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Notes to Accounts of NCL Industries Ltd.

Mar 31, 2015

1.1 SHARE CAPITAL

1. 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.

2. For the Year Ended 31st March,2015, no dividend was recognized for distribution to equity share holders (31st March 2014: Nil).

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

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

1.2 SHARE APPLICATION MONEY PENDING ALLOTMENT

The above amount represents the upfront contribution brought in by the Promoters in compliance with the conditions stipulated for sanctioning the Company's Debt Restructuring Proposal by the CDR Cell. At the EGM held on 02.04.2014, Shareholders approved to make a Preferential Issue of 17,95,455 Equity Shares to the Promoters Group at a premium of Rs 12/- per Share. SEBI has granted exemption from regulation 72(2) of SEBI (ICDR) Regulations, 2009 and accorded approval for preferential allotment on 14.05.2015. Accordingly, Equity shares were alloted to the promoters on 26.05.2015.

a. Keeping in view of the sluggish cement market conditions resulted because of downturn of Infra Sector, at the reguest of the Company, the outstanding loans as of 1.7.2013 (except Rs 7.23 crores of Funded Interest Term Loan availed from IREDA) have been rescheduled under Corporate Debt Restructuring mechanism (CDR). As per the scheme sanctioned, the outstanding loans are to be repaid in 28 calibrated guarterly installments commencing from March 2014. Rate of Interest has been reduced to 12% per annum with a reset option once in every two years. Interest arrears for a period eight months has been funded, of which first two months interest has to be repaid three egual guarterly installments commencing from March 2014. Balance six months interest has to be repaid in ten egual guarterly installments from March 2014. Lenders have the Right for Recompense. Due amounts as of 31st March 201S were fully paid as per the sanctioned scheme.

b. Term Loans from the Banks and Financial Institutions viz. Axis Bank Ltd, Canara Bank, Central Bank of India, Corporation Bank, Indian Renewable Energy Development Agency Ltd (IREDA), Oriental Bank of Commerce, State Bank of Hyderabad and State Bank of Mysore are secured by a pari passu first charge on all movable and immovable properties of the Company and second charge on current assets of the Company (both present and future) except receivables of Energy Division.

c. Term Loans availed from all Banks and Financial Institutions are guaranteed by Four Promoter Directors in their personal capacity. Further, entire unencumbered shareholdings of Promoters have also been pledged as additional security.

d. Vehicle and Equipment Loans from various Banks are secured by Hypothecation of respective assets financed, for a tenure of 35 to 45 months and carries Interest @ 9% to 11% p.a.

e. Represents 8 years Interest free Sales Tax Deferment Loan received from Governmnet of Andhra Pradesh. The loan repayments are to be made from March 31, 2013 based on the deferment availed in the corresponding year.

a. Deposits from Dealers / Stockists represent amounts collected from Dealers / Stockists / Agents as collateral at the time of granting the dealership to sell the products of the Company which is repayable on cancellation of the said dealership. These deposits attract interest @ 6% p.a.

b. Public Deposits aggregating to Rs 2,760.61 lakhs (Previous year Rs 3,107.45 lakhs) is repayable within one year and Rs 369.05 lakhs (Previous Year Rs 76.98 lakhs) is repayable within next two years.

2.1 SHORTTERM BORROWINGS

Cash credit Loans from Banks viz. Axis Bank Ltd, IDBI Bank Ltd and State Bank of Hyderabad are secured by pari passu first charge on current assets of the Company excluding receivables of Energy Division (both present & future) and second charge on fixed assets of the company and are guaranteed by four promoter directors in their personal capacity. Further, entire unencumbered shareholdings of Promoters have also been pledged as additional security. These facilities also have been restructured under CDR Mechanism and Rate of Interest has been reduced to 12% per annum effective from 1.7.2013 with a reset option every year.

2.2 TRADE PAYABLES

Based on the information available with the Company, amount of dues to Micro, Small and Medium Enterprises outstanding formore than 45 days as at 31st March 2015 is Rs. Nil (Previous Year: Rs. Nil)

b) Segment Revenue and Expenses;

B. SECONDARY DISCLOSURES:

Revenue from external customers by location of customers

The main customer base of company's products are in India only

Carrying amount of segment assets by location of assets Costs to acquire tangible and intangible fixed assets by location of assets.

All manufacturing units are located in India

Other Disclosures:

Basis of pricing Inter segment transfers and any change therein

Inter division transfers of goods are at market price.

Types of products and services in each business segments

(1) OPC/PPC/53 S Cement

(2) Plain and laminated Cement Bonded Particle Boards

(3) Prefab Shelters.

(4) Generation of Hydel power.

(5) Ready Mix Concrete.

Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business, the accounting policies in relation to segment accounting are as under:

a) Segment Assets and Liabilities:

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors and loans & advances less current liabilities. Segment assets and liabilities do not include investments, cash and bank balances, inter corporate deposits, reserves and surplus, borrowings, provision for contingencies and income tax (both current and deferred).

b) Segment Revenue and Expenses:

31 Mar 2015 31 Mar 2014

Disputed Paid Under Disputed Paid Under Amount Protest Amount Protest

Demand by Sales tax authorities -Interest on HSD Oil used in Tippers for transportation of lime stone (Note 'a') 4.26 - 4.26 -

Demand by Sales tax authorities -Penalty on delayed payment (Note 'b') 16.88 4.00 16.88 4.00

Demand by Sales tax authorities for the year 2004-05 - Rate of tax on erection of prefab structures on CST. (Note 'c') 14.92 - 14.92 -

Demand by Sales tax authorities for the year 2008-09 - Disallowance of Input tax credit. (Note 'd') 175.82 56.00 175.82 56.00

Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note 'e') 464.98 50.00 464.98 50.00

Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note 'f') 163.18 5.00 163.18 5.00

Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note 'g') 116.34 - 116.34 -

Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note 'h') 80.85 - 101.61 -

Excise department claimed return of refund of Excess

Excise duty paid by the Company (Note 'i') 29.22 - 29.22 -

Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note 'j') 16.88 10.44 16.88 8.44

Demand of Central Excise Department denying benefit of Cenvat credit on cement transferred to Kondapalli unit from Mattapally unit for despatch in a railway rake (Note 'k') 2.00 - 2.00 -

Miscellaneous Issues pending with Excise department 6.15 - 7.15 -

Customs department raised a demand classifying imported steam coal as Bituminous coal ( Note 'l') 42.19 - 42.19 -

Customs department raised a demand classifying imported steam coal as Bituminous coal ( Note 'm') 87.79 - 87.79 -

Demand of NALA Tax pertaining to Non Agricultural Tax in Mining Areas by the state government ( Note 'n') 43.56 - 43.56 -

Demand raised for payment of permit fee by the forest department for mining and transportation of Lime Stone ( Note 'o') ** 382.45 127.41 300.03 99.94

Counter Guarantees given to Banks / FIs 258.11 - 340.34 -

a. Sales Tax Authorities treated the usage of HSD oil on Hired tippers on cost recovery basis for transport of Lime Stone From Mines to Factory, on the presumption that it is a sale. The company filed an appeal before the Sales Tax Appellate Tribunal.

b. In the year 1999-00, Sales Tax Authorities raised a demand for Rs.16.88 lakhs as penalty on delayed payment. The Company has preferred an Appeal before the Sales Tax Appellate Tribunal. The company has paid an amount of Rs. 4.00 lakhs and obtained a stay from the Commissioner of Commercial Taxes.

c. Sales Tax Authorities disputed the rate of tax for interstate supplies of prefab structures in the year 2004-05 and raised

a demand for a sum of Rs. 14.92 Lakhs. Company preferred an appeal before STAT, the case is remanded to Assessing Officer.

d. Sales Tax Authorities raised a demand for Rs.175.82 lakhs for the year 2008-09 disallowing the input tax credit on materials used in construction of plant structure, input tax credit on SEZ supplies and also demanded differential tax on local as well as CST purchases under Works Tax .The Company has preferred an Appeal before the Sales Tax Appellate Deputy Commissioner. The company has initially paid an amount of Rs. 80.00 lakhs in protest out of which Rs. 34.00 lakhs was adjusted against sales tax payable and further paid another 10.00 lakhs and has obtained a stay from the Honourable High Court of Andhra Pradesh. Sales Tax Appellate Deputy Commissioner has remanded the case back to the Assistant Commisioner to verify and pass necessary orders.

e. The Excise Department has raised a demand of Rs.464.98 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. Company has preferred an appeal before CESTAT and is pending. CESTAT ordered payment of Rs. 2.50 crores in the case of Mattapally unit and the Company filed a writ before the Honourable High Court of Andhra Pradesh. A stay on payment of pre-deposit was granted on a payment of Rs. 50.00 lakhs.

f. The Excise Department has raised a demand of Rs.163.18 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. Company has preferred an appeal before CESTAT and a stay was granted on payment of a pre-deposit of Rs. 5.00 lakhs.

g. The Excise Department has raised a demand of Rs.116.34 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. Company has preferred an appeal before CESTAT and a stay was granted.

h. The Excise Department has raised a demand of Rs.101.61 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. On an appeal, CESTAT has remanded the cases back to the Commissioner of Central Excise. The Appellate Commissioner decided the case partially in Company's favour and confirmed the balance demand along with interest and penalty. Company preferred an appeal before CESTAT.

i. The Excise Department has claimed return of the refund of Rs. 29.22 lakhs paid to the Company on their appeal decided in their favour by the Commissioner (Appeals). The Honourable High Court of Andhra Pradesh granted stay.

j. Excise department has raised a demand of Rs. 16.88 lakhs denying the cenvat credit on usage of Cement, Steel, M.S. Plates, M.S.Flats, M.S.Angles, M.S.Channels M.S.Coils, Steel Tubes, Pipes, beams, Plates/Sheets, Rebars, Conductors in construction of civil structures like Silo, Dump Hopper etc. The matter was contested and pending before the Appellate Authority and a stay was obtained on payment of Rs. 8.44 lakhs being 50% of the demand raised and the was subsequently rejected. The Company preferred an appeal before CESTAT and further predeposit of Rs. 2 lakhs was paid.

k. Excise department has raised a demand of Rs. 11.18 lakhs denying the cenvat credit taken on transfer of cement from Mattapally unit to Kondapalli unit for despatch by rail. On an appeal before the Commissioner of Central Excise the demand was dropped but imposed a penalty of Rs. 2.00 lakhs. Company preferred an appeal before CESTAT and obtained a stay.

l. The Customs Department raised a demand of Rs. 42.19 lakhs classifying imported steam coal as bituminous coal. Company preferred an appeal before the Appellate Commissioner of Customs & Central Excise (Appeals), Visakhapatnam.

m. The Customs Department raised a demand of Rs. 87.79 lakhs classifying imported steam coal as bituminous coal. Company preferred an appeal before CESTAT, Bengaluru.

n. The State Government has issued a notice claiming NALA Tax of Rs. 43.56 lakhs regarding Non Agricultural Tax on Mining areas.On dismissal of our appeal by the Joint Collector of Nalgonda, Company filed a writ petition before the Honourable High Court of Andhra Pradesh.

o. Forest deparment demanded payment of permit fee for Lime Stone mining & Transportation @ 10/- per ton. Company filed a writ petition before the Honourable High Court of Andhra Pradesh. High Court has granted an interim stay subject to payment of 1/3 amount of the imposed permit fee.

** Though Rs. 127.41 lakhs was paid under protest, this amount was not shown as a current asset. This was included in consumption of materials in the respective years.

Actuarial assumptions

a) Mortality IALM 2006-08 (ultimate)

b) Discounting rate - 7.77% Previous year 9.19 %

c) Expected average remaining working lives of employees-13.06 Years

d) Rate of escalation in salary - 6 %

2.3 As required by Accounting Standards AS 18, the related parties' disclosure issued by the Institute of Chartered Accountants of India is as follows;

a. List of related parties and relationships

i. Enterprises controlled by Key Management Personnel / Relatives of Key Management Personnel

1. NCL Alltek & Seccolor Limited

2. NCL Homes Limited

3. Kakatiya Industries (P) Limited

4. Nagarjuna Cerachem (P) Limited

5. NCL Wintech India Limited

6. Khandaleru Power Company Limited

7. Vikram Chemicals Pvt Limited

8. Ashven Datla

ii. Key Management Personnel ; Mr. K. Ravi, Managing Director


Mar 31, 2014

1. 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 for the Year 2012-13 was subsequently withdrawn by the Board of Directors in view of adverse cement market conditions, hence provision made was reversed.

2. For the Year Ended 31st March,2014, no dividend was recognized for distribution to equity share holders (31st March 2013: Nil).

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

4 SHARE APPLICATION MONEY PENDING ALLOTMENT

The above amount represents the upfront contribution brought in by the Promoters in compliance with the conditions stipulated for sanctioning the Company''s Debt Restructuring Proposal by the CDR Cell. At the EGM held on 2.4.2014, Shareholders approved to make a Preferential Issue of 17,95,455 Equity Shares to the Promoters Group at a premium of Rs 12 per Share. The Shares will be issued upon receipt of Approval of SEBI under ICDR Regulations.

Keeping in view of the sluggish cement market conditions resulted because of downturn of Infra Sector, at the request of the Company, the outstanding loans as of 1.7.2013 (except Rs 7.23 crores of Funded Interest Term Loan availed from IREDA) have been rescheduled under Corporate Debt Restructuring mechanism (CDR). As per the scheme sanctioned, the outstanding loans are to be repaid in 28 calibrated quarterly installments commencing from March 2014. Rate of Interest has been reduced to 12% per annum with a reset option once in every two years. Interest arrears for a period eight months has been funded, of which first two months interest has to be repaid three equal quarterly installments commencing from March 2014. Balance six months interest has to be repaid in ten equal quarterly installments from March 2014. Lenders have the Right for Recompense. Due amounts as of 31st March 2014 as per the sanctioned scheme were paid in toto.

a. Term Loans from the Banks and Financial Institutions viz. Axis Bank Ltd, Canara Bank, Central Bank of India, Corporation Bank, Indian Renewable Energy Development Agency Ltd (IREDA), Oriental Bank of Commerce, State Bank of Hyderabad and State Bank of Mysore are secured by a pari passu first charge on all movable and immovable properties of the Company and second charge on current assets of the Company (both present and future) except receivables of Energy Division.

b. Term Loans availed from all Banks and Financial Institutions are guaranteed by Four Promoter Directors in their personal capacity. Further, entire unencumbered shareholdings of Promoters have also been pledged as additional security.

c. Term Loans availed from all Banks and Financial Institutions are repayable in Quarterly Installments ansd carries interest @9% to 12% p.a.

d. Vehicle and Equipment Loans from various Banks are secured by Hypothecation of respective assets financed, for a tenure of 35 to 45 months and carries Interest @ 9% to 11% p.a.

e. Represents 8 years Interest free Sales Tax Deferment Loan received from Governmnet of Andhra Pradesh. The loan repayments are to be made from March 31, 2013 based on the deferment availed in the corresponding year.

a. Deposits from Dealers / Stockists represent amounts collected from Dealers / Stockists / Agents as collateral at the time of granting the dealership to sell the products of the Company which is repayable on cancellation of the said dealership. These deposits attract interest @ 6% p.a.

b. Public Deposits aggregating to Rs 3,107.45 lakhs (Previous year Rs 3,363.15 lakhs) is repayable within one year and Rs 76.98 lakhs (Previous Year Rs 32.78 lakhs) is repayable within two years.

5 SHORT TERM BORROWINGS

Cash credit Loans from Banks viz. Axis Bank Ltd, IDBI Bank Ltd and State Bank of Hyderabad are secured by pari passu first charge on current assets of the Company excluding receivables of Energy Division (both present & future) and second charge on fixed assets of the company and are guaranteed by four promoter directors in their personal capacity. Further, entire unencumbered shareholdings of Promoters have also been pledged as additional security. These facilities also have been restructured under CDR Mechanism and Rate of Interest has been reduced to 12% per annum effective from 1.7.2013 with a rest opinion every year.

Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business, the accounting policies in relation to segment accounting are as under:

a) Segment Assets and Liabilities:

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors and loans & advances less current liabilities. Segment assets and liabilities do not include investments, cash and bank balances, inter corporate deposits, reserves and surplus, borrowings, provision for contingencies and income tax (both current and deferred).

b) Segment Revenue and Expenses:

Segment revenue and expenses are taken directly as attributable to the segment. It does not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax.

6 contingent Liability

31 Mar 2014 Disputed Paid Under Amount Protest

Demand by Sales tax authorities -Interest on HSD Oil used in Tippers for transportation of lime stone (Note ''a'') 4.26 - Demand by Sales tax authorities- Penalty on delayed payment (Note ''b'') 16.88 4.00 Demand by Sales tax authorities for the year 2004-05 - Rate of tax on erection of prefab structures on CST. (Note ''c'') 14.92 - Demand by Sales tax authorities for the year 2008-09 - Disallowance of Input tax credit. (Note ''d'') 175.82 56.00 Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''e'') 464.98 50.00 Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''f'') 163.18 5.00 Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''g'') 116.34 - Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''h'') 101.61 -

Excise department claimed return of refund of Excess Excise duty paid by the Company (Note ''I) 29.22 - Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''j'') 16.88 8.44 Demand of Central Excise Department denying benefit of Cenvat credit on cement transferred to Kondapalli unit from Mattapally unit for despatch in a railway rake (Note ''k'') 2.00 - Return of Refund of Additional duty paid under protest made to the Company , claimed by Excise department. (Note ''l'') 18.41 -

Miscellaneous Issues pending with Excise department 7.15 -

Customs department raised a demand classifying imported steam coal as Bituminous coal ( Note ''m'') 42.19 -

Customs department raised a demand classifying imported steam coal as Bituminous coal ( Note ''n'') 87.56 -

Demand of NALA Tax pertaining to Non Agricultural Tax in Mining Areas by the state government ( Note ''o'') 43.56 -

Service Tax on outward transport & Insurance 2.17 -

Demand raised for payment of permit fee by the forest department for mining and transportation of Lime Stone ( Note ''p'') ** 300.03 99.94

Counter Guarantees given to Banks / Fis 340.34 -

31 Mar 2013 Disputed Paid Under Amount Protest

Demand by Sales tax authorities -Interest on HSD Oil used in Tippers for transportation of lime stone (Note ''a'') 4.26 - Demand by Sales tax authorities- Penalty on delayed payment (Note ''b'') 16.88 4.00 Demand by Sales tax authorities for the year 2004-05 - Rate of tax on erection of prefab structures on CST. (Note ''c'') 14.92 - Demand by Sales tax authorities for the year 2008-09 - Disallowance of Input tax credit. (Note ''d'') - - Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''e'') 464.98 50.00 Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''f'') 163.18 5.00 Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''g'') 116.34 - Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''h'') 101.61 - Excise department claimed return of refund of Excess Excise duty paid by the Company (Note ''I) 29.22 - Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''j'') 16.88 8.44 Demand of Central Excise Department denying benefit of Cenvat credit on cement transferred to Kondapalli unit from Mattapally unit for despatch in a railway rake (Note ''k'') 11.18 - Return of Refund of Additional duty paid under protest made to the Company , claimed by Excise department. (Note ''l'') 18.41 -

Miscellaneous Issues pending with Excise department 7.37 - Customs department raised a demand classifying imported steam coal as Bituminous coal ( Note ''m'') - - Customs department raised a demand classifying imported steam coal as Bituminous coal ( Note ''n'') - - Demand of NALA Tax pertaining to Non Agricultural Tax in Mining Areas by the state government ( Note ''o'') 43.56 - Service Tax on outward transport & Insurance 2.17 - Demand raised for payment of permit fee by the forest department for mining and transportation of Lime Stone ( Note ''p'') ** 226.60 75.46 Counter Guarantees given to Banks / Fis 336.94 -



a. Sales Tax Authorities treated the usage of HSD oil on Hired tippers on cost recovery basis for transport of Lime Stone From Mines to Factory, on the presumption that it is a sale. The company filed an appeal before the Sales Tax Appellate Tribunal.

b. In the year 1999-00, Sales Tax Authorities raised a demand for Rs.16.88 lakhs as penalty on delayed payment. The Company has preferred an Appeal before the Sales Tax Appellate Tribunal. The company has paid an amount of Rs. 4.00 lakhs and obtained a stay from the Commissioner of Commercial Taxes.

c. Sales Tax Authorities disputed the rate of tax for interstate supplies of prefab structures in the year 2004-05 and raised a demand for a sum of Rs. 14.92 Lakhs. Company preferred an appeal before STAT and is pending.

d. Sales Tax Authorities raised a demand for Rs.175.82 lakhs for the year 2008-09 disallowing the input tax credit on materials used in construction of plant structure, input tax credit on SEZ supplies and also demanded differential tax on local as well as CST purchases under Works Tax .The Company has preferred an Appeal before the Sales Tax Appellate Deputy Commissioner. The company has initially paid an amount of Rs. 80.00 lakhs in protest out of which Rs. 34.00 lakhs was adjusted against sales tax payable and further paid another 10.00 lakhs and has obtained a stay from the Honourable High Court of Andhra Pradesh.

e. The Excise Department has raised a demand of Rs.464.98 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. Company has preferred an appeal before CESTAT and is pending. CESTAT ordered payment of Rs. 2.50 crores in the case of Mattapally unit and the Company filed a writ before the Honourable High Court of Andhra Pradesh. A stay on payment of pre-deposit was granted on a payment of Rs. 50.00 lakhs.

f. The Excise Department has raised a demand of Rs.163.18 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. Company has preferred an appeal before CESTAT and a stay was granted on payment of a pre-deposit of Rs. 5.00 lakhs.

g. The Excise Department has raised a demand of Rs.116.34 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. Company has preferred an appeal before CESTAT and a stay was granted.

h. The Excise Department has raised a demand of Rs.101.61 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. On an appeal, CESTAT has remanded the cases back to the Commissioner of Central Excise.

I The Excise Department has claimed return of the refund of Rs. 29.22 lakhs paid to the Company on their appeal decided in their favour by the Commissioner (Appeals). The Honourable High Court of Andhra Pradesh granted stay.

j. Excise department has raised a demand of Rs. 16.88 lakhs denying the cenvat credit on usage of Cement, Steel, M.S. Plates, M.S.Flats, M.S.Angles, M.S.Channels M.S.Coils, Steel Tubes, Pipes, beams, Plates/Sheets, Rebars, Conductors in construction of civil structures like Silo, Dump Hopper etc. The matter was contested and pending before the Appellate Authority and a stay was obtained on payment of Rs. 8.44 lakhs being 50% of the demand raised and the was subsequently rejected. The Company preferred an appeal before CESTAT.

k. Excise department has raised a demand of Rs. 11.18 lakhs denying the cenvat credit taken on transfer of cement from Mattapally unit to Kondapalli unit for despatch by rail. On an appeal before the Commissioner of Central Excise the demand was dropped but imposed a penalty of Rs. 2.00 lakhs. Company preferred an appeal before CESTAT and obtained a stay.

l. The Excise Department has issued a notice to return the refund of Additional Excise duty paid under protest, amounting to Rs. 18.41 lakhs paid to the Company. Company has filed a reply to the notice.

m. The Customs Department raised a demand of Rs. 42.19 lakhs classifying imported steam coal as bituminous coal. Company is preferring an appeal before the Commissioner of Customs & Central Excise (Appeals), Visakhapatnam.

n. The Customs Department raised a demand of Rs. 87.79 lakhs classifying imported steam coal as bituminous coal. Company is preferring an appeal before CESTAT, Bengaluru.

o. The State Government has issued a notice claiming NALA Tax of Rs. 43.56 lakhs regarding Non Agricultural Tax on Mining areas.On dismissal of our appeal by the Joint Collector of Nalgonda, Company filed a writ petition before the Honourable High Court of Andhra Pradesh.

p. Forest deparment demanded payment of permit fee for Lime Stone mining & Transportation @ 10/- per ton. Company filed a writ petition before the Honourable High Court of Andhra Pradesh. High Court has granted an interim stay subject to payment of 1/3 amount of the imposed permit fee.

** Though Rs. 99.94 lakhs was paid under protest, this amount was not shown as a current asset. This was included in consumption of materials in the respective years.

Actuarial assumptions

a) Mortality IALM 2006-08 (ultimate), Previous Year (LIC) 1994-96 (ultimate)

b) Discounting rate - 9.19% Previous year 8.06 %

d) Expected average remaining working lives of employees-13.2 Years

e) Rate of escalation in salary - 6 %

8 As required by Accounting Standards AS 18, the related parties'' disclosure issued by the Institute of Chartered Accountants of India is as follows:

a. List of related parties and relationships

I Enterprises controlled by Key Management Personnel / Relatives of Key Management Personnel

1. NCL Alltek & Seccolor Limited

2. NCL Homes Limited

3. Kakatiya Industries (P) Limited

4. Nagarjuna Cerachem (P) Limited

5. NCL Wintech India Limited

6. Khandaleru Power Company Limited

7. Vikram Chemicals (P) Limited

ii. Key Management Personnel : Mr. K. Ravi, Managing Director

* As already reported in the last Annual Report 2012-13, pursuant to the special resolution passed by the shareholders at the AGM held on 28.9.2013, the company submitted an application to the Central Government for the approval of exess remuneration of Rs 25.19 lakhs paid to Mr. K. Ravi, Managing Director during the Financial Year 2012-13. The Company also made an application to the Central Governmet for the approval of remuneration approved by the shareholders at their meeting held on 14.9.2012 (with a reduction of 25% in the salary and without commission) as minimum remuneration to Mr. K. Ravi, Managing Director in the event of absence or inadequacy of profits for the Financial Year 2013-14 onwards. The applications made by the company are under active consideration with the MCA.


Mar 31, 2013

Note: Investor Education and Protection Fund will be credited by this amounts as and when due.

Note: As per Andhra Pradesh State Industrial Policy 2005-10, Amounts of incentives from Industries Department receivable for the year amounting to Rs.165.01 lakhs (Previous Year Rs. 793.12 lakhs) is deducted from Taxes on Sales.

Note: As per Andhra Pradesh State Industrial Policy 2005-10, amounts of incentives from Industries Department receivable for the year amounting to Rs. 361.70 lakhs (Previous Year Rs. 388.51 lakhs) is deducted from the Cost of Power.

Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business, the accounting policies in relation to segment accounting are as under:

a) Segment Assets and Liabilities:

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors and loans & advances less current liabilities. Segment assets and liabilities do not include investments, cash and bank balances, inter corporate deposits, reserves and surplus, borrowings, provision for contingencies and income tax (both current and deferred).

b) Segment Revenue and Expenses:

Segment revenue and expenses are taken directly as attributable to the segment. It does not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax.

1.1 Contingent Liabilities

31 Mar-2013 31 Mar-2012 Disputed Paid Under Disputed Paid Under Amount Protest Amount Protest

Demand by Sales tax authorities

-Interest on HSD Oil used in Tippers for transportation of lime stone (Note ''a'') 4.26 - 4.26 -

Demand by Sales tax authorities- Interest on delayed

payment (Note ''b'') 16.88 4.00

16.88 4.00

Demand by Sales tax authorities for the year 1997-98 - on revised assessment (Note ''c'') 9.81 4.90

9.81 4.90

Demand by Sales tax authorities for the year 2004-05 - Rate of tax on erection of prefab structures on CST. (Note ''d'') 14.92 14.92

Demand of Central Excise Department denying benefit of Cenvat credit on capital goods (Note ''e'') 744.50 50.00

744.50

Demand of Central Excise Department denying benefit of

Cenvat credit on capital goods (Note ''f'') 101.61 100.72

Excise department claimed return of refund of Excess Excise duty paid by the Company (Note ''g'') 29.22 29.22

Demand of Central Excise Department denying benefit of

Cenvat credit on capital goods (Note ''h'') 16.88 8.44

17.77

Demand of Central Excise Department denying benefit of

Cenvat credit on cement transferred to Kondapalli unit from

Mattapally unit for despatch in a railway rake (Note ''i'') 11.18 11.18 -

Return of Refund of Additional duty paid under protest made

to the Company , claimed by Excise department. (Note ''j'') 18.41 18.41 -

Miscellaneous Issues pending with Excise department 7.37 8.52

Demand of NALA Tax pertaining to Non Agricultural Tax in

Mining Areas by the state government ( Note ''k'') 43.56 43.56

Service Tax on outward transport & Insurance 2.17 2.17

Demand raised for payment of permit fee by the forest department for mining and transportation of Lime Stone ( Note ''l'') 226.60 75.46 158.00 52.61

Counter Guarantees given to Banks / FIs 3 36.94 342.61

a. Sales Tax Authorities treated the usage of HSD oil on Hired tippers on cost recovery basis for transport of Lime Stone From Mines to Factory, on the presumption that it is a sale. The company filed an appeal before the Sales Tax Appellate Tribunal.

b. In the year 1999-00, Sales Tax Authorities raised a demand for Rs.16.88 lakhs as penalty on delayed payment. The Company has preferred an Appeal before the Sales Tax Appelate Tribunal. The company has paid an amount of Rs. 4.00 lakhs and obtained a stay from the Commissioner of Commercial Taxes.

c. Demand raised by the Sales Tax Authorities on revised assessment for the year 1997-98 for a sum of Rs. 9.81 Lakhs levying tax on regular rate when the turnover was under works contract. Obtained a stay on payment after payment of 50% of Sales Tax demanded. Appeal is pending before STAT.

d. Sales Tax Authorities disputed the rate of tax for interstate supplies of prefab structures in the year 2004-05 and raised a demand for a sum of Rs. 14.92 Lakhs. Company preferred an appeal before STAT and is pending.

e. The Excise Department has raised a demand of Rs.744.50 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. Company has preferred an appeal before CESTAT and is pending. CESTAT ordered payment of Rs. 2.50 crores in the case of Mattapally unit and the Company filed a writ before the Honourable High Court of Andhra Pradesh. A stay on payment of predeposit was granted on a payment of Rs. 50.00 lakhs.

f. The Excise Department has raised a demand of Rs.101.61 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. The appeal before Commissioner was rejected and Company has preferred an appeal before CESTAT.

g. The Excise Department has claimed return of the refund of Rs. 29.22 lakhs paid to the Company on their appeal decided in their favour by the Commissioner (Appeals). The Honourable High Court of Andhra Pradesh granted stay.

h. Excise department has raised a demand of Rs. 16.88 lakhs denying the cenvat credit on usage of Cement, Steel, M.S. Plates, M.S.Flats, M.S.Angles, M.S.Channels M.S.Coils, Steel Tubes, Pipes, beams, Plates/Sheets, Rebars, Conductors in construction of civil structures like Silo, Dump Hopper etc. The matter was contested and pending before the Appellate Authority and a stay was obtained on payment of Rs. 8.44 lakhs being 50% of the demand raised and it was subsequently rejected. The Company preferred an appeal before CESTAT.

i. Excise department has raised a demand of Rs. 11.18 lakhs denying the cenvat credit taken on transfer of cement from Mattapally unit to Kondapalli unit for despatch by rail. The Company preferred an appeal before the Commissioner of Central Excise and the personal hearing was completed and the order is awaited.

j. The Excise Department has issued a notice to return the refund of Additional Excise duty paid under protest, amounting to Rs. 18.41 lakhs paid to the Company. Company has filed a reply to the notice.

k. The State Government has issued a notice claiming NALA Tax of Rs. 43.56 lakhs regarding Non Agricultural Tax on Mining areas.On dismissal of our appeal by the Joint Collector of Nalgonda, Company filed a writ petition before the Honourable High Court of Andhra Pradesh and has been granted an interim stay on the total amount demanded.

l. Forest deparment demanded payment of permit fee for Lime Stone mining & Transportation @ 10/- per ton. Company filed a writ petition before the Honourable High Court of Andhra Pradesh. High Court has granted an interim stay subject to payment of 1/3 amount of the imposed permit fee.


Mar 31, 2012

A Term Loans from the Banks and Financial Institutions viz. Axis Bank Ltd, Canara Bank, Central Bank of India, Corporation Bank, Indian Renewable Energy Development Agency Ltd (IREDA), Oriental Bank of Commerce, State Bank of Hyderabad, State Bank of India and State Bank of Mysore are secured by a pari passu first charge on all movable and immovable properties of the Company and second charge on current assets of the Company (both present and future) except receivables of Energy Division.

b. Term Loans availed from all Banks and Financial Institutions except Axis Bank are repayable in Quarterly Installments of Rs 1140 lakhs each.

c. Term Loans availed from Axis Bank are repayable in Monthly Installment of Rs 57 lakhs each.

d. Term Loans carries interest @ 9% to 14.50% p.a.

e. Vehicle and Equipment Loans from various Banks are secured by Hypothecation of respective assets financed, for a tenure of 35 to 45 months and carries Interest @ 9% to 11% p.a.

f. Represents 8 years Interest free Sales Tax Deferment Loan received from Government of Andhra Pradesh. Repayment commences from January 31, 2014 based on the deferment availed in the corresponding year.

g. No Default in repayment of any loan or interest thereon.

a. Deposits from Dealers / Stockiest represents amounts collected from Dealers / Stockiest / Agents as collateral at the time of granting the dealership to sell the products of the Company which is repayable on cancellation of the said dealership. These deposits attract interest @ 6% p.a.

b. Public Deposits aggregating to Rs 2,713.23 lakhs (Previous year Rs 1,907 lakhs) is repayable within one year and Rs 173.80 lakhs (Previous Year Rs 187.65 lakhs) is repayable within two years.

Cash credit Loans from Banks viz. Axis Bank Ltd, IDBI Bank Ltd and State Bank of Hyderabad are secured by pari passu first charge on current assets of the Company excluding receivables of Energy Division (both present & future) and second charge on fixed assets of the company and are guaranteed by four promoter directors in their personal capacity. The cash credit is repayable on demand and carries interest @ 13% to 14.5% p.a.

Based on the information available with the Company, amount of dues to Micro, Small and Medium Enterprises outstanding for more than 45 days as at 31st March 2012 is Rs. Nil (Previous Year: Rs. Nil)

Note: Investor Education and Protection Fund will be credited by this amounts as and when due.

Note: As per Andhra Pradesh State Industrial Policy 2005-10, Amounts of incentives from Industries Department receivable for the year amounting to Rs.793.12 lakhs (Previous Year Rs. 411.92 lakhs) is deducted from Taxes on Sales.

Note: As per Andhra Pradesh State Industrial Policy 2005-10, Amounts of incentives from Industries Department receivable for the year amounting to Rs. 388.51 lakhs (Previous Year Rs. 80.69 lakhs) is deducted from the Cost of Power.

The company operates in five segments namely, Cement, Boards, Prefab, Energy and RMC Divisions. Segments are identified and reported as required in AS 17 Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business, the accounting policies in relation to segment accounting are as under:

a) Segment Assets and Liabilities:

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors and loans & advances less current liabilities. Segment assets and liabilities do not include investments, cash and bank balances, inter corporate deposits, reserves and surplus, borrowings, provision for contingencies and income tax (both current and deferred).

b) Segment Revenue and Expenses:

Segment revenue and expenses are taken directly as attributable to the segment. It does not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax.

1.1 Contingent Liabilities Rs- in Lakhs

31-Mar-12 31-Mar-11

Disputed Paid Under Disputed Paid Under Amount Protest Amount Protest

Demand by Sales tax authorities -Interest on HSD Oil

used in Tippers for transportation of lime stone (Note 'a') 4.26 - 4.26 -

Demand by Sales tax authorities-Interest on delayed 16.88 4.00 16.88 4.00

payment (Note 'b')

Demand by Sales tax authorities for the year 1997-98 9.81 4.90 9.81 4.90

- on revised assessment (Note 'c')

Demand by Sales tax authorities for the year 2004-05 14.92 - 14.92 -

- Rate of tax on erection of prefab structures on CST. (Note 'd')

Claim of Input Tax on purchase of Coal not accepted by - - 14.42 -

Sales Tax Authorities , the appeal was decided in Company's favour.

Issues pertaining to F forms non submission, Entry Tax - - 3.12 -

on CST purchases which were decided in company's favour

Demand of Central Excise Department denying benefit of 744.50 - 279.52 -

Cenvat credit on capital goods (Note 'e')

Demand of Central Excise Department denying benefit 100.72 - 83.83 -

of Cenvat credit on capital goods (Note 'f')

Excise department claimed return refund of Excess 29.22 - 29.22 -

Excise duty paid by the Company (Note 'g')

Demand of Central Excise Department denying benefit of 17.77 - 17.77 -

Cenvat credit on capital goods (Note 'h')

Demand of Central Excise Department denying benefit 11.18 - 11.18 -

of Cenvat credit on cement transferred to Kondapalli unit from Martially unit for dispatch in a railway rake (Note 'i')

Return of Refund of Additional duty paid under protest made 18.41 - -

to the Company , claimed by Excise department. (Note 'j')

Miscellaneous Issues pending with Excise department 8.52 - -

Demand of NALA Tax pertaining to Non Agricultural Tax 43.56 - 43.56 -

in Mining Areas by the state government ( Note 'k')

Service Tax on outward transport & Insurance 2.17 - 15.10 -

Demand raised for payment of permit fee by the forest 105.39 - 52.36 -

department for mining and transportation of Lime Stone ( Note 'l')

Counter Guarantees given to Banks / FIs 342.61 - 245.51 -

a. Sales Tax Authorities treated the usage of HSD oil on Hired tippers on cost recovery basis for transport of Lime Stone From Mines to Factory, on the presumption that it is a sale. The company filed an appeal before the Sales Tax Appellate Tribunal. The matter is pending before STAT.

b. In the year 1999-00, Sales Tax Authorities raised a demand for Rs.16.88 lakhs as penalty on delayed payment. The Company has preferred an Appeal before the Sales Tax Appellate Tribunal. The company has paid an amount of Rs. 4.00 lakhs and obtained a stay from the Commissioner of Commercial Taxes

c. Demand raised by the Sales Tax Authorities on revised assessment for the year 1997-98 for a sum of Rs. 9.81 Lakhs levying tax on regular rate when the turnover was under works contract. Obtained a stay on payment after payment of 50% of Sales Tax demanded. Appeal is pending before STAT.

d. Sales Tax Authorities disputed the rate of tax for interstate supplies of prefab structures in the year 2004-05 and raised a demand for a sum of Rs. 14.92 Lakhs. Company preferred an appeal before STAT and is pending.

e. The Excise Department has raised a demand of Rs.744.50 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Martially and Kondapalli. Company has preferred an appeal before CESTAT and is pending.

f. The Excise Department has raised a demand of Rs.100.72 lakhs disallowing the Cenvat credit on Steel items used in construction of plant structure at both Mattapally and Kondapalli. Company has preferred an appeal before Commissioner.

g. The Excise Department has claimed return of the refund of Rs. 29.22 lakhs paid to the Company on their appeal decided in their favor by the Commissioner (Appeals). The Company preferred an appeal before the Honourable High Court.

h. Excise department has raised a demand of Rs. 17.77 lakhs denying the cenvat credit on usage of Cement, Steel, M.S. Plates, M.S.Flats, M.S.Angles, M.S.Channels M.S.Coils, Steel Tubes, Pipes, beams, Plates/Sheets, Rebars, Conductors in construction of civil structures like Silo, Dump Hopper etc. The matter is contested and pending befoe the Appellate Authority.

i. Excise department has raised a demand of Rs. 11.18 lakhs denying the cenvat credit taken on transfer of cement from Mattapally unit to Kondapalli unit for dispatch by rail. The Company preferred an appeal.

j. The Excise Department has issued a notice to return the refund of Additional Excise duty paid under protest, amounting to Rs. 18.41 lakhs paid to the Company. Company has filed a reply to the notice.

k. The State Government has issued a notice claiming NALA Tax of Rs. 43.56 lakhs regarding Non Agricultural Tax on Mining areas. On dismissal of our appeal by the Joint Collector of Nalgonda, Company filed a writ petition before the Honorable High Court of Andhra Pradesh. High Court has granted an interim stay on the total amount demanded.

l. Forest department demanded payment of permit fee for Lime Stone mining & Transportation @ 10/- per ton. Company filed a writ petition before the Honorable High Court of Andhra Pradesh. High Court has granted an interim stay subject to payment of 1/3rd of the demanded fee.

Actuarial assumptions

a) Mortality table (LIC) 1994-96 (ultimate)

b) Discounting rate - 8.65 %

c) Expected average remaining working lives of employees-13 Years

d) Rate of escalation in salary - 6 %

1.2 As required by Accounting Standards AS 18, the related parties' disclosure issued by the Institute of Chartered Accountants of India is as follows:

a. List of related parties and relationships

i. Enterprises controlled by Key Management Personnel / Relatives of Key Management Personnel

1. NCL Alltek & Seccolor Limited

2. NCL Homes Limited

3. Kakatiya Industries (P) Limited

4. Nagarjuna Cerachem (P) Limited

5. NCL Wintech India Limited

6. Khandaleru Power Company Limited

ii. Key Management Personnel : Mr. K. Ravi, Managing Director


Mar 31, 2011

1. Related Party Disclosures

a) List of Related Parties & Relationships

i. Enterprises controlled by key management personnel/relatives of key management Personnel

1. NCL Alltek & Seccolor Limited

2. NCL Homes Limited

3. Kakatiya Industries (P) Limited

4. Nagarjuna Cerachem (P) Limited

5. NCL Wintech India Limited.

ii. Key Management personnel Mr. K. Ravi, Managing Director

b) Related Party Transactions for the year ended 31st March 2011.

Key Management Personnel

i) Remuneration to key management personnel Rs. 79.07 lakhs

Remuneration to relatives of key management personnel Rs. 8.96 lakhs

An amount of Rs. 7.42 lakhs (Rs.6.13 lakhs) being 0.25% of the profits earned by the Company calculated in the above manner is provided towards commission payable to non executive directors of the Company.

2. As per Guidance note of The Institute of Chartered Accountants of India MAT for the year is to be recognised on payment, no provision is made for MAT amounting to Rs. 570.17 lakhs (Rs. 397.59 lakhs) on the profit for the current year.

3. Based on the information available with the Company, amount of dues to Micro, Small and Medium Enterprises outstanding for more than 45 days as at 31st March 2011 is Rs. Nil (Rs. Nil).

4. Refund of Adhoc Custom Duty of Rs. 29.47 (Rs. 29.47) lakhs on plant and machinery of Boards Division pursuant to order of CESTAT dated March 24, 2005 is yet to be received.

5. Amounts of incentives from Industries Department (Govt. of Andhra Pradesh) receivable for the year amounting to Rs. 80.69 Lakhs (Rs. 55.62 Lakhs) & Rs.411.92 Lakhs (Rs. 203.08 Lakhs) are deducted from Power and Taxes & Duties respectively. Cumulative total amount of Rs. 783.43 Lakhs (Rs. 258.70 Lakhs) receivable is included in claims receivable.

6. Confirmations of balances from all Debtors, Creditors etc were not received.

7. Employee Retirement benefit plans as per actuarial valuation:

8. Previous year numbers are regrouped wherever necessary to be comparable to those of current year.


Mar 31, 2010

1. Contingent Liabilities not provided for

i. Counter-Guarantees given to Financial Institutions / Banks - Rs.345.08 lakhs (Rs. 337.47 lakhs)

ii. Disputed Sales tax liability Rs. 48.69 lakhs (Rs. 49.39 lakhs) for which appeals have been filed by the company.

iii. Central Excise Liability Rs.388.58 lakhs (Rs. 150.57 lakhs) for which appeals have been filed by the company.

iv. Disputed Nala Tax regarding Non Agricultural Tax on Mining areas Rs.43.56 lakhs (Rs. 43.56 lakhs)

2. Secured Loans: (1) Term Loans:

Sl. No Facility Nature of Security

A Term Loans from Banks pari passu first charge on fixed assets of the Company & second charge on and Financial Institutions current assets of the Company (both present & future) except receivables of Energy Division.

B Vehicle Loans Hypothecation of respective vehicles



2) Working Capital:

S.No Working Capital Nature of Security

1. SBH, IDBI Bank & Pari passu first charge on current assets of the Company excluding

Axis Bank receivables of Energy Division (both present & future) and second charge on fixed assets of the company.

B. SECONDARY DISCLOSURES:

Revenue from external customers The main customer base of companys products are in India only by location of customers

Carrying amount of segment assets All manufacturing units are located in India by location of assets

Costs to acquire tangible and intangible PI Refer Sch 6 to Accounts fixed assets by location of assets.

Other disclosures:

Basis of pricing Inter segment transfers and Inter division transfers of goods are at market price. any change therein bypes of products and services in each (1) OPC/PPC/53 S Cement business segments (2) Plain and laminated Cement Bonded Particle Boards

(3) Prefab Shelters.

(4) Generation of Hydel power.

Segment accounting policies:

In addition to the significant accounting policies applicable to the business as set out in Schedule 16A - Notes to Accounts, the accounting policies in relation to segment accounting are as under:

a) Segment assets and liabilities:

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors and loans & advances less current liabilities. Segment assets and liabilities do not include investments, cash and bank balances, intercorporate deposits, reserves and surplus, borrowings, provision for contingencies and income tax (both current and deferred).

b) Segment revenue and expenses:

Segment revenue and expenses are taken directly as attributable to the segment. It does not include interest income on inter-corporate deposits, profit on sale of investments, interest expense, provision for contingencies and income tax.

4. Related Party Disclosures

a) List of Related Parties & Relationships

i. Enterprises controlled by key management personnel/relatives of key management Personnel

1. NCLAIItek&Seccolor Limited

2. NCL Homes Limited

3. Kakatiya Industries (P) Limited

4. Nagarjuna Cerachem (P) Limited

5. NCL Wintech India Limited.

ii. Key Management personnel

Mr. K. Ravi, Managing Director

b) Related Party Transactions for the year ended 31sl March 2010. Key Management Personnel

5. As per Guidance note of The Institute of Chartered Accountants of India, MAT for the year is to be recognised on payment, no provision is made for MAT amounting to Rs. 397.59 lakhs on the profit for the current year.

6. Based on the information available with the Company, amount of dues to Micro, Small and Medium Enterprises outstand- ing for more than 45 days as at 31s1 March 2010 is Rs. Nil.

7. Refund of Adhoc Custom Duty of Rs. 29.47 lakhs on plant and machinery of Boards Division pursuant to order of CESTAT dated March 24,2005 is yet to be received.

8. Out of 33,33,400 Share Warrants issued in the year 2007-08 and convertible on or before 16.09.2009 into Equity Shares of Rs 10 each fully paid up, during the year 11,17,652 Share warrants were converted and allotted to promoters / promoter group for which full value of Rs. 45 per share was received, thereby completing the conversion of all the outstanding Share Warrants.

9. Amounts of incentives from Industries Department (Govt, of Andhra Pradesh) receivable for the year amounting to Rs. 55.62 Lakhs (Rs. 64.50 Lakhs) & Rs.203.08 Lakhs (Rs. 242.57 Lakhs) are deducted from Power and Duties & Taxes respectively. Cumulative total amount of Rs. 258.70 Lakhs (Rs. 307.07 Lakhs) receivable is included in claims receiv- able.

10. Confirmations of balances from all Debtors, Creditors etc were not received.

11. Previous year numbers are regrouped wherever necessary to be comparable to those of current year.

11. Previous year numbers are shown in parenthesis.

 
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