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Notes to Accounts of JK Lakshmi Cement Ltd.

Mar 31, 2016

1. Due and payable within one year.

1 Secured Redeemable Non-Convertible Debentures ( NCDs) are privately placed and consists of :

i) 10.05% NCDs Series B-1 balance of Rs. 20 crore is redeemable in an annual installment at the end of 7th year from the date of allotment i.e. 4th Feb, 2010.

ii) 10.35% NCDs Series B-2 of Rs. 60 crore are redeemable in three equal annual installments at the end of 8th, 9th and 10th year from the date of allotment i.e. 4th Feb, 2010.

1a. 9% Secured Redeemable Non Convertiable Debentures ( NCDs) of Rs. 49.79 crore are redeemable in 3 equal annual installments, at the end of 6th, 7th and 8th year from the date of allotment, i.e. 20th July 2012.

2 All the NCDs are secured by a mortgage on the Company''s immovable properties located in the State of Gujarat and are also secured by way of a first charge on all the immovable and movable fixed assets pertaining to the Company''s Cement Unit situated at Jaykaypuram, Basantgarh, Distt. Sirohi, in the State of Rajasthan, ranking pari-passu with the charges created on the said fixed assets, subject to the prior charges in favour of Banks on specified assets.

3 Term Loans from Banks aggregating to Rs. 195.38 crore are secured by way of a first charge on all the immovable and movable properties pertaining to the Company''s Cement Unit situated at Jaykaypuram, Basantgarh, Distt. Sirohi, in the State of Rajasthan, ranking pari-passu with the charges created on the said assets subject to the prior charges in favour of Banks on specified assets and Company''s Banks for working capital on specified movables assets. These Term Loans are /shall be repayable as under:

a) Term Loan of Rs. 21.88 crore are repayable in 20 equal quarterly installments.

b) Term Loan of Rs. 21.00 crore is repayable in 7 equal quarterly installments.

c) Term Loan of Rs. 52.50 crore is repayable in 24 equal quarterly installments.

d) Term Loan of Rs. 100.00 crore shall be repayable in 32 equal quarterly installments commencing from 30th June 2016.

4 Term Loans from Banks aggregating to Rs. 43.75 crore are secured by way of an exclusive charge on certain specified assets of the Company situated at Jaykaypuram, Basantgarh, Distt. Sirohi, in the State of Rajasthan. These Term Loans are repayable as under:

a) Term Loan of Rs. 12.50 crore are repayable in 4 equal quarterly installments.

b) Term Loan of Rs. 31.25 crore is repayable in 20 equal quarterly installments.

5 Term Loan from a Bank of Rs. 52.50 crore is secured by way of an exclusive first charge on immovable & movable fixed assets of the Company''s Split Grinding Unit situated at Jhajjar, in the State of Haryana, except charge on the Current Assets. This Term Loan is repayable in 24 equal quarterly installments .

6 Term Loan from a Bank of Rs. 35.00 crore is secured by way of an exclusive first charge on movable assets of the Company''s AAC Block Unit situated at Jhajjar, in the State of Haryana, except charge on current assets. This Term Loan is repayable in 28 equal quarterly installments.

7 Term Loan from a Bank of Rs. 67.81 crore is secured by way of an exclusive first charge on movable and immovable assets of the Company''s 2nd Split Grinding Unit situated at Jhajjar, in the State of Haryana, except charge on current assets. This Term Loan is repayable in 31 equal quarterly installments.

8 Term Loan from a Bank of Rs. 40.00 Crore is secured by way of an exclusive first charge on immovable & movable assets of the Company''s 6 MW Solar Power Project in the State of Rajasthan, except charge on the Current Assets. This Term Loan shall be repayable in 32 equal quarterly installments commencing from 30th June 2016.

9 Term Loans from Banks aggregating to Rs. 1024.86 crore are secured / to be secured by way of first pari passu charge on all the immovable and movable fixed assets of the Company''s Greenfield Cement Plant at Durg in the State of Chattisgarh. These Term Loans from Banks are repayable in 38 equal quarterly installments.

10 The Company has created an exclusive charge on the Movable Assets of its Split Grinding Unit being set up at Surat for which the Term Loan of Rs. 112.30 Crore has since been drawn.

11 Unsecured loan from a Bank of Rs. 25.00 crore is repayable in 5 equal half yearly installments.

12 Fixed Deposits represents the Deposits accepted by the Company from Public under its Fixed Deposit Scheme having maturity of 2 & 3 years from the date of deposits.

13. Estimated amount of contracts remaining to be executed on capital account (Net of Advances) Rs. 29.80 crore (Previous year Rs. 124.11 crore).

14. In respect of certain disallowances and additions made by the Income Tax Authorities, Appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally settled.

15. Contingent liability for non-use of jute bags for Cement packing upto 30th June, 1997, as per Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 is not ascertained and the matter is subjudice. The Government has excluded Cement Industry from application of the said Order from 1st July, 1997.

16. The Company has componentized its fixed assets and separately assessed the life of the major components, forming part of the main assets. Consequently, the depreciation charge for the year is higher by Rs. 3.14 crore.

17. Maximum balance due for Commercial Paper issued during the year was Rs. 270 crore and the year end balance is Rs. 155 crore (Previous year Maximum balance Rs. 120 crore and at the year end Rs. 50 crore).

18. Rajasthan Government had granted the benefit of 75% exemption to the Company for a period of 9 years vide its notification dated 28.4.2003 on the RST and CST payable u/s 15 of Rajasthan Sales Tax Act 1994. With the enactment of VAT Act, 2006 the benefit of exemption for the balance period was converted into deferment w.e.f. 1st April 2006. During the FY 2014-15 the Company had received Demand Notices of Rs. 225.25 crore (previous year Rs. 222.54 crore) consisting of Sales Tax Exemption of Rs. 49.19 crore availed upto March 2006, balance of Sales Tax Deferment of Rs. 56.57 crore from April 2006 to May 2009 and interest of Rs. 119.49 crore thereon. The Demand had arisen consequent to Supreme Court''s adverse judgment in case of another cement company.

In order to avoid any coercive measure against the Company by the Department, the Company had paid under protest the full principal demand, toward Sales Tax Exemption and Sales Tax Deferment of Rs. 105.77 crore during the Previous Year, pending judgment from the judicial authorities.

Based on the fact that the grounds under which the Company has been granted this benefit is different from the grounds on which the other cement company availed the benefit and as also based on the opinion of senior legal counsels, the Company believes it has sufficient strong ground eventually to get favorable judgment in its favour.

However out of abundant caution the Company had made provision and shown as Exceptional Item for Rs. 49.19 crore during Previous FY against the Sales Tax Exemption and interest of Rs. 119.49 crore is being considered as a contingent liability.

19. a) Sales include own consumption at cost Rs. 1.76 crore (Previous years Rs. 0.94 crore).

b) Consumption of Stores and Spares is net of scrap sale Rs. 0.90 crore (Previous year Rs. 5.69 crore.)

c) Interest expenses include Rs. 5.24 crore (Previous year Rs. 4.81 crore) being interest on entry tax.

20. Exceptional Items of Rs. 10.73 crore includes Rs. 5.45 crore towards additional expenditure on stabilization of green field Plant at Durg, Chhattisgarh, Rs. 4.28 crore contribution made to District Mines Foundation vide Govt. Notification issued in Sep 15 with retrospective effect from January 2015 and Rs.1.00 crore cement wages award for previous year ( previous year Rs. 49.19 crore (refer note 37) towards provision for Sales Tax Exemption Rs.12.61 crore being one time expenditure incurred on the launch of new Product & setting up of new Marketing Network in Eastern Market and Rs. 1.45 crore being claims against fire loss due to fire & arson at Durg in 2013, not accepted by the insurer).

21. a) Other-Non-Operating Income includes receipts from aircraft flying Rs. 3.78 crore, (previous year Rs. 2.34 crore) net of expenses of Rs. 4.95 crore (previous year Rs. 5.94 crore).

b) Miscellaneous expenses include contribution Rs. Nil (Previous year to Satya Electrol Trust Rs. 1.10 crore) for political purpose, CSR expenses amounting to Rs. 3.12 crore (previous year Rs. 3.36 crore ) and Foreign exchange fluctuation of loss (net) Rs. 1.64 crore (previous year loss (net) Rs. 2.38 crore).

22. a) Forward contracts of Rs. 72.57 crore - USD 10.47 Mn (Previous year Rs. 132.52 crore - USD 20.71 Mn,.) taken for the purpose of hedging of payables and Rs. 13.24 crore -USD 1.98 Mn (previous year Nil) against letter of credit.

b) Un-hedged Rs. 1.39 crore -Euro 0.18 Mn, (previous year Rs. 5.58 crore - USD 0.09 Mn) against letter of credit outstanding as at 31st March, 2016.

23. Based on information available with the Company in respect of MSME (''The Micro Small & Medium Enterprises Development Act 2006''). The details are as under :

i) Principal and Interest amount due and remaining unpaid as at 31st March 2016 -Nil (Previous year Nil ).

ii) Interest paid in terms of section 16 of the MSME Act during the year - Nil (Previous year - Nil).

iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified - Nil (Previous year - Nil).

iv) Payment made beyond the appointed day during the year - Nil (Previous year - Nil).

v) Interest Accrued and unpaid as at 31st March 2016- Nil (Previous year - Nil).

24. The Company has only one business segment namely Cementitious Materials.

25. Other advances include an amount of Rs. 30.00 crore (including Rs. 3.33 crore receivable within one year) (Previous year Rs. 33.33 crore) (Maximum balance due Rs. 33.33 crore, previous year Rs. 36.67 crore) due from BACL and arising out of an earlier Scheme of Reconstruction, Arrangement and Demerger sanctioned by Hon''ble High Courts of Rajasthan (Jodhpur) and Delhi.

26. The Company is implementing the Revival & Rehabilitation Scheme of Udaipur Cement Works Limited (UCWL) after its approval by BIFR in 2012. With the induction of funds of Rs. 149.11 Crore upto 31st March, 2015 by the Company in UCWL, the Net Worth of UCWL has become positive. UCWL has since come out of the purview of BIFR in January, 2016.

The Company has given Corporate Guarantee to the Trustees of NCDs of Rs. 475 Crore issued on private placement basis by the wholly owned Subsidiary Hansdeep Industries & Trading Company Limited (HITCL). The proceeds of these NCDs issued are being utilized by HITCL for part financing UCWL''s Revival & Rehabilitation Project.

27. During the year the Company has received subsidy of Rs. 0.15 crore (Previous year Rs. 0.30 crore) in terms of State Investment Promotion Scheme, the same is netted from interest.

28. Pending assessment of actual damage to Plant & Machinery and Other Equipments due to incidence of fire and arson at Durg Cement Plant in the year 2013-14, the Company had filed provisional claim of Rs. 83.95 Crore with the Insurance Company.

The claim has since been finally settled in April, 2016 at Rs. 72.12 Crore, with equipment worth Rs. 10.38 Crore found usable & claim of Rs. 1.45 Crore not accepted by Insurance Company (already charged as Exceptional Item in Previous Year).

29. Disclosure pursuant to Clause 32 of the Listing Agreement : (Loans / Advances to employees as per Company''s policy are not considered.)

30. Some of the Balances of debtors and creditors are in process of confirmation.

31. During the Current Financial Year, the Company availed Short Term Bridge Loans to part finance ongoing Projects pending disbursement/tie-up of long term loans from Banks/Markets.

Note 32.

Previous year''s figures have been re-grouped /re-classified wherever necessary and figures less than Rs.50000 have been shown as actual in bracket.


Mar 31, 2014

1. Estimated amount of contracts remaining to be executed on capital account (Net of Advances) Rs. 332.60 crore (Previous year Rs. 354.36 crore).

2. Contingent liabilities in respect of claims not accepted by the Company (matters in appeals) and not provided for are as follows :

Rs. in Crore (10 Million)

31st March, 2014 31st March, 2013

a) Excise duty – 2.30

b) Sales tax 60.85 5.45

c) Income Tax 1.30 –

d) Land tax 1.31 1.31

e) Renewable Energy Obligation 19.94 13.04

f) Other matters 6.51 6.85

Total 89.91 28.95

3. In respect of certain disallowances and additions made by the Income Tax Authorities, Appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally settled.

4. Contingent liability for non-use of jute bags for Cement packing upto 30th June, 1997, as per Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 is not ascertained and the matter is subjudice. The Government has excluded Cement Industry from application of the said Order from 1st July, 1997.

5. Exceptional Item of Rs. 18.50 crore represents provision made against duties / cess in respect of earlier years for matters under litigation.

6. Maximum balance due for Commercial Paper issued during the year was Rs. 50 crore and the year end balance is Nil (Previous year Maximum balance Rs. 55 crore and at the year end Nil).

7. Rajasthan Government had granted the benefit of 75% exemption to the Company for a period of 9 years vide its notification dated 28.4.2003 on the RST and CST payable u/s 15 of Rajasthan Sales Tax Act 1994. With the enactment of VAT Act, 2006 the benefit of exemption for the balance period was converted into deferment w.e.f. 1st April 2006. The Company has received Show Cause Notices for refund of Rs. 128.32 crore (Rs. 49.20 crore for exemption availed upto March 2006 and Rs. 79.12 crore for deferment from April 2006 to May 2009.Out of deferment, Rs. 15.34 crore has already been paid as per original repayment schedule). This notice has arisen consequent to Supreme Court''s adverse judgment in case of another cement company. Based on the fact that the grounds under which the Company has been granted this benefit is different from the grounds on which the other cement company availed the benefit and as also based on the opinion of senior legal counsel, the Company believes it has a strong ground on which the legal proceedings, if initiated by the Government will be decided in Company''s favour.

8. Factory & Service Buildings and Plant & Machinery of Lakshmi Cement Plant, Jaykaypuram Rajasthan were revalued as at 1st April 1990. Certain fixed assets of aforesaid Plant were revalued and updated as at 1st April, 1997 and certain Buildings, Plant & Machinery and other assets of aforesaid Plant were revalued and / or updated as at 31st March, 2000. Based on report of the valuer on business valuation of Cement business, fixed assets value was re- determined at net replacement cost basis on 1st April 2005. Certain Plant and Machinery and Railway siding of aforesaid plant were revalued and up dated as at 1st April 2008 and 1st April 2011. The Gross Block as at 31st March 2014 includes aggregate revaluation / business valuation of Rs. 396.77 crore (Previous year Rs. 405.55 crore).

9. Sales include own consumption at cost Rs. 6.98 crore (Previous years Rs. 2.68 crore).

10. a) Consumption of Stores and Spares is net of scrap sale Rs. 4.85 crore (Previous year Rs. 3.87 crore.)

b) Interest expenses include Rs. 3.97 crore (previous year Rs. 6.47 crore) being interest on entry tax inclusive of Rs. Nil (previous year Rs. 2.29 crore) being prior period.

11. Other-Non-Operating Income represents receipts from aircraft flying Rs. 3.34 crore, ( previous year Rs. 3.58 crore) net of expenses of Rs. 5.63 crore (previous year Rs. 7.27 crore), and Rs. 10.10 crore on account of liabilities no longer required written back (previous years Rs. 11.11 crore recovery of old dues earlier written off).

12. Forward contracts of Rs. 24.37 crore - EUR 0.04 Mn, USD 3.56 Mn, GBP 0.03 Mn, DKK 0.07 Mn (Previous year Rs. 26.85 crore - EUR .08 Mn USD 3.56 Mn, GBP .01 Mn.) taken for the purpose of hedging against letter of credit outstanding as at 31st March, 2014.

13. a) Based on information available with the Company in respect of MSME (''The Micro Small & Medium Enterprises Development Act 2006''). The details are as under :

i) Principal and Interest amount due and remaining unpaid as at 31st March 2014 - Nil (Previous year - Nil).

ii) Interest paid in terms of section 16 of the MSME Act during the year - Nil (Previous year - Nil).

iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified - Nil (Previous year - Nil).

iv) Payment made beyond the appointed day during the year - Nil (Previous year - Nil). v) Interest Accrued and unpaid as at 31st March 2014- Nil (Previous year - Nil). b) Some of the Balances of debtors and creditors are in process of confirmation.

14. The Company has only one business segment namely Cementitious Materials.

15. Other advances include an amount of Rs. 36.67 crore (including Rs. 3.33 crore receivable within one year) (Previous year Rs. 40.00 crore) (Maximum balance due Rs. 40.00 crore, previous year Rs. 43.33 crore) due from a Group Company and arising out of an earlier Scheme of Reconstruction, Arrangement and Demerger sanctioned by Hon''ble High Courts of Rajasthan (Jodhpur) and Delhi.

16. (a) The Company has taken up revival and rehabilitation of Udaipur Cement Works Limited (UCWL) after its Rehabilitation Scheme got approved by BIFR in January, 2012. The Company is to invest Rs. 150.00 crore in UCWL inclusive of 9% Non Convertible Redeemable Debentures (NCD) of Rs. 49.79 crore, issued by the Company directly to the erstwhile Term Lenders of UCWL against their outstanding dues. In this connection, the Company has given a Letter of Comfort to BIFR to infuse / arrange funds to meet any crystallized liability in UCWL. The Company has already infused Rs. 111.79 crore (previous year Rs. 90.54 crore) [ inclusive of issue of NCDs of Rs. 49.79 crore (previous year Rs. 49.79 crore) up to 31st March, 2014]. During the year UCWL has issued Equity Shares of Rs. 78.00 crore to the Company .With this, the Company''s holding in UCWL has increased from 27.25% to 75.46% & consequently UCWL has become subsidiary of the Company. The balance of Rs. 33.79 crore is being shown as Advance against Shares. (b) The Company has given a Corporate Guarantee to a Bank for a term loan of Rs. 150.00 crore sanctioned by Bank to UCWL. This term loan is to be utilized by UCWL for its Revival and Rehabilitation Project.

17. During the year the Company has received subsidy of Rs. 5.08 crore (previous year Rs. 6.30 crore) in terms of State Investment Promotion Scheme, of which Rs. 3.50 (previous year Rs. 4.94 crore) and Rs. 1.58 (previous year Rs. 1.36 crore) have been reduced from Interest and wages respectively.

18. Company''s Greenfield cement plant at durg Chattisgarh was temporarily affected due to incident of arson and fire in April 2013. The Company is adequately covered by the Insurers. Pending assessment of final claim by Insurers Rs. 63.95 crore, (net of interim amount received Rs.. 20.00 crore) is shown under other current assets .

19. Disclosure pursuant to Clause 32 of the Listing Agreement : (refer Note 46) (Loans / Advances to employees as per Company''s policy are not considered.)

NOTE 2

RELATED PARTY DISCLOSURE

List of Related Parties :

a) Subsidiary

Hansdeep Industries & Trading Co. Ltd.

Udaipur Cement Works Ltd.(UCWL) w.e.f. 28.03.2014 (previous year Associate)

b) Key Management Personnel (KMP) :

Shri Bharat Hari Singhania Chairman & Managing Director

Smt. Vinita Singhania Vice Chairman & Managing Director

Shri S.K. Wali Whole-time Director

Dr. S. Chouksey Whole-time Director

c) Enterprise over which KMP is able to excercise significant influence : JK Tyre & Industries Ltd. (JKTIL) Rockwood Properties Pvt. Ltd. (RPPL)

(a) Defined Benefit Plan

Amounts recognised as an expenses and included in the Note 26 and Note 52 of herein above.

Item "Salaries and Wages" includes Rs. 1.79 crore (Previous year Rs. 1.78) for Leave Encashment.

Item "Contributions to Provident and Other Funds" includes Rs. 2.67 crore (Previous year Rs. 1.03 crore) for Gratuity.

(b) Defined Contribution Plans –

Amount recognised as an expense and included in Note 26 and Note 52 "Contributions to Provident and other Funds" of Statement of Profit and Loss Rs. 8.66 crore (Previous year Rs. 7.70 crore)

(c) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of assets management, historical results of return on plan assets and the policy for plan assets management.

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

NOTE 3

Previous year''s figures have been re-grouped / re-classified wherever necessary.


Mar 31, 2013

1. Estimated amount of contracts remaining to be executed on capital account (Net of Advances) Rs. 354.36 crore (Previous year Rs. 240.89 crore).

2. Contingent liabilities in respect of claims not accepted by the Company (matters in appeals) and not provided for are as follows :

Rs. in Crore (10 Million)

31st March, 2013 31st March, 2012

a) Excise duty 2.30 15.88

b) Sales tax 5.45 15.86

c) Income Tax - 6.84

d) Land tax 1.31 1.31

e) Other matters 19.89 11.80

Total 28.95 51.69

3. Maximum balance due for Commercial Paper issued during the year was Rs. 55 crore and the year end balance is Nil (Previous year Maximum balance Rs. 60 crore and at the year end Nil).

4. The Board of Directors of the Company in February, 2012, approved the Buy-Back of its Equity Shares up to an amount of Rs. 97.50 crore subject to a price cap of Rs. 70/- per Equity Share. The Company''s Buy-back Scheme was closed on 6th February, 2013. Under the Buy- Back Scheme, the Company bought back and extinguished 46,88,858 Equity Shares resulting in reduction in the Equity Share Capital from Rs. 61.19 crore to Rs. 58.85 crore. The Company utilized Rs. 30.47 crore for the Buy Back for which, Rs. 28.13 crore has been drawn from the Securities Premium Reserve and Rs. 2.34 crore has been appropriated from the Surplus in the Statement of Profit & Loss to Capital Redemption Reserve.

5. In respect of certain disallowances and additions made by the Income Tax Authorities, Appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally settled. During the Current year Income Tax is higher than Minimum Alternative Tax (MAT) and therefore, the Company has utilized MAT credit entitlement of Rs. 22.51 crore (Previous year Rs. Nil) and forms part of the current tax of the year.

6. Contingent liability for non-use of jute bags for Cement packing upto 30th June, 1997, as per Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 is not ascertained and the matter is subjudice. The Government has excluded Cement Industry from application of the said Order from 1st July, 1997.

7. Under the Sales Tax exemption granted by the State Government, contingent liability may arise, if the Hon''ble Supreme Court of India, in case of another Company on the same subject, decides contrary to the judgement of Hon''ble High Court of Rajasthan, presently amount cannot be ascertained.

8. Factory & Service Buildings and Plant & Machinery of Lakshmi Cement Plant, Jaykaypuram Rajasthan were revalued as at 1st April 1990. Certain fixed assets of aforesaid Plant were revalued and updated as at 1st April, 1997 and certain Buildings, Plant & Machinery and other assets of aforesaid Plant were revalued and / or updated as at 31st March, 2000. Based on report of the valuer on business valuation of Cement business, fixed assets value was re- determined at net replacement cost basis on 1st April 2005. Certain Plant and Machinery and Railway siding of aforesaid plant were revalued and up dated as at 1st April 2008 and 1st April 2011. The Gross Block as at 31st March 2013 includes aggregate revaluation / business valuation of Rs. 405.55 crore (Previous year Rs. 422.43 crore).

9. During the current year ,the Company has changed with retrospective effect, the method of providing depreciation on Split Grinding Units from ''Straight Line'' to ''Written Down Value'' at the rate prescribed in Schedule XIV to the Companies Act, 1956. This shall result in more systematic basis of apportionment of Depreciation charge over the useful economic life of the Split Grinding Units. This change has resulted in an additional depreciation charge of Rs. 27.83 crore comprising of Rs. 11.50 for the year and Rs. 16.33 crore for the earlier years, which has been shown as an Exceptional Item. The Profit after tax for the year would have been higher by Rs. 18.80 crore had the Company continued to follow the earlier method of depreciation.

10. Sales include own consumption at cost Rs. 2.68 crore (Previous years Rs. 3.85 crore).

11. a) Consumption of Stores and Spares is net of scrap sale Rs. 3.88 crore (Previous year Rs. 3.59 crore.)

b) Interest expenses include Rs. 6.47 crore (Previous year Rs. 7.76 crore) being interest on entry tax inclusive of Rs. 2.29 crore (Previous year Rs. 7.76 crore) being prior period.

12. Other-Non-Operating Income represents receipts from aircraft flying, net of expenses of Rs. 7.27 crore (Previous year Rs. 5.80) and Rs. 11.11 crore recovery of old dues earlier written off.

13. a) Foreign exchange gain (net) amounting Rs. 1.08 crore (Previous year loss (net) Rs. 0.67 crore) has been included in respective heads of accounts in Statement of Profit and Loss.

b) Forward contracts of Rs. 26.85 crore - EUR 0.08 Mn, USD 3.56 Mn, GBP 0.01 Mn (Previous year Rs. 19.98 crore - EUR 2.83 Mn USD 0.13Mn.) taken for the purpose of hedging against letter of credit outstanding as at 31st March, 2013.

14. a) Based on information available with the Company in respect of MSME (''The Micro Small & Medium Enterprises Development Act 2006''). The details are as under :

i) Principal and Interest amount due and remaining unpaid as at 31st March 2013 - Nil (Previous year - Nil).

ii) Interest paid in terms of section 16 of the MSME Act during the year - Nil (Previous year - Nil).

iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified - Nil (Previous year - Nil).

iv) Payment made beyond the appointed day during the year - Nil (Previous year - Nil).

v) Interest Accrued and unpaid as at 31st March 2013- Nil (Previous year - Nil).

b) Some of the Balances of debtors and creditors are in process of confirmation.

15. The Company has only one business segment namely Cementitious Materials.

16. Other advances include an amount of Rs. 40.00 crore (including Rs. 3.33 crore receivable within one year) (Previous year Rs. 43.33 crore) (Maximum balance due Rs. 43.33 crore, previous year Rs. 46.66 crore) due from a Group Company and arising out of an earlier Scheme of Reconstruction, Arrangement and Demerger sanctioned by Hon''ble High Courts of Rajasthan (Jodhpur) and Delhi.

17. The Company has taken up revival and rehabilitation of Udaipur Cement Works Limited (UCWL) after its Rehabilitation Scheme got approved by BIFR in January, 2012. The Company is to invest Rs. 150.00 crore in UCWL including 9% Non Convertible Redeemable Debentures (NCD) of Rs. 50 crore, issued by the Company directly to the erstwhile Term Lenders of UCWL against their outstanding dues. In this connection, the Company has given a Letter of Comfort to BIFR to infuse / arrange funds to meet any crystallized liability in UCWL. The Company has already paid Rs. 90.54 crore (Previous year Rs. 11.44 crore) [ including issue of NCDs of Rs. 49.79 crore (Previous year Nil) up to 31st March, 2013] shown as Advance against Securities to be issued by UCWL.

18. Other Advances (refer Note 19) include Nil (Previous year Rs. 3 crore) paid by the Company to Dwarkesh Energy Limited, a SPV for the Power Project, for subscribing to their Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS) of Rs. 10 crore (face value Rs. 100.00). The OCCRPS have since been allotted to the Company.

19. During the year the Company has received subsidy of Rs. 6.30 crore (Previous year Rs. 7.82 crore) in terms of State Investment Promotion Scheme, of which Rs. 4.94 (Previous year Rs. 6.71 crore) and Rs. 1.36 (Previous year Rs. 1.11 crore) have been reduced from Interest and wages respectively.

20. Disclosure pursuant to Clause 32 of the Listing Agreement : (refer Note 47) (Loans / Advances to employees as per Company''s policy are not considered.)

NOTE 21

Capital work in progress includes Machinery in stock, construction / erecetion materials, advances for Construction and Machinery and also include the following pre -operation expenses pending allocation.

a) Defined Benefit Plan

Amount recognised as an expenses and included in the Note 26 and Note 53 of herein above.

Item "Salaries and Wages" includes Rs. 1.78 crore (Previous year Rs. 1.77 crore) for Leave Encashment.

Item "Contributions to Provident and Other Funds" includes Rs. 1.03 crore (Previous year Rs. 3.46 crore) for Gratuity,

(b) Defined Contribution Plans -

Amount recognised as an expense and included in Note 26 and Note 53 "Contributions to Provident and other Funds" of Statement of Profit and Loss Rs. 7.70 crore (Previous year Rs. 7.43 crore)

(c) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of assets management, historical results of return on plan assets and the policy for plan assets management.

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

NOTE 22

Previous year''s figures have been re-grouped / re-classified wherever necessary.


Mar 31, 2012

A. Terms / right attached to Equity shareholders :

The Company has only one class of equity shares having a par value of Rs 5 per share. Each holder of equity shares is entitled to one vote per share.

1. Secured Redeemable Non-Convertible Debentures( NCDs) are privately placed and consists of :

(i) 10.35% NCDs Series B-2 of Rs 60 crore are redeemable in three equal annual installments at the end of 8th, 9th and 10th year from the date of allotment i.e. 4th Feb, 2010.

(ii) 10.05% NCDs Series B-1 of Rs 40 crore are redeemable in two equal annual installments at the end of 6th and 7th year from the date of allotment i.e. 4th Feb, 2010.

(iii) 9.85% NCDs Series A of Rs 100 crore are redeemable in two equal annual installments at the end of 4th and 5th year from the date of allotment i.e. 4th Feb, 2010.

2. NCDs are secured by a mortgage on the Company's immovable properties located in the State of Gujarat and are also secured by way of a first charge on all the immovable and movable fixed assets pertaining to the Company's Cement Unit situated at Jaykaypuram, Basantgarh, Distt. Sirohi, in the State of Rajasthan, ranking pari-passu with the charges created on the said fixed assets, subject to the prior charges in favour of Banks on specified assets.

3. Term Loans from Financial Institution aggregating to Rs 5.98 crore are secured by way of a first charge on all the immovable and movable properties pertaining to the Company's Cement Unit situated at Jaykaypuram, Basantgarh, Distt. Sirohi, in the State of Rajasthan, ranking pari-passu with the charges created on the said assets subject to the prior charges in favour of Banks on specified assets and Company's Banks for working capital on specified movables assets. These Term Loans are repayable in 8 quarterly installments.

4. Term Loans from Banks aggregating to Rs 247.00 crore are secured by way of a first charge on all the immovable and movable properties pertaining to the Company's Cement Unit situated at Jaykaypuram, Basantgarh, Distt. Sirohi, in the State of Rajasthan, ranking pari-passu with the charges created on the said assets subject to the prior charges in favour of Banks on specified assets and Company's Banks for working capital on specified movables assets. These Term Loans are / shall be repayable as under:

(a) Term Loans aggregating to Rs 154.86 crore are repayable in 8 quarterly installments.

(b) Term Loan of Rs 57.14 crore is repayable in 16 equal quarterly installments.

(c) Term Loan of Rs 35.00 crore shall be repayable in 32 equal quarterly installments commencing from 30th June 2013.

5. Term Loans from a Bank aggregating to Rs 50.00 crore are secured / to be secured by way of a first charge on all the immovable and movable properties pertaining to the Company's Cement Unit situated at Jaykaypuram, Basantgarh, Distt. Sirohi, in the State of Rajasthan, ranking pari-passu with the charges created on the said assets subject to the prior charges in favour of Banks on specified assets and Company's Banks for working capital on specified movables assets. These Term Loans shall be repayable as under:

(a) Term Loan of Rs 15.00 crore shall be repayable in 20 equal quarterly installments commencing from 31st March 2013.

(b) Term Loan of Rs 35.00 crore shall be repayable in 32 equal quarterly installments commencing from 30th June 2014.

6. Term Loans from Banks aggregating to Rs 164.77 crore are secured by way of an exclusive charge on certain specified assets of the Company situated at Jaykaypuram, Basantgarh, Distt. Sirohi, in the State of Rajasthan. These Term Loans are / shall be repayable as under:

(a) Term Loans aggregating to Rs 30.33 crore are repayable in 14 equal quarterly installments.

(b) Term Loan of Rs 21.94 crore is repayable in 16 equal quarterly installments.

(c) Term Loan of Rs 62.50 crore is repayable in 20 equal quarterly installments.

(d) Term Loan of Rs 50.00 crore shall be repayable in 32 equal quarterly installments commencing from 30th June 2013.

6. Term Loan from a Bank of Rs 70.00 crore is secured / to be secured by way of exclusive first charge on immovable & movable fixed assets of the Company's Split Grinding Unit situated at Jhajjar, in the State of Haryana, except charge on the Current Assets. This Term Loan shall be repayable in 32 equal quarterly installments commencing from 30th June 2014.

7. Term Loans from Banks aggregating to Rs 225.00 crore are secured / to be secured by way of first pari passu charge on all the immovable and movable fixed assets of the Company's Greenfield Cement Plant at Durg in the State of Chattisgarh. These Term Loans shall be repayable in 40 equal quarterly installments commencing from 1st April 2014.

8. Unsecured Deferred Sales Tax Loan of Rs 86.04 crore includes Rs 3.86 crore payable in one installment during 2012-13 and balance Rs 82.18 crore repayable in 16 quarterly installments commencing from July, 2013.

9. Fixed Deposits represents the Deposits accepted by the Company from Public under its Fixed Deposit Scheme having maturity of 2 & 3 years from the date of deposits.

NOTES TO ACCOUNT

1. Estimated amount of contracts remaining to be executed on capital account (Net of Advances) Rs 240.89 crore (Previous year Rs 336.70 crore).

2. Contingent liabilities in respect of claims not accepted by the Company (matters in appeals) and not provided for are as follows :

Rs in Crore (10 Million) 31st March 31st March 2012 2011

a) Excise duty 15.88 14.58

b) Sales tax 15.86 9.36

c) Income Tax 6.84 30.86

d) Land tax 1.31 1.31

e) Other matters 11.80 25.45

Total 51.69 81.56

3. Maximum balance due for Commercial Paper issued during the year was Rs 60 crore and the year end balance is Nil (Previous year Maximum balance Rs 40 crore and at the year end Nil).

4. The Board of Directors of the Company, in February, 2012, approved the Buy-Back of its Equity Shares up to an amount of Rs 97.50 crore at price not exceeding Rs 70.00 per Share. The Company started the Buy-Back in the last week of March, 2012 and has bought back and extinguished 7,000 Equity Shares up to 31st March 2012. Consequently a sum of Rs 0.35 lac has been appropriated to Capital Redemption Reserve from Surplus in Statement of Profit and Loss and Rs 4.20 lac has been reduced from Securities Premium Reserve.

5. In respect of certain disallowances and additions made by the Income Tax Authorities, Appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally settled.

6. Contingent liability for non-use of jute bags for Cement packing upto 30th June, 1997, as per Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 is not ascertained and the matter is subjudice. The Government has excluded Cement Industry from application of the said Order from 1st July, 1997.

7. Under the Sales Tax exemption granted by the State Government, contingent liability may arise, if the Hon'ble Supreme Court of India, in case of another Company on the same subject, decides contrary to the judgement of Hon'ble High Court of Rajasthan, presently amount cannot be ascertained.

8. Factory & Service Buildings and Plant & Machinery of Lakshmi Cement Plant, Jaykaypuram Rajasthan were revalued as at 1st April 1990. Certain fixed assets of aforesaid Plant were revalued and updated as at 1st April, 1997 and certain Buildings, Plant & Machinery and other assets of aforesaid Plant were revalued and / or updated as at 31st March, 2000. Based on report of the valuer on business valuation of Cement business, fixed assets value was re-determined at net replacement cost basis on 1st April 2005. Certain Plant and Machinery of aforesaid plant were revalued and up dated as at 1st April 2008. Further during the Current year certain Plant and Machinery and Railway Siding of aforesaid Plant were revalued by an approved valuer and updated as at 1st April 2011 based on their current replacement value, resulting in an increase in their value by Rs 68.13 crore (as compared to the net book value as on that date), which has been transferred to Revaluation Reserve. The Gross Block as at 31st March 2012 includes aggregate revaluation / business valuation of Rs 422.43 crore (Previous year Rs 354.83 crore).

9. (a) During the current year, the Company has changed with retrospective effect, the method of providing depreciation on Captive Power Plants from 'Straight Line' to 'Written Down Value' at the rate prescribed in Schedule XIV to the Companies Act, 1956. This shall result in a more systematic basis of apportionment of depreciation charge over the useful economic life of the Captive Power Plants. This change has resulted in an additional depreciation charge of Rs 63.68 crore comprising of Rs 24.44 crore for the year and Rs 39.24 crore for the earlier years, which has been shown as an Exceptional Item. The Profit after Tax for the year would have been higher by Rs 43.02 crore had the Company continued to follow the earlier method of depreciation.

(b) Depreciation on Aircraft has been considered on the basis of its residual economic life.

10. (a) Sales include own consumption at cost Rs 3.85 crore (Previous years Rs 0.75 crore).

(b) Consumption of Stores and Spares is net of scrap sale Rs 3.59 crore (Previous year Rs 2.93 crore.)

(c) Prior period expenses represent interest on entry tax/sales tax.

11. Other-Non-Operating Income represents receipts from aircraft flying, net of expenses Rs 5.80 crore (previous year Rs 3.97 crore).

12. (a) Foreign exchange Loss (net) amounting Rs 0.67 crore (Previous year gain (net) Rs 0.61 crore) has been included in respective heads of accounts in Statement of Profit and Loss.

(b) Forward contracts of Rs 19.98 crore - EUR 2.83 Mn, USD 0.13 Mn (Previous year Rs 25.48 crore - EUR 2.29 Mn, USD 2.44 Mn.) taken for the purpose of hedging against letter of credit outstanding as at 31st March, 2012.

13. Research and Development expenditure amounting to Rs 0.32 crore (Previous year Rs 0.29 crore) has been debited to Statement of Profit and Loss.

14. (a) Based on information available with the Company in respect of MSME (The Micro Small & Medium Enterprises Development Act, 2006) the details are as under :

(i) Principal and Interest amount due and remaining unpaid as at 31st March 2012 - Nil (Previous year - Nil).

(ii) Interest paid in terms of section 16 of the MSME Act during the year - Nil (Previous year - Nil).

(iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified - Nil (Previous year - Nil).

(iv) Payment made beyond the appointed day during the year - Nil (Previous year - Nil).

(v) Interest Accrued and unpaid as at 31st March 2012- Nil (Previous year - Nil).

(b) Some of the balances of debtors and creditors are in process of confirmation.

15. The Company has only one business segment i.e. Cement.

16. Other advances include an amount of Rs 43.33 crore (including Rs 3.33 crore receivable within one year) (Previous year Rs 46.66 crore) (Maximum balance due Rs 46.66 crore, Previous year Rs 50.00 crore) due from a Group Company and arising out of an earlier Scheme of Reconstruction, Arrangement and Demerger sanctioned by Hon'ble High Courts of Rajasthan (Jodhpur) and Delhi.

17. The Company has taken up revival and rehabilitation of Udaipur Cement Works Limited (UCWL) after its Rehabilitation Scheme got approved by BIFR in January, 2012. As per the Scheme, the Company is to invest Rs 98.64 crore in UCWL including 9% Non Convertible Redeemable Debentures (NCD) of Rs 50 crore, to be issued by the Company directly to the erstwhile Term Lenders of UCWL against their outstanding dues. In this connection, the Company has given a Letter of Comfort to BIFR to infuse / arrange funds to meet any crystallized liability in UCWL. The Company has already paid Rs 11.44 crore (Previous year Rs 1.83 crore) upto 31st March, 2012 which is being reflected in Other Advances as per Note 19.

18. Other Advances (refer Note 19) include Share Application Money of Rs 3 crore (Previous year Nil) paid by the Company to Dwarkesh Energy Limited, a SPV for the Power Project, for subscribing to the Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS) of Rs 10 crore (face value Rs 100.00).

19. Disclosure pursuant to Clause 32 of the Listing Agreement : Nil

(Loans / Advances to employees as per Company's policy are not considered.)

ii) Details of remuneration to KMP : Vice Chairman & Managing Director Rs 5.75 crore (Previous year Rs 2.28 crore), Managing Director Rs 5.91 crore (Previous year Rs 2.36 crore) and Whole-time Directors Rs 1.82 crore each (Previous year Rs 1.22 crore each). Remuneration is excluding provision for Gratuity & Leave Encashment, where the actuarial valuation is done on overall Company basis.

$ All the above transactions are with JKTIL except the one marked with # is with RPPL.

* Maximum amount outstanding Rs 0.03 crore (Previous year Rs 0.02 crore)

(a) Defined Benefit Plan

Amounts recognised as an expense and included in the Note 26 and Note 51 of herein above.

Item "Salaries and Wages" includes Rs 1.77 crore (Previous year Rs 0.91 crore) for Leave Encashment.

Item "Contributions to Provident and Other Funds" includes Rs 3.46 crore (Previous year Rs 2.78 crore) for Gratuity.

(b) Defined Contribution Plans

Amount recognised as an expense and included in Note 26 and Note 51 "Contributions to Provident and other Funds" of Statement of Profit and Loss Rs 7.67 crore ( Previous year Rs 7.29 crore)

(c) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of assets management, historical results of return on plan assets and the policy for plan assets management.

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

(e) Provident Fund

Pending the issuance of the Guidance Note from the Institute of Actuaries of India, the Company's actuary has expressed his inability to reliably measure the provident fund liability.

NOTE 20

Current year accounts have been prepared in accordance with the Revised Schedule- VI and previous year's figures have been re-grouped /re-classified accordingly.

 
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