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Notes to Accounts of Kamdhenu Ltd.

Mar 31, 2022

a) The concentration of credit risk on trade receivable is limited due to the fact that the customer base is large and is unrelated to each other.

b) No trade receivable is due from directors & other officers of the Company either singly or severely with any other person or firm or private companies in which any director is interested as partner/ director.

c) The Company has assessed the risk of recovery from trade receivable arising on account of Pandemic Covid-19 and based on its assessment, the management of company do not foresee any impact on realisability of Trade receivable and is of the view that allowance for Expected credit loss created is sufficient and no further provisioning on this account is necessitated.

(d ) Term/ rights attached to equity shares

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

The repayment of Equity share capital in the event of Liquidation and buy back of Shares are possible subject to prevalent regulations. In the event of Liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion of shareholding.

The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.

(d) Dividend

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. The remittance of dividends outside India is governed by Indian law on foreign exchange.

The amount of per share dividend recognized as distributions to equity shareholders during FY 2021-22 pertaing to FY 2020-21 amounted to '' 215.48 Lakhs have been shown as deduction from retained earning.

The Board of directors of the Company in their meeting held on 30th May, 2022 have proposed dividend of '' 1/- per share for the financial year ended 31st March, 2022 for the approval of shareholders.

(i) CCECL (Term Loan) from State Bank of India and Indian Bank are secured by way of Primary :

a) Extension of First pari passu charge by way of hypothecation charge on entire current assets (present and future)

of the Company.

Collateral

a. Extension of First pari passu charge by way of hypothecation charge on entire fixed assets (movable & immovable) of the Company both present & future including plant & machinery except vehicle financed by other banks.

b. Extension of First pari passu charge by way of equitable mortgage over factory land & building of the Company situated at A-1112 & A-1114, RIICO Industrial Area, Phase III, Bhiwadi Rajasthan and at E-538 & E-539A, RIICO Industrial Area, Chopanki, Rajasthan.

Guarantee :

a. Personal Guarantee of whole time directors.

(ii) Vehicle loans from Banks are secured by hypothecation of respective vehicle.

22.1 Working Capital Loan from State Bank of India and Indian Bank are secured by way of Primary :

a. First pari passu charge by way of hypothecation charge on entire current assets (present and future) of the Company. Collateral :

a. First pari passu charge by way of hypothecation charge on entire fixed assets (movable & immovable) of the Company both present & future including plant & machinery except vehicle financed by other banks.

b. First pari passu charge by way of equitable mortgage over factory land & building of the Company situated at A-1112 & A- 1114, RIICO Industrial Area, Phase III, Bhiwadi Rajasthan and at E-538 & E-539A, RIICO Industrial Area, Chopanki, Rajasthan.

Guarantee :

a. Personal Guarantee of whole time directors.

22.2 The quarterly returns or statements of current assets filed by the Company with the banks are in agreement with the books of accounts of the Company.

b) The amount of interest due and payable for the year due to delay in making payment under Micro, Small and Medium Enterprise Development Act 2006 is '' 30.18 Lakhs (P.Y. '' 29.68 Lakhs).

c) Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Nature of CSR Activity:

During the year the Company has contributed an amount of '' 2.50 Lakhs towards old age home and a rescue center set up by Earth Savior Foundation (NGO). (CSR Reg. No. : CSR00002026)

* Includes unspent amount on on-going project on Education & Skill development program and also medical facilities by Kamdhenu Jeevandhara Foundation amounting to '' 34.30 Lakhs for which provision for liability for the amount has been made as at 31st March, 2022 and is separately disclosed on ''’Unspent CSR Expenses" in other current financial liabilities in note no. 25 representing the extent to which the amount is to be transferred with in 30 days of end of financial year ended 31st March, 2022. The Company has since transferred unspent CSR expenses amount of '' 34.30 Lakhs to ''’ Unspent CSR account- FY 2021-2022 on 22nd April, 2022 in compliance with provision of section 135 (6) of Companies Act, 2013.

*Demand of '' 912.64 Lakhs as penalty under Rule 26 of Central Excise Rules, 2002, at Kamdhenu Limited as Co-noticee in various matters out of which '' 8 Lakhs has been deposited under protest. All matters are pertaining to FY 2008-09 and appeal before CESTAT have been filed against each orders except order dated 22nd March, 2022 of '' 607.64 Lakhs which is under appeal filing process.

**Demand of '' 709.83 Lakhs has been determined under section143(3) of Income tax Act 1961 for A.Y. 2018-19 out of which '' 142.30 Lakhs has been deposited under protest and appeal is pending before National Faceless Appeal Centre (NFAC). **Demand of '' 3.39 has determined under section154 of Income tax Act 1961 for A.Y. 2019-20 out of which '' 0.70 Lakhs has been deposited under protest and appeal is pending before National Faceless Appeal Centre (NFAC).

II) Method of Valuation

a) Projected unit credit (PUC) actuarial method to assess the plan’s liabilities allowing for retirements, deaths-in-service and withdrawals (Resignations / Terminations).

b) Under the PUC method a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plan accrual formula and service as at the beginning and end of the period, but using member’s final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits as on the date of valuation.

B) LEAVE ENCASHMENT

The provision for leave encashment based on actuarial valuation has been included in provisions - current and non-current and does not require disclosure as mentioned in para 158 of Ind AS 19.

The Company makes contribution to Statutory Provident Fund in accordance with Employees Provident Funds and Miscellaneous Provisions Act 1952. This is the post employment benefit and is in the nature of defined contribution plan. The total amount contributed to provident fund during the financial year is '' 184.60 Lakhs (previous year '' 159.56 Lakhs) and is included in Note no. 34 " Employees Benefit expenses".

FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to variety of financial risks viz. commodity price risk, credit risk, liquidity risk and capital risk. These risks are managed by the senior management of the Company supervised by the Board of Directors to minimize potential adverse effects on the financial performance of the Company.

i) Commodity Risk

Demand/supply risk are inherent in the prices of Ingot/Billet, the main raw material and also the prices of TMT bar, the main product in Steel segment. The requirement of raw material is sourced on spot basis so as to float with fluctuations in the market and to guard against price volatility. The Company has also linked its sales to raw material prices so that the Company has adequate cushion to protect its margin in the event of any increase/decrease in raw material costs. The main raw material in paint segment is Alkyd Resin/Titanium Dioxide and its prices fluctuates based on change in international crude oil prices. In Paints segment, the volatility in final product prices is dependent on market forces.

ii) Credit Risk

Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the credit worthiness of the banks, the Company works with. The Company has specific policies for managing customer credit risk on an ongoing basis; these polices factor in the customer’s financial position, past experience and other customer specific factors. Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company makes provision for doubtful debt or writes off when a debtor fails to make contractual payments based on provisioning matrix. When loans or receivables have either been provided for or written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When recoveries are made, these are recognized in Statement of Profit and Loss. The Company has followed Expected Credit Loss (ECL) model to provide for provision for ECL allowance.

The Company do not envisage any financial difficulties resulting in additional credit risk higher than usual credit terms due to COVID-19 outbreak and allowance for expected credit loss is not estimated to exceed the amount already created in books of accounts. The Company has invested in Portfolio Management Scheme with reputed asset management company and do not foresee any credit risk.

iii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash and another financial asset. The Company’s approach to managing liquidity is to ensure as far as possible that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed condition, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans. The Company considers liquidity risk as low risk.

Interest rate is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rate. The Company has taken term loan and working capital limits from bank which has considered as variable rate borrowing.

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company monitors capital using gearing ratio which is net debt divided by total equity. The Company’s net debts includes interest and non interest bearing loans less cash and bank balances.

A) OPERATING SEGMENT

Operating segments are established on the basis of those components that are evaluated regularly by the Management in deciding how to allocate resources and in assessing performance. The Company is principally engaged in two business segment viz., Steel and Paint.

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

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

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

The Ministry of Corporate Affairs ( MCA ) through Companies ( Indian Accounting Standard) Amendment Rules 2019 and Companies ( Indian Accounting Standard) Second Amendment Rules has notified Ind AS 116 ''leases’ which replaces existing lease standard, Ind AS 17 Leases and other Interpretation. Ind AS 116 sets out the principles for recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single on balance sheet lease accounting model for lessees.

The Company has adopted Ind AS 116 effective annual reporting period beginning from 1st April, 2019 and applied the standard to its leases retrospectively with the cumulative effect of initially applying the standard, recognised on the date of initial application (1st April, 2019). The cumulative effect of initially applying standard has been recognised as an adjustment to opening balance of retained earnings as on 1st April, 2019.

On application of Ind AS 116, the nature of expense has changed from lease rent in previous periods to depreciation cost for right of use asset and finance cost for interest accrued on lease liability.

Depreciation on right of use asset is '' 183.30 Lakhs and interest on lease liability for year ended 31st March, 2022 is '' 73.43 Lakhs Lease Contracts entered by the Company majorly pertains to building taken on lease to conduct the business activities in ordinary course.

Impact of Covid-19

The leases that the Company has entered with lessors towards properties used as corporate office/office are long term in nature and no changes in terms of those leases are expected due to Covid-19.

The Hon''ble National Company Law Tribunal, Chandigarh Bench, Chandigarh (''NCLT'') during the hearing held on 22nd April, 2022, has reserved the order on the Scheme of Arrangements (''Scheme'') including the De-merger of the Paint Business of the Company into a separate entity. The order is pending to be pronounced by the NCLT. Accordingly, no disclosure of accounting effect of such amalgamation and de-merger in the books of accounts of the Company has been made in the financial statements for the FY 2021-22.

The Company continues to monitor the impact of COVID 19 on its business including its impact on customers, supply chain etc. Due care has been exercised on significant accounting judgement and estimates including in relation to recoverability of receivables, inventory and other financial assets based on information available to date while preparing the Company’s financial statements for the FY 2021-22.

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under companies (Indian Accounting Standards) Rules as issued from time to time on 23rd March, 2022. MCA amended the companies (Indian Accounting Standards) Amendment Rules, 2022, as below

Ind AS 16- Property Plant and equipment- The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing. If any, shall not be recognized in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after 1st April, 2022. The Company has evaluated the amendment and there is no impact on its financial statements.

Ind AS 37- Provisions, Contingent Liabilities and Contingent Assets- The amendment specifies that the "cost of fulfilling” a contract comprises the ''costs that relate directly to the contract'', Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labor, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after 1st April, 2022, although early adoption is permitted, The Company has evaluated the amendment and there is no impact on the financial statement.

DISCLOSURE IN ACCORDANCE WITH REQUIREMENTS UNDER IND AS-10 EVENT AFTER THE REPORTING DATE:

The Board of Directors of the Company have recommended dividend of '' 1/- per share for the financial year ended 31st March, 2022 for the approval of shareholders. The actual dividend outgo will be dependent on share capital outstanding as on record date.

Previous years figures have been regrouped, rearranged or reclassified, whenever necessary to confirm the current year’s classification.


Mar 31, 2018

RECONCILIATION NOTES

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives figures being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

Note 1: Fair value of Investments

Under the previous GAAP, investments in Equity Shares were classified as long-term investments or current investments based on the intended holding period and realisability. Longterm 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 amounting to Rs. 20.29 Lakhs have been recognized in retained earnings (net of related deferred taxes of Rs.46.94 Lakhs) as at the date of transition and subsequently in the Other Comprehensive Income for the year ended 31st March, 2017

Note 2: Fair Value of Property, Plant and Equipments

The Company has elected to measure class of assets comprising Land, Building and Plant & Machinery at fair value on transition date and considered that fair value as deemed cost. The resulting fair value change of these class of Land, Building and Plant & Machinery amounting to Rs.2,797.94 Lakhs has been recognized in retained earnings (net of deferred taxes of Rs.1,048.47 Lakhs) as on date of transition. The depreciation impact on account of deemed carrying amount based on fair value amounting to Rs.225.52 Lakhs for the year ended 31st March, 2017 have been charged to the Statement of Profit and Loss for the year ended 31st March, 2017

Note 3: Dividend

As per Ind AS dividend is recognized only when it is approved by the shareholders and hence dividend provision of Rs.163.80 Lakhs together with tax on dividend of Rs.33.35 Lakhs (total Rs.197.15 Lakhs) proposed for the year ended 31st March, 2016 was reduced from provisions and added to the retained earnings in the opening balance as on 01st April, 2016.

Note 4: Expected Credit Loss

Under Indian GAAP, no provision for doubtful debts was made. Under Ind AS, impairment allowance has been determined based on Expected Credit Loss (ECL) model. Due to this model, the Company impaired its trade receivables by Rs.541.39 Lakhs as on transition date which has been adjusted as on 1st April, 2016 in retained earnings. The impairment of Rs.64.67 Lakhs for the year ended 31st March, 2017 has been recognized in trade receivables and Statement of Profit and Loss for the year ended 31st March, 2017.

Note 5: Dealer/ Distributor Deposits

The Company has received security deposits from its Dealers and Distributors under the Dealership Agreement at rates below the prevailing market rates. Under the Indian GAAP these Security Deposits were shown under long term liability. Under the Ind AS, these deposits have been revalued at fair value using the present value method using a discount rate which is market borrowing rate. An amount of '' 14.89 Lakhs was reduced from Deposit amount and charged to the Statement of Profit and Loss during the year ended 31st March, 2017.

Note 6: Prior Period Adjustment

An amount of Rs.0.34 Lakhs shown under prior period adjustment under Indian GAAP is added to profit after tax as on 31st March, 2017, under Ind AS it was charged to retained earnings as on 01st April, 2016.

Note 7: Defined Benefit Obligations

The actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in the net interest on the net defined benefit liability are recognized in balance sheet through other comprehensive income. Thus, employee benefit expenses are reduced by Rs.1.54 Lakhs and recognized in other comprehensive income gross of tax for the year ended 31st March, 2017

Note 8: Security Deposit Paid

Under IGAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly the Company has fair valued these security deposits under Ind AS. Difference between the fair value and the transaction value of the security deposit has been recognized as prepaid rent. Consequent to this change, the security deposit reduced by Rs.1.32 Lakhs and charged to the Statement of Profit and Loss during the year ended 31st March, 2017.

Note 9: Rebate and Discounts

Under IGAAP rebate and discounts were shown as part of ''Other Expenses''. Under Ind AS, these are netted off from Sales. Accordingly, Revenue from Operations for the year ended 31st March, 2017 has been reduced by Rs.60.91 Lakhs with corresponding adjustment in Other Expenses.

Note 10: Other Comprehensive Income

Under previous GAAP, the Company has not presented Other Comprehensive Income (OCI) separately. Hence, the Statement of Profit and Loss under previous GAAP has been reconciled with Statement of Profit and Loss and Other Comprehensive Income as per Ind AS.

Note 11: 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. This has resulted in increase in deferred tax liability (net) by Rs.814.16 Lakhs as on 01st April, 2016 as follows:

Note 12:

The transition from previous GAAP to Ind AS has not had a material impact on the statement of cash flows.

Note 13:

In line with the requirements of Ind AS, the Company has reclassified certain assets and liabilities as at 01st April, 2016 and 31st March, 2017. These majorly include reclassification between current and non-current investments, security deposits and prepayments, investments, current/ non current financial/ non financial assets/ liabilities.


Mar 31, 2016

1. Terms/rights attached to Equity Shares

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

During the year ended 31 st March 2016, the amount of proposed dividend recognized as distribution to equity shareholders is Re. 0.70 per equity share of Rs. 10each (Previous year Re. 0.70 per share).

The repayment of Equity share capital in the event of Liquidation and buy back of Shares are possible subject to prevalent regulations. In the event of Liquidation, normally the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion of shareholding.

The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.

2 Nature of Security of Term Loan from Bankand Financial institution:

#Term Loans from State Bank of Bikaner & Jaipur are secured by way of:

(a) Pari passu charge by way of hypothecation of stocks, book debts & Other current assets of the company, present & future.

(b) Pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No. A-1112&A-1114,RIA. Bhiwadi, Rajasthan & Plot no. E-538-539ARIA, Chopanki,Rajasthan & Personal guarantee of whole time directors.

* Vehicle loans from Banks are secured by hypothecation of respective vehicles.

Nature of Security of Short Term Borrowings:

#Working Capital Loan from Banks are secured by way of:

(a) Pari passu charge by way of hypothecation of stocks, book debts & Other current assets of the company, present & future.

(b) Pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No.A-1112 &A-1114,RIA. Bhiwadi, Rajasthan & Plot no. E-538-539A RIA, Chopanki, Rajasthan & Personal guarantee of whole time directors.

3. As per Accounting Standard-17 “ Segment Reporting” issued by ICAI, the Company has identified three reportable business segments viz. Steel, Power & Paints and following policies have been adopted for the segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which could not be allocable to a specific segment are being disclosed separately as un-allocable.

b) Segment Assets and Segment Liabilities represent assets and liabilities in respective segment. Investments, tax related assets, other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as ''Un-allocable''.

4. Disclosures in respect of Related Parties as per Accounting Standard 18 "Related Party Disclosures" issued by ICAI, with whom transactions were carried out in the ordinary course of business during the year as given below;


Mar 31, 2015

1. Terms/rights attached to Equity Shares

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

During the year ended 31st March 2015, the amount of per share dividend recognised as distribution to equity shareholders is Re. 0.70 per equity share of Rs. 10 each (Previous year Rs. Nil per share).

The repayment of Equity share capital in the event of Liquidation and buy back of Shares are possible subject to prevalent regulations. In the event of Liquidation, normally the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion of shareholding.

The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.

2. Nature of Security of Term Loan from Bank and Financial institution:

# Term Loans from State Bank of Bikaner & Jaipur are secured by way of :

(a) Pari passu charge by way of hypothecation of stocks, book debts & Other current assets of the company, present & future.

(b) Pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No. A- 1112 & A-1114,RIA. Bhiwadi, Rajasthan & Plot no. E-538-539A RIA, Chopanki,Rajasthan & Personal guarantee of whole time directors.

* Vehicle loans from Banks are secured by hypothecation of respective vehicles.

## Term Loans from RIICO are secured by way of First pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No. A-1112 & A-1114,RIA. Bhiwadi, Rajasthan and Personal guarantee of whole time directors.

#Working Capital Loan from Banks are secured by way of:

(a) Pari passu charge by way of hypothecation of stocks, book debts & Other current assets of the company, present & future.

(b) Pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No.A-1112 & A-1114,RIA. Bhiwadi, Rajasthan & Plot no. E-538-539A RIA, Chopanki,Rajasthan & Personal guarantee of whole time directors.

3. Contingent Liabilities and Commitments (to the extent not provided for) (Amount in Rs.)

a. Contingent Liabilities

Particulars Year ended Year ended 31st March, 2015 31st March, 2015

(A) Claims against the company not acknowledged as debt

- Central Excise & Service Tax 166,233,152 46,618,128

- Income Tax 1,827,000 8,921,000

- Sales Tax & Central Sales Tax 27,598,891 36,192,544

(B) Guarantees issued by Bank 4,300,000 4,520,000

199,959,04 96,251,672

b. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advance) 3,128,134 1,989,593

3,128,134 1,989,593

TOTAL (a b) 203,087,177 98,241,265

4. Some of the balances of Trade Receivables, Trade Payables, advances and Security deposits as on 31.03.2015 are subject to confirmation. The company had initiated legal cases on some debtors for its recovery and the same have been included to the extent of Rs.1,07,87,259/- in outstanding for more than six months and Rs.2,15,09,264/- in other non current assets. The management of the company is hopeful of favourable decision on such legal cases, hence no provision for bad and doubtful debts have been considered. Other payables under other long term liabilities includes Rs.2,39,33,701/- of trade payables under litigation.

5. In the opinion of the management, current & non current assets, loans & advances have a value on realisation in the ordinary course of business at least equal to the amount at which thay are stated in the Balance Sheet.

6. Effective from 01.04.2014, the company has revised estimated useful life of its fixed assets as per the Schedule II of the Companies Act 2013. Based on current estimates, after retaining the residual value, the carrying amount of the fixed assets of Rs.53,46,251 (net of deffered tax assets of Rs.28,29,445) on account of fixed assets whose useful life has already exhausted as on 1st April, 2014 have been adjusted to General Reserves. Had there not been any change in the useful of life of the fixed assets, net depreciation for the year ended 31.03.2015 would have been lower by Rs. 55,32,096.

7. The gross amount required to be spent by the company on CSR during the year worked out to be Rs.10,41,236 which is yet to be spent.

8. Disclosure of related parties and transaction with them:

Description of Relationship

Nature of Relationship Name of Related Party

Key Management Personnel Sh. Satish Kumar Agarwal, Chairman & Managing Director

Sh. Sunil Kumar Agarwal, Whole Time Director Sh. Saurabh Agarwal, Whole Time Director Sh. Sachin Agarwal, Whole Time Director Sh. Harish Kumar Agarwal-Chief Financial Officer Sh. Jogeswar Mohanty-Company Secretary

Related Company M/s Kamdhenu Overseas Ltd.

9. As per Accounting Standard-28 " Impairment of Assets" issued by ICAI, there are no indication of overall impairment in assets.

10. Previous year figures have been reclassified/ rearranged wherever necessary.


Mar 31, 2014

1. Terms/rights attached to Equity Shares

The Company lias only one class of equity shares having a par value of Rs. 10/- Per Share. Each holder of equity shares is entitled to one vote per share. The Company declares aixj pays drvidends in Indian rupees.The repayment of Equity share capital in the event of Liquidation and buy back of Shares are possible subject to prevalent regulations. In the event of Liquidation, normally the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion of shareholding.

2. The Company has not allotted any fully paid up shares pursuant to contracts) without payment being receded m cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any dass of shares during the period of frve years immediately preceding the balance sheet date.

3. Nature of Security oi'Term Loan from Bank and Financial institution:

-# Term Loans from State Bank of Bikaner & Jaipur are secured by way of

(a) Pbri passu charge by way of hypothecation of stocks, book debts & Other current assets of the company, present & future.

(b) fari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No. A- IIl 2 & A-1114.R1A. Bhiwadi, Rajasthan & Plot no. E-538-539A R1A. Chopanki. Rajasthan & Personal guarantee of whole time directors.

# # Term Loans from Rl ICO are secured by way of.

(a) First pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No. A-1 112 & A- 1114.RIA. Bhrwadi, Rajasthan and Personal guarantee of whole time directors.

*Vehicle loans from Banks are secured by hypothecation of respective vehicles.

4. Some of the balances of Trade Receivaoles, Trade Payables, advances and Security deposits as on 3 i .03.2014 are subject to confirmation. The company had initiated legal cases on some debtors for its recovery and the same have been included to the extent of Rs.97.87,786 in outstanding for more than six months and Rs. i .91.37.711 in other non current assets. The management of the company is hopeful of favourable decision on such legal cases, hence no provision for bad and doubtful debts have been considered. Other payables under other long term liabilities includes Rs.2.39,33.701 of trade payables under litigation.

5. In the opinion of the management, current & non current assets, loans & advances have a value on realisation in the ordinary course of business at least equal to the amount at which thay are stated in the Balance Sheet.

6. The Company has already initiated the process of obtaining copies of memorandum fifed with the concerned authonty by entities falling under the MSMED Act 2006. The Company has received copies of the said memorandum as on date from few entities and outstanding amount against these memorandums are NIL.

7. The company does not have any fund for gratuity and leave encashment liability and same is accounted for as provision or. actunal basis. The following table summarizes the components of net benefitsy'expenses neconginsed in the statement of profit & loss and balance sheet.

8. As per Accounting Standard-17 " Segment Reporting issued by ICAI, the Company has identified three reportable business segments viz. Steel, Power & Paints and following policies have been adopted for the segment reporting.

a) Revenu and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which could not be allocate to a specific segment are being disclosed separately as un-allocable.

b) Segment Assets and Segment Liabilities represent assets and liabilities in respective segment. Investments, tax related assets, other assets and liabilities that cannot be aflocated to a segment on a reasonable basis nave been disclosed as " Un-allocable".

9. .As per Accounting Standard-18 "Related Party Disclosures' issued by The Institute of Chartered Accountants of India, the disclosure of transactions with the related parties as defined in the Accounting Standard are given below:

Description of Relationship

Nature of Relationship Name of Related Party

Key Management Personnel Sh. Satsh Kumar Agarwal. Chairman & Managing Director

Sh. Sum! Kumar Agarwal. Whole Time Director Sh. Saurabh Agarwal. Whole Time Director Sh. Sachin Agarwal. Whole Time Director

Related Companies M/s Kamdhenu Overseas Ltd. M/s Kamdhenu Nutrients Pvt Ltd. M/s Somti Polymers Pvt. Ltd.


Mar 31, 2013

1. Contingent Liabilities and Commitments (to the extent not provided for) lAmount in *:¦

a. Contingent Liabilities

(A) Cairns agains; the company not acknowledged as debt

- Ceniral Excise & Service Tax 42.160.&45 23.692.62S

- Income Tax 3,921,000 36.095.148

- Sales Tax & Central Sales Tax 37.542.436 38.494.436

{B) Guarantees Issued by Bank. 1.5 20.000 2.236.590

90,164,051

b. Commitments

Estimated amount of contracts remaining to De executed an capital account and not crowded for ''Net of advance} 4.965.585 2.626.328

4,965.585 2,626.326

TOTAL (a b)

2. Some of the balances of Trade Receivables, Trade Payables, advances and Security deposits as on 3 1.03.2013 and sub|ect tdconfjiinatioo. Trade Receivables, outstanding for mere than six months includes fts. 2,66,78,776 on w*nch legal cases have been initiated for recovery by the company. The management of the company is hopeful of favourable decision on such legal cases, hence no provision for bad and doubtful debts have been considered.

3. In the opinion of the management, current & ncr> current assets, toans a advances have a value on realisation In the ordinary course of bus.ness at least equal io the amount at which thay are stated m the Balance Sheet,

4. The Company has already initiated the process of obtaining copes of memorandum filed with the concenied authority by entities falling under the M5MED Act 2006. The Company has received copies of the sad memorandum as on date from few entities and outstanding amount against these memorandums are NIL,

5. The company does not have any fund for gratuity and leave encashment liability and same is accounted for as provision on actural basis, The following table summarizes thecomponentsofnet benefits/expenses reconginsed ir.the statement of profit & toss and balance sheet.

6. As per Accounting Stindand-1 7" Segment Reporting'' issued by iCfii, the Company has identified three reportable bus-ness segments v
Expenses wfwch could noL be allocable to a specie segment are being disclosed separately as un-allocable. b} Segment Assets and Segment Liabilities represent assets and liabilities in respective segment. Investments, tax related assets, other assets and liabilities mat cannot be allocated to a segment on a reasonable basis have been disclosed as" Un allocable",

7. As per Accounting Standard- IS '' Impairment of Assets" issued by ICAI, there are no indication of overall impairment in assets.

8. Previous year Inures, have been reclassified,'' rearranged where ver necessary.


Mar 31, 2012

1) Contingent liabilities:

(A) Claims against the company/disputed liabilities not acknowledged as debts Rs in Lacs Rs in Lacs 2010-2011 2009-2010 a) Central Excise & Service Tax 279.97 281.97 b) Income Tax 359.07 20.90 d) Sales Tax & Central Sales Tax 366.53 366.53 Total 1,005.57 669.40

(B) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.42.74 Lacs (Previous year Rs.328.55 Lacs) net of advances.

2) The company was subjected to search by the Directorate General of Central Excise Intelligence (DGCEI), New Delhi during the financial year ended 31.03.2009 and deposed a sum of Rs.100 Lacs under protest which has been shown as "Excise Duty Deposed under Protest" in Loans & Advances. Subsequently, the company has received a show cause notice dated 09.05.2011 from the DGCEI, New Delhi for imposing excise duty aggregating amount of Rs.4492 Lacs. The Company is in the process of filing suitable reply of the alleged imposition of Excise duty and due to pending adjudication of the show cause notice, liability on this account has neither been considered nor disclosed in the accounts.

3) Some of the balances of sundry debtors, creditors, advances and unsecured loans as on 31.03.2011 are subject to confirmation. Sundry Debtors, outstanding for more than six months includes Rs.191.67 Lacs on which legal cases have been initiated for recovery by the company. The management of the company is hopeful of favourable decision on such legal cases, hence no provision for bad and doubtful debts have been considered.

4) In the opinion of the management, currents assets, loans & advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

5) The Company has already initiated the process of obtaining copies of memorandum filed with the concerned authority by entities falling under the MSMED Act 2006. The Company has not received copies of the said memorandum as on date from any such entity. In the absence of information, the company is unable to identify units and as well as furnish details required under the said Act.

6) The company does not have any fund for gratuity and leave encashment liability and same is accounted for as provision.

7) Remuneration paid/payable to Managing/whole time directors during the year was Rs.148.68 Lacs (Previous Year Rs.148.68 Lacs).

8) During the year, in terms of memorandum of settlement/arrangement dated 14.03.2011 arrived at before the Hon'ble Delhi High Court, Mediation & Conciliation Centre, The company has agreed to assign trade mark of Kamdhenu Cement, cement bricks, cement tiles and cement sheets only falling under Class-19 of the Trade Mark Rules,2002 for a total sum of Rs.140 Lacs in favour of Kamdhenu Cement Limited. The said revenue net of tax has been included in the "Royalty, Trademarks & Others" of Schedule-13.

9) Royalty,Trademarks & Others comprises royalty of Rs. 1406.79 Lacs (Previous Year Rs.1473.98 Lacs), Sale of Trademark of Rs.133.33 Lacs (Previous Year NIL), Income from derivatives of Rs.79.09 Lacs (Previous Year 105.03 Lacs) and priority dealership charges of Rs.1.16 Lacs (Previous Year 21.46 Lacs).

10) During the year, the Company has undertaken modernisation program at its Steel Plant with capital investment of Rs.545.20 Lacs in Plant & Machinery which have since become operational from 25.03.2011.

11) Balance with Schedule Bank in Current Accounts includes Unpaid Divident amount of Rs.2.33 Lacs and IPO Refund amount of Rs.2.62 Lacs (Previous Year of Rs. 2.38 Lacs & Rs.2.62 Lacs respectively).

12) The Cash flow Statement has been prepared in accordance with the requirements of Accounting Standard-3 "Cash Flow Statement" issued by ICAI.

13) As per Accounting Standard-17 " Segment Reporting" issue business segments viz. Steel, Power & Paints and following policies have been adopted for the segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which could not be allocable to a specific segment are being disclosed separately as un-allocable.

b) Segment Assets and Segment Liabilities represent assets and liabilities in respective segment. Investments, tax related assets, other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as "Un-allocable".

14) As per Account Standard-28 "Impairment of Assets" issued by ICAI, there are no indication of overall

15) Additional information pursuant to provisions of paragraph 3 & 4 of part II of Schedule VI of the Companies Act ,1956.

16) Value of Import on CIF basis in respect of Traded goods Rs.14.85 Lacs (Previous Year NIL).

17) Expenditure in Foreign Currency on Import of Traded goods Rs.13.55 Lacs (Previous Year NIL).

18) The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosure for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year


Mar 31, 2010

1) Contingent liabilities:

(A) Claims against the company/disputed liabilities not acknowledged as debts



Rs in Lacs Rs in Lacs

2009-2010 2008-2009

a) Central Excise & Service Tax # 281.97 123.65

b) Income Tax 20.90 20.90

d) Sales Tax & Central Sales Tax 366.53 97.64

Total 669.40 242.19



- Includes Rs.156.35 Lacs on account of show cause notices issued by the Excise Department during the Financial Year 2009-10.

(B) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.328.55 Lacs (Previous year Rs.8.89 Lacs) net of advances.

2) Some of the balances of sundry debtors, creditors, advances and unsecured loans as on 31.03.2010 are subject to confirmation. Sundry Debtors, outstanding for more than six months includes Rs.108.79 Lacs and others includes Rs.5.64 Lacs on which legal cases have been initiated for recovery by the company. The management of the company is hopeful of favourable decision on such legal cases, hence no provision for bad and doubtful debts have been considered.

3) In the opinion of the management, currents assets, loans & advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

4) The Company has already initiated the process of obtaining copies of memorandum filed with the concerned authority by entities falling under the MSMED Act 2006. The Company has not received copies of the said memorandum as on date from any such entity. In the absence of information, the company is unable to identify units and as well as furnish details required under the said Act.

5) The company does not have any fund for gratuity and leave encashment liability and same is accounted for as provision

6) Remuneration paid/payable to Managing/whole time directors during the year was Rs.148.68 Lacs (Previous Year Rs.148.68 Lacs).

7) Royalty & others comprises royalty of Rs.1473.98 Lacs, Income from commodity derivaties of Rs.105.03 Lacs and priority dealership charges of Rs.21.46 Lacs.

8) Provision for tax for current year amounting to Rs.42.52 Lacs (Previous year Rs.26.77 Lacs) have been made U/s 115JB of Income Tax Act,1961. Tax credit available U/s 115JAA of Income Tax Act.1961 amounting to Rs.33.11 Lacs (Previous year Rs.26.77 Lacs) have been taken as "MAT Credit Entitlemant Account" by giving credit to profit & loss account.

9) The company was subjected to search by Income Tax and Excise Authorities during the year ended 31st March,2009 .The proceedings are under process. Income Tax & Excise Duty liability,if any,upon conclusion of search proceedings shall be provided for in the year in which assessment by concerned authorities are completed.Pending assessment by Excise Authority,the company has deposited a sum of Rs.100 Lacs under protest,which has been shown as Excise Duty Deposited under Protest in Loans & Advances.

10) Balance with Schedule Bank in Current Accounts includes Unpaid Divident amount of Rs.2.38 Lacs and IPO Refund amount of Rs.2.62 Lacs ( Previous Year of Rs. 2.74 Lacs & Rs.2.98 Lacs respectively).

11) The Cash flow Statement has been prepared in accordance with the requirements of Accounting Standard-3 "Cash Flow Statement" issued by ICAI.

12) Sales includes Rs.3.53 Lacs (Previous Year Rs.30.70 Lacs) of stores items sold being not usable.

13) As per Accounting Standard-17 " Segment Reporting" issued by ICAI, the Company has identified three reportable business segments viz. Steel, Power & Paints and following policies have been adopted for the segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which could not be allocable to a specific segment are being disclosed separately as un-allocable.

14) As per Accounting Standard-18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India, the disclosure of transactions with the related parties as defined in the Accounting Standard are given below:

Description of Relationship



Nature of Relationship Name of Related Party

Key Management Personnel Sh. Satish Kumar Agarwal, Chairman & Managing Director

Sh. Sunil Kumar Agarwal, Whole Time Director Sh. Saurabh Agarwal, Whole Time Director Sh. Sachin Agarwal, Whole Time Director

Relatives of Key Management Smt. Radha Agarwal W/o Sh.Satish Kumar Agarwal

Smt. Priyanka Agarwal W/o Sh.Saurabh Agarwal Smt. Shivani Agarwal W/o Sh.Sachin Agarwal Smt. Shafali Agarwal W/o Late Shailendra Kumar Agarwal Sh. Ayush Agarwal S/o Late Shailender Kumar Agarwal Ms. Shreya Agarwal D/o Late Shailender Kumar Agarwal Smt. Sarita Agarwal W/o Sh.Sunil Kumar Agarwal Ms. Ishita Agarwal D/o Sunil Kumar Agarwal Ms. Somya Agarwal D/o Sunil Kumar Agarwal Ms. Shatul Agarwal D/o Sunil Kumar Agarwal

Related Companies and other Kamdhenu Overseas Limited

Kamdhenu Cement Industries Limited Satish Kumar Agarwal & Sons (HUF) Sunil Kumar Agarwal & Sons (HUF) Shailender Kumar Agarwal & Sons (HUF)



15) As per Accounting Standard-28 " Impairment of Assets" issued by ICAI, there are no indication of overall impairment in assets.

16) The previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosure for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Schedules "1 to 22” form an integral part of the Balance Sheet and Profit & Loss Account and have been duly authenticated as such.

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