the matter is pending before Hon'ble High Court, Chandigarh. 161.07 161.07

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been filed before the Hon'ble High Court, Rajasthan which has granted stay in the matter. 147.16 147.16

iii) Additional U. P Sales Tax demanded by enhancing the value of cement. The case has been decided by Tribunal in Company's favour. Department has filed revision petition before Hon'ble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal. 146.40 146.40

iv) Demand for interest on delayed payment of Entry Tax raised by the U.P Trade Tax Department, Allahabad. Writ petition has been filed before the Hon'ble High Court, Allahabad which has granted stay in the matter. 264.84 158.46

v) Cenvat Credit taken on GTA service on the basis of TR-6 challan disallowed. Appeal filed before the CESTAT, New Delhi and stay granted in the matter. 190.94 190.94

vi) Excise Duty rebate received in earlier year by a Unit of the Company has been protested by the excise authorities before the Hon'ble Supreme Court. The matter has been remitted to the Assistant Commissioner of Central Excise. Hearing held and order awaited. 969.13 969.13

vii) Stamp Duty for registration/ execution of deed of certain Limestone Mining Lease. The matter is pending before the Hon'ble Supreme Court. 777.60 777.60

viii) Entry Tax as per U.P VAT Act on clinker received at Raebareli from Satna. The matter is pending before the Hon'ble Supreme Court. 319.86 639.71

ix) Renewable Energy Surcharge on account of shortfall of energy purchase from renewable energy sources as per Rajasthan Electricity Regulatory Commission notification dt. 23.03.2007. The matter is pending before the Hon'ble High Court, Rajasthan. 1726.67 1726.67

x) Appeal filed by the Excise Department before CESTAT, New Delhi on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company. 141.93 141.93

xi) Demand for differential Property Tax and Penalty raised by Municipal Corporation, Satna as per their re-assessment. Appeal filed and pending before Mayor-in-Council, Satna. 1177.51 NIL

xii) Demand of penalty by SDO, Raghuraj Nagar, for alleged impermissible mining in Village Naina. Writ Petition has been filed and stay has been granted by Hon'ble High Court. 1160.00 1160.00

xiii) Demand under Income Tax Act, 1961 for Assessment Year 2008-09,the matter is pending before CIT(Appeals). 1986.18 4102.73

xiv) Demand under Income Tax Act, 1961 for Assessment Year 2009-10, the matter is pending before CIT(Appeals). 2851.05 NIL

xv) Demand for Interest on Entry Tax under U.P VAT Act. Case is pending before Hon'ble Supreme Court. 636.38 NIL

xvi) Demand for Interest on U.P Entry tax on Clinker and Cement. The matter is pending before Hon'ble Supreme Court. 947.10 NIL

xvii) Demand of House Tax under Rajasthan Municipalities (Land and Building Tax) Rules, 1961 raised by Municipal Board, Chittorgarh. The matter is pending before Hon'ble High Court, Rajasthan. 251.73 NIL

xviii) Other Claims/Disputes/Demands (being less than Rs 100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, Export Tax and Other Claims - Rs 145.50, Rs 543.04, Rs 188.60, Rs 4.91, Rs 0.56, Rs 99.15, Rs 82.96, Rs 295.48 (Previous Year Rs 188.91, Rs 278.28, Rs 119.58, Rs 4.91, Rs 0.56, Rs 99.15, Rs NIL and Rs 312.28) respectively.

(b) Disputed amount of Rs 68.61[Paid under protest Rs 68.61](Previous Year Rs 68.61[Paid under protest Rs 68.61] ) in respect of difference of Fuel Cost Adjustment Charges, Rs 463.52 [Paid under protest Rs 75.00] (Previous Year Rs 461.31 [Paid under protest Rs 75.00] ) in respect of demand of Water Supply Charges, Rs 355.19 [Paid under protest Rs 137.39] (Previous Year Rs 355.19 [Paid under protest Rs 69.70] ) in respect of Surcharge on Electricity, Rs 4695.10 [Paid under protest Rs 3912.68] (Previous Year Rs 3464.25 [Paid under protest Rs 2309.50] ) in respect of demand of Royalty on Limestone including interest thereon, Rs 1194.63 [Paid under protest Rs 9.48] (Previous Year Rs 992.98 [Paid under protest Rs 9.48]) in respect of MODVAT/CENVAT claims, Rs 2092.50 [Paid under protest Rs 261.49] (Previous Year Rs 1913.34 [Paid under protest Rs 98.66] ) in respect of Sales Tax/VAT, Rs 24.56 [Paid Rs in lacs; under protest Rs 12.28] (previous year Rs 26.35)[paid under protest Rs Nil] in respect of interest on delayed payment of Entry Tax and Rs 659.02 [Paid under protest Rs 152.50] in respect of Excise Duty have not been provided for as the matters are sub judice.

(c) Bills discounted with Banks remaining outstanding - Rs 594.38 (Previous Year Rs 1394.87).

(d) Amount of Customs Duty including interest thereon, which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs 1009.30 and Rs 1116.91 (Previous Year Rs 685.15 and Rs 1142.09) respectively.

(e) The Company is liable to contribute upto a maximum of Rs 0.75 (Previous Year Rs 0.75) to C.A.C.O. in the event of its being wound-up during the time the Company continues to be its member or within one year thereafter.

2 Commitments Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs 3617.25 (Previous Year Rs 14173.19).

3 Derivative Instruments and Unhedged Foreign Currency Instruments

(a) Outstanding Forward Exchange Contracts booked for the purpose of hedging receivables/firm commitments are USD 2.38 and EURO NIL (Previous Year USD NIL and EURO 0.88) and payables/firm commitments are USD 195.00 and EURO 5.00 (Previous Year USD 170.00 and EURO 20.00). Outstanding Cross Currency Swap Contracts booked for the purpose of hedging payables are CHF/USD NIL and CHF/EURO NIL (Previous Year CHF/USD 78.65 and CHF/EURO 4.55)

(b) Unhedged foreign currency receivables are USD 10.57, GBP 0.24 and EURO 0.23 (Previous Year USD 14.80, GBP 0.30 and EURO 0.75) and payables are USD 653.45, EURO 0.71 and CHF NIL (Previous Year USD 323.77, EURO 1.10 and CHF 0.17).

(c) The marked to market gain amounting to Rs NIL (Previous Year Rs 10.08) on Forward Exchange Contracts for firm commitments and highly probable forecast transactions has not been accounted for.

4 During the year, Company has exercised the option under paragraph 46A(1) of Accounting Standard-11 relating to "The Effects of Changes in Foreign Exchange Rates" as notified by the Ministry of Corporate Affairs on 29th December, 2011. Consequently, the Foreign Exchange loss arising on reporting of long-term foreign currency monetary items amounting to Rs 270.63 for the year ended 31st March, 2012 is added to the cost of depreciable fixed assets & CWIP and out of which Rs 269.57 remains unamortised as at 31.03.2012.

5 Dues to Micro, Small and Medium Enterprises

The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount of with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

(b) In respect of Defined Benefit Plans, necessary disclosures are as under- (i) Benefits are of the following types :

- Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972;

- Pension is payable to certain categories of employees as per Company's Pension Scheme;

- Provident Fund (other than government administered) as per the provisions of Employees Provident Funds and Miscellaneous Provisions Act, 1952.

a) Amount not recognised as an asset, because of the limit in paragraph 59 (b) of Accounting Standard-15 (Revised 2005) i.e. Employee Benefits is Rs Nil.

b) The fair value at the end of the year of any reimbursement right recognised as an asset in accordance with paragraph 103 is Rs Nil.

c) Fair value of plan assets does not include any amount for Companies own financial instruments or any property occupied by, or other assets used by, the Company to the extent of the information available.

(vi) The major categories of plan assets as a percentage of total plan assets are as follows :

(viii) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on the assumed rate of return provided by Company's Actuary.

(ix) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(x) The Company expects to contribute Rs 500 (Previous Year Rs 300) to its gratuity fund in 2012-13.

(xi) In respect of provident funds in the nature of defined benefit plans contribution amounting to Rs 584.95 (Previous Year Rs 476.07) and the accrued past service liability of Rs 31.79 (Previous Year Rs 143.17) as valued by the actuary is recognised as expense and included in 'Payments to and Provision for Employees'.

6 The closing stock of Certified Emission Reductions (CERs) as on 31st March, 2012 is NIL (Previous Year 87157 units).

7 There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlement/realisation.

8 Certain Sundry Debtors, Loans and Advances and Creditors are subject to confirmation.

9 a) The Company's Units: Soorah Jute Mills and Birla Jute Mills are under Suspension of Operations since 29th March, 2004 and 31st March, 2012 respectively.

b) The working of the Chanderia Unit has been severely hampered at the mining and blasting operation for limestone at the Chanderia Plant remained suspended since 20th August, 2011 in view of the Order of the Hon'ble Jodhpur High Court.

10 Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 upto 30th June, 1997 being unascertainable shall be accounted for as and when settled.

B) Secondary Segment Information

The Company operates mainly in the Indian market and the export turnover being 2.83% (Previous Year 4.31%) of the external sales of the Company, there are no reportable geographical segments .

C) Other Disclosures

The Company's operations predominantly relate to cement and other products are Jute Goods, Generation of Power, PV.C. Goods, Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these financial statements.

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings and PVC Goods which are based on cost plus profit.

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

11 Related Party Disclosure

a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely : Birla Jute Supply Company Ltd (Formerly Assam Jute Supply Company Ltd.)

Talavadi Cements Ltd.

Lok Cements Ltd.

Budge Budge Floor coverings Ltd.

Birla Cement (Assam) Ltd.

Birla North-East Cement Ltd.(under liquidation)

M.P Birla Group Services Pvt. Ltd.

Birla Corporation Cement Manufacturing PLC

12 Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2011

1. Contingent Liabilities not provided for -

(a) Bills discounted with Banks remaining outstanding - Rs. 1394.87 (Previous Year Rs. 995.09).

(b) Guarantees and Counter-guarantees - Rs. 2366.41 (Previous Year Rs. 1596.11).

(c) Amount of Customs Duty which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs. 685.15 and Rs. 1142.09 (Previous Year Rs. 747.20 and Rs. 759.15) respectively.

(d) The Company is liable to contribute up to a maximum of Rs. 0.75 (Previous Year Rs. 0.75) to C.A.C.O. in the event of its being wound-up during the time the Company continues to be its member or within one year thereafter.

(e) Claims/Disputes/Demands not acknowledged as debts -

2010-11 2009-10

i) Demand notice for levying sales tax on packing material at the rate applicable on cement. Writ petition has been filed and the matter is pending before Honble High Court, Chandigarh. 161.07 161.07

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been filed before the Honble High Court, Rajasthan which has granted stay in the matter. 147.16 147.16

iii) Additional U. R Sales Tax demanded by enhancing the value of cement. The case has been decided by Tribunal in Companys favour. Department has filed revision petition before Honble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal. 146.40 146.40

iv) Demand for interest on delayed payment of Entry Tax raised by the U.R Trade Tax Department. Allahabad. Writ petition has been filed before the Honble High Court, Allahabad which has granted stay in the matter. 158.46 158.46

v) Cenvat Credit taken on GTA service on the basis of TR-6 challan disallowed. Appeal filed before the CESTAT, New Delhi and stay granted in the matter. 190.94 190.94

vi) Excise Duty rebate received in earlier year by a Unit of the Company has been protested by the excise authorities before the Honble Supreme Court. The matter has been remitted to the Assistant Commissioner of Central Excise. Hearing held and order awaited. 969.13 969.13

vii) Stamp Duty for registration/execution of deed of certain Limestone Mining Lease. The matter is pending before the Honble Supreme Court. 777.60 777.60

viii) Entry Tax as per U.R VAT Act on clinker received at Raebareli from Satna. The matter is pending before the Honble Supreme Court. 639.71 639.71

ix) Renewable Energy Surcharge on account of shortfall of energy purchase from renewable energy sources as per Rajasthan Electricity Regulatory Commission notification dt. 23.03.2007. The matter is pending before the Honble High Court, Rajasthan. 1726.67 1089.74

x) Demand for Entry Tax under Rajasthan Tax on entry of goods into Local Area Act, 1999. Stay has been granted by the Honble High Court, Rajasthan. NIL 631.00

xi) Appeal filed by the Excise Department before CESTAT, New Delhi on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company. 141.93 141.93

xii) Demand for VAT including penalty and interest by ACCT (Audit), Patna under Bihar VAT Act, 2005. The matter is pending before Jt. Commissioner (Appeal), Patna. 1241.14 1241.14

xiii) Demand of penalty by SDO, Raghuraj Nagar, for alleged impermissible mining in Village Naina. Writ Petition has been filed and stay has been granted by Honble High Court. 1160.00 --

xiv) Demand under Income Tax Act, 1961 for Assessment Year 2008 - 09.The matter is pending before CIT (Appeals). 4102.73 --

xv) Other Claims/Disputes/Demands (being less than Rs. 100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax. Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, and other claims - ^188.91, Rs. 278.28, Rs. 119.58, Rs. 4.91, Rs. 0.56. Rs. 99.15, Rs. 312.28 (Previous Year Rs. 158.59, Rs. 269.69, Rs. 114.20, Rs. 4.91, Rs. 0.56, Rs. 99.15, and Rs. 327.68) respectively.

2. Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 14173.19 (Previous Year * 20600.89).

3. Disputed amount of Rs. 68.61[Paid under protest Rs. 68.61] (PreviousYear Rs. 68.61[Paid under protest Rs. 68.61] ) in respect of difference of Fuel Cost Adjustment Charges, Rs. 461.31 [Paid under protest Rs. 75.00] (Previous Year Rs. 450.83 [Paid under protest Rs. 75.00] ) in respect of demand of Water Supply Charges, Rs. 355.19 [Paid under protest Rs. 69.70] (Previous Year Rs. 206.02 [Paid under protest Rs. 69.70] ) in respect of Surcharge on

Electricity, Rs. 3464.25 [Paid under protest Rs. 2309.50] (Previous Year Rs. 3151.08 [Paid under protest Rs. 1782.88] ) in respect of demand of Royalty on Limestone including interest thereon, Rs. 992.98 [Paid under protest Rs. 9.48] (Previous Year Rs. 655.46 [Paid under protest Rs. 9.48] ) in respect of MODVAT/CENVAT claims, Rs. 672.20 [Paid under protest Rs. 98.66] (Previous Year Rs. 765.99 [Paid under protest Rs. 114.16]) in respect of Sales Tax/VAT and Rs. 659.02 [Paid under protest Rs. 152.50] (Previous Year Rs. 692.75 [Paid under protest Rs. 152.50]) in respect of Excise Duty have not been provided for as the matters are subjudice.

4. The Company has mortgaged a portion of land at Birlapur and Chanderia as security for subsidies received under Subsidised Housing Scheme for Industrial Workers.

5. Capital Work-in-progress includes other expenses during construction for project Rs. 142.25 (Previous Year Rs. 40.15).

6. Stores, Spare Parts etc under Schedule 8 "Inventories" include Rs. 128.58 (Previous Year Rs. 135.10) on account of Fixed Assets held for disposal. The same has been valued at Cost or Net Realisable value, whichever is lower.

7. Provision for current tax has been made u/s 115JB of the Income Tax Act, 1961. The company has not accounted for MAT credit u/s 115JAA of Rs. 925.00 as, in the opinion of the management, the company may continue to pay tax u/s 115JB of the Income Tax Act, 1961 in view of capital expenditure plans.

8. Advances to Employees Rs. 0.90 (Previous Year Rs. 0.37) are under litigation.

9. Certain Sundry Debtors, Loans and Advances and Creditors are subject to confirmation.

10. Loans and Advances include:

(a) Rs. 204.36 (Previous Year Rs. 201.11) to Lok Cements Ltd., a subsidiary, being interest free for setting up new projects and will be realised / adjusted on implementation of projects. The maximum amount outstanding at any time during the year Rs. 204.36 (Previous Year Rs. 201.11).

(b) Rs. NIL (Previous Year Rs. NIL) to Budge Budge Floorcoverings Ltd., a subsidiary, being interest free. The maximun amount outstanding at any time during the year Rs. 0.07 (Previous Year Rs. 0.19).

(c) Rs. Nil (Previous Year Rs. NIL) to Talavadi Cement Limited., a subsidiary, being interest free. The maximum amount outstanding at any time during the year Rs. 94.36 (Previous Year Rs. 1.31).

11. The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount together with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information and that given in "Current Liabilities - Schedule 12" regarding MSMEs has been determined to the extent such parties have been identified on the basis of information available with the Company.

12. (a) Outstanding Forward Exchange Contracts booked for the purpose of hedging receivables are USD NIL and EURO 0.88 (Previous Year USD

2.70 and EURO NIL) and payables are USD 170.00 and EURO 20.00 (Previous Year USD 45.00 and EURO NIL). Outstanding Cross Currency Swap Contracts booked for the purpose of hedging payables are CHF/USD 78.65 , CHF/EURO 4.55 and JPY/USD NIL (Previous Year CHF/USD 76.04, CHF/EURO NIL and JPY/USD 479.31).

(b) Unhedged foreign currency receivables are USD 14.80, GBP 0.30 and EUR 0.75 (Previous Year USD 4.95, GBP NIL and EUR NIL ) and payables are USD 323.77, EUR 1.10, CHF 0.17 and JPY NIL (Previous Year USD 233.93, EUR 2.73, CHF 22.77 and JPY 0.26).

(c) The marked to market gain amounting to Rs. 10.08 (Previous Year Rs. 4.16) on Forward Exchange Contracts for firm commitments and highly probable forecast transactions has not been accounted for.

13. Although the market value of Investment in Birla Ericsson Optical Ltd. is lower than cost, considering the long term and strategic nature of the investment, in the opinion of the management, such decline is temporary in nature and no provision is necessary for the same.

14. Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

15. Miscellaneous Income under Schedule 15 includes Rs. 645.37 lacs on account of foreign exchange gain (Previous Year Rs. 700.76 lacs).

16. There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlement/realisation.

17. The closing stock of Certified Emission Reductions (CERs) as on 31st March 2011 is 87157 units (Previous Year 96145 units).

18. Repairs to Buildings, Repairs to Machinery, Salary, Wages & Bonus etc and Transporting & Forwarding Expenses includes Voluntary Retirement Payments to employees on separation Rs. NIL, Rs. 12.93, Rs. 225.46 and Rs. 5.48 (Previous year Rs. 5.46, Rs. 11.14, Rs. NIL and Rs. NIL) respectively.

19. Sundry Adjustments include prior periods adjustments of Rs. 34.14 (Net Debit) [Previous Year Rs. 9.47 (Net Debit)].

20. The Companys Unit: Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

21. a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely :

Birla Jute Supply Company Ltd (Formerly Assam Jute Supply Company Ltd.)

Talavadi Cements Ltd.

Lok Cements Ltd.

Budge Budge Floorcoverings Ltd.

Birla Cement (Assam) Ltd.

Birla North-East Cement Ltd.

New-Age Cement Ltd.

Thiruvaiyaru Industries Ltd.

M.R Birla Group Services Pvt. Ltd.

b) Other related parties with whom transactions have taken place during the year and previous year are :

Key Management Personnel Shri Bachh Raj Nahar, E.D. & Chief Executive Officer

22. Figures for the Previous Year have been regrouped wherever necessary.


Mar 31, 2010

1. Contingent Liabilities not provided for -

(a) Bills discounted with Banks remaining outstanding - Rs. 995.09 (Previous Year Rs. 717.68).

(b) Guarantees and Counter-guarantees - Rs. 1596.11 (Previous Year Rs. 1578.14).

(c) Amount of Customs Duty which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs. 747.20 and Rs. 759.15 (Previous Year Rs. 395.29 and Rs. Nil) respectively.

(d) The Company is liable to contribute up to a maximum of Rs. 0.75 (Previous Year Rs. 0.75) tq CA.C.O. in the event of its being wound-up during the time the Company continues to be its member or within one year thereafter.

(Rs. in lacs)

(e) Claims/Disputes/Demands not acknowledged as debts -

2009-10 2008-09

i) Demand notice for levying sales tax on packing material at the rate applicable on cement.

Writ petition has been filed and the matter is pending before Honble High Court, Chandigarh. 161.07 161.07

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been filed before the Honble High Court, Rajasthan which has granted stay in the matter. 147.16 147.16

iii) Additional U. R Sales tax demanded by enhancing the value of cement. The case has been decided by Tribunal in Companys favour. Department has filed revision petition before Honble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal. 146.40 146.40

iv) Demand for interest on delayed payment of Entry Tax raised by the U.P. Trade Tax Department, Allahabad. Writ petition has been filed before the Honble High Court, Allahabad which has granted stay in the matter. 158.46 158.46

v) Cenvat Credit taken on GTA service on the basis of TR - 6 challan disallowed. Appeal filed before the CESTAT, New Delhi and stay granted in the matter. 190.94 190.94

vi) Excise Duty rebate received in earlier year by a Unit of the Company has been protested by the excise authorities before the Honble Supreme Court. The matter has been remitted to the Assistant Commissioner of Central Excise. Hearing held and order awaited. 969.13 969.13

vii> Stamp Duty for registration/execution of deed of certain Limestone Mining Lease. The matter is pending before the Honble Supreme Court. 777.60 777.60

viii) Entry Tax as per U.R VAT Act on clinker received at Raebareli from Sarna. The matter is pending before the Honble Supreme Court. 639.71 573.82

ix) Renewable Energy surcharge on account of shortfall of energy purchase from renewable energy sources as per Rajasthan Electricity Regulatory commission notification dt. 23.03.2007. The matter is pending before the Honble High Court, Rajasthan. 1089.74 697.48

x) Demand for Entry Tax underRajasthan Tax on entry of goods into Local Area Act, 1999.

Stay has been granted by the Honble High Court, Rajasthan. 631.00 371.92

xi) Appeal filed by the Excise Department before CESTAT, New Delhi on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company. 152.10 --

xii) Demand for VAT including penalty and interest by ACCT (Audit), Patna under Bihar VAT Act. 2005. The matter is pending before Jt. Commissioner (Appeal), Patna. 1241.14 --

xiii) Other Claims/Disputes/Demands (being less than Rs. 100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, and other claims - Rs. 158.59, Rs. 259.52, Rs. 114.20, Rs. 4.91, Rs. 0.56, Rs. 99.15, Rs. 327.68 (Previous Year Rs. 81.01, Rs. 314.35, Rs. 108.81, Rs. 4.91, Rs. 0.56, Rs. 99.15, and Rs. 318.91) respectively.

2. Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 20600.89 (Previous Year Rs. 11455.48).

3. Disputed amount of Rs. 68.61[Paid under protest Rs. 68.61 ](PreviousYearRs. 68.61 [Paid under protest Rs.68.61]) in respect of difference of Fuel Cost Adjustment Charges, Rs. 450.83 [Paid under protest Rs. 75.00] (Previous Year Rs. 439.09 [Paid under protest Rs. 75.00]) in respect of demand of water supply charges, Rs. 206.02 [Paid under protest Rs. 69.70] (Previous Year Rs. 206.02 [Paid under protest Rs. 69.70]) in respect of Surcharge on Electricity, Rs. 3151.08 [Paid under protest Rs. 1782.88] (Previous Year Rs. 3265.79 Paid under protest Rs. 506.11]) in respect of demand of Royalty on limestone including interest thereon, Rs. 655.46 [Paid under protest Rs. 9.48] (Previous Year Rs. 655.68 [Paid under protest Rs. 10.15]) in respect of MODVAT/CENVAT claims, Rs. 765.99 [Paid under protest Rs. 114.16] (Previous Year Rs. 860.93 [Paid under protest Rs. 127.53]) in respect of Sales Tax/VAT and Rs. 692.75 [Paid under protest Rs.152.50] (Previous Year Rs. 1285.16 [Paid under protest Rs. 154.75]) in respect of Excise Duty have not been provided for as the matters are subjudice.

4. The Company has mortgaged a portion of land at Birlapur and Chanderia as security for subsidies received under Subsidised Housing Scheme for Industrial Workers.

5. Capital Work-in-progress includes other expenses during construction for project Rs. 40.15 (Previous Year Rs. 15.59).

6. Stores, Spare Parts etc under Schedule 8 "Inventories" include Rs. 135.10 on account of Fixed Assets held for disposal. The same has been valued at Cost or Net Realisable value, whichever is lower.

7. The amount of borrowing costs capitalised during the year is Rs. 91.65 (Previous Year Rs. 126.17).

8. Advances to Employees Rs, 0.37 (Previous Year Rs. 0.37) are under litigation.

9. Certain Sundry Debtors, Loans and Advances and Creditors are subject to confirmation.

10. Loans and Advances include:

(a) Rs. 201.11 (Previous Year Rs. 196.96) to Lok Cements Ltd., a subsidiary, being interest free for setting up new projects and will be realised / adjusted on implementation of projects. The maximun amount outstanding at any time during the year Rs. 201.11 (Previous Year Rs. 196.96).

(b) Rs. Nil (Previous Year Rs. 0.19) to Budge Budge Floorcoverings Ltd., a subsidiary, being interest free. The maximun amount outstanding at any time during the year Rs. 0.19 (Previous Year Rs. 0.19).

11. The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount together with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information and that given in "Current Liabilities - Schedule 12" regarding MSMEs has been determined to the extent such parties have been identified on the basis of information available with the Company.

12. (a) Outstanding Forward Exchange Contracts booked for the purpose of hedging receivables are USD 2.70 (Previous Year USD 0.70) and payables are USD 45.00 (Previous Year USD 32.50). Outstanding Cross Currency Swap Contracts booked for the purpose of hedging payables are CHF/USD 76.04 and JPY/USD479.31 (Previous Year CHF/USDNil and JPY/USDNil).

(b) Unhedged foreign currency receivables are USD 4.95, GBP Nil and EUR Nil (Previous Year USD 4.08, GBP 0.32 and EUR 0.20 ) and payables are USD 233.93 EUR 2.73, CHF 22.77 and JPY 0.26 (Previous Year USD 36.06, EUR 0.79, CHF Nil and JPY Nil).

(c) The marked to market gain amounting to Rs. 4.16 (Previous Year Rs. 2.36) on Forward Exchange Contacts for firm commitments and highly probable forecast transactions has not been accounted for. .

13. Although the market value of investment in Birla Ericsson Optical Ltd. is lower than cost, considering the long term and strategic nature of the investment, in the opinion of the management, such decline is temporary in nature and no provision is necessary for the same.

14. Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

15. Miscellaneous Income under Schedule-15 includes Rs. 700.76 lacs on account of foreign exchange gain (Previous Year foreign exchange loss of Rs. 120.72 lacs and Rs. 4125 lacs grouped undedr "Other Expenses", in Schedule-20 and "Other Finance Changes" in Schedule-21 respectively).

16. There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlement/realisation.

(viii) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on the assumed rate of return provided by Companys Actuary.

(ix) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(x) The Company expects to contribute Rs. 600 to its gratuity fund in 2010-11.

(xi> In respect of provident funds in the nature of defined benefit plans, pending the issuance of the Guidance Note from the Actuarial Society of India, the Companys actuary has expressed his inability to reliably measure the provident fund liability and therefore contributions to those provident funds amounting to Rs. 518.95 (Previous Year Rs. 376.35) during the year is recognised as expense and included in Payments to and Provision for Employees. Shortfall of Rs.112.57 (Previous Year Rs. Nil) in the contribution to the provident funds in the nature of defined benefit plans is provided to the extent of the information available with the Company.

18. Repairs to Buildings and Repairs to Machinery, includes Voluntary Retirement Payments to employees on separation Rs. 5.46 and Rs. 11.14 (Previous year Rs. 11.13 and Rs. 110.20) respectively.

19. Sundry Adjustments include prior period adjustments of Rs. 9.47 (Net Debit) [Previous Year Rs. 2.85 (Net Debit)].

20. The Companys Unit: Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

21. Segment Reporting

B) Secondary Segment Information

The Company operates mainly "in the Indian market and the export turnover being 3.07% (Previous Year 4.72%) of the external sales of the Company, there are no reportable geogeophical segments.

C) Other Disclosures

The Companys operations predominantly relate to Cement and other products are Jute Goods, Generation of Power. PVC Goods, Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these Financial Statements,

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings and PVC Goods which are based on cost plus profit.

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

22. a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely :

Birla Jute Supply Company Ltd (Formerly Assam Jute Supply Company Ltd.)

Talavadi Cements Ltd.

Lok Cements Ltd.

Budge Budge Roorcoverings Ltd.

Birla Cement (Assam) Ltd.

Birla North-East Cement Ltd.

New-Age Cement Ltd.

Thiruvaiyaru Industries Ltd.

M.P. Birla Group Services Pvt. Ltd.

b) Other related parties with whom transactions have taken place during the year and previous year are :

Key Management Personnel

Shri Bachh Raj Nahar, E.D. & Chief Executive Officer

23. Figures for the Previous Year have been regrouped wherever necessary.

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