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Notes to Accounts of Prism Johnson Ltd.

Mar 31, 2023

Rights, preference and restrictions attached to Equity shares :

The Company has one class of equity shares having a par value of '' 10 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company in proportion to their shareholding after distribution of all preferential amounts.

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

a. Capital Redemption Reserve :

Capital redemption reserve was created pursuant to the scheme of amalgamation.

b. General Reserve :

The Company had earlier transferred a portion of the net profit of the Company before declaring dividend to the general reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve before declaration of dividend is not required under the Companies Act, 2013.

c. Retained Earnings :

Retained earnings are the net profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves, debenture redemption reserve etc., amount distributed as dividend and adjustments in terms of Ind AS 101.

d. Capital Reserve :

Capital Reserve was recognised on giving effect to amalgamation of Milano Bathroom Fittings Private Limited and Silica Ceramica Private Limited with the Company and on demerger of retail / trading business undertaking of H. & R. Johnson (India) TBK Limited into the Company.

Q03 EXCEPTIONAL ITEMS :

FY 2022-23 :

The Company’s application for adjudication of stamp duty payable on merger order, which was filed in 2010 was disposed off by the Office of the Superintendent of Stamps, Mumbai, Maharashtra vide its order dated October 3, 2022 determining a sum of '' 19.85 Crores payable by the Company including interest and penalty. The Company has disputed the entire amount, however, has recognised the expense, as Exceptional Item, to the extent it pertains to Immovable properties amounting to '' 6.84 Crores. Since the Company has paid the demand in full, the balance amount of '' 11.16 Crores is shown as amount paid under protest in note no. 2.06 and also included in note no. 4.05 as Claims against the Company not acknowledged as debt.

FY 2021-22 :

a. Gain on sale of land and building located at Prayagraj amounting to '' 10.87 Crores on discontinuance of cement packing unit operations in the year 2018-19.

b. Pursuant to the order of Commissioner of Labour on the settlement scheme and voluntary retirement / separation scheme offered by the Company, the Company has rationalised certain workforce at its tile manufacturing facilities of HRJ Division located at Dewas, Madhya Pradesh. The one-time financial impact on account of rationalisation aggregates to '' 1.88 Crores.

Q03 LEASES

1. The Company’s lease asset primarily consist of leases for Land, Office Space, Furniture, Vehicle and Plant & Machinery having various lease terms.

5. Rental expense recorded for short-term leases was '' 35.65 Crores for the year ended March 31, 2023 (Previous year : '' 32.23 Crores).

6. The maturity analysis of lease liabilities are disclosed in Note No. 4.08. The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

7. Future lease payments which will start from April 1, 2023 is Nil (Previous year : Nil).

8. Certain lease agreements are subject to escalation clause and with extension of lease term options. At the expiry of the lease term, in case of lease agreements other than land, the lessee has an option to purchase the assets at Fair Market Value.

QQ3 EMPLOYEE BENEFITS

1. Defined contribution plans

The Company operated defined benefits contribution retirement benefits plans for all qualifying employees.

The total expenses recognised in the Statement of Profit and Loss of '' 18.67 Crores (Previous year : '' 18.03 Crores) represents contributions payable to these plans by the Company at rates specified in rules of the plans.

2. Defined Benefits Plans

The Company sponsors funded defined benefit plans for qualifying employees. The defined benefits plan are administered by separate funds that are legally independent entities. The governing body of the fund is responsible for the investment policy with regard to assets of the funds.

These plans typically expose the Company to Actuarial risks such as : investment risk, interest rate risk, longetivity risk and salary risk. No other post-retirement benefit are provided to the employees.

Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

Longevity risk : The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk : The present value of the defined plan liability is calculated by reference to the future salaries of plan participants.

As such, an increase in the salary of the plan participants will increase the plan’s liability.

5 (a) Contingent Liabilities

1. Guarantees given by the Company’s bankers and counter guaranteed by the Company : '' 95.85 Crores (Previous year : '' 85.54 Crores).

2. Prepayment charges claimed by a bank on amounts prepaid is Nil (Previous year : '' 1.25 Crores).

3. Claims against the Company not acknowledged as debts on account of disputes :

(i) Energy Development Cess '' 9.89 Crores (Previous year : '' 9.89 Crores).

(ii) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty, Service Tax and other claims '' 341.09 Crores. (Previous year : '' 341.79 Crores).

(b) Capital and other Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) '' 115.69 Crores (Previous year : '' 82.05 Crores) and other commitments includes Outstanding Letters of Credit '' 168.10 Crores (Previous year : '' 50.57 Crores).

I n certain cases, the Company has made payments against the above provisions. In case the disputes are settled in the favour of the Company, there would be refund of '' 0.95 Crore (Previous year : '' 1.19 Crores) and in the event, these are settled against the Company there would be cash outflow of '' 26.86 Crores (Previous year : '' 26.56 Crores).

(d) In terms of long-term Gas Supply Agreement (‘GSA’) for Re-Liquefied Natural Gas (‘RLNG’) - Tranche A type with GAIL (India) Limited (‘GAIL’) having validity till April, 2028, the Company is committed to draw minimum quantity of RLNG specified therein. In case of underdrawn quantities, determined on calendar year basis, the Company is liable to deposit purchase price under Take or Pay Obligation clause (‘TOP’) of the GSA and is allowed to draw such underdrawn quantities in the balance term of the GSA at then prevailing price.

I n earlier years, the Company has not been able to draw committed quantity of RLNG and GAIL has waived the TOP obligations under the GSA. For the CY22 also, GAIL has waived of TOP obligations.

The Company has Gas supply agreements / contracts for three manufacturing locations i.e. at Dewas, Kunigal and Pen. At Dewas and Kunigal, the Company has been able to renegotiate Minimum Guaranteed Obligation (‘MGO’), thereby reducing (limiting) the TOP obligation on the Company for the undrawn quantities of MGO. The Company is pursuing its efforts with GAIL for similar reduction for its plant at Pen.

The estimated amount committed under TOP obligation for the underdrawn quantities of RLNG for the quarter ended March 31, 2023, which would be due in December 2023, if it remains undrawn or not waived, is approximately '' 21.30 Crores. The aforesaid amount, if payable, will only be in the nature of an advance payment for RLNG which can be drawn anytime thereafter up to the end of term of the GSA i.e. April 2028. Accordingly, this contract is not considered as in the nature of onerous contract and no effect of the same is required to be given in the accounts.

Q03 CAPITAL MANAGEMENT

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors’, creditors’ and market confidence and to sustain future development and growth of its business and at the same time, optimise returns to the shareholders. The Company takes appropriate and corrective steps in order to maintain, or if necessary adjust, its capital structure.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.

Consistent with others in the industry, the Company monitors capital on the basis of the Net Debt to Equity ratio computed as under : Net debt (total Borrowings net of Cash and Bank balance) divided by Total Equity.

QI08 FINANCIAL INSTRUMENTS

(i) Methods and assumptions used to estimate the fair values

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in

a current transaction between willing parties, other than in a forced or liquidation sale.

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

a. The carrying amounts of receivables and payables which are short term in nature such as trade receivables, other bank balances, deposits, loans to employees, trade payables, payables for acquisition of non-current assets, demand loans from banks and cash and cash equivalents are considered to be the same as their fair values.

b. The fair values for long term loans, long term security deposits given and remaining non current financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs.

c. The fair values of long term security deposits taken, non-current borrowings and remaining non current financial liabilities are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

d. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) Categories of financial instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation

technique :

Level 1 : unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 : directly or indirectly observable market inputs, other than Level 1 inputs; and

Level 3 : inputs which are not based on observable market data.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the Board. The details of different types of risk and management policy to address these risks are listed below :

The Company’s activities are exposed to various risks viz. Credit risk, Liquidity risk and Market risk. In order to minimise any adverse effects on the financial performance of the Company, it uses various instruments and follows polices set up by the Board of Directors / Management.

a. Credit Risk :

Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to discharge its obligation as agreed.

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by credit-rating agencies.

In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks and other counterparties for the facilities availed by subsidiary. The Company’s maximum exposure in this respect is the maximum amount the Company would have to pay if the guarantee is called upon.

Each division of the Company has specific policies for managing customer credit risk; these policies factor in the customers’ financial position, past experience and other customer specific factors. The Company uses the allowance matrix to measure the expected credit loss of trade receivables from customers.

Based on the industry practices and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 2 years past due.

Trade receivables consists of large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach for 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 conditions, without incurring unacceptable losses or risking damage to Company’s reputation. In addition, processes and policies related to such risks are overseen by the senior management. The Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

Financing arrangements

The Company has sufficient sanctioned line of credit from its bankers / financiers; commensurate to its business requirements. The Company reviews its line of credit available with bankers and lenders from time to time to ensure that at any point of time there is sufficient availability of line of credit to handle peak business cycle.

The Company pays special attention to the net operating working capital invested in the business. In this regard, as in previous years, considerable work has been performed to control and reduce collection periods for trade and other receivables, as well as to optimise accounts payable with the support of banking arrangements to mobilise funds and minimise inventories.

c. Market Risk :

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk : currency risk and interest rate risk.

i. Market Risk - Foreign Exchange

Foreign currency risk is that risk in which the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company operates internationally and a portion of its business is transacted in several currencies and therefore the Company is exposed to foreign exchange risk through its overseas sales and purchases in various foreign currencies. The Company hedges the receivables as well as payables by forming view after discussion with Forex Consultant and as per polices set by Management.

The Company is also exposed to the foreign currency loans availed from various banks to reduce the overall interest cost.

a. As the post-employment benefits is provided on an actuarial basis for the Company as a whole, the amount pertaining to key management personnel is not ascertainable and therefore not included above.

b. The value of related party transaction & balances reported are based on actual transaction and without giving effect to notional Ind AS adjustment entries.

c. Transactions disclosed against “Others” in the above table are those transactions with related party which are of the amount not in excess of 10% of the total related party transactions of the same nature.

Q3 SEGMENT INFORMATION

In accordance with Ind AS 108 on ‘’Operating segments” information has been given in the Consolidated Financial Statement of the

Company and therefore no separate disclosure on segment information is given in the Standalone financial Statements.

EQ GOVERNMENT GRANTS BY WAY OF TAX SUBSIDY / EXEMPTION SCHEMES

a. As per Jammu and Kashmir Budgetary support scheme under Goods and Service Tax, the Company is entitled for 58 % of CGST and 29% IGST paid through debit in cash ledger account maintained by the Entity. During the year, the Company has recognised the GST Rebate and credited to “Other Operating Income” amounting to '' 0.17 Crore (Previous year : '' 0.43 Crore) in the Statement of Profit and Loss.

b. As per Jammu and Kashmir Budgetary support scheme under Goods and Service Tax, the Company is entitled for claim 2% of the taxable turnover with respect to interstate supplies made by the Industrial unit under Integrated Goods and Services Tax Act, 2017 provided that the maximum amount of annual reimbursement shall be limited to 2% of the interstate sales turnover reflected by the dealer in his returns for the accounting year 2016-17. The Company has recognised the Interstate Sale Rebate and credited to “Other Operating Income” amounting to '' 0.50 Crore (Previous year : '' 0.50 Crore) in the Statement of Profit and Loss.

c. As part of fiscal incentives to North East Region, the Ministry of Commerce & Industry had provided capital investment incentives under “North East Industrial and Investment Promotion Policy (NEIIPP), 2007”. The Company had invested '' 1.56 Crores in plant and machinery in 2012-13 and lodged claim for capital subsidy. During 2018-19, the Government had approved Company’s claim against NEIIPP 2007 and sanctioned capital subsidy of '' 0.47 Crore. The Company had recognised this as unearned income, to be recognised in Statement of Profit and Loss over the balance useful life of the assets.

4.16 Pursuant to Order of the Hon’ble Supreme Court dated September 24, 2014, Sial Ghogri Coal mine of the Company was de-allocated and put to auction by the Ministry of Coal through Nominated Authority. The Nominated Authority had determined compensation of '' 32.49 Crores for the said Coal Block as against expenses and book value of assets amounting to '' 47.58 Crores.

Till date, a sum of '' 32.34 Crores has been disbursed by the Nominated Authority. The Company had inter-alia disputed the quantum of compensation before the Hon’ble High Court of Judicature, Delhi. As per the directions of the said High Court, the Company had filed its claim for an additional compensation of '' 53.03 Crores before the Coal Tribunal at Singrauli, duly appointed under Coal Bearing Areas (Acquisition and Development) Act, 1957.

The Coal Tribunal however, has declined to entertain claim of the Company being of the view that the same has to be heard by the Nominated Authority. Aggrieved by the decision of the Coal Tribunal, the Company has filed an appeal before the High Court of Madhya Pradesh to restore the claim before the Coal Tribunal.

Pending final disposal of the matter, the Company has not recognised excess of compensation claimed over the book value as income as well as loss that may have to be incurred in the event compensation is denied. Accordingly, the balance amount appears under the head Other Financial Assets (note no. 2.05) and Freehold Land (note no. 2.01) '' 13.93 Crores and '' 1.31 Crores respectively. The Freehold Land continues to be in possession of the Company as it was not part of the vesting order. Based on the legal opinion, the Company has more than reasonable chances of succeeding in the matter.

4.17 Insurance claim of the year 2012 relating to collapse of blending silo at cement plant and consequential damages was rejected by the insurance company. The Company had recognised a sum of '' 58.94 Crores as receivable. Against the rejection of the claim, the Company has filed a money suit against the insurance company for recovery of '' 150.27 Crores. The matter is before the Commercial Court at Rewa, Madhya Pradesh. In addition, the Company is pursuing arbitration proceedings with the party responsible for construction of the said silo for recovery of damages. Based on legal opinion and judicial precedents, the Company has more than reasonable chance of succeeding in the matter.

Q23 DETAILS OF PROPERTIES IN WHICH TITLE DEEDS ARE NOT IN THE NAME OF THE COMPANY :

The title deeds of all immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the Company. However, there are certain immovable properties which continue to appear in the records of the relevant authorities in the erstwhile name of the Company viz. Karan Cement Limited or Prism Cement Limited. The Company is in the process of getting the same updated in the current name of the Company viz. Prism Johnson Limited. In addition, certain immovable properties were vested in the Company on amalgamation of RMC Readymix (India) Private Limited and H. & R. Johnson (India) Limited as of April 1, 2009 and also on amalgamation of Silica Ceramica Private Limited and Milano Bathroom Fittings Private Limited as of April 1, 2018. Some of these immovable properties owned or taken on long-term non-cancellable lease arrangements by these amalgamating entities are yet to be transferred in the name of the Company. During the year, as stated in note no. 4.02, the Company has paid stamp duty of '' 19.85 Crores, pursuant to adjudication order passed by the Collector of Stamps with respect to properties vested on account of amalgamation of RMC Readymix (India) Private Limited and H. & R. Johnson (India) Limited with the Company. The Company is pursuing the matter to get the same registered with the relevant authorities in the name of the Company. The details of the same are as under :

4.23 The satisfaction of charge which was pending to be registered with the Registrar of Companies as on March 31, 2022 on account of dispute with a banker relating to pre-payment charges has been regularised during the year. As on March 31, 2023, the Company does not have any charge or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

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

4.25 (a) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other

source or kind of funds) to any other person(s) or entity(ies), including foreign entities (‘Intermediaries’) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall : (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (‘Ultimate Beneficiaries’) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(b) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (‘Funding Parties’), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

4.26 In the course of normal business operations, the Company has settled certain receivables by acquiring commercial properties and disclosed as Non-current Assets classified as held for sale. The process of disposing these properties is in progress. Such properties have been marked down to fair value and resultant loss is recognised as Impairment loss in Statement of profit and loss under the head Other expenses. The reportable segment, in which the Non-current Assets held for sale is presented, is RMC in accordance with Ind AS 108.

4.27 Additional Regulatory Information detailed in clause 6L of General Instructions given in Part I of Division II of the Schedule III to the Companies Act, 2013 are furnished to the extent applicable to the Company.

4.28 The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

EE9 RECENT ACCOUNTING PRONOUNCEMENTS

Standard issued but not effective :

On March 31, 2023, the Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Amendment Rules, 2023. This notification has resulted into amendments in the following existing accounting standards, which are applicable to the Company from April 1, 2023.

a. Ind AS 1 - Presentation of Financial Statements

b. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

c. Ind AS 12 - Income Taxes

Application of above standards are not expected to have any significant impact on the Company’s financial statements.

4.31 Figures for the previous year have been regrouped / reclassified / reinstated, wherever considered necessary.


Mar 31, 2022

a) Depreciation for the year includes ? 4.77 Crores (Previous year: ? 3.47 Crores) considered for capitalisation.

b) Amortisation in case of Freehold Land represent amortisation of mining reserve on extraction basis.

c) During the year, depreciation on Right of Use assets is ? 33.15 Crores (Previous year: ? 38.53 Crores) which is not forming part of the above schedule and disclosed in Note no. 4.03 on leases.

d) Other adjustments against Property, plant and eguipment includes ? 23.77 Crores (Previous year: Nil) being unamortised portion of Right of Use Assets on completion of lease term and on acguisition of underlying assets.

e) In the FY 2020-21, Leasehold land ? 0.46 Crores which was earlier wrongly classified as Freehold land, was rectified. Further, on such re-classification, amortization of? 0.42 Crores was charged to Statement of Profit and Loss.

# Company has given Non Disposal Undertaking to certain banks for its investment in above Subsidiaries.

* Investment in Subsidiary Small Johnson Floor Tiles Private Limited includes equity component recognised from 0.01% Noncumulative Optionally Convertible Preference Shares. The carrying value of such equity component is '' 0.95 Crores (Previous year : '' 3.30 Crores) with respect to the subsidiary.

$ Investment in Subsidiary Sanskar Ceramics Private Limited includes equity component recognised from 0.01% and 0.02% Nonconvertible Non-Participating Non-cumulative Redeemable Preference shares. The carrying value of such equity component is '' 2.96 Crores (Previous year : Nil) with respect to the subsidiary.

$ In FY 2020-21, the Company had purchased 35,00,000 shares of Sanskar Ceramics Private Limited from Small Johnson Floor Tiles Private Limited.

No amount is due from any of the directors or officers of the Company, severally or jointly with any other person; or from firms where such director is a partner or from private companies where such director is a member except security deposit for premises of '' 0.06 Crores (Previous year : '' 0.06 Crores) given to Director.

b. Rights, preference and restrictions attached to Equity shares :

The Company has one class of equity shares having a par value of '' 10 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company in proportion to their shareholding after distribution of all preferential amounts.

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

(a) capital Redemption Reserve :

Capital redemption reserve was created pursuant to the scheme of amalgamation.

(b) General Reserve :

The Company had earlier transferred a portion of the net profit of the Company before declaring dividend to the general reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve before declaration of dividend is not required under the Companies Act, 2013.

(c) Retained Earnings :

Retained earnings are the net profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves, debenture redemption reserve etc., amount distributed as dividend and adjustments in terms of Ind AS 101.

(d) capital Reserve :

Capital Reserve was recognised on giving effect to amalgamation of Milano Bathroom Fittings Private Limited and Silica Ceramica Private Limited with the Company and on demerger of retail/trading business undertaking of H. & R. Johnson (India) TBK Limited into the Company.

The contract liability outstanding at the beginning of the year was '' 82.12 Crores, of which '' 79.60 Crores has been recognised as revenue during the year ended March 31, 2022.

Management conclude that disaggregation of revenue disclosed in Ind AS 108 meets the disclosure criteria of Ind AS 115 and segment revenue is measured on the same basis as required by Ind AS 115, hence separate disclosures as per Ind AS 115 is not required.

4.02| EXCEPTIONAL ITEMSFY 2021-22 :

a) Gain on sale of land and building located at Prayagraj amounting to '' 10.87 Crores on discontinuance of cement packing unit operations in the year 2018-19.

b) Pursuant to the order of Commissioner of Labour on the settlement scheme and voluntary retirement/separation scheme offered by the Company, the Company has rationalised certain workforce at its tile manufacturing facilities of HRJ Division located at Dewas, Madhya Pradesh. The one-time financial impact on account of rationalisation aggregates to '' 1.88 Crores.

FY 2020-21 :

a) During the course of mining, limestone pits are formed on the land from where limestone is extracted. Water accumulates in such pits, which is used by the Company in its manufacturing process. The Water Resource Department, Government of Madhya Pradesh raised a demand for consumption of such water during the period FY 1998-99 to FY 2019-20 aggregating to '' 8.92 Crores. The said demand had been challenged by the Company and a writ petition was filed before the Hon’ble Madhya Pradesh High Court, Jabalpur. During FY 2020-21, the Water Resources Department recalculated the demand and has issued revised demand notice for '' 1.45 Crores for period up to FY 2020-21, which has been paid. Out of the same, an amount of '' 1.33 Crores pertains to period up to FY 2019-20, which has been shown under Exceptional item. Once the Madhya Pradesh High Court resumes physical hearing, the writ petition will be withdrawn in view of the above settlement with Water Resources Department.

b) The state of Madhya Pradesh introduced a new Section 9C in MP VAT Act, 2002 vide which VAT was levied on freight of goods up to the state border. Accordingly, on the stock transfer of cement out of Madhya Pradesh, VAT was required to be paid on the freight charges up to the border. The Company had challenged the above provisions before Hon’ble Madhya Pradesh High Court, Jabalpur but no stay or interim relief had been granted.

Government of Madhya Pradesh had announced an Amnesty Scheme on September 26, 2020 to settle the disputed demands of MP Commercial Tax, VAT and CST for period up to FY 2015-16. The Company had availed benefit under the said amnesty scheme for the period from FY 2009-10 to FY 2015-16 in respect of the above demand of VAT.

The aggregate amount recognised in this regard is '' 11.95 Crores.

c) Gain on sale of land located at Whitefield, Bengaluru amounting to '' 32.57 Crores.

d) Pursuant to the order of Commissioner of Labour on the settlement scheme and voluntary retirement/separation scheme offered by the Company, the Company had rationalised certain workforce at its tile manufacturing facilities of HRJ Division located at Pen, Maharashtra and at Kunigal, Karnataka. The one-time financial impact on account of rationalisation aggregates to '' 24.07 Crores.

4.03| LEASES

1. The Company’s lease asset primarily consist of leases for Land, Office Space, Furniture, Vehicle and Plant & Machinery having various lease terms.

5. Rental expense recorded for short-term leases was '' 41.47 Crores for the year ended March 31, 2022 (FY 2020-21 : '' 27.59 Crores)

6. The maturity analysis of lease liabilities are disclosed in Note No. 4.08. The Company does not face a significant liquidity risk

with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and

when they fall due.

7. Future lease payments which will start from April 1, 2022 is Nil (Previous year : '' 28.61 Crores).

8. Certain lease agreements are subject to escalation clause and with extension of lease term options. At the expiry of the lease

term, in case of lease agreements other than land, the lessee has an option to purchase the assets at Fair Market Value.

4.04| EMPLOYEE BENEFIT PLANS1. Defined contribution plans

The Company operated defined benefits contribution retirement benefits plans for all qualifying employees.

The total expenses recognised in the Statement of Profit and Loss of '' 17.71 Crores (Previous year : '' 19.73 Crores) represents contributions payable to these plans by the Company at rates specified in rules of the plans.

2. Defined Benefits Plans

The Company sponsors funded defined benefit plans for qualifying employees. The defined benefits plan are administered by separate funds that are legally independent entities. The governing body of the fund is responsible for the investment policy with regard to assets of the funds.

These plans typically expose the Company to Actuarial risks such as : investment risk, interest rate risk, longetivity risk and salary risk. No other post-retirement benefit are provided to the employees.

Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

Longevity risk : The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk : The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

4.05 (a) Contingent Liabilities

(i) Guarantees given by the Company’s bankers and counter guaranteed by the Company : '' 85.54 Crores (Previous year : '' 67.36 Crores).

(ii) Prepayment charges claimed by a bank on amounts prepaid '' 1.25 Crores (Previous year : '' 1.25 Crores).

(iii) Claims against the Company not acknowledged as debts on account of disputes :

(a) Energy Development Cess '' 9.89 Crores (Previous year : '' 9.89 Crores).

(b) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty, Service Tax and other claims '' 341.79 Crores. (Previous year : '' 250.00 Crores).

(b) Capital and other Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) '' 82.05 Crores (Previous year : '' 97.26 Crores) and other commitments includes Outstanding Letters of Credit '' 50.57 Crores (Previous year : '' 46.74 Crores).

(c) Disclosure of provisions made as per the requirements of Ind AS 37 on “Provisions, Contingent Liabilities and Contingent Assets” are as follows :

'' crores

Particulars

As at

April 1, 2021

Provisions made during the year

Amounts utilised or reversed during the year

As at March 31, 2022

MPEB Cess on Generation of Electricity

8.33

-

-

8.33

MP Entry Tax/VAT

10.05

-

-

10.05

Appeal with AP, Kerala, Punjab, Tamil Nadu, Karnataka and Maharashtra Commercial Tax Department

2.03

0.20

0.10

2.13

Mines Restoration Expenses

6.27

0.97

-

7.24

Workmen dues

0.07

-

0.07

-

In certain cases, the Company has made payments against the above provisions. In case the disputes are settled in the favour of the Company, there would be refund of '' 1.19 Crores (Previous year : '' 1.04 Crores) and in the event, these are settled against the Company there would be cash outflow of '' 26.56 Crores (Previous year : '' 25.71 Crores).

(d) In terms of long-term Gas Supply Agreement (‘GSA’) for Re-Liquefied Natural Gas (‘RLNG’) - Tranche A type with GAIL (India) Limited (‘GAIL’) having validity till April 2028, the Company is committed to draw minimum quantity of RLNG specified therein. In case of underdrawn quantities, determined on calendar year basis, the Company is liable to deposit purchase price under Take or Pay Obligation clause (‘TOP’) of the GSA and is allowed to draw such underdrawn quantities in the balance term of the GSA at then prevailing price.

I n earlier years, the Company has not been able to draw committed quantity of RLNG and GAIL has waived the TOP obligations under the GSA. In CY21, with the pandemic situation improving, the demand for gas increased, and as expected GAIL waived of TOP obligation for CY21 also.

The Company has Gas supply agreements/contracts for three manufacturing locations i.e. at Dewas, Kunigal and Pen. At Dewas and Kunigal, the Company has been able to renegotiate Minimum Guaranteed Obligation (‘MGO’), thereby reducing (limiting) the TOP obligation on the Company for the undrawn quantities of MGO. The Company is pursuing its efforts with GAIL for similar reduction for its plant at Pen.

The estimated amount committed under TOP obligation for the underdrawn quantities of RLNG for the quarter ended March 31, 2022, which would be due in December 2022, if it remains undrawn or not waived, is approximately '' 18.20 Crores. The aforesaid amount, if payable, will only be in the nature of an advance payment for RLNG which can be drawn anytime thereafter up to the end of term of the GSA i.e. April 2028. Accordingly, this contract is not considered as in the nature of onerous contract and no effect of the same is required to be given in the accounts.

4.07| CAPITAL MANAGEMENT Risk management

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors’, creditors’ and market confidence and to sustain future development and growth of its business and at the same time, optimise returns to the shareholders. The Company takes appropriate and corrective steps in order to maintain, or if necessary adjust, its capital structure.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.

Consistent with others in the industry, the Company monitors capital on the basis of the capital gearing ratio computed as under : Net debt (total Borrowings net of Cash and Cash equivalents) divided by Total ‘Equity’ (as shown in the Balance Sheet).

The Company has complied with all material externally imposed conditions relating to capital requirements and there has not been any delay or default during the period covered under these financial statements. No lenders have raised any matter that may lead to breach of covenants stipulated in the underlying documents.

4.08| FINANCIAL INSTRUMENTS

(i) Methods and assumptions used to estimate the fair values

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in

a current transaction between willing parties, other than in a forced or liquidation sale.

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

a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables, other bank balances, deposits, loans to employees, trade payables, payables for acquisition of non-current assets, demand loans from banks and cash and cash equivalents are considered to be the same as their fair values.

b) The fair values for long term loans, long term security deposits given and remaining non-current financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs.

c) The fair values of long term security deposits taken, non-current borrowings and remaining non-current financial liabilities are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

d) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) categories of financial instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation

technique :

Level 1 : unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 : directly or indirectly observable market inputs, other than Level 1 inputs; and

Level 3 : inputs which are not based on observable market data.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the Board. The details of different types of risk and management policy to address these risks are listed below :

The Company’s activities are exposed to various risks viz. Credit risk, Liquidity risk and Market risk. In order to minimise any adverse effects on the financial performance of the Company, it uses various instruments and follows polices set up by the Board of Directors/Management.

Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to discharge its obligation as agreed.

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by credit-rating agencies.

I n addition, the Company is exposed to credit risk in relation to financial guarantees given to banks and other counterparties for the facilities availed by subsidiary. The Company’s maximum exposure in this respect is the maximum amount the Company would have to pay if the guarantee is called upon.

Each division of the Company has specific policies for managing customer credit risk; these policies factor in the customers’ financial position, past experience and other customer specific factors. The Company uses the allowance matrix to measure the expected credit loss of trade receivables from customers.

Based on the industry practices and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 2 years past due.

Trade receivables consists of large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

b. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach for 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 conditions, without incurring unacceptable losses or risking damage to Company’s reputation. In addition, processes and policies related to such risks are overseen by the senior management. The Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

Financing arrangements

The Company has sufficient sanctioned line of credit from its bankers/financiers; commensurate to its business requirements. The Company reviews its line of credit available with bankers and lenders from time to time to ensure that at any point of time there is sufficient availability of line of credit to handle peak business cycle.

The Company pays special attention to the net operating working capital invested in the business. In this regard, as in previous years, considerable work has been performed to control and reduce collection periods for trade and other receivables, as well as to optimise accounts payable with the support of banking arrangements to mobilise funds and minimise inventories.

c. Market Risk :

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk : currency risk and interest rate risk.

i. Market Risk - Foreign Exchange

Foreign currency risk is that risk in which the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company operates internationally and a portion of its business is transacted in several currencies and therefore the Company is exposed to foreign exchange risk through its overseas sales and purchases in various foreign currencies. The Company hedges the receivables as well as payables by forming view after discussion with Forex Consultant and as per polices set by Management.

The Company is also exposed to the foreign currency loans availed from various banks to reduce the overall interest cost.

4.1o| SEGMENT INFORMATION

In accordance with Ind AS 108 on ‘’Operating segments” information has been given in the Consolidated Financial Statement of the

Company and therefore no separate disclosure on segment information is given in the Standalone financial Statements.

4.1l| GOVERNMENT GRANTS BY WAY OF TAX SUBSIDY/EXEMPTION SCHEMES

a As per Jammu and Kashmir Budgetary support scheme under Goods and Service Tax, the company is entitled for 58 % of CGST and 29% IGST paid through debit in cash ledger account maintained by the Entity. During the year, the Company has recognised the GST Rebate and credited to “Other Income” of '' 0.43 Crores (Previous year : '' 0.78 Crores).

b As per Jammu and Kashmir Budgetary support scheme under Goods and Service Tax, the company is entitled for claim 2% of the taxable turnover with respect to interstate supplies made by the Industrial unit under Integrated Goods and Services Tax Act, 2017 provided that the maximum amount of annual reimbursement shall be limited to 2% of the interstate sales turnover reflected by the dealer in his returns for the accounting year 2016-17. The Company has recognised the Interstate Sale Rebate of '' 0.71 Crores (Previous year : '' 0.01 Crores) in the Statement of Profit and Loss.

c As part of fiscal incentives to North East Region, the Ministry of Commerce & Industry had provided capital investment incentives

under “North East Industrial and Investment Promotion Policy (NEIIPP), 2007”. The Company had invested '' 1.56 Crores in plant and machinery in FY 2012-13 and lodged claim for capital subsidy. During the FY 2018-19, the Government had approved Company’s claim against NEIIPP 2007 and sanctioned capital subsidy of '' 0.47 Crores. The Company had recognised this as unearned income, to be recognised in Statement of Profit and Loss over the balance useful life of the assets.

4.16 Pursuant to Order of the Hon’ble Supreme Court dated September 24, 2014, Sial Ghogri Coal mine of the Company was deallocated and put to auction by the Ministry of Coal through Nominated Authority. The Nominated Authority had determined compensation of '' 32.49 Crores for the said Coal Block as against expenses and book value of assets amounting to '' 47.58 Crores.

Till date, a sum of '' 32.34 Crores has been disbursed by the Nominated Authority. The Company had inter alia disputed the quantum of compensation before the Hon’ble High Court of Judicature, Delhi. As per the directions of the said High Court, the Company had filed its claim for an additional compensation of '' 53.03 Crores before the Coal Tribunal at Singrauli, duly appointed under Coal Bearing Areas (Acquisition and Development) Act, 1957.

The Coal Tribunal however, has declined to entertain claim of the Company being of the view that the same has to be heard by the Nominated Authority. Aggrieved by the decision of the Coal Tribunal, the Company has filed an appeal before the High Court of Madhya Pradesh to restore the claim before the Coal Tribunal.

Pending final disposal of the matter, the Company has not recognised excess of compensation claimed over the book value as income as well as loss that may have to be incurred in the event compensation is denied. Accordingly, the balance amount appears under the head Other Financial Assets (note no. 2.05) and Freehold Land (note no. 2.01) '' 13.93 Crores and '' 1.31 Crores respectively. The Freehold Land continues to be in possession of the Company as it was not part of the vesting order. Based on the legal opinion, the Company has more than reasonable chances of succeeding in the matter.

417 Insurance claim of the year 2012 relating to collapse of blending silo at cement plant and consequential damages was rejected by the insurance company. The Company had recognized a sum of '' 58.94 Crores as receivable. Against the rejection of the claim, the Company has filed a money suit against the insurance company for recovery of '' 150.27 Crores. The matter is before the Commercial Court at Rewa, Madhya Pradesh. In addition, the Company is pursuing arbitration proceedings with the party responsible for construction of the said silo for recovery of damages. Based on legal opinion and judicial precedents, the Company has more than reasonable chance of succeeding in the matter.

418 In the course of normal business operations, the Company has settled certain receivables by acquiring residential and commercial properties. The process of disposing these properties is in progress. Impairment loss recognised in Statement of profit and loss under the head Other expenses to write down the value of such properties to its fair value is Nil (Previous year : '' 0.55 Crores). The reportable segment, in which the Non-current Assets held for sale is presented, is RMC in accordance with Ind AS 108.

419 The Hon’ble National Company Law Tribunal (‘NCLT’), Hyderabad has approved the Composite Scheme of Arrangement and Amalgamation (‘the Scheme’) vide its order dated April 28, 2021 having effect from the Appointed Date i.e. April 1, 2018. The said order came into effect on May 11, 2021, before finalisation of financial statements for the year 2020-21. Pursuant thereto:

(a) Demerger of retail / trading business undertakings of TBK Rangoli Tile Bath Kitchen Private Limited, TBK Venkataramiah Tile Bath Kitchen Private Limited and TBK Samiyaz Tile Bath Kitchen Private Limited, into its holding company H. & R. Johnson (India) TBK Limited (“HRJ TBK”) and subsequent demerger of retail / trading business undertaking of HRJ TBK into the Company; and

(b) Amalgamation of Milano Bathroom Fittings Private Limited and Silica Ceramica Private Limited, with the Company have been recognised by the Company by applying Pooling of Interest method as laid down in Appendix C of Indian Accounting Standard (Ind AS) 103 - ‘Business Combinations’ relating to accounting for common control business combinations in the FY 2020-21. Accordingly, all assets & liabilities and reserves of the amalgamating companies and demerged undertaking are recognised at their respective book values and since no shares were issued, the difference between the book value of investments and the net assets transferred has been recognised as Capital Reserve.

4.24| DETAILS OF PROPERTIES IN WHICH TITLE DEEDS ARE NOT IN THE NAME OF THE COMPANY :

The title deeds of all immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the Company. However, there are certain immovable properties which continue to appear in the records of the relevant authorities in the erstwhile name of the Company viz. Karan Cement Limited or Prism Cement Limited. The Company is in the process of getting the same updated in the current name of the Company viz. Prism Johnson Limited. In addition, certain immovable properties were vested in the Company on amalgamation of RMC Readymix (India) Private Limited and H. & R. Johnson (India) Limited as of April 1, 2009 and also on amalgamation of Silica Ceramica Private Limited and Milano Bathroom Fittings Private Limited as of April 1, 2018. Some of these immovable properties owned or taken on long-term non-cancellable lease arrangements by these amalgamating entities are yet to be transferred in the name of the Company. The Company is pursuing the matter to get the same registered with the relevant authorities in the name of the Company. The details of the same are as under :

4 25 The Company does not have any charge or satisfaction which are yet to be registered with Registrar of Companies beyond the statutory period. In the year 2011-12, the Company had prepaid the entire Term Loan taken from a consortium of banks. Except one bank, all the other banks have given their no due certificates and the Company has registered modification of charge. One bank from the consortium, as disclosed in the note 4.05 under the Contingent Liabilities, has demanded prepayment charges, which the Company has disputed. In view of this dispute, the charge has not been satisfied as the said bank has not issued no dues certificate. The Company is pursuing the matter with the said bank as well as with the security trustee.

4.26 The quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts.

4 27 (a) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other source or kind of funds) to any other person(s) or entity(ies), including foreign entities (‘Intermediaries’) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall: (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (‘Ultimate Beneficiaries’) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(b) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (‘Funding Parties’), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

4.29 Figures for the previous year have been regrouped/reclassified/reinstated, wherever considered necessary.


Mar 31, 2018

# Company has given Non Disposal Undertaking to certain banks for its investment in above Subsidiaries.

* Investment in Subsidiaries viz Milano Bathroom Fittings Private Limited and Small Johnson Floor Tiles Private Limited includes equity component recognized from 1% Non-cumulative and Redeemable Preference Shares and 0.01% Non-cumulative Optionally Convertible Preference Shares respectively. The carrying value of such equity component is Rs, 2.36 Crores (Previous year : Rs, 2.36 Crores) and Rs, 3.30 Crores (Previous year : Rs, 3.30 Crores) with respect to these Companies.

Note : No amount is due from any of the directors or officers of the Company, severally or jointly with any other person; or from firms where such director is a partner or from private companies where such director is a member except security deposit of Rs, 0.06 Crores (Previous year : Rs, 0.06 Crores) for premises given to Director.

* Further information about these loans is set out in notes 4.11 and 4.12.

Note : Amount charged to the Statement of Profit and Loss on account of write-down of inventories to net realisable value for the year is Rs, 10.32 Crores (Previous year : Rs, 11.73 Crores).

Note : No amount is due from any of the directors or officers of the Company, severally or jointly with any other person; or from firms where such director is a partner or from private companies where such director is a member.

b. Rights, preference and restrictions attached to Equity & Preference shares :

The Company has one class of equity shares having a par value of Rs, 10 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company in proportion to their shareholding after distribution of all preferential amounts.

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

(a) General Reserve :

The Company had transferred a portion of the net profit of the Company before declaring dividend to the general reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve before declaration of dividend is not required under the Companies Act, 2013.

(b) Retained Earnings :

Retained earnings are the net profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves, debenture redemption reserve etc., amount distributed as dividend and adjustments in terms of Ind AS 101.

(c) Capital Redemption Reserve :

Capital redemption reserve was created pursuant to the scheme of amalgamation.

(d) Debenture Redemption Reserve (DRR) :

The Company has issued non-convertible debentures. In terms of provisions of the Companies (Share Capital and Debenture) Rules, 2014 (as amended), the Company is required to create DRR which is equal to 25% of the value of the debentures issued, over the term of the debentures, out of the profits of the Company available for payment of dividend.

4.03 EMPLOYEE BENEFIT PLANS

1. Defined contribution plans

The Company operated defined benefits contribution retirement benefits plans for all qualifying employees.

The total expenses recognized in the Statement of Profit and Loss is Rs, 16.26 Crores (Pevious year : Rs, 15.29 Crores) represents contributions payable to these plans by the Company at rates specified in rules of the plans.

2. Defined Benefits Plans

The Company sponsors funded defined benefit plans for qualifying employees. The defined benefits plan are administered by separate funds that are legally independent entities. The governing body of the fund is responsible for the investment policy with regard to assets of the funds.

These plans typically expose the Company to Actuarial risks such as : investment risk, interest rate risk, longetivity risk and salary risk. No other post-retirement benefit are provided to the employees.

Sensitivity Analysis

Below is the sensitivity analysis determined for significant actuarial assumption for determination of defined benefit obligation and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period.

4.04 (a) CONTINGENT LIABILITIES

(i) Guarantees given by the Company''s bankers and counter guaranteed by the Company : Rs, 44.94 Crores (Previous year : Rs, 31.34 Crores).

(ii) Prepayment charges claimed by banks on amounts prepaid Rs, 2.92 Crores (Previous year : Rs, 2.92 Crores).

(iii) Claims against the Company not acknowledged as debts on account of disputes:

(a) In respect of exemption of Central Sales Tax on coal purchases : Rs, 7.56 Crores (Previous year : Rs, 7.56 Crores). Against this matter, bank guarantee of Rs, 7.70 Crores (Previous year : Rs, 7.70 Crores) has been provided by the Company.

(b) Energy Development Cess Rs, 9.89 Crores (Previous year : Rs, 9.89 Crores).

(c) Tax on Rural and Road Development Rs, 11.92 Crores (Previous year : Rs, 10.45 Crores).

(d) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty, Service Tax and other claims Rs, 167.07 Crores. (Previous year : Rs, 147.51 Crores).

(b) CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs, 47.54 Crores (Previous year : Rs, 50.94 Crores) and other commitments includes Outstanding Letters of Credit Rs, 22.99 Crores (Previous year : Rs, 41.90 Crores).

(c) FINANCIAL GUARANTEE

Corporate guarantees issued to the bankers : Rs, 249.25 Crores (Previous year : Rs, 227.25 Crores).

In certain cases, the Company has made payments against the above provisions. In case the disputes are settled in the favour of the Company, there would be refund of Rs, 0.23 Crores (Previous year : Rs, 0.23 Crores) and in the event, these are settled against the Company there would be cash outflow of Rs, 37.57 Crores (Previous year : Rs, 39.01 Crores).

(e) In terms of long-term gas supply agreement (GSA) with GAIL (India) Limited (GAIL) having validity till April, 2028, the Company is committed to draw minimum quantity of Re-Liquified Natural Gas (RLNG) specified therein. In case of underdrawn quantities, determined on calendar year basis, the Company is liable to deposit purchase price under Take or Pay Obligation clause (TOP) of the GSA and is allowed to draw such under drawn quantities in the balance term of the GSA at then prevailing price.

In earlier years, the Company has not been able to draw committed quantity of RLNG. The Company has exhausted its downward flexibility limit available in GSA. In preceding two calendar years, GAIL has waived of TOP obligation. The amount committed under TOP for the underdrawn quantities of RLNG for the quarter ended March 31, 2018, which would be due in December 2018, if it remains undrawn or not waived, is approximately Rs, 13.31 Crores.

In view of the decreasing trend of the Long Term RLNG prices when compared with Spot Gas prices and other imported gases available in the market and also expected increase in the capacity utilization due to favourable market conditions and allocation to another unit of the Company, the management is confident about utilization of underdrawn RLNG as above in balance part of the calendar year. The aforesaid amount, if payable, will only be in the nature of an advance payment for future purchase of RLNG which can be drawn anytime thereafter up to the end of term of the GSA i.e. April 2028. Accordingly, in view of the management, this contract is not in the nature of onerous contract and no consequential effect of the same is required to be given in these accounts.

4.06 CAPITAL MANAGEMENT Risk management

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors'', creditors'' and market confidence and to sustain future development and growth of its business and at the same time, optimize returns to the shareholders. The Company takes appropriate and corrective steps in order to maintain, or if necessary adjust, its capital structure.

The capital structure of the Company is based on management''s judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.

Consistent with others in the industry, the Company monitors capital on the basis of the capital gearing ratio computed as under :

Net debt (total Borrowings net of Cash and Cash equivalents) divided by Total Equity (as shown in the Balance Sheet).

The Company''s strategy is to maintain a capital gearing ratio within 2 times. The comparative capital gearing ratios are tabulated as hereunder :

The Company has complied with all material externally imposed conditions relating to capital requirements and there has not been any delay or default during the period covered under these financial statements. No lenders have raised any matter that may lead to breach of covenants stipulated in the underlying document.

4.07 FINANCIAL INSTRUMENTS

(i) Methods and assumptions used to estimate the fair values

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables, other bank balances, deposits, loans to employees, trade payables, payables for acquisition of non-current assets, demand loans from banks and cash and cash equivalents are considered to be the same as their fair values.

b) The fair values for long term loans, long term security deposits given and remaining non current financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs.

c) The fair values of long term security deposits taken, non-current borrowings and remaining non current financial liabilities are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

d) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) Categories of financial instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by

valuation technique :

Level 1 : unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 : directly or indirectly observable market inputs, other than Level 1 inputs; and

Level 3 : inputs which are not based on observable market data.

# Amount less than Rs, 50,000/The following table shows a reconciliation of significant unobservable inputs from the opening balance to the closing balance for Level 3 recurring fair value measurements.

(iv) Financial Risk Management

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Board. The details of different types of risk and management policy to address these risks are listed below :

The Company''s activities are exposed to various risks viz. Credit risk, Liquidity risk and Market risk. In order to minimize any adverse effects on the financial performance of the Company, it uses various instruments and follows polices set up by the Board of Directors / Management.

4.07 FINANCIAL INSTRUMENTS (Contd...)

a. Credit Risk :

Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to discharge its obligation as agreed.

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by credit-rating agencies.

In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks and other counterparties for the facilities availed by subsidiary. The Company''s maximum exposure in this respect is the maximum amount the Company would have to pay if the guarantee is called upon.

Each division of the Company has specific policies for managing customer credit risk; these policies factor in the customers'' financial position, past experience and other customer specific factors. The Company uses the allowance matrix to measure the expected credit loss of trade receivables from customers.

Based on the industry practices and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 2 years past due.

Trade receivables consists of large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables :

b. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach for managing liquidity is to ensure that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Company''s reputation. In addition, processes and policies related to such risks are overseen by the senior management. The Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

Financing arrangements

The Company has sufficient sanctioned line of credit from its bankers / financers; commensurate to its business requirements. The Company reviews its line of credit available with bankers and lenders from time to time to ensure that at any point of time there is sufficient availability of line of credit to handle peak business cycle.

The Company pays special attention to the net operating working capital invested in the business. In this regard, as in previous years, considerable work has been performed to control and reduce collection periods for trade and other receivables, as well as to optimize accounts payable with the support of banking arrangements to mobilize funds and minimize inventories.

c. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk.

(i) Market Risk - Foreign Exchange

Foreign currency risk is that risk in which the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company operates internationally and a portion of its business is transacted in several currencies and therefore the Company is exposed to foreign exchange risk through its overseas sales and purchases in various foreign currencies. The Company hedges the receivables as well as payables by forming view after discussion with Forex Consultant and as per polices set by Management.

The Company is also exposed to the foreign currency loans availed from various banks to reduce the overall interest cost.

(ii) Market Risk - Interest Rate

The interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company borrows at variable as well as fixed interest rates and the same is managed by the Company by constantly monitoring the trends and expectations. In order to reduce the overall interest cost, the Company has borrowed in a mix of short term and long term loans.

Companies in which Directors and / or their relatives have significant influence

Peninsula Estates Private Limited Varahagiri Investments & Finance Private Limited Windsor Realty Private Limited Countrywide Exports Private Limited

Key Management Personnel (KMP)

Executive Directors

Mr. Vijay Aggarwal, Managing Director

Mr. Vivek K. Agnihotri, Executive Director & CEO (Cement)

Mr. Joydeep Mukherjee, Executive Director & CEO (HRJ)

Mr. Atul R. Desai, Executive Director & CEO (RMC) [w.e.f. August29,2016]

Mr. Venugopal M. Panicker, Executive Director & CEO (RMC) [upto August24,2016]

4.08 RELATED PARTY DISCLOSURES (Contd...)

Non-executive Directors Non-Independent

Mr. Rajan B. Raheja, Director Independent

Mr. Shobhan M. Thakore, Chairman

Mr. Rajesh G. Kapadia, Chairman [upto July 15,2016]

Ms. Ameeta A. Parpia, Director

Dr. Raveendra Chittoor, Director [w.e.f. July3,2017]

Mr. J. A. Brooks, Director [upto November 7, 2017]

# Amount less than Rs, 50,000/Note : In addition to the above, the Company has extended aggregate loan of Rs, 46.15 Crores (Previous year : Rs, 45.25 Crores) to

H. & R. Johnson (India) TBK Limited, out of which loan of Rs, 42.15 Crores (Previous year : Rs, 42.15 Crores) is interest free. The Company had invested in 0.01% Non-cumulative Optionally Convertible Preference Shares issued by Small Johnson Floor Tiles Private Limited aggregating to Rs, 4.00 Crores (Previous year : 4.00 Crores) and 1% Non-cumulative Redeemable Preference Shares issued by Milano Bathroom Fittings Private Limited aggregating to 3.88 Crores (Previous year : Rs, 3.88 Crores). The Company has also given financial guarantee to commercial banks for Rs, 249.25 Crores (Previous year : Rs, 227.25 Crores) who have extended loans to Silica Ceramica Private Limited.

Note : As the post-employment benefits is provided on an actuarial basis for the Company as a whole, the amount pertaining to key management personnel is not ascertainable and therefore not included above.

4.09 SEGMENT INFORMATION

In accordance with Ind AS 108 on ''''Operating segments" information has been given in the Consolidated Financial Statement of the Company and therefore no separate disclosure on segment information is given in the Standalone Financial Statements.

4.10 GOVERNMENT GRANTS BY WAY OF TAX SUBSIDY / EXEMPTION SCHEMES :

a. As per Madhya Pradesh Industrial Investment Promotion Assistance Scheme (2004), the second Cement Unit at Satna is entitled for subsidy at the rate of 75% of VAT / CST paid on sales till December 31, 2017, subject to prescribed limits. For the period July 1, 2017 to December 31, 2017, the Company has recognized subsidy under the scheme as a percentage of State Goods and Services Tax. Government of Madhya Pradesh is yet to notify extension of support under the GST regime. Subsidy recognized in the Statement of Profit and Loss receivable for the year is Rs, 35.46 Crores (Previous year : Rs, 63.53 Crores).

b. As per Industrial promotion policy 2010 of Madhya Pradesh, HRJ Dewas unit is entitled for subsidy of VAT / CST paid on sales above the normal production capacity achieved. Subsidy recognized in the Statement of Profit and Loss receivable for the year is Rs, 0.03 Crores (Previous year : Rs, 0.15 Crores). The Company has not recognized any subsidy under the GST regime.

c. As per Assam Industries (Tax Exemption) Scheme 2009, RMC Unit at Guwahati is entitled to Sales Tax Exemption subject to prescribed limit, at the rate of 99% of tax payable. Amount recognized for the year is Rs, 0.12 Crores (Previous year: Rs, 0.98 Crores). The Company has not recognized any subsidy under the GST regime.

d. The Company started commercial production of ready mixed plant in Guwahati, Assam on August 6, 2012 and is entitled for 34% of the excise duty paid on finished goods, since that date. During the current financial year, the Company received refund of Rs, 0.35 Crores (Previous year: Rs, 0.10 Crores). The Company has not recognized any subsidy under the GST regime.

4.13 CORPORATE SOCIAL RESPONSIBILITY (CSR)

In view of the average net profits of the three immediately preceding financial years being in the negative, the Company was not required to spend on CSR activities for the FY 2017-18.

4.15 Pursuant to Order of the Hon''ble Supreme Court dated September 24, 2014, Sial Ghogri Coal mine of the Company was de-allocated and put to auction by the Ministry of Coal through Nominated Authority. The Nominated Authority had determined compensation of Rs, 32.49 Crores only for the said Coal Block, as against the expenses of Rs, 6.35 Crores and book value of various assets amounting to Rs, 41.23 Crores incurred by the Company.

Till date, a sum of Rs, 32.34 Crores has been disbursed by the Nominated Authority. The balance amount appears under the head Other Financial Assets (note no. 2.05) and Freehold Land (note no. 2.01) Rs, 13.93 Crores and Rs, 1.31 Crores respectively.

The Company had inter alia disputed the quantum of compensation before the Hon''ble High Court of Judicature, Delhi. As directed by the said High Court, subsequent to the date of the Balance Sheet, the Company has filed a claim for an additional compensation of Rs, 53.03 Crores before the Coal Tribunal duly appointed under Coal Bearing Areas (Acquisition and Development) Act, 1957.

Pending final disposal of the matter, the Company has not recognized excess of compensation over the book value as income as well as loss that may have to be incurred in the event compensation is denied. The Freehold Land continues to be in possession of the Company as it was not part of the vesting order.

4.16 Insurance claim of the year 2012 relating to collapse of blending silo and consequential damages was rejected by the insurance company. The Company had recognized a sum of Rs, 58.94 Crores as receivable. The Company has initiated arbitration proceedings with the party responsible for the construction of blending silo for recovery of damages and is in the process of initiating legal action against the insurance company. Based on legal opinion and judicial precedents, the Company has more than reasonable chance of recovery of the amount recognized as recoverable and accordingly, the Company has continued to recognise the same.

4.17 In accordance with Ind AS 18 on “Revenue" and Schedule III to the Companies Act, 2013, Sales for the year ended March 31, 2017 and for the period April 1, 2017 to June 30, 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT). Excise Duty was reported as a separate expense line item. Consequent to the introduction of Goods and Services Tax (GST) with effect from July 1, 2017, VAT / Central Sales Tax, Excise Duty etc. have been subsumed into GST and accordingly, the same is not recognized as part of sales in terms of Ind AS 18. This has resulted in lower reported sales in the current year in comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes, expenses are also being reported net of taxes. Accordingly, figures for the year ended and as on March 31, 2018 such as sales, expenses, elements of working capital (Inventories, other current assets / current liabilities) and ratios in percentage of sales, are not comparable with the figures of the previous year.

4.18 On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers. The standard permits two possible methods of transition :

- Retrospective approach-Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors.

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch-up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.

The Company has adopted the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly, comparatives for the year ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.

4.19 In the course of normal business operation, the Company has settled certain receivables by acquiring residential and commercial properties. The process of disposing these assets so as to realize receivables is in progress. The reportable segment in which the Non Current Asset held for sale is presented in RMC in accordance with Ind AS 108.

4.21 Figures for the previous year have been regrouped / reclassified / reinstated, wherever considered necessary


Mar 31, 2017

Notes :

a) Depreciation for the year includes Rs.0.21 Crores (Previous year: Rs.0.32 Crores) considered for capitalization.

b) Gross block of Property, Plant and Equipments includes dedicated electricity lines whose deemed cost was Rs.20.27 Crores (Previous year : Rs.20.27 Crores) the ownership of which is with Madhya Pradesh Poorv Kshetra Vitaran Company Limited.

c) Loss of Nil (Previous year: Rs.0.48 Crores) arising on account of exchange difference on long-term foreign currency borrowings, utilized for purchase of Property, Plant and Equipments has been capitalized and included in "Additions".

d) Amortization in case of Freehold Land represent amortization of mining reserve on extraction basis.

e) Additions during the year includes Rs.0.34 Crores ( Previous year: Rs.0.02 Crores) on account of Research assets.

- Company has given Non-disposal Undertaking to certain banks for its investment in above subsidiaries.

- Amount less than Rs.50,000/-

- Based on terms of underlying shareholders Rs. agreement, the Company was a Joint Venture up to March 29, 2016 and subsidiary thereafter.

-The carrying value of the equity component included in investment in 1% Non-cumulative and Redeemable Preference Shares and 0.01% Non-cumulative Optionally Convertible Preference Shares issued by subsidiaries viz. Milano Bathroom Fittings Private Limited and Small Johnson Floor Tiles Private Limited is Rs.2.36 Crores (as at March 31, 2016 : Rs. 2.36 Crores, as at April 1, 2015 : Rs.2.36 Crores) and Rs.3.30 Crores (as at March 31, 2016 : Rs.3.30 Crores, as at April 1, 2015 : Rs.3.30 Crores) respectively.

Note : No amount is due from any of the directors or officers of the Company, severally or jointly with any other person; or from firms where such director is a partner or from private companies where such director is a member except security deposit of Rs. 0.06 Crores for premises given to Director.

- Further information about these loans is set out in note no. 4.11 and 4.12.

Note : No amount is due from any of the directors or officers of the Company, severally or jointly with any other person; or from firms where such director is a partner or from private companies where such director is a member.

Note : Charged to Statement of Profit and Loss on account of write-down of inventories to net realizable value for the year is Rs.11.73 Crores (Previous year : Rs.9.59 Crores).

Note: No amount is due from any of the directors or officers of the Company, severally or jointly with any other person; or from firms where such director is a partner or from private companies where such director is a member.

Explanation: The term ''Specified Bank Note'' is defined in the notification no.S.O.3407 (E), dated November 8, 2016 of the Department of Economic Affairs, Government of India.

Notes: (1) Opening balance of SBNs includes unspent imprest / advance balance with staff which were disbursed in SBNs before November 8, 2016.

(2) SBNs aggregating to Rs.11,500/- deposited directly in the bank account of the Company, is not included in the above disclosure.

b. Rights, preference and restrictions attached to Equity and Preference shares :

i The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company in proportion to their shareholding after distribution of all preferential amounts.

ii Rights, privileges and conditions attached to the preference shares will be decided at the time of issue.

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

(a) General Reserve :

The Company had transferred a portion of the net profit of the Company before declaring dividend to the general reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve before declaration of dividend is not required under the Companies Act, 2013.

(b) Retained Earnings :

Retained earnings are the profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves, debenture redemption reserve etc., amount distributed as dividend and adjustments on account of transition to Ind AS.

(c) Capital Redemption Reserve :

Capital Redemption Reserve was created pursuant to the scheme of amalgamation.

(d) Debenture Redemption Reserve (DRR) :

The Company has issued non-convertible debentures. In terms of provisions of the Companies (Share Capital and Debenture) Rules, 2014 (as amended), the Company is required to create DRR which is equal to 25% of the value of the debentures issued, over the term of the debentures, out of the profits of the Company available for payment of dividend.

1 LEASES

a. Under finance lease arrangements, the Company had acquired mining rights of limestone, against which the total payment has been made and no contingent rent is payable.

b. Details of Finance lease agreements (Land, Plant and Machinery) - Non-cancellable:

Future minimum lease payments (MLP) under these leases are as follows :

Lease rentals of Rs.1.14 Crores (Previous year : Rs.0.43 Crores) in respect of obligations under finance lease have been recognized in the Statement of Profit and Loss.

Operating lease agreements (Land, Machinery and Equipments) - Non-cancellable

Lease rentals of Rs.16.30 Crores (Previous year : Rs.8.09 Crores) in respect of obligations under operating leases have been recognized in the Statement of Profit and Loss.

2 EMPLOYEE BENEFIT PLANS

3. Defined contribution plans

The Company operated defined benefits contribution retirement benefits plans for all qualifying employees.

The total expenses recognized in the Statement of Profit and Loss is Rs.14.10 Crores ( for the year ended March 31, 2016 : Rs.13.65 Crores) represents contributions payable to these plans by the Company at rates specified in rules of the plans.

4.. Defined Benefits Plans

The Company sponsors funded defined benefit plans for qualifying employee. The defined benefits plans are administered by separate fund that is legally separate fund from the entity. The board of the fund is responsible for the investment policy with regard to assets of the funds.

These plans typically expose the Company to Actuarial risks such as : investment risk, interest rate risk, longetivity risk and salary risk. No other post-retirement benefit are provided to the employees.

Sensitivity Analysis

Below is the sensitivity analysis determined for significant actuarial assumption for determination of defined benefit obligation and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period.

5. (a) CONTINGENT LIABILITIES

(i) Guarantees given by the Company''s bankers and counter guaranteed by the Company : Rs.36.91 Crores (Previous year : Rs.30.12 Crores).

(ii) Prepayment charges claimed by banks on amounts prepaid Nil (Previous year : Rs.2.92 Crores).

(iii) Claims against the Company not acknowledged as debts on account of disputes :

(a) In respect of exemption of Central Sales Tax on coal purchases : Rs.7.56 Crores (Previous year : Rs.7.56 Crores). Against this matter, bank guarantee of Rs.7.70 Crores (Previous year : Rs.7.70 Crores) has been provided by the Company.

(b) Energy Development Cess Rs. 9.89 Crores (Previous year : Rs. 9.89 Crores).

(c) Tax on Rural and Road Development Rs.10.45 Crores (Previous year : Rs.10.38 Crores).

(d) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty, Service Tax and other claims Rs.146.50 Crores. (Previous year : Rs.139.65 Crores).

(b) CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.50.94 Crores (March 31, 2016 : Rs.26.61 Crores and April 1, 2015 : Rs.58.81 Crores) and other commitments includes Outstanding Letters of Credit Rs.41.90 Crores (March 31, 2016 : Rs. 52.26 Crores and April 1, 2015 : Rs.48.80 Crores).

(c) FINANCIAL GUARANTEE

Corporate guarantees issued to the bankers : Rs.227.25 Crores (Previous year : Rs. 160 Crores).

In certain cases, the Company has made payments against the above provisions. In case the disputes are settled in the favour of the Company, there would be refund of Rs.0.23 Crores ( Previous year : Rs.0.23 Crores) and in the event, these are settled against the Company there would be cash outflow of Rs. 25.92 Crores (Previous year : Rs.23.57 Crores).

(e) In terms of long-term gas supply agreement (GSA) with GAIL (India) Limited (GAIL) having validity till April, 2028, the Company is required to draw 1074064 MMBTU of Re-Liquefied Natural Gas (RLNG) per calendar year. In case of under drawn quantities, determined on calendar year basis, the Company is liable to deposit purchase price under Take or Pay Obligation clause (TOP) of the GSA and is allowed to draw such under drawn quantities in the balance term of the GSA at then prevailing price.

There were under drawn quantities of RLNG of 653690 and 71 1272 MMBTU for the calendar year 2015 and 2016 respectively and 202770 MMBTU for the quarter ended March 31, 2017. GAIL has allowed under drawn quantities for the calendar year 2015 to be carried forward under downward flexibility clause of GSA till April 2028 without any payment and has indicated that TOP obligation shall not be enforce for the calendar year 2016. The Company has exhausted its downward flexibility limit. The amount committed under TOP for the under drawn quantities for the quarter ended March 31, 2017, which would be due in December 2017 if it remains undrawn or not waived, is approximately to the tune of Rs.12.94 Crores.

In view of decreasing trend in prices of RLNG in recent months and also expected increase in the capacity utilizations due to favorable market conditions, the management is confident about utilization of under drawn RLNG as above in balance part of the calendar year and also in subsequent contracted period. The aforesaid amount, if payable, will only be in the nature of an advance payment for RLNG which can be drawn anytime thereafter up to the end of term of the GSA i.e. April 2028. Accordingly, in view of the management, this contract is not in the nature of onerous contract and no effect of the same is required to be given in these accounts.

6. CAPITAL MANAGEMENT

Risk management

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business and at the same time, optimize returns to the shareholders. The Company takes appropriate and corrective steps in order to maintain, or if necessary adjust, its capital structure.

The capital structure of the Company is based on management''s judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manages the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.

Consistent with others in the industry, the Company monitors capital on the basis of the capital gearing ratio computed as under:

Net debt (total Borrowings net of Cash and cash equivalents) divided by Total ''Equity'' (as shown in the Balance Sheet).

The Company''s strategy is to maintain a capital gearing ratio within 2 times. The comparative capital gearing ratios are tabulated as hereunder:

The Company has complied with all material externally imposed conditions relating to capital requirements and there has not been any delay or default during the period covered under these financial statements. No lenders have raised any matter that may lead to breach of covenants stipulated in the underlying documents.

7. FINANCIAL INSTRUMENTS

(i) Methods and assumptions used to estimate the fair values

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables, other bank balances, deposits, loans to employees, trade payables, payables for acquisition of non-current assets, demand loans from banks and cash and cash equivalents are considered to be the same as their fair values.

b) The fair values for long term loans, long term security deposits given and remaining non-current financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs.

c) The fair values of long term security deposits taken, non-current borrowings and remaining non-current financial liabilities are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

d) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) Categories of financial instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique :

Level 1 : unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 : directly or indirectly observable market inputs, other than Level 1 inputs; and

Level 3 : inputs which are not based on observable market data.

The above investment was acquired during the year. Post acquisition, there is considerable improvements in the functioning of the said Company. This investment is not freely marketable; however, there is an undertaking from other major shareholder of the said Company to buy the investments at least at the value invested by the Company. In view of the aforesaid, the transaction price has been considered as the fair value.

(iv) Financial Risk Management

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board. The details of different types of risk and management policy to address these risks are listed below:

The Company''s activities are exposed to various risks viz. Credit risk, Liquidity risk and Market risk. In order to minimize any adverse effects on the financial performance of the Company, it uses various instruments and follows polices set up by the Board of Directors / Management.

a. Credit Risk:

Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to discharge its obligation as agreed.

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For derivative and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit ratings assigned by credit rating agencies.

In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks and other counter parties for the facilities availed by subsidiary. The Company''s maximum exposure in this respect is the maximum amount the Company would have to pay if the guarantee is called upon.

Each division of the Company has specific policies for managing customer credit risk; these policies factor in the customers'' financial position, past experience and other customer specific factors. The Company uses the allowance matrix to measure the expected credit loss of trade receivables from customers.

Based on the industry practices and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than two years past due.

Trade receivables consists of large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

Table showing age of gross trade receivables and movement in expected credit loss allowance :

b. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach for managing liquidity is to ensure that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Company''s reputation. In addition, processes and policies related to such risks are overseen by the senior management. The management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

Financing arrangements

The Company has sufficient sanctioned line of credit from its bankers / financiers; commensurate to its business requirements. The Company reviews its line of credit available with bankers and lenders from time to time to ensure that at all point of time there is sufficient availability of line of credit to handle peak business cycle.

The Company pays special attention to the net operating working capital invested in the business. In this regard, as in previous years, considerable work has been performed to control and reduce collection periods for trade and other receivables, as well as to optimize accounts payable with the support of banking arrangements to mobilize funds and minimize inventories.

c. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk : currency risk, and interest rate risk.

(i) Market Risk - Foreign Exchange

Foreign currency risk is that risk in which the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company operates internationally and a portion of its business is transacted in several currencies and therefore the Company is exposed to foreign exchange risk through its overseas sales and purchases in various foreign currencies. The Company hedges the receivable as well as payables by forming view after discussion with Forex Consultant and as per polices set by Management.

The Company is also exposed to the foreign currency loans availed from various banks to reduce the overall interest cost. The Company had entered in the foreign currency swap purely to reduce the cost of borrowings and not for the speculation purposes where it was exposed to foreign exchange risk.

Foreign currency sensitivity

1% increase or decrease in foreign exchange rates will have the following impact on Profit after Tax and impact on Equity

Market Risk - Interest Rate

The interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company borrows at variable as well as fixed interest rates and the same is managed by the Company by constantly monitoring the trends and expectations. In order to reduce the overall interest cost, the Company has borrowed in a mix of short term and long term loans.

In order to mitigate the interest rate risk the company has entered in to foreign currency swaps and also borrowed funds in USD.

Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates on the borrowings at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the end of the reporting period was outstanding for whole of the year. A 100-basis point increase or decrease is used for internal review by the key management personnel.

Note : In addition to the above, the Company has extended aggregate loan of Rs.45.25 Crores to H. & R. Johnson (India) TBK Limited, out of which loan of Rs.42.15 Crores is interest free. The Company had invested in 0.01% Non-cumulative Optionally Convertible Preference Shares issued by Small Johnson Floor Tiles Private Limited aggregating to Rs. 4.00 Crores (March 31, 2016 : Rs.4.00 Crores and April 1, 2015 : Rs.4.00 Crores) and 1% Non-cumulative Redeemable Preference Shares issued by Milano Bathroom Fittings Private Limited aggregating to Rs.3.88 Crores (March 31, 2016 : Rs.3.88 Crores and April 1, 2015 : Rs.3.88 Crores). The Company has also given financial guarantee to commercial banks for Rs.227.25 Crores who have extended loans to Silica Ceramica Private Limited.

Note : As the post-employment benefits is provided on an actuarial basis for the Company as a whole, the amount pertaining to key management personnel is not ascertainable and therefore not included above. The figures for the financial year 2015-16 are net of remuneration recovered during the year.

8 Segment Information

In accordance with Ind AS 108 on Operating Segments information has been given in the Consolidated Financial Statement of the Company and therefore no separate disclosure on Segment information is given in the Standalone financial Statements.

9 Government Grants by way of Tax subsidy / exemption schemes :

a As per Madhya Pradesh Industrial Investment Promotion Assistance Scheme (2004), the second Cement Unit at Satna is entitled for subsidy at the rate of 75% of VAT / CST paid on sales, subject to prescribed limits. Subsidy receivable for the year is Rs.63.53 Crores (Previous year : Rs.57.73 Crores). b As per Industrial promotion policy 2010 of Madhya Pradesh, HRJ Dewas unit is entitled for subsidy of VAT / CST paid on sales above the normal production capacity achieved. Subsidy receivable for the year is Rs.0.15 Crores (Previous year : Rs.0.22 Crores) c As per Assam Industries (Tax Exemption) Scheme 2009, RMC Unit at Guwahati is entitled to Sales Tax Exemption subject to prescribed limit, at the rate of 99% of tax payable. Amount recognized for the year is Rs.0.98 Crores (Previous year : Rs.0.80 Crores). d The Company started commercial production of ready mixed plant in Guwahati, Assam on August 6, 2012 and is entitled for 34% of the excise duty paid on finished goods, since that date. During the current financial year, the Company received refund of Rs. 0.10 Crores, (Previous year : Rs.0.21 Crores).

10 Corporate Social Responsibility (CSR)

In view of the average net profits of the preceding three financial years being in the negative, the Company was not required to spend on CSR activities for the FY 2016-17.

11 Other Financial Assets (note no. 2.05) includes Rs.33.18 Crores (Previous year : Rs.39.92 Crores) being book value of various assets relating to Sial Ghogri Coal mine of the Company, which was de-allocated pursuant to Order of the Hon''ble Supreme Court dated September 24, 2014. This receivable is net of Rs.6.74 Crores (Previous year : Nil) received from the Nominated Authority under the Coal Mines (Special Provisions) Ordinance, 2014 and Coal Mines (Special Provision) Rules, 2014 towards various approval cost incurred by the Company. The Nominated Authority has also reimbursed Rs.6.35 Crores (Previous year : Nil) towards geological survey expenses incurred by the Company in earlier years. The same has been disclosed as income (note no. 3.02) under the head Miscellaneous Income. Such disbursement by the Nominated Authority is out of total sum of Rs.32.49 Crores determined by them as payable to the Company. The Company has inter alia disputed the quantum of compensation and has lodged claim of Rs.72.86 Crores. While disposing the writ petition of the Company and others, the Hon''ble High Court of Judicature, Delhi has inter alia directed that the Company may approach Coal Tribunal u/s. 27 of Coal Mines (Special Provisions) Act, 2015 for determination of claim amount. The Company is in the process of lodging its claim before the said Tribunal and believes that the Company will be appropriately reimbursed for cancelled coal mine accordingly; no provision is required to be made against the above receivables.

12 During the FY 2015-16, after obtaining requisite approvals, the Company had transferred 23% stake in one of its subsidiary, Raheja QBE General Insurance Company Limited (RQBE) to Joint Venture partner, QBE Asia Pacific Holdings Limited and recognized profit of Rs. 62.37 Crores. Presently, the Company holds 51% of the equity of RQBE.

13 In view of inadequacy of profits for the financial year 2015-16, remuneration paid to Managing Director and two Executive Director & CEOs was in excess of the limit prescribed under Schedule V to the Companies Act, 2013 by Rs.0.67 Crores. The Nomination and Remuneration Committee of the Board (NRC), at its meeting held on May 25, 2017 decided to withdraw the application filed with the Central Government for waiver from recovery of excess amount paid and accordingly, recovered the excess remuneration paid. Such amount has been recognized as Other Income. Similarly, in view of inadequate profits in the financial year 2016-17, the remuneration paid to the Managing Director and three Executive Director & CEOs till September 12, 2016, being the date from which the norms were relaxed by the Central Government for professional managerial personnel, was in excess of the aforesaid limits by Rs.2.11 Crores. NRC also decided to restrict the remuneration to aforesaid limits. Excess remuneration paid, for the relevant periods in the Financial Years 2015-16 and 2016-17, has since been recovered. Outstanding liabilities for expenses is net of debit balance of a Director amounting to Rs.1.41 Crores which is due on account of excess Managerial Remuneration paid.

14. Subsequent to the date of the Balance Sheet, insurance claim of the year 2012 relating to collapse of blending silo and consequential damages was rejected by the insurance company. The Company had recognized a sum of Rs.58.95 Crores as receivable. The Company is in the process of initiating legal action against the insurance company and has already initiated arbitration proceedings with the party responsible for the construction of blending silo for recovery of damages. Based on legal opinion and judicial precedents, the Company has more than reasonable chance of recovery of the amount recognized as recoverable and accordingly, the Company has continued to recognize the same.

15. During the FY 2015-16, certain amendments having effect from April 1, 2014 were made to the Payment of Bonus Act, 1965 whereby wage threshold for determining applicability of the said Act was increased from Rs.10,000 to Rs.21,000 per month and wage ceiling for calculation of bonus was increased from Rs.3,500 to Rs.7,000 per month. Certain High Court had issued interim orders staying the retrospective implementation of the above amendments. In view of the same, the Company had [paid / provided] its liability on account of additional bonus payable for the financial year 2015-16 and no provision has been considered for the financial year 2014-15. The amount for which the Company is contingently liable is Rs.1.01 Crores.

16. According to the information available with the management, on the basis of intimation received from its suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has amounts due to micro and small enterprises under the said Act as at March 31, 2017 as follows :

NOTES TO FIRST TIME ADOPTION :

a Property, Plant and Equipment

The Company has availed the exemption available under Ind AS 101 to continue the carrying value for all of its Property, Plant and Equipment and intangibles as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. Stores and spares which meet the definition criteria of Property Plant and Equipment under Ind AS 16 -Property, Plant and Equipment have been capitalized. Consequently, there is also an increase in the amount of depreciation charged to the Statement of Profit and Loss.

b Investment in Subsidiaries

Under Ind AS, a first time adopter can measure investments at cost determined in accordance with Ind AS 27 or at deemed cost. The deemed cost of the investment can be the fair value of the investment at the transition date or the previous GAAP carrying amount. The Company has opted to value its investments in Silica Ceramica Private Limited and H. & R. Johnson (India) TBK Limited at deemed cost using the fair value option.

c Trade Receivables

Under the previous GAAP, the Company has created provision for impairment of receivables consisting specific amount for incurred losses. Under Ind AS, impairment allowance has been determined based on Expected Credit Loss Model which has led to an increase in the amount of provision as on the date of transition.

d Security Deposit

Under the previous GAAP, 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 and the difference between the fair value and the transaction value of the security deposit has been recognized as prepaid rent.

e Deferred Tax

The previous 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 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. Various transitional adjustments has resulted in recognition of temporary differences.

f Loan to Employees

The Company has given loans to its employees at a lower interest rate. Under the previous GAAP this loan was accounted for as "Non-current Assets” under Loans and Advances.

As per Ind AS employee loans should be measured at fair value on initial recognition with a subsequent decrease in the amount of employee loan. The fair value is determined using the present value method using discount rate which is the market borrowing rate. The Company will accrue interest income at the effective interest rate (discount rate) over the term of the loan. The difference between the loan amount and its fair value is charged to the Statement of Profit and Loss as "Employee Cost”.

g Corporate Guarantee

The Company has issued corporate guarantee on behalf of its subsidiaries for the borrowings taken by them. Under the previous GAAP, financial guarantee contracts were not accounted for. The Company has recognized finance guarantee obligation at fair value with corresponding recognition in investments. Interest income is recognized with a corresponding reduction from Finance Guarantee Obligation.

h Investment in Preference shares

The preference shares do not meet the definition of equity instrument as per Ind AS 32 and are held to collect contractual cash flows, hence they are fair valued at amortized cost. The fair value is determined using the present value method using the discount rate which is the borrowing market rate. The difference between the amount paid for acquiring the preference shares and its fair value is considered as investment in equity. The Company has accrued interest using the effective interest rate (discount rate) over the term of the preference shares.

i Finance Lease

Under the previous GAAP, leasehold land was accounted for at the premium paid at the time of commencement of the lease. The lease rentals paid were recognized in the Statement of Profit and Loss. Land was not covered under the scope of AS -19 Leases. Ind AS 17 Leases now includes land under the scope of the standard. As on the transition date to Ind AS, the Company recognizes the lease as an asset as well as liability at fair value (present value of minimum lease payments). Any direct expense incurred by the Company is added to the cost of leased asset. The lease payments are apportioned between finance charge and finance lease obligation. The finance charge shall be allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

j Defined Benefit Plans

Both under the previous GAAP and Ind AS, the Company recognized costs related to its post employment defined benefit plans on an actuarial basis. Under previous GAAP the entire cost, including actuarial gains and losses are charged to the Statement of Profit and Loss. Under Ind AS, re-measurement (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability) are recognized immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income and the corresponding tax effect is also given in Other Comprehensive Income .

k Cash discount and commission

Under the previous GAAP, Cash discount and commission was recognized as a part of other expenses. Under Ind AS revenue and expense that relate to the same transaction or other event are recognized simultaneously and hence the cash discount and commission is adjusted against revenue.

l Government Grants

Under the previous GAAP, grant related incomes were presented as a part of Statement of Profit and Loss under "Other Operating Income”. However as per Ind AS, the same is presented under the head "Other Income” in the Statement of Profit and Loss as the grant is in the nature of sales tax exemption, it cannot form part of Operating Revenue.

m Borrowings

As per Ind AS 109, the transaction costs incurred towards origination of borrowings are deducted from the carrying amount of borrowings on initial recognition. Accordingly the unamortized balance of transaction cost has been deducted from the carrying amount of the borrowings as on the date of transition.

n Loan to Subsidiary

The Company had given interest free loan to one of the subsidiary in earlier years which was outstanding on the date of transition to Ind AS. The loan had no fixed contractual cash flows or stated repayment terms. Under the previous GAAP this loan was accounted for as "Non-current Assets” under Loans and Advances. Under Ind AS the unsecured loan has been treated as investment in equity and measured at fair value on initial recognition with a subsequent increase in the amount of investment.

o Sale of goods

Under the previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of Statement of Profit and Loss.

p Provisions

Under the previous GAAP, the Company has accounted for provisions, including long-term provision, at the undiscounted amount. Under Ind AS 37, the provisions are accounted at the present value of the expenditures expected to be incurred to settle obligation considering the time value of money. Ind AS 37 also provides that where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as borrowing cost.


Mar 31, 2016

1. Exceptional items comprises of the following :

Current Year :

a Payment to GAIL (India) Ltd. of Rs. 3.61 Crores (Previous year: Rs. Nil) towards settlement of claim for the calendar year 2014 under long-term gas supply agreement.

Previous Year :

b Transfer fees and stamp duty paid for Land at Dewas Rs. 1.88 Crores as per direction of Hon''ble High Court of Madhya Pradesh.

c Gain of Rs. 64 Crores on sale of 1''23''51''600 equity shares of the Company held through Prism Trust for the benefit of the Company.

2. Provision for Current Tax includes Provision of Wealth Tax of Rs. Nil (Previous year : Rs. 0.20 Crores).

3. Other Current Assets (note no. 20) includes Rs. 39.92 Crores (Previous year : Rs. 29.70 Crores) being book value of various assets relating to Sial Ghogri Coal mine of the Company, which was de-allocated pursuant to Order of the Hon''ble Supreme Court dated September 24, 2014. The Nominated Authority under the Coal Mines (Special Provisions) Ordinance, 2014 and Coal Mines (Special Provision) Rules, 2014 has communicated to the Company that a sum of Rs. 32.49 Crores has been determined as compensation payable to the Company. The Company has, inter-alia, disputed the quantum of compensation and has preferred a writ before the Hon''ble High Court of Judicature, Delhi and the Company has lodged claim of Rs. 72.86 Crores. The Hon''ble High Court has heard the matter and order is awaited.

4. (a) Contingent liabilities :

(i) Guarantees given by the Company''s bankers and counter guaranteed by the Company : Rs. 94.41 Crores (Previous year : Rs. 100.09 Crores).

(ii) Corporate guarantees issued to the bankers on behalf of wholly owned subsidiary Rs. 160 Crores (Previous year : Rs. 80 Crores)

(iii) Outstanding Letters of Credit Rs. 52.26 Crores (Previous year : Rs. 48.80 Crores)

(iv) Prepayment charges claimed by banks on amounts prepaid Rs. 2.92 Crores (Previous year : Rs. 4.13 Crores)

(v) Claims against the Company not acknowledged as debts on account of disputes:

(a) In respect of exemption of Central Sales Tax on coal purchases : Rs. 7.56 Crores (Previous year : Rs. 7.56 Crores). Against this matter, bank guarantee of Rs. 7.70 Crores (Previous year : Rs. 7.70 Crores) has been provided by the Company.

(b) Energy Development Cess Rs. 9.89 Crores (Previous year : Rs. 7.44 Crores)

(c) Tax on Rural and Road Development Rs. 10.38 Crores (Previous year : Rs. 9.45 Crores)

(d) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty, Service Tax and other claims Rs. 139.65 Crores. (Previous year : Rs. 118.68 Crores)

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 26.61 Crores (Previous year : Rs. 58.81 Crores).

(d) In terms of long-term gas supply agreement (GSA) with GAIL (India) Limited having validity till April, 2028, the Company is required to draw 1074064 MMBTU of Re-Liquified Natural Gas (RLNG) per calendar year. In case of under drawn quantities determined on calendar year basis, the Company is liable to deposit purchase price under Take or Pay Obligation (TOP) of the GSA and is allowed to draw such underdrawn quantities in the balance term of the GSA at then prevailing price.

There were under drawn quantities of RLNG of 653690 MMBTU for the calendar year 2015 and 171042 MMBTU for the quarter ended March 31, 2016. GAIL has allowed under drawn quantities for the calendar year 2015 to be carried forward under downward flexibility clause of GSA till April 2028 without any payment. However, because of the same, the Company has exhausted its downward flexibility limit. The amount committed under TOP for the under drawn quantities for the quarter ended March 31, 2016, which would be due in December 2016 if it remains undrawn, is approximately Rs. 9.05 Crores.

In view of decreasing trend in prices of RLNG in recent months and also increase in the capacity utilisation due to favorable market conditions, the management is confident about utilisation of under drawn RLNG as above in balance part of the calendar year and also in subsequent contracted period. The aforesaid amount, if payable, will only be in the nature of an advance payment for RLNG which can be drawn anytime thereafter up to the end of term of the GSA i.e. April 2028. Accordingly, in view of the management this contract is not in the nature of Onerous contract and no effect of the same is required to be given in these accounts.

5. Depreciation & Amortisation :

Current Year :

During the last quarter, based on technical evaluation of material items of the fixed assets, the Company has completed componentisation exercise in terms of the provision contained in Schedule II to the Companies Act, 2013 and have provided depreciation by giving effect from April 1, 2015. In view of the same, the shortfall of Rs. 8.85 Crores in depreciation for nine months ended December 31, 2015 has been provided in the quarter ended March 31, 2016.

Further based on the transitional provision provided in Note 7(b) of Schedule II to the Act, the charge to retained earnings in respect of assets having no useful life as on April 1, 2015 on account of above exercise, net of deferred tax adjustment is Rs. 35.28 Crores.

Previous Year :

Effective from April 1, 2014, the useful lives of fixed assets have been revised in accordance with Schedule II to the Companies Act, 2013 (the Act). Due to above, depreciation charge for the year ended March 31, 2015 is lower by Rs. 46.31 Crores.

Further based on transitional provision provided in Note 7(b) of Schedule II to the Act, the charge to retained earnings in respect of assets having no useful life as on the effective date, net of deferred tax adjustment is Rs. 7.39 Crores.

6. During the year, after obtaining requisite approvals, the Company has transferred 23% stake in one of its subsidiary, Raheja QBE General Insurance Company Limited (RQBE) to joint venture partner, QBE Asia Pacific Holdings Limited and recognised profit of Rs. 62.37 Crores. Presently, the Company holds 51% of the equity of RQBE.

7. The matter relating to reappointment and remuneration of the Managing Director and appointment & remuneration of two Executive Director & CEOs of the Company are being placed for approval of the shareholders.

In view of non-availability of profits for the current year, remuneration paid to these Managerial Personnel, during their respective tenures, is in excess of the limit prescribed under Schedule V to the Companies Act, 2013 by Rs. 0.67 Crores. Pending approval from the shareholders of the Company and the Central Government, such excess amount is held in trust by them. Steps are being taken by the Company for obtaining approval for waiver of recovery.

8. Subsequent to the date of the Balance Sheet, insurance claim of the year 2012 relating to collapse of blending silo and consequential damages was rejected by the insurance company. The Company had recognised a sum of Rs. 58.95 Crores as receivable. The Company is in the process of initiating legal action against the insurance company and has already initiated arbitration proceedings with the party responsible for the construction of blending silo for recovery of damages. Based on legal opinion and judicial precedents, the Company has more than reasonable chance of recovery of the amount recognised as recoverable and accordingly, the Company has continued to recognise the same.

9. The Company in its ordinary course of business has promoted / acquired interest in various entities. Out of these entities, Silica Ceramica Private Limited (Company''s holding 99.63%) and H. & R. Johnson (India) TBK Limited (Company''s holding 100%) have significant amount of accumulated losses. The Company''s aggregate exposure in these entities is Rs. 149.32 Crores by way of investment. Considering the long-term involvement of the Company in these entities and strategic impact it has on the business of the Company, the management is of the view that the decline in the value of investment is temporary in nature and therefore no provisioning is required.

10. During the year, certain amendments having effect from April 1, 2014 were made to the Payment of Bonus Act, 1965 whereby wage threshold for determining applicability of the said Act was increased from Rs. 10,000 to Rs. 21,000 per month and wage ceiling for calculation of bonus was increased from Rs. 3,500 to Rs. 7,000 per month. Certain High Court has issued interim orders staying the retrospective implementation of the above amendments. In view of the same, the Company has [paid / provided] its liability on account of additional bonus payable for the financial year 201 5-16 and no provision has been considered for the financial year 2014-15. The amount for which the Company is contingently liable is Rs. 1.01 Crores.

11. Prior Period Item

Contribution to Provident and other funds (note no. 27) includes additional charge of Rs. 1.45 Crores (Previous year : Rs. Nil) pertaining to earlier years in respect of Gratuity.

12. Capital work-in-progress includes pre-operative expenses of Rs. 58.29 Crores (Previous year : Rs. 53.05 Crores), the details of which are as under:

13. Employee Benefits :

(a) Defined contribution plans :

The Company has recognised an expense of Rs. 13.65 Crores (Previous year : Rs. 13.50 Crores) towards defined contribution plans, in respect of Provident Fund and Superannuation Fund. The Company contributes to the Provident Fund Trust managed by it or to Recognised Provident Fund. In the event, the Company expect any material deficit in payment of interest, necessary amount is contributed to the own Provident Fund Trust.

(b) Defined benefit plans :

The actuarial valuation of the present value of the defined benefit obligations were carried out at March 31, 2016. The present value of the defined benefit obligations and the related service costs, were measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognised in the Company''s financial statements as per actuarial valuation on March 31, 2016 for the Defined Benefits Plan :

14. Lease Arrangements :

a Under finance lease arrangements, the Company had acquired mining rights of limestone, against which the total payment has been made and no contingent rent is payable.

b Details of Finance lease agreements (Machinery and Equipment) - Non-cancellable :

15. Government Grants by way of Tax subsidy/exemption schemes :

VAT Subsidy is grouped under Revenue from Operations as part of Sales.

a As per Madhya Pradesh Industrial Investment Promotion Assistance Scheme (2004), the second Cement Unit at Satna is entitled for subsidy at the rate of 75% of VAT/CST paid on sales, subject to prescribed limits. Subsidy receivable for the year is Rs. 57.73 Crores (Previous year : Rs. 59.54 Crores).

b As per Industrial Promotion Policy 2010 of Madhya Pradesh, HRJ Unit at Dewas is entitled for subsidy of VAT / CST paid on sales achieved above the normal production capacity. Subsidy receivable for the year is Rs. 0.22 Crores (Previous year : Rs. 0.42 Crores).

c As per Assam Industries (Tax Exemption) Scheme 2009, RMC Unit at Guwahati is entitled to Sales Tax Exemption subject to prescribed limit, at the rate of 99% of tax payable. Amount recognised for the year is Rs. 0.80 Crores (Previous year : Rs. 0.42 Crores).

d The Company started commercial production of ready mixed plant in Guwahati, Assam on August 6, 2012 and is entitled for 34% of the excise duty paid on finished goods, since that date. During the current financial year, the Company received refund of Rs. 0.21 Crores, out of which Rs. 0.15 Crores relates to earlier financial years.

16. Details of earnings in foreign currency :

F.O.B. value of Export : Rs. 45.17 Crores (Previous year : Rs. 56.05 Crores).

c In the FY 2014-15, the Company had booked INR USD Cross Currency Swap Contracts of USD 5.92 Crores against the underlying INR borrowing of Rs. 365 Crores. For the FY 2015-16, the actual interest earned on notional INR deposit, interest paid on notional USD borrowing and marked to market loss on USD exposure aggregating net gain of Rs. 0.34 Crores (Previous year : Rs. 4.08 Crores) are included in interest expenses under finance cost in Note No. 28.

17. Figures for the previous year have been regrouped/reclassified/reinstated, wherever considered necessary.


Mar 31, 2015

1. Corporate information

Prism Cement Limited, a Public Limited Company incorporated under the Companies Act, 1956, principally operates in three business segments: Cement, Tile, Bath and Kitchen (TBK) and Ready-mixed Concrete (RMC). The equity shares of the Company are listed on the Bombay Stock Exchange and National Stock Exchange.

2. Share Capital

(a) Rights, Preferences and Restrictions attached to Equity Shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company in proportion to their shareholding after distribution of all preferential amounts.

(b) Pursuant to scheme of amalgamation of erstwhile H. & R. Johnson (India) Limited and RMC Readymix (India) Private Limited with the Company during the year 2009-10, 1,23,51,600 equity shares of the Company were issued to Prism Trust for the benefit of the Company. These shares were sold during the year.

3. Exceptional items comprises of the following :

Current Year :

(a) Transfer fees and stamp duty paid for Land at Dewas Rs. 1.88 Crores (Previous year : Rs. Nil) as per direction of Hon''ble High Court of Madhya Pradesh.

(b) Gain of Rs. 64 Crores (Previous year : Rs. Nil) on sale of 1,23,51,600 equity shares of the Company held through Prism Trust for the benefit of the Company.

Previous Year :

(c) Exceptional items includes reversal of provision made for amalgamation expenses Rs. 1.50 Crores and exchange gain of Rs. 7.87 Crores realised on redemption of preference shares and liquidation of equity shares of one of its erstwhile wholly owned subsidiary.

4. Provision for Current Tax includes Provision of Wealth Tax of Rs. 0.20 Crores (Previous year : Rs. 0.20 Crores).

5. (a) Subsequent to the Order dated September 24, 2014 of the Hon''ble Supreme Court on de-allocation of all coal mines including Sial Ghogri coal mine of the Company in Madhya Pradesh with effect from March 31, 2015 and promulgation of the Coal Mines (Special Provisions) Ordinance 2014 and Coal Mines (Special Provision) Rules, 2014 (the Rules), the Central Government has completed bidding process. The Nominated Authority appointed under the Rules has passed Vesting Order dated March 23, 2015 and as a result thereof, with effect from April 01,2015, the coal mine including lands, in or adjacent to the coal mines and mine infrastructure got vested in favour of the successful bidder. In compliance of the vesting order the Company has handed over possession of the mine and the assets listed in the vesting order to the successful bidder. Vide email dated March 26, 2015, the Nominated Authority has communicated to the Company that a sum of Rs. 32.49 Crores has been determined as compensation payable to the Company. The Company has inter-alia disputed the quantum of compensation and has preferred a writ before the Hon''ble High Court of Judicature, Delhi and the Company has lodged claim of Rs. 72.86 Crores. The aggregate exposure of the Company on account of Coal Mine Development expenses, Mining Surface Rights, Land, Other infrastructure for mine, Capital work in progress relating to buildings under construction and other related matter is around Rs. 47.49 Crores (including geological survey expenses written off in books of accounts of Rs. 6.22 Crores). Since the matter is sub-judice and pending settlement of the claim, no adjustment has been made in the accounts.

(b) On cancellation of allocation of coal mine and on receipt of details of compensation from Nominated Authority and since the matter is pending before the Court, the Company has classified Coal Mine Development expenses Rs. 19.11 Crores, Mining Surface Rights Rs. 7.88 Crores (which were forming part of fixed assets of the Company), Capital work in progress relating to buildings under construction Rs. 2.71 Crores aggregating to Rs. 29.70 Crores as Receivable relating to Coal Block deallocation under Other Current Assets.

(c) Other assets, comprising of assets that got vested in favour of the successful bidder on April 1,2015 and other assets and pre operative expenditure for which claim has been lodged by the Company, having aggregate book value of Rs. 11.57 Crores, are continued to be shown as part of fixed assets.

6. (a) Contingent liabilities :

(i) Guarantees given by the Company''s bankers and counter guaranteed by the Company : Rs. 100.09 Crores (Previous year : Rs. 92.91 Crores)

(ii) Claims against the Company not acknowledged as debts on account of disputes: :

(a) In respect of exemption of Central Sales Tax on coal purchases Rs. 7.56 Crores (Previous year : Rs. 7.56 Crores). Against this matter, bank guarantee of Rs. 7.70 Crores (Previous year : Rs. 7.70 Crores) has been provided by the Company.

(b) Energy Development Cess Rs. 7.44 Crores (Previous year : Rs. 7.44 Crores)

(c) Additional Royalty Claim on limestone raised Rs. Nil (Previous year : Rs. 40.95 Crores)

(d) Tax on Rural and Road Development Rs. 9.45 Crores (Previous year : Rs. 9.45 Crores)

(e) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty, Service Tax and other claims Rs. 118.68 Crores. (Previous year : Rs. 94.43 Crores)

(iii) Corporate guarantees issued to the bankers on behalf of wholly owned subsidiary Rs. 80 Crores (Previous year : Rs. Nil)

(iv) Outstanding Letters of Credit Rs. 48.80 Crores (Previous year : Rs. 27.40 Crores)

(v) Prepayment charges claimed by banks on amounts prepaid : Rs. 4.13 Crores (Previous year : Rs. 4.13 Crores)

(vi) On enactment of The Mines and Minerals (Development and Regulation) Amendment Act, 2015 w.e.f. 12th January, 2015, the Company is liable to pay an amount not exceeding the royalty paid, to the District Mineral Foundation of the district in such manner and subject to categorisation of the mining lease and amounts payable by the various categories of the lease holders, as may be prescribed by the Central Government. Also the company is liable to pay to National Mineral Exploration Trust, a sum equivalent to two percent of the royalty paid, in such a manner as may be prescribed by the Central Government. However, the State and Central Government is yet to issue the notification for establishing the trust and accordingly, amount cannot be ascertained at present.

The management has estimated the provisions for pending litigation, claims and demands (including cases relating to direct and indirect taxes) on its assessment of probability for these demands crystalising against the Company in due course. The difference between the amount demanded and provision made is disclosed as Contingent liabilities.

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) : Rs. 58.81 Crores (Previous year : Rs. 31.26 Crores)

In certain cases, the Company has made payments against the above provisions. In case the disputes are settled in the favour of the Company, there would be refund of Rs. 1.34 Crores (Previous year : Rs. 1.34 Crores) and in the event, these are settled against the Company there would be cash outflow of Rs. 24.02 Crores (Previous year : Rs. 20.47 Crores).

During the year, the Company has reviewed its obligation with respect to mines restoration and considering all factors has recognised suitable provisions for the same.

7. Effective from April 1, 2014, the useful lives of fixed assets have been revised in accordance with Schedule II to the Companies Act, 2013 (the Act). Due to above, depreciation charge for the year ended March 31, 2015 is lower by Rs. 46.31 Crores. Further based on transitional provision provided in Note 7(b) of Schedule II to the Act, the charge to retained earnings in respect of assets having no useful life as on the effective date, net of deferred tax adjustment is Rs. 7.39 Crores.

8. Employee Benefits :

(a) Defined contribution plans :

The Company has recognised an expense of Rs. 13.50 Crores (Previous year : Rs. 13.55 Crores) towards defined contribution plans, in respect of Provident Fund and Superannuation Fund. The Company contributes to the Provident Fund Trust managed by it or to Recognised Provident Fund. In the event, the Company expect any material deficit in payment of interest, necessary amount is contributed to the own Provident Fund Trust.

(b) Defined benefit plans :

The actuarial valuation of the present value of the defined benefit obligations were carried out at March 31,2015. The present value of the defined benefit obligations and the related service costs, were measured using the Projected Unit Credit Method. The following tables set out the funded status and amounts recognised in the Company''s financial statements as per actuarial valuation on March 31, 2015 for the Defined Benefits Plan :

9. VAT Subsidy :

VAT Subsidy is grouped under Revenue from Operations as part of Sales.

(a) As per Madhya Pradesh Industrial Investment Promotion Assistance Scheme (2004), the second Cement Unit at Satna is entitled for subsidy at the rate of 75% of VAT / CST paid on sales, subject to prescribed limits. Subsidy receivable for the year is Rs. 59.54 Crores (Previous year : Rs. 56.35 Crores).

(b) As per Industrial Promotion Policy 2010 of Madhya Pradesh, HRJ Unit at Dewas is entitled for subsidy of VAT / CST paid on sales achieved above the normal production capacity. Subsidy receivable for the year is Rs. 0.42 Crores (Previous year : Rs. 0.55 Crores).

(c) As per Assam Industries (Tax Exemption) Scheme 2009, RMC Unit at Guwahati is entitled to Sales Tax Exemption subject to prescribed limit, at the rate of 99% of tax payable. Amount recognised for the year is Rs. 0.42 Crores (Previous year : Rs. Nil).

10. Disclosure regarding transactions with Related Parties in terms of Accounting Standard - 18 is as under :

(a) Name of the related parties under control of the Company :

Subsidiaries

Raheja QBE General Insurance Company Limited

RMC Readymix Porselano (India) Limited

H. & R. Johnson (India) TBK Limited

Lifestyle Investments PVT Limited (upto 30-10-2013)

Silica Ceramica Private Limited

Milano Bathroom Fittings Private Limited

TBK Venkataramiah Tile Bath Kitchen Private Limited (Step-down Subsidiary)

(b) Name of the related parties with whom transactions have taken place :

Joint Ventures

Sentini Cermica Private Limited

Antique Marbonite Private Limited

Spectrum Johnson Tiles Private Limited

Small Johnson Floor Tiles Private Limited

Ardex Endura ( India) Private Limited

TBK Shri Ram Tile Bath Kitchen Private Limited

TBK Deziner''s Home Private Limited

TBK Unique Jalgaon Tile Bath Kitchen Private Limited

TBK P B Shah Tile Bath Kitchen Private Limited

TBK Deepgiri Tile Bath Kitchen Private Limited

TBK Pratap Tile Bath Kitchen Private Limited

TBK Rangoli Tile Bath Kitchen Private Limited

TBK Bansal Ceramics Private Limited

TBK Rathi Sales Agencies Private Limited

TBK Florance Ceramics Private Limited

TBK Sanitary Sales Private Limited

TBK Tile Home Private Limited

TBK Samiyaz Tile Bath Kitchen Private Limited

TBK Krishna Tile Bath Kitchen Private Limited

TBK Reddy Tile Bath Kitchen Private Limited

TBK Kadakia''s Tile Bath Kitchen Private Limited

TBK Rishi Ceramics Private Limited

TBK Aishwarya Tile Bath Kitchen Private Limited

TBK Raj Kamal Tile Bath Kitchen Private Limited

TBK Shree Ganesh Traders Private Limited

TBK Vaibhavi Tile Bath Kitchen Private Limited

TBK Home Trends Private Limited

TBK Solan Ceramics Private Limited



Key Management Personnel

Mr. Vijay Aggarwal - Managing Director

Mr. Ganesh Kaskar - Executive Director - HRJ

Mr. Venugopal M. Panicker - Executive Director - RMC

Mr. S. Ramnath - Executive Director - Cement (upto 04-02-2015)

Mr. Manoj Chhabra - Managing Director (upto 24-08-2013)

Firm/Enterprise in which Directors and/or relatives have significant influence

Peninsula Estates Private Limited

Varahagiri Investments And Finance Private Limited

Windsor Realty Private Limited

R & S Business Centre

Associates

Prism Power and Infrastructure Private Limited

Subsidiary of Joint Venture

Antique Minerals Private Limited

Solid Johnson Floor Tiles Private Limited

11 Figures for the previous year have been regrouped / reclassified / reinstated, wherever considered necessary.


Mar 31, 2014

1 Exceptional items comprises of the following :

Exceptional items includes reversal of provision made for amalgamation expenses Rs. 1.50 Crores (Previous year: Rs. Nil) and exchange gain of Rs. 7.87 Crores (Previous year:Rs.1.62 Crores) realised on redemption of preference shares and liquidation of equity shares of one of its ters-while wholly owned subsidiary.

2 Provision for Current Tax includes Provision of Wealth Tax of Rs. 0.20 Crores (Previous year: Rs. 0.20 Crores).

3 (a) Contingent Liabilities:

(i) Guarantees given by the Company''s bankers and counter guaranteed by the Company : Rs. 92.91 Crores (Previous year : Rs. 86.12 Crores).

(ii) Claims against the Company not acknowledged as debts on account of disputes :

a) In respect of exemption of Central Sales Tax on total purchases : Rs. 7.56 Crores (Previous year: Rs. 7.56 Crores). Against this matter, bank guarantee of Rs. 7.70 Crores (Previous year: Rs. 7.70 Crores) has been provided by the Company.

b) Energy Development Cess Rs. 7.44 Crores (Previous year: Rs. 7.44 Crores).

c) Additional Royalty claim on limestone raised Rs. 40.95 Crores (Previous year: Rs. 22.87 Crores).

d) Tax on Rural and Road Development Rs. 9.45 Crores (Previous year: Rs. 6.79 Crores).

e) Other Claims in respect o Income Tax, Sales Tax, Entry Tax, Excise duty and other claims Rs. 94.43 Crores (Previous year: Rs. 78.22 Crores).

(iii) Corporate guarantees issued to the bankers on behalf of wholly owned subsidiary Rs. Nil (Previous year: Rs. 108.54 Crores).

(iv) Outstanding Letters of Credit Rs. 27.40 Crores (Previous year: Rs. 30.04 Crores).

(b) Estimated amount of contracts remaining o be executed on capital account and no provided for (ne of advances) Rs. 31.26 Crores (Previous year : Rs. 26.84 Crores).

(c) The Company has entered into a long term contract of 30 years with one party for extracting total from the Company''s mines at the prêt agreed rate, subject to escalation terms stated in the Agreement.

4 Employee Benefits :

(a) Defined contribution plans :

The Company has recognised an expense of Rs. 13.55 Crores (Previous year : Rs. 13.57 Crores) towards defined contribution plans, in respect of Provident Fund and Superannuation Fund. The Company contributes to he Provident Fund Trust managed by it or to Recognised Provident Fund. In he even, he Company expect any material deficit in payment of interest, necessary amount is contributed to the own Provident Fund Trust.

(b) Defined benefit plans :

The actuarial Valuation of the present value of he defined benefit obligations were carried out a March 31,2014. The present value of the defined benefit obligations and the related service costs, were measured using the Projected Unit Credit Method.

The following tables set out he funded status and amounts recognised in the Company''s financial statements as per actuarial valuation on March 31, 2014 for the Defined Benefits Plan :

(v) Actuarial assumptions used in accounting for Leave Entitlement and Gratuity :

a) Discount rate : 9% (Previous year : 8%).

b) Expected rate of return on plan assets : 8% (Previous year: 8%).

c) The estimates of future salary increases of 4% o 5%, considered in Actuarial Valuation, taking into accounts the general trend in salary rise and the inflation rates.

5 (a) The Company has entered into finance lease for using he mining surface rights of limestone, against which he total payment has been made and no contingent rent is payable.

6 VAT Subsidy:

(a) As per Madhya Pradesh Industrial Investment Promotion Assistance Scheme (2004), the Company is entitled for subsidy of 75% of VAT/ CST paid on sales from the new unit a Sana, subject to prescribed limits. Subsidy receivable for the year of Rs. 56.35 Crores (Previous year: Rs. 57.31 Crores) has been grouped under revenue from operations as a part of sales.

(b) As per Industrial Promotion Policy 2010 of Madhya Pradesh, HRJ Dewas unit is entitled for subsidy of VAT/ CST paid on sales above the normal production capacity achieved. Subsidy receivable for the year is Rs. 0.55 Crores (Previous year: Rs. Nil).

7 Details of earnings in foreign currency :

F.O.B. value of Exports : Rs.42.48 Crores (Previous year: Rs. 24.19 Crores).

8 Disclosure of Foreign Currency Exposure :

a) The Company has outstanding forward contracts to purchase US$ 0.12 Crores (Previous year : US$ 0.23 Crores) as on the Balance Sheet date to hedge foreign currency liability for payments to be made against imports and loans.

9 Figures for the previous year have been regrouped / reclassified / reinstated, wherever considered necessary.


Mar 31, 2013

A) Rights, Preferences and Restrictions attached to Equity Shares :

The Company has one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

b) The Company had issued 20,51,06,580 number of Equity shares of Rs. 10/- each fully paid during the period of five years immediately preceding the reporting date pursuant to a scheme of amalgamation of erstwhile H. & R. Johnson (India) Limited and RMC Readymix (India) Private Limited with the Company without payments being received in cash. As per the said scheme of amalgamation 1,23,51,600 shares of the Company are held in a Trust for the benefit of the Company.

1. Exceptional items comprises of the following :

a. Exchange gain of Rs. 1.62 Crores arising on part redemption of the Company''s investment in the Preference Share Capital of its wholly owned subsidiary. (Previous year : profit of Rs. 1.20 Crores on buy back of shares of Joint Venture held by the Company).

b. In March 2012 in Unit II of the Cement Division at Satna (M.P.) there was a damage to the Blending Silo due to which the clinker production had been affected. Further, the loss on account of the incident is largely covered by insurance. The estimated loss due to certain non-recovery of the claim amount from the insurance amounting to Rs. 4.00 Crores was provided in the financial statements of previous year.

2. Provision for current tax includes Wealth Tax of Rs. 0.20 Crores (Previous year : Rs. 0.20 Crores).

3. All the divisions of the Company have normal operating cycle of less than twelve months, hence a period of twelve months has been considered for bifurcation of assets and liabilities into current and non-current as required by Revised Schedule VI of the Companies Act, 1956 for preparation of Financial Statements.

4. (a) Contingent liabilities :

(i) Guarantees given by the Company''s bankers and counter guaranteed by the Company : Rs. 86.12 Crores (Previous year : Rs. 78.29 Crores)

(ii) Claims against the Company not acknowledged as debts :

(a) Dispute in respect of exemption of Central Sales Tax on coal purchases : Rs. 7.56 Crores (Previous year : Rs. 7.56 Crores). Against this matter, bank guarantee of Rs. 7.70 Crores (Previous year : Rs. 7.70 Crores) has been provided by the Company.

(b) Energy Development Cess disputed Rs. 7.44 Crores (Previous year : Rs. 7.44 Crores)

(c) Additional Royalty Claim on limestone raised disputed Rs. 22.87 Crores (Previous year : Rs. 20.08 Crores)

(d) Tax on Rural and Road Development disputed Rs. 6.79 Crores (Previous year : Rs. 5.27 Crores)

(e) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty and other claims Rs. 78.22 Crores. (Previous year : Rs. 46.33 Crores)

(iii) Corporate guarantees issued to the bankers of the wholly owned subsidiary company Rs. 108.54 Crores (Previous year : Rs. 73.62 Crores)

(iv) Outstanding Letters of Credit Rs. 30.04 Crores (Previous Year : Rs. 38.04 Crores)

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 26.84 Crores (Previous year : Rs. 58.65 Crores)

(c) The Company has entered into a long term contract of 30 years with one of the party for extracting coal from the Company''s mines. The rate will be charged as per the contract rate plus escalation agreed upon.

5. Employee Benefits :

(a) Defined contribution plans :

The Company has recognised an expense of Rs. 13.57 Crores (Previous year : Rs. 12.63 Crores) towards defined contribution plans, in respect of Provident Fund and Superannuation Fund. The Company contributes to the Provident Fund Trust managed by it or to Recognised Provident Fund. The contribution to the own Provident Fund Trust is treated as defined contribution plan as the management do not expect any material deficit in payment of interest, as per the rates prescribed by the Government.

(b) Defined benefit plans :

The actuarial valuation of the present value of the defined benefit obligations were carried out at March 31, 2013. The present value of the defined benefit obligations and the related service costs, were measured using the Projected Unit Credit Method.

(v) Actuarial Assumptions used in accounting for leave entitlement and gratuity :

(a) Discount rate : 8% (Previous year : 8.5%)

(b) Expected rate of return on plan assets : 8% (Previous year : 8%)

(c) The estimates of future salary increases of 4% - 5%, considered in actuarial valuation, taking into account the general trend in salary rise and the inflation rates.

6. The Company has received requisite approvals from the Central Government for excess remuneration of Rs. 6.54 Crores paid to both the Managing Directors and the Whole-time Director of the Company due to non-availability of profits for the year 2011-12.

7. VAT Subsidy :

As per Madhya Pradesh Industrial Investment Promotion Assistance Scheme (2004), the Company is entitled for subsidy of 75% of VAT/CST paid on sales from the new unit at Satna, subject to prescribed limits. Subsidy receivable for the year of Rs. 57.31 Crores (Previous year : Rs.. 45.22 Crores) has been grouped under revenue from operations as a part of sales. Further, out of subsidy recognised in the earlier years an amount of Rs. 1.41 Crores is reversed through sales.

8. Value of imports on CIF Basis :

Spares : Rs. 25.08 Crores (Previous year : Rs. 39.67 Crores)

Raw materials : Rs. 31.70 Crores (Previous year : Rs. 44.01 Crores)

Capital Goods : Rs. 11.18 Crores (Previous year : Rs. 19.20 Crores )

Traded Goods : Rs. 27.34 Crores (Previous year : Rs. 29.00 Crores)

9. Details of earnings in foreign currency :

F.O.B. Value of Export : Rs. 24.19 Crores (Previous year : Rs. 28.10 Crores) Sale of Carbon Credits : Rs. Nil (Previous year : Rs. 0.89 Crores)

10. Disclosure of Foreign Currency Exposure :

(a) The Company has outstanding forward contracts to purchase US$ 0.23 Crores (Previous year : US$ 0.26 Crores) as on the Balance Sheet date to hedge foreign currency liability for payments to be made against imports and loans.

11. Figures for the previous year have been regrouped/reclassified/reinstated, wherever considered necessary.


Mar 31, 2012

A) Depreciation for the year includes Rs 0.13 Crores (Previous year : Rs 0.15 Crores) considered for capitalisation.

b) Additions during the year includes Rs 0.31 Crores (Previous year : Rs 1.34 Crores) on account of Research assets.

c) Gross block of fixed assets includes dedicated electricity lines costing Rs 24.05 Crores (Previous year : Rs 7.01 Crores) the ownership of which is with Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited.

1. Exceptional items comprises of the following :

a. In March 2012 in the new plant of the Cement Division at Satna, Madhya Pradesh, there was a damage to the Blending Silo due to which the clinker production has been affected. Further, the loss on account of the incident is largely covered by insurance. The estimated loss due to certain non-recovery of the claim amount from the insurance amounting to Rs 4.00 Crores has been provided in the financial statements and the same has been shown as exceptional item in the Profit and Loss Statement for the current year.

b. Exceptional Items includes profit of Rs 1.20 Crores on buy-back of shares by Joint venture viz. Sentini Cermica Private Limited. (Previous year : exceptional items comprise of gain of Rs 4.36 Crores on sales of land and building, loss of Rs 1.35 Crores on redemption of mutual fund investments and loss of Rs 2.05 Crores of redemption of investments in preference shares)

2. Provision for current tax includes Wealth Tax of Rs 0.20 Crores (Previous year : Rs 0.12 Crores).

3. All the divisions of the Company have normal operating cycle of less than 12 months, hence a period of twelve months has been considered for bifurcation of assets and liabilities into current and non-current as required by Revised Schedule VI for preparation of Financial Statements.

4. The Company has long-term foreign currency borrowings which have been utilised for the purchase of fixed assets. As per the circular issued by MCA referred to note No. 1.9, the Company, with effect from the current year has exercised the option to adjust the foreign exchange differences on such borrowings to the cost of Fixed Assets. Due to this, the adverse movement of exchange differences on such borrowings arising during the year of Rs 5.90 Crores have been added to the cost of fixed assets and depreciation of Rs 0.16 Crores has been provided on the same. Due to this change, loss before tax for the current year is lower by Rs 5.74 Crores.

5. (a) Contingent liabilities :

(i) Guarantees given by the Company''s bankers and counter guaranteed by the Company Rs 78.29 Crores (Previous year : Rs 78.06 Crores).

(ii) Claims against the Company not acknowledged as debts :

(a) Dispute in respect of exemption of Central Sales Tax on coal purchases Rs 7.56 Crores (Previous year : Rs 7.56 Crores). Against this matter, bank guarantee of Rs 7.70 Crores (Previous year : Rs 7.70 Crores) has been provided by the Company.

(b) Energy Development Cess disputed Rs 7.44 Crores (Previous year : Rs 7.44 Crores)

(c) Royalty on limestone disputed Rs 20.08 Crores (Previous year : Rs 10.84 Crores)

(d) Tax on Rural and Road Development disputed Rs 5.27 Crores (Previous year : Rs 5.27 Crores)

(e) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty and other claims Rs 46.33 Crores. (Previous year : Rs 32.05 Crores)

(iii) Corporate guarantees issued to the bankers of the wholly owned subsidiary company Rs 73.62 Crores (Previous year : Rs 64.74 Crores)

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs 58.65 Crores (Previous year : Rs 34.87 Crores).

(c) The Company has entered into a long term contract of 30 years with one of the party for extracting coal from the Company''s mines. The rate will be charged as per the contract rate plus escalation agreed upon.

(d) Disclosure of provisions made as per the requirements of Accounting Standard - 29 on "Provisions, Contingent Liabilities and Contingent Assets" as notified under the Companies (Accounting Standards) Rules, 2006, is as follows :

The above provision is net of payment made there against. In future, there may be cash inflow in case the dispute is settled in the favour of the Company. In case the disputes are settled against the Company there may be cash outflow of Rs 22.08 Crores (Previous year : Rs 40.30 Crores).

6. Employee Defined Benefits :

(a) Defined contribution plans :

The Company has recognised an expense of Rs 12.63 Crores (Previous year : Rs 8.93 Crores) towards defined contribution plans, in respect of Provident Fund and Superannuation Fund.

(b) Defined benefit plans :

The actuarial valuation of the present value of the defined benefit obligation were carried out at March 31, 2012. The present value of the defined benefit obligation and the related service cost, were measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognised in the Company''s financial statements as per actuarial valuation on March 31, 2012 for the Defined Benefits Plan :

(iv) Category of plan asset is not available as the fund is independently managed by the insurance companies.

(v) Actuarial Assumptions used in accounting for leave entitlement and gratuity :

(a) Discount rate: 8.5% (Previous year : 8%)

(b) Expected rate of return on plan assets 8% (Previous year : 8%)

(c) The estimates of future salary increases of 5%, considered in actuarial valuation, taking into account the general trend in salary rise and the inflation rates.

7. In view of non-availability of profits for the current year, remuneration to the managerial personnel is in excess of the limit prescribed under Schedule XIII of the Companies Act, 1956, by Rs 6.54 Crores. The said amount is held in trust by the managerial personnel of the company pending approval from Central Government and from the Shareholders of the Company. The steps are being taken by the company for obtaining required approvals.

8. (a) The Company has entered into finance lease for using the mining surface rights of limestone, against which the total payment has been made and no contingent rent is payable.

9. VAT Subsidy :

As per Madhya Pradesh Industrial Investment Promotion Assistance Scheme - 2004, the Company is entitled for subsidy of 75% of VAT/CST paid on sales from the new unit at Satna, subject to prescribed limits. Subsidy receivable for the year is Rs 45.22 Crores (Previous year : Rs 8.24 Crores) has been grouped under revenue from operations as a part of sales.

10. Value of imports on CIF Basis :

Spares Rs 39.67 Crores (Previous year : Rs 20.24 Crores)

Raw materials Rs 44.01 Crores (Previous year : Rs 24.52 Crores)

Capital Goods Rs 19.20 Crores (Previous year : Rs 148.09 Crores) Traded Goods Rs 29.00 Crores (Previous year : Rs 8.95 Crores)

11. Details of earnings in foreign currency :

F.O.B Value of Export Rs 28.10 Crores (Previous year : Rs 17.91 Crores) Sale of Carbon Credits Rs 0.89 Crores (Previous year : Rs 2.51 Crores)

(b) The Company has outstanding forward contracts to purchase US$ 0.26 Crores (Previous year US$ 0.33 Crores) as on the Balance Sheet date to hedge foreign currency liability for payments to be made against imports and loans.

12. Figures for the previous year have been regrouped / reclassified / reinstated, wherever considered necessary.


Mar 31, 2011

1. Exceptional items shown in the Profit and Loss Account comprises of gain of Rs. 4.36 Crores on sales of land and building, loss of Rs. 1.35 Crores on redemption of mutual fund investments and loss of Rs. 2.05 Crores on redemption of investments in preference shares. (Previous year : exceptional items comprises of amalgamation expenses of Rs. 10.25 Crores and exchange loss of Rs. 8.62 Crores on redemption of investments in preference shares.)

2. Segment information has been presented in the Consolidated Financial Statements as permitted by Accounting Standard - 17 on "Segment Reporting" as notified under the Companies (Accounting Standards) Rules, 2006.

3. (a) Loans are secured as follows :

(i) Out of the above loans, Rs. 216.99 Crores (Previous year : Rs. 202.55 Crores) is repayable within one year.

(b) In case of unsecured loans Rs. 85.46 Crores (Previous year : Rs. 36.13 Crores) is repayable within one year.

4. (a) Contingent liabilities :

(i) Guarantees given by the Companys bankers and counter guaranteed by the Company Rs. 78.06 Crores (Previous year : Rs. 61.28 Crores).

(ii) Claims against the Company not acknowledged as debts :

(a) Dispute in respect of exemption of Central Sales Tax on coal purchases Rs. 7.56 Crores (Previous year : Rs. 7.56 Crores). Against this matter, bank guarantee of Rs. 7.70 Crores (Previous year : Rs. 7.70 Crores) has been provided by the Company.

(b) Energy Development Cess disputed Rs. 7.44 Crores (Previous year : Rs. 7.44 Crores)

(c) Royalty on limestone disputed Rs. 10.84 Crores (Previous year : Rs. 33.84 Crores)

(d) Tax on Rural and Road Development disputed Rs. 5.27 Crores (Previous year : Rs. 3.00 Crores)

(e) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty and other claims Rs. 32.05 Crores. (Previous year : Rs. 11.11 Crores)

(iii) Corporate guarantees issued to the bankers of the wholly owned subsidiary company Rs. 64.74 Crores (Previous year : Rs. 61.22 Crores)

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 34.87 Crores (Previous year : Rs. 354.88 Crores).

(c) Disclosure of provisions made as per the requirements of Accounting Standard - 29 on "Provisions, Contingent Liabilities and Contingent Assets" as notified under the Companies (Accounting Standards) Rules, 2006, is as follows :

(Rs. Crores)

Particulars As at Provisions Amounts As at 01.04.2010 made during or 31.03.2011 the year reversed during the year

MPEB Cess on Generation of Electricity 890 Nil 0.57 8.33

MP Entry/VAT Tax 837 026 Nil 8.63

UP Entry Tax 22.55 Nil 2.00 20.55

The above provision is net-off the payment made there against. In future, there may be cash inflow in case the dispute is settled in the favour of the Company. In case the disputes are settled against the Company there may be cash outflow of Rs. 37.51 Crores (Previous year : Rs. 39.82 Crores).

5. Term Deposits with scheduled banks include deposits of Rs. 0.10 Crores (Previous year : Rs. 0.22 Crores) on which the bank has lien for guarantee given by them.

6. Employee Defined Benefits :

(a) Defined contribution plans :

The Company has recognised an expense of Rs. 8.93 Crores (Previous year : Rs. 6.78 Crores) towards defined contribution plans, in respect of Provident Fund and Superannuation Fund.

(b) Defined benefit plans :

The actuarial valuation of the present value of the defined benefit obligation were carried out at March 31, 2011. The present value of the defined benefit obligation and the related service cost, were measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognised in the Companys financial statements as per actuarial valuation as on March 31, 2011 for the Defined Benefits Plan :

(iv) Category of plan asset is not available as the fund is independently managed by the insurance companies.

(v) Actuarial Assumptions used in accounting for leave entitlement and gratuity :

(i) Discount rate : 8% (Previous year : 8%)

(ii) Expected rate of return on plan assets : 8% (Previous year : 8%)

(iii) The estimates of future salary increases of 4 to 5%, considered in actuarial valuation, taking into account the general trend in salary rise and the inflation rates.

7. Amount recoverable in cash or kind includes Rs. 0.01 Crores (Previous year : Rs. 0.02 Crores) due from an officer of the Company. Maximum amount outstanding during the year Rs. 0.02 Crores (Previous year : Rs. 0.04 Crores).

(b) Commission to Non-Executive Director Rs. 0.25 Crores (Previous year : Rs. Nil).

8. (a) The Company has entered into finance lease for using the mining surface rights of limestone, against which the total payment has been made and no contingent rent is payable.

9. Provision for current tax includes Wealth Tax of Rs. 0.12 Crores (Previous year : Rs. 0.13 Crores). For the current year, the Company is under Provisions of Minimum Alternate Tax (MAT) as per section 115 JB of the Income Tax Act, 1961 and to the extent of MAT credit entitlement, the amount has been carried forward and shown as receivables in the Balance Sheet.

10 VAT Subsidy:

As per Madhya Pradesh Industrial Investment Promotion Assistance Scheme - 2004, the Company is entitled for subsidy of 75% of VAT/CST paid from the new unit at Satna, subject to prescribed limits. Subsidy receivable for the year of Rs. 8.24 Crores has been included in other income in Schedule I.

11. Disclosure regarding transactions with Related Parties in terms of Accounting Standard -18 is as under : a. Name of the related parties

Joint Venture/ Associates Subsidiaries Key Management Personnel - Ardex Endura - Raheja QBE General - Mr. Manoj Chhabra (India) Private Insurance Co. Ltd. - Mr. Vijay Aggarwal Ltd. - Mr. Ganesh Kaskar

- Sentini Ceramica - RMC Readymix Porselano Private Ltd. (India) .(Formerly known as Porselano Tiles Limited)

- Antique Marbonite - H & R Johnson (India) Private Ltd.(Formerly TBK Ltd. known as Antique Limited Lifestyle Investment Granito Private Ltd.) Pvt Ltd

- Spectrum Johnson Silica Ceramica Private Tiles Private Ltd. Ltd. (Formerly known as Spectrum Private. - Milano Bathroom Ltd.) . Fitting Private Ltd. (Joint Venture up to - TBK Samiyaz Tile 26.06.2010 and there Bath Kitchen after subsidary) Private Ltd. Ltd.

- TBK Shriram Tile Bath Kitchen Private Ltd.

- TBK Deziners Home Private Ltd.

- TBK Unique Jalgaon Tile Bath Kitchen Private Ltd.

- TBK PB Shah Tile Bath Kitchen Private Ltd.

- TBK Deepgiri Tile Bath Kitchen Private Ltd.

- TBK Pratap Tile Bath Kitchen Private Ltd.

- TBK Rangoli Tile Bath Kitchen Private Ltd.

- TBK Bansal Ceramics Private Ltd.

- TBK Venkataramiah Tile Bath Kitchen Private Ltd.

- TBK Rathi Sales Agencies Private Ltd.

- Prism Power and Infrastructure Private Ltd.

ii. As certified by Management and being a technical matter, relied upon by the Auditors.

iii. Out of the above production of cement, 4,028 tonnes (Previous year : 43,770 tonnes) have been used for captive consumption including 3,506 tonnes (Previous year : 43,653 tonnes) for capital jobs. Out of above production of Readymixed Concrete, rejection/wastage/slurry is 6,953 cubic meter (Previous year : 6,765 cubic meter). Captive consumption of Concrete is 2,961 cubic meter (Previous year : 2,050 cubic meter). Out of above production of Ceramic tiles captive consumption is 37 Tonnes (Previous year : Nil)

iv. Cement sales include handling/transit loss and samples 976.21 tonnes (Previous year : 100.39 tonnes).

12. Value of Imports on CIF basis :

Spares Rs. 20.24 Crores (Previous year : Rs. 27.13 Crores) Raw materials Rs. 24.52 Crores (Previous year : Rs. 12.28 Crores) Capital Goods Rs. 148.09 Crores (Previous year : Rs. 130.84 Crores) Traded Goods Rs. 8.95 Crores (Previous year : Rs. 8.04 Crores)

13. Details of earnings in foreign currency :

F.O.B. Value of Export Rs. 17.91 Crores (Previous year : Rs. 16.08 Crores) Sale of Carbon Credits Rs. 2.51 Crores (Previous year : Rs. 1.14 Crores) Interest income Rs. Nil (Previous year : Rs. 0.63 Crores)

14. Disclosure of Foreign Currency Exposure :

(b) The Company has outstanding forward contracts to purchase US$ 0.33 Crores (Previous year : US$ 1.25 Crores) as on the Balance Sheet date to hedge foreign currency liability.

15. Figures for the previous year have been regrouped/reclassified/reinstated, wherever considered necessary.


Mar 31, 2010

1. Scheme of Amalgamation of H. & R. Johnson (India) Limited and RMC Readymix (India) Private Limited with the Company

a. Pursuant to the Schenie of Amalgamation ["the Scheme"] under Section 391/394 of the Companies Act,1956, sanctioned by the Hohble High Court of Judicature at Bombay and Andhra Pradesh vide their orders dated January 22,2010 and February 4,2010, respectively, H. & R. Johnson (India) Limited (HRJ) and RMC Readymix (India) Private Limited (RMC), were merged with the Company. Accordingly, all assets and properties, both movable and irrtmovable, industrial and other licenses, all rights and obligations, trademarks, all other interests, rights and power of every kind, etc., and all debts, liabilities including contingent liabilities, duties and obligations, of HRJ and RMC have been transferred to and vested in the Company with effect from April 1, 2009 (the appointed date). The Scheme has accordingly been given effect to in the accounts.

b. The operations of HRJ comprises of manufacturing and trading of tile, bath and kitchen (TBK) and the operations of RMC comprises of manufacturing and trading of readymixed concrete (RMC).

c. The amalgamation has been accounted for under the "Pooling of Interest" method as prescribed in Accounting Standard (AS-14) as J notified under the Companies (Accounting Standards) Rules, 2006. Accordingly, the

d. As per the terms of the approved Scheme, the assets, liabilities and the balances in the reserves of the transferor companies are recorded in the same form in which they appeared in the respective financial statements at their respective book value and the excess of amount recorded as share capital over the net book value of such assets, liabilities and reserves vested in the Company aggregating to Rs. 122.22 crores is treated as Amalgamation Reserve. Further, the Amalgamation Reserve is adjusted against Capital Reserve (Rs. 0.17 crores), Capital Redemption Reserve (Rs. 0.50 crores), Securities Premium (Rs. 116.13 crores) as approved by the High Court order dated February 4, 2010 under Section 100 of the Companies Act, 1956. The remaining balance is the Amalgamation Reserve of Rs. 5.42 crores is adjusted against General Reserve, as per the approved Scheme.

e. In terms of the Scheme, the equity shares issued and allotted by the Company shall rank for dividend, voting rights and in all respects pari-passu with the existing equity shares of the Company.

f. As per the Scheme of Amalgamation, against shares of RMC held by HRJ, 1,23,51,600 equity shares of the Company have been issued to the Prism Trust, which is held for the benefit of the Company. The dividend received on such shares has been disclosed below "Profit after tax".

g. Certain depreciation policy earlier followed by transferor companies has been realigned to be in line -with the policy followed by the Company. The impact of the same on the accumulated depreciation upto the date of amalgamation has been adjusted in the General Reserve of the Company, as per the provisions of the Scheme. Accordingly an amount of Rs. 28.83 crores has been added to the General Reserve.

2. Previous period figures are for nine months, while the current year (12 months) figures include operations of HRJ and RMC Divisions consequent to amalgamation. The current year figures are, therefore, not comparable with previous period.

3. Exceptional items shown in the Profit and Loss Account comprises of amalgamation expenses of Rs. 10.25 crores and exchange loss of Rs. 8.62 crores on redemption of investments in preference shares.

4. Segment information has been presented in the Consolidated Financial Statements as permitted by AS - 17 on Segment Reporting as notified under the Companies (Accounting Standards) Rules, 2006.

5. (a)Contingent liabilities:

(i) Guarantees given by the Companys bankers and counter guaranteed by the Company - Rs. 61.28 crores (Previous period: Rs. 32.02 crores).

(ii) Claims against the Company not acknowledged as debts :

(a) Dispute in respect of exemption of Central Sales Tax on coal purchases - Rs. 7.56 crores (Previous period: Rs. 7.56 crores). Against this matter, bank guarantee of Rs. 7.70 crores (Previous period: Rs. 7.70 crores) has been provided by the Company.

(b) Energy Development Cess disputed Rs. 7.44 crores (Previous period : Rs. 9.89 crores)

(c) Royalty on limestone disputed Rs. 33.84 crores (Previous period : Rs. 31.91 crores)

(d) Tax on Rural and Road Development disputed Rs. 3.00 crores (Previous period : Rs. Nil)

(e) Other Claims in respect to Income Tax, Sales Tax, Entry Tax, Excise Duty and other claims Rs. 11.11 crores. (Previous period: Rs. 2.37 crores)

(iii) Corporate guarantees issued to the bankers of the wholly owned subsidiary company - Rs. 61.22 crores (Previous period: Rs. Nil)

6. (b) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 354.88 crores (Previous period: Rs. 474.24 crores).

7. Term Deposits with scheduled banks include deposits of Rs. 0.22 crores (Previous period: Rs. 5.01 crores) on which the bank has lien for guarantee given by them.

8. Employee Defined Benefits:

(a) Defined contribution plans:

The Company has recognised an expense of Rs. 7.85 crores (Previous period Rs. 3.04 crores) towards defined contribution plans, in respect of Provident Fund, Superannuation Fund, Employees State Insurance, Labour Welfare Fund and Medical Premium.

(b) Defined benefit plans:

The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out at March 31,2010. The present value of the defined benefit obligation and the related service cost, were measured using the Projected ynit Credit Method.

9. Amount recoverable in cash or kind includes Rs. 0.02 crores (Previous period: Rs. 0.04 crores) due from an officer of the Company. Maximum amount outstanding during the period Rs. 0.04 crores (Previous period: Rs. 0.04 crores).

10. There are no dues to the Micro, Small and Medium Enterprises which are outstanding as at the Balance Sheet date. During the year there were no delays in payment of dues to such enterprises. This information regarding Micro, Small and Medium Enterprises has been determined on the basis of information available with the Company. This has been relied upon by the Auditors.

11. The Company has operating leases for commercial premises which are cancellable at any time during the tenure of the agreement. The Company has operating lease for machinery and equipments in RMC Division which are non-cancellable during the tenure of the lease.

12. Provision for current tax includes Wealth Tax of Rs. 0.13 crores (Previous period Rs. 0.06 crores).

13. Disclosure regarding transactions with Related Parties in terms of AS - 18 are as under: a. Name of the related parties.

Joint Venture/ Associates

Ardex Endura (India) Private Ltd.

Sentini Cermica Private Ltd.

Antique Granito Private Ltd.

Milano Bathroom Fittings Private Ltd.

Spectrum Tiles Private Ltd.

TBK Samiyaz Tile Bath Kitchen Private Ltd.

TBK Shri Ram Tile Bath Kitchen Private Ltd.

TBK Deziners Home Private Ltd.

TBK Unique Jalgaon Tile Bath Kitchen Private

Ltd.

TBK P B Shah Tile Bath Kitchen Private Ltd.

TBK Deepgiri Tile Bath Kitchen Private Ltd.

R & S Business Centre

Prism Power and Infrastructure Private Ltd.

Subsidiaries

Raheja QBE General Insurance

Company Limited

Porselano Tiles Limited

H. & R. Johnson (India) TBK Ltd.

Lifestyle Investments Private Ltd.

Silica Ceramica Private Ltd.

Key Management Personnel

Mr. Manoj Chhabra Mr. Vijay Aggarwal Mr. Ganesh Kaskar

14. Value of Imports on CIF basis:

Spares - Rs. 27.13 crores (Previous period: Rs. 18.32 crores) Raw materials - Rs. 12.28 crores (Previous period: Rs. Nil) Capital Goods - Rs. 130.84 crores (Previous period: Rs. Nil) Traded Goods - Rs. 8.04 crores (Previous period: Rs. Nil)

15. Details of earnings in foreign currency:

F.O.B Value of Export - Rs. 16.08 crores (Previous period: Rs. 3.86 crores) Sale of Carbon Credits - Rs. 1.14 crores (Previous period: Rs. Nil) Interest income - Rs. 0.63 crores (Previous period: Rs. Nil)

16. Figures for the previous period have been regrouped wherever necessary.


Mar 31, 2009

1. The Company has changed its accounting year to end on March 31 instead of June 30 upto last year. Consequently, the current period accounts are for nine month period, and ended on March 31, 2009. Due to this current period figures are not strictly comparable with the previous period.

2. The Company enjoys working capital facility from its bankers, however no amount is outstanding as at the balance sheet date. Working Capital facility from banks is secured by hypothecation of stocks, stores and book debts.

3. (a) Contingent liabilities:

(i) Guarantees given by the Companys bankers and counter guaranteed by the Company - Rs. 32.02 Crores (Previous year: Rs. 25.85 Crores).

(ii) Claims against the Company not acknowledged as debts :

(a) Dispute in respect of exemption of Central Sales Tax on coal purchases - Rs. 7.56 Crores (Previous year: Rs.7.48 Crores). Against this matter, bank guarantee of Rs. 7.70 Crores (Previous year: Rs.7.70 Crores) has been provided by the Company.

(b) Other claims - Rs. 0.39 Crores (Previous year: Rs.0.43 Crores).

(iii) Energy Development Cess disputed Rs. 9.89 Crores (Previous year : Rs. 9.89 Crores)

(iv) Royalty on limestone disputed Rs. 31.91 Crores (Previous year : Rs.3.90 Crores)

(v) M.P. Entry Tax assessment disputed Rs. 1.61 Crores (Previous year: Rs. 2.33 Crores).

(vi) Cess on land disputed Rs. 0.37 Crores (Previous year : Rs. 0.37 Crores)

(b) Disclosure of provisions made as per the requirements of AS - 29 on "Provisions, Contingent Liabilities and Contingent Assets" issued by the Institute of the Chartered Accountants of India.

(Rs. Crores)

Particulars As at Provisions made 01.07.2008 during the period

MPEB Cess on Generation of Electricity 8.90 Nil

MP Entry Tax Nil 2.74

UP Entry Tax 9.62 5.31

Amounts utilised As at or reversed 31.03.2009 during the year

Nil 8.90

Nil 2.74

Nil 14.93

The above provision has been netted off against the payment made there against, in the Balance Sheet. In future, there may be cash inflow in case the dispute is settled in the favour of the Company. In case of Entry Tax there may be cash outflow of Rs.11.82 Crores.

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 474.24 Crores (Previous year: Rs. 1.52 Crores).

5. Capital work-in-progress includes:

(a) Capital advances of Rs. 52.09 Crores (Previous year : Rs. Nil) for setting up new plants at Satna, Madhya Pradesh and Kurnool, Andhra Pradesh.

(b) Other capital advances of Rs. 5.28 Crores (Previous year : Rs. 0.18 Crores) for the existing project.

6. Term Deposits with scheduled banks include deposits of Rs. 5.01 Crores (Previous year : Rs.0.08 Crores) on which the bank has lien for guarantee given by them.

7. Employee Defined Benefits:

(a) Defined contribution plans:

The Company has recognised an expense of Rs. 2.98 Crores (Previous year Rs. 3.38 Crores) towards defined contribution plans, in respect of Provident Fund, Superannuation Fund and Medical Premium.

(b) Defined benefit plans:

The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out at March 31, 2009. The present value of the defined benefit obligation and the related service cost, were measured using the Projected Unit Credit Method.

8. Amount recoverable in cash or kind includes Rs. 0.04 Crores (Previous year: Rs. 0.01 Crores) due from an officer of the Company. Maximum amount outstanding during the period Rs. 0.04 Crores (Previous year: Rs. 0.01 Crores).

9. There are no dues to the Micro, Small and Medium Enterprises which are outstanding as at the Balance Sheet date. During the period there were no delays in payment of dues to such enterprises. This information regarding Micro, Small and Medium Enterprises has been determined on the basis of information available with the Company. This has been relied upon by the Auditors.

10. Lease rental on leased assets are charged to the Profit & Loss account as per the terms of the lease agreement entered before April 01, 2001. The future lease rent obligations against these assets is Rs. 0.27 Crores (Previous Year Rs.0.41 Crores) per annum. The Company has other operating leases for commercial premises which are cancellable at any time during the tenure of the agreement.

11. Provision for current tax includes Income Tax liability of Rs. 61.18 Crores (Previous Year Rs. 80.38 Crores) and Wealth Tax of Rs. 0.06 Crores (Previous year Rs. 0.03 Crores).

12. The Company is engaged only in cement business and there are no separately reportable segments as per Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

13. Details of earnings in foreign currency:

F.O.B Value of Export - Rs. 3.86 Crores (Previous year: Rs. 4.89 Crores).

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


Jun 30, 2008

1. The Company enjoys working capital facility from its bankers, however no amount is outstanding as at the balance sheet date. Working Capital facility from banks is secured by hypothecation of stocks, stores and book debts.

2 (a) Contingent liabilities:

(i) Guarantees given by the Companys bankers and counter guaranteed by the Company - Rs. 25.85 crores (Previous year : Rs. 12.02 crores).

(ii) Claims against the Company not acknowledged as debts :

(a) Dispute in respect of exemption of Central Sales Tax on coal purchases - Rs. 7.48 crores (Previous year : Rs.6.91 crores). Against this matter, bank guarantee of Rs. 7.70 crores (Previous year : Rs.7.10 crores) has been provided by the Company.

(b) Other claims - Rs. 0.43 crores (Previous year : Rs.0.25 crores).

(iii) Energy Development Cess disputed Rs. 9.89 crores (Previous year : Rs. 10.46 crores)

(iv) Royalty on limestone disputed Rs. 3.90 crores (Previous year : Rs.3.90 crores)

(v) M.P. Entry Tax assessment disputed Rs. 2.33 crores (Previous year : Rs. 0.21 crores).

(vi) Cess on land disputed Rs. 0.37 crores (Previous year : Rs. 0.37 crores)

(b) Disclosure of provisions made as per the requirements of AS - 29 on "Provisions, Contingent Liabilities and Contingent Assets" issued by the Institute of the Chartered Accountants of India.

Rs. Crores Particulars As at Provisions made July 1, 2007 during the year

MPEB Cess on Generation of Electricity 8.65 0.25

Amounts utilised As at or reversed June 30, 2008 during the year

Nil 8.90

The above provision has been netted off against the payment made there against, in the Balance Sheet. In future, there may be cash inflow in case the dispute is settled in the favour of the Company.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 1.52 crores (Previous year : Rs. 0.55 crores).

4. Capital work-in-progress includes capital advances of Rs. 0.18 crores (Previous year : Rs. 0.16 crores).

5. Term Deposits with scheduled banks include deposits of Rs. 0.08 crores (Previous year : Rs.0.07 crores) on which the bank has lien for guarantee given by them.

6. The Company has adopted Accounting Standard - 15 (Revised) on "Employee Benefits" from the current year. As per the transitional provision of the Standard, additional liability of Rs. 0.18 crores (on net off tax basis) has been adjusted from Surplus in Profit & Loss account. The liability for the current year is debited to the Profit & Loss account.

The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out at June 30, 2008. The present value of the defined benefit obligation and the related service cost, were measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognised in the Companys financial statements as at June 30, 2008 for the Defined Benefits Plan:

7. Amount recoverable in cash or kind includes Rs.40,338/- (Previous year : Rs .46,004/-) due from an officer of the Company. Maximum amount outstanding during the year Rs. 46,004/- (Previous year : Rs. 0.01 crores).

8. There are no dues to the Micro, Small and Medium Enterprises which are outstanding as at the Balance Sheet date. During the year there were no delays in payment of dues to such enterprises. This information regarding licro, Small and Medium Enterprises has been determined on the basis of information available with the (ompany. This has been relied upon by the Auditors.

9. The Company is engaged only in cement business and there are no separate reportable segments as per Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

10. (i) During the year, the Company has invested in Raheja QBE General Insurance Co. Ltd., to the extent of 74% of its equity capital. The Company has been formed to pursue general insurance business for which it has applied for necessary approval.

(ii) During the year, the Company has invested, in the equity capital of Prism Power and Infrastructure Private Limited to the extent of 49% and accordingly it is an associate company.


Jun 30, 2007

1. The Company has repaid all its Term / Working capital loans. It enjoys working capital facility from its bankers, however no amount is outstanding as at the balance sheet date. Working Capital facility from banks are secured by hypothecation of stocks, stores and book debts.

2 (a) Contingent liabilities :

(i) Guarantees given by the Companys bankers and counter guaranteed by the Company - Rs. 12.02 crores (Previous year : Rs. 13.63 crores).

(ii) Claims against the Company not acknowledged as debts :

(a) Dispute in respect of exemption of Central Sales Tax on coal purchases - Rs. 6.91 crores (Previous year : Rs.6.46 crores). Against this matter, bank guarantee of Rs. 7.10 crores (Previous year : Rs.6.65 crores) has been provided by the Company.

(b) Other claims - Rs. 0.25 crores (Previous year : Rs.0.25 crores).

(iii) Energy Development Cess disputed Rs. 10.46 crores (Previous year : Rs. 10.46 crores)

(iv) Royalty on limestone disputed Rs. 3.90 crores (Previous year : Rs.3.90 crores)

(v) Entry Tax assessment disputed Rs. 0.21 crores (Previous year : Rs. 0.92 crores)

(vi) M. P. Commercial Tax assessment disputed Rs. Nil (Previous year : Rs. 0.58 crores)

(vii)Cess on land disputed Rs. 0.37 crores (Previous year : Rs. 0.41 crores)

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 0.55 crores (Previous year : Rs. 1.61 crores).

4. Capital work-in-progress includes capital advances of Rs. 0.16 crores (Previous year : Rs. 3.08 crores) and Mines Development expenditure on land, which is not yet being used for extraction of Limestone Rs. Nil (Previous year : Rs.3.42 crores).

5. Term Deposits with scheduled banks include deposits of Rs. 0.07 crores (Previous year : Rs.0.11 crores) on which the bank has lien for guarantee given by them.

6. The Company has, during the year, incurred Rs. 0.77 crores (Previous year : Rs. 0.40 crores) for new projects. Such expenses have been shown as recoverable and carried forward in the Balance Sheet. The cumulative expenditure as on June 30, 2007 is Rs. 1.99 crores (Previous year Rs. 1.22 crores).

7. Amount recoverable in cash or kind includes Rs. Nil crores (Rs.46,004/-) (Previous year : Rs. 0.01 crores) due from an officer of the Company. Maximum amount outstanding during the year Rs. 0.0lcrores (Previous year: Rs. 0.01 crores).

8. There are np dues payable to Small Scale Industrial unit undertakings as at the balance sheet date. The Company is in process of obtaining details of micro, small & medium enterprises for the purpose of disclosure required under Micro, Small & Medium Enterprises Development Act, 2006.

9. (i) In the previous year, unfavourable exchange fluctuation of Rs. 2.01 crores, on account of Foreign currency loan, was added to the cost of fixed assets.

(ii) Loss on exchange fluctuation of Rs. 0.07 crores (Previous year : Rs. 0.01 crores) is included under the related head of expenses.

10. Lease rental on leased assets are charged to the Profit and Loss account as per the terms of the lease agreement entered before April 01, 2001. The future lease rent obligations against these asset is Rs. 0.11 crores per annum.

11. (i) For the Income Tax period July 01, 2006 to March 31, 2007, the Company has Minimum Alternate Tax (MAT) liability of Rs. 21.65 crores (Previous Year Rs. 9.04 crores). For the remaining three months period ending June 30, 2007, the Company has normal Income Tax liability of Rs. 12.46 crores, which has been worked out after considering proportionate credit for MAT paid in earlier years.

(ii) Provision for current tax represents Income Tax liability as above and Wealth Tax of Rs. 0.02 crores (Previous year Rs. 0.02 crores).

12. The Company is engaged only in cement business and there are no separate reportable segments as per Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

13. Value of Imports on CIF basis :

Spares - Rs. 19.49 crores (Previous year : Rs. 8.16 crores)

14. Details of earnings in Foreign currency :

F.O.B Value of Exports - Rs. 3.15 crores (Previous year : Rs. 1.24 crores).


Jun 30, 2006

1. Term Loans from HDFC of Rs. 2,100 lakhs in the previous year were secured by exclusive charge on housing colony of the Company.

Other Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, subject to prior charges on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

Working Capital Loan/Cash Credit facility from banks are secured by hypothecation of stocks, stores and book debts and second charge on Company's Fixed Assets both present and future.

2. In respect of unsecured; term loan from bank, one of the Directors of the Company has given personal guarantee for its repayment and there is also a pledge of shares owned by him.

3. Contingent liabilities :

(i) Guarantees given by the Company's bankers and counter guaranteed by the Company - Rs. 1,363.49 lakhs (Previous year : Rs. 794.52 lakhs).

(ii) Claims against the Company not acknowledged as debts :

(a) Dispute in respect of exemption of Central Sales Tax on coal purchases - Rs. 645.91 lakhs (Previous year : Rs. 560.17 lakhs), against which bank guarantee of Rs. 665.00 lakhs (Previous year : Rs. 620.00 lakhs) has been provided by the Company.

(b) Other claims - Rs. 25.29 lakhs (Previous year : Rs. 9.95 lakhs).

(iii) Energy Development Cess disputed Rs. 1,045.63 lakhs (Previous year : Rs. 1,045.35 lakhs),

(iv) Royalty on limestone disputed Rs. 390.35 lakhs (Previous year : Rs. 390.35 lakhs).

(v) Entry Tax assessment disputed Rs. 92.23 lakhs (Previous year : Rs. 33.68 lakhs),

(vi) M. P. Commercial Tax assessment disputed Rs. 58.14 lakhs (Previous year : Nil).

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 161.47 lakhs (Previous year : Rs. 5.63 lakhs).

5. Capital work-in-progress includes capital advances of Rs. 307.51 lakhs (Previous year : Rs. 313.30 lakhs) and Mines Development expenditure on land, which is not yet being used for extraction of Limestone Rs. 342.26 lakhs (Previous year : Rs. 727.47 lakhs).

6. Term Deposits with scheduled banks include deposits of Rs. 10.80 lakhs (Previous year : Rs. 8.00 lakhs) on which the bank has lien for guarantee given by them.

7. The Company has during the year incurred Rs. 39.54 lakhs (Previous year : Rs. 3.28 lakhs) for new projects. Such expenses have been shown as recoverable and carried forward in the Balance Sheet. The cumulative expenditure as on June 30, 2006 is Rs. 122.26 lakhs (Previous year Rs. 82.72 lakhs).

8. Amount recoverable in cash or kind includes Rs. 0.51 lakhs (Previous year : Rs. 0.20 lakhs) due from any officer of the Company. Maximum amount outstanding during the year Rs. 0.55 lakhs (Previous year Rs. 0.28 lakhs).

9. Sundry Creditors include an amount of Rs. 25.48 lakhs payable to small scale industrial units which were outstanding for more than 30 days on the Balance Sheet date. The details of parties where outstanding is more than Rs. 1 lakh on Balance Sheet date are Air Boost India (Rs. 3.88 lakhs), Balls & Cylpebs Ltd. (Rs. 2.00 lakhs), Sachin Engineering Works (Rs. 3.09 lakhs), Shankar Explosive Industries Rs. 8.55 lakhs) and Mithla Plywood Pvt. Ltd. (Rs. 6.13 lakhs).

10.(i) Unfavourable exchange fluctuation - Rs. 200.69 lakhs (Previous year (Favourable) : Rs. 421.39 lakhs) on account of Foreign currency loan has been added to the cost of fixed assets.

(ii) Loss on exchange fluctuation of Rs. 1.23 lakhs (Previous year (Gain) : Rs. 1.05 lakhs) is included under the related head of expenses.

(iii) Unmatured portion of premium on forward contract to hedge repayments of foreign currency liabilities - Rs. 4.70 lakhs (Previous year : Rs. 19.58 lakhs)

(iv) Miscellaneous expertises includes exchange loss of Rs. 395.95 lakhs (Previous year (Gain) : Rs. 376.97 lakhs) on settlement/restatement of foreign currency loans utilised for working capital.

11. The Company has taken certain assets on lease, the original cost of which is Rs. 2,000 lakhs (Previous year Rs. 2,000 lakhs). Lease Rentals on such assets are charged to Profit & Loss Account as per terms of the lease agreement with lessors without considering the arrangement as Finance Lease. The future lease rent obligations against these assets as at Balance Sheet date are Rs. 69.48 lakhs (Previous year : Rs. 83.32 lakhs).

12. (i) Provision for current tax represents provision made for Wealth Tax of Rs. 1.93 lakhs (Previous year : Rs. 1.20 lakhs) and Minimum Alternate Tax (MAT) of Rs. 904.00 lakhs (Previous year : Rs. 120.00 lakhs) as per Income Tax.

(ii) On account of the book profit in the current year there is a charge of Rs. 1,918.35 lakhs (Previous year : Rs. 1,299.56 lakhs) in respect of deferred tax.

13. The Company has recognised deferred tax in accordance with the requirement of Accounting Standard 22 - Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India. The net deferred tax is after considering deferred tax asset on unabsorbed depreciation/carried forward business loss to the extent the Board of Directors is virtually certain of its realisation.

14. The Company is engaged only in cement business and there are no separate reportable segments as per Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

15. (i) The Company does not have any related party relationship, where control exists.

16. Details of earnings in Foreign currency :

F.O.B Value of Exports - Rs. 123.59 lakhs (Previous year : Rs. 148.66 lakhs).

17. Figures for the Previous year have been regrouped wherever necessary.


Jun 30, 2005

1. Term Loans from HDFC to the extent of Rs.2,100 lakhs (Previous year: Rs.2,500 lakhs) are secured by exclusive charge on housing colony of the Company.

Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, subject to prior charges on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

Working Capital Loan/Cash Credit facility from banks are secured by hypothecation of stocks, stores and book debts and second charge on Company's Fixed Assets both present and future.

2. In respect of unsecured term loan from bank, one of the Directors of the Company has given personal guarantee for its repayment and there is also a pledge of shares owned by him.

3. Contingent liabilities :

(i) Claims against the Company not acknowledged as debts :

(a) Dispute in respect of exemption of Central Sales Tax on coal purchases - Rs.560.17 lakhs (Previous year : Rs.428.38 lakhs).

(b) Other claims - Rs.9.95 lakhs (Previous year : Rs.75.07 lakhs).

(ii) Guarantees given by the Company's bankers and counter guaranteed by the Company - Rs. 1,414.52 lakhs (Previous year : Rs. 1,287.48 lakhs).

(iii) Energy Development Cess disputed Rs. 1,045.35 lakhs (Previous year : Rs. 1,045.35 lakhs)

(iv) Royalty on limestone disputed Rs.390.35 lakhs (Previous year : Rs.390.35 lakhs)

(v) Entry Tax assessment disputed Rs.33.68 lakhs (Previous year : Rs.Nil)

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 5.63 lakhs (Previous year : Rs. 70.31 lakhs).

5. Expenses on mines development, which were hitherto treated as Deferred Revenue Expenditure (DRE), is now considered for capitalisation. Depreciation thereon will be provided over the period of five years from the month of commencement of extraction of limestone. As the period of charge off is the same as in the earlier years, there is no impact of the change on profit for the year.

6. Capital work-in-progress includes capital advances of Rs.313.30 lakhs (Previous year : Rs. 312.43 lakhs) and Mines Development expenditure on land, which is not yet being used for extraction of Limestone Rs.727.47 lakhs.

7. Term Deposits with scheduled banks include deposits of Rs.8.00 lakhs (Previous year : Rs.Nil) on which the bank has lien for guarantee given by them.

8. The Company has during the year incurred Rs.3.28 lakhs (Previous year : Rs.2.07 lakhs) for a new project. Such expenses have been treated as prepaid and carried forward in the Balance Sheet. The cumulative expenditure as on June 30, 2005 is Rs.82.72 lakhs (Previous year Rs.79.44 lakhs).

9. Amount recoverable in cash or kind includes Rs.0.20 lakhs (Previous year : Rs.0.27 lakhs) due from an officer of the Company. Maximum amount outstanding during the year Rs.0.28 lakhs (Previous year : Rs.0.77 lakhs).

10. Sundry Creditors include an amount of Rs.1.62 lakhs payable to small scale industrial units which were outstanding for more than 30 days on the Balance Sheet date. The said parties are Panda Technologies India Pvt. Ltd., Sachin Engineering Works and Shankar Explosive Industries.

11.(i) Favourable exchange fluctuation - Rs.421.39 lakhs (Previous year : Rs.60.38 lakhs) on account of Foreign currency loan has been reduced from the cost of fixed assets.

(ii) Gain on exchange fluctuation of Rs.1.05 lakhs (Previous year : Rs.2.63 lakhs) is included under the related head of expenses.

(iii) Unmatured portion of premium on forward contract to hedge repayments of foreign currency liabilities - Rs.19.58 lakhs (Previous year : Rs. 6.60 lakhs)

12. (a) During the year the Company acquired certain assets on foreclosure of leases by payment of Rs. 1,431.58 lakhs. Depreciation on such assets is charged over the estimated remaining life, in terms of Schedule XIV to the Companies Act, 1956.

(b) The Company has taken certain assets on lease, the original cost of which is Rs. 2,000 lakhs (Previous year : Rs. 6,228 lakhs). Lease Rentals on such assets are charged to Profit & Loss Account as per terms of the lease agreement with lessors without considering the arrangement as Finance Lease. The future lease rent obligations against these assets as at Balance Sheet date are Rs. 683.32 lakhs (Previous year : Rs. 3,796.73 lakhs).

13. Provision for taxation represents provision made for Wealth Tax and Minimum Alternate Tax (MAT) as per Income Tax.

14. The Company is engaged only in cement business and there are no separate reportable segments as per Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

15.(i) The Company does not have any related party relationship, where control exists.

16. Figures for the Previous year have been regrouped wherever necessary.


Jun 30, 2004

1. Debentures comprises of 37,37,750, 13.5% Non-Convertible Debentures (NCD) of Rs. 150 each. The NCDs are redeemable at par in four installments commencing from March 22, 2001. The fourth and final installment has been paid on due date in the current year.

Term Loans from HDFC to the extent of Rs. 2,500 lakhs (Previous year : Rs. 2,645.59 lakhs) are secured by exclusive charge on housing colony of the Company.

Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, subject to prior charges on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

Working Capital Loan/Cash Credit facility from banks are secured by hypothecation of stocks, stores and book debts and second charge on Company's Fixed Assets both present and future.

2. In respect of unsecured term loan from bank, one of the Directors of the Company has given personal guarantee for its repayment and there is also a pledge of shares owned by him.

3. Contingent liabilities :

(i) Claims against the Company not acknowledged as debts - Rs. 503.45 lakhs (Previous year : Rs. 20.12 lakhs).

(ii) Guarantees given by the Company's bankers and counter guaranteed by the Company - Rs. 1,287.48 lakhs (Previous year : Rs. 1,396.27 lakhs).

(iii) Energy Development Cess disputed Rs. 1,045.35 lakhs (Previous year : Rs. 726.99 lakhs)

(iv) Royalty on limestone disputed Rs. 390.35 lakhs (Previous year : Rs. 390.35 lakhs)

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 70.31 lakhs (Previous year : Rs. 23.13 lakhs).

5. Capital work-in-progress includes capital advances of Rs. 312.43 lakhs (Previous year : Rs. 305.21 lakhs).

6. The Company has during the year incurred Rs. 2.07 lakhs (Previous year : Rs. 5.39 lakhs) for a new project. Such expenses have been treated as prepaid and carried forward in the Balance Sheet. The cumulative expenditure as on June 30, 2004 is Rs. 79.44 lakhs (Previous year Rs. 77.37 lakhs).

7. Amount recoverable in cash or kind includes Rs. 0.27 lakhs (Previous year : Rs. 0.27 lakhs) due from an officer of the Company. Maximum amount outstanding during the year Rs. 0.77 lakhs (Previous year : Rs. 0.30 lakhs).

8. Sundry Creditors include an amount of Rs. 5.69 lakhs payable to small scale industrial units which were outstanding for more than 30 days on the Balance Sheet date. The said parties are Rewa Gases Pvt. Ltd. and Shankar Explosives Industries.

9. (i) Favourable exchange fluctuation - Rs. 60.38 lakhs (Previous year : Rs. 434.62 lakhs) on account of Foreign currency loan has been reduced from the cost of fixed assets.

(ii) Gain on exchange fluctuation of Rs. 2.63 lakhs (Previous year : Rs. 2.23 lakhs) is included under the related head of expenses.

(iii) Unmatured portion of premium on forward contract to hedge repayments of foreign currency liabilities - Rs. 6.60 lakhs (Previous year : Rs. Nil)

11. The Company has taken certain assets on lease, the original cost of which is Rs. 6,228 lakhs (Previous year Rs. 6,228 lakhs). Lease Rentals on such assets are charged to Profit & Loss Account as per terms of the lease agreement with lessors without considering the arrangement as Finance Lease. The future lease rent obligations against these assets as at Balance Sheet date are Rs. 3,796.73 lakhs (Previous year : Rs. 5,431.62 lakhs).

12. Provision for taxation represent provision made for Wealth Tax.

13. The Company is engaged only in cement business and there are no separate reportable segments as per Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

14. The Company does not have any related party relationship, where control exists.

15. Figures for the Previous year have been regrouped wherever necessary.


Jun 30, 2003

1. Debentures comprises of 37,37,750, 13.5% Non-Convertible Debentures (NCD) of Rs. 150 each, Further, 62,250 forfeited NCDs can be re-issued in future at the option of the Company. The NCDs are redeemable at par in four instalments commencing from March 22,2001. The third instalment has been paid on due date in the current year. Term Loans from HDFC to the 'extent of Rs.2,645.59 lakhs (Previous year : Rs.307.44 lakhs) are secured by exclusive charge on housing colony of the Company.

NCDs and other Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, subject to prior charges on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

Working Capital Loan/Cash Credit facility from banks are secured by hypothecation of stocks, stores and book debts and second charge on Company's Fixed Assets both present and future.

2. In respect of unsecured term loan from bank and Inter corporate Deposit from financial institution, one of the Directors of the Company has given personal guarantee for its repayment. Further, for repayment of term loan from bank there is a pledge of shares owned by him.

3. Contingent liabilities :

(i) Claims against the Company not acknowledged as debts - Rs.20.12 lakhs (Previous year : Rs.24.76 lakhs).

(ii) Guarantees given by the Company's bankers and counter guaranteed by the Company - Rs. 1,396.27 lakhs (Previous year : Rs. 1,158.73 lakhs).

(iii) Energy Development Cess disputed Rs.726.99 lakhs (Previous year : Rs. 371.02 lakhs)

(iv) Royalty on limestone disputed Rs.390.35 lakhs (Previous year : Rs.Nil).

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 23.13 lakhs (Previous year : Rs. 281.89 lakhs).

5. Capital work-in-progress includes capital advances of Rs.305.21 lakhs (Previous year : Rs. 304.72 lakhs).

6. Term Deposits with scheduled banks include deposits of Rs.Nil (Previous year: Rs.1.25 lakhs) on which the bank has lien for guarantee given by them.

7. The Company has during the year incurred Rs.5.39 lakhs (Previous year: Rs.10.01 lakhs) for a new project. Such expenses have been treated as prepaid and carried forward in the Balance Sheet. The cumulative expenditure as on June 30,2003 is Rs.77.37 lakhs (Previous year : Rs.71.98 lakhs).

8. Amount recoverable in cash or kind includes Rs.0.27 lakhs (Previous year : Rs.0.30 lakhs) due from an officer of the Company. Maximum amount outstanding during the year Rs.0.30 lakhs (Previous year : Rs.0.33 lakhs).

9. Sundry Creditors include an amount of Rs.42.09 lakhs payable to small scale industrial units which were outstanding for more than 30 days on the Balance Sheet date. The said parties are Ganga Bag Udyog, Noble Rubber and Allied Products, Kana Electromechs, Pioneer Industries, Pyrotech Electronics Pvt. Ltd., Innotech Engineers Ltd., Reathi Electronics and Controls and Rewa Gases Pvt. Ltd.

10. The Company has taken certain assets on lease, the original cost of which is Rs.6,228 lakhs (Previous year Rs. 6,228 lakhs). Lease Rentals on such assets are charged to Profit & Loss Account as per terms of the lease agreement with lessors without considering the arrangement as Finance Lease. The future lease rent obligations against these assets as at Balance Sheet date are Rs. 5,431.62 lakhs (Previous year : Rs. 7,306.24 lakhs).

11. Provision for taxation represent provision made for Wealth Tax.

12. In absence of profit. Debenture Redemption Reserve is not created.

13. The Company is engaged only in cement business and there are no separate reportable segments as per Accounting Standard-17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

14. (i) The Company does not have any related party relationship, where control exists.

(ii) Following are the transactions with related party as defined under Accounting Standard -18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India.

15. For the timing difference between the results as per the Income Tax and as per the books, the Company recognises deferred tax as per the requirements of Accounting Standard 22 on Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India. The Company has recognised a deferred tax asset to the extent of certainty of its reversal, based on the future profitability estimated by the management and reviewed by the Board of Directors. For the purpose of deferred tax asset the Company has also considered Minimum Alternative Tax payable in future. Accordingly, credit of deferred tax asset of Rs. 568.80 lakhs has been recognised in the Profit and Loss account for the current year. The break up of net deferred tax asset is as follows:

16. Figures for the Previous Year have been regrouped wherever necessary.


Jun 30, 2002

Fixed assets

Depredation for the year includes Rs.0.48 lakhs considered for capitalisation (Previous period: Rs.0.96 lakhs)

Other notes

1. Debentures comprises of 38, 00, 000, 13.5% Non-Convertible Debentures (NCD) of Rs. 150 each. Further, 62, 250 forfeited NCDs can be re-issued in future at the option of the Company. The NCDs are redeemable at par in four instalments commencing from March 22, 2001. The second instalment has been paid on due date in the current year. NCDs and Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, subject to prior charges on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

Working Capital Loan / Cash Credit facility from banks are secured by hypothecation of stocks, stores and book debts and second charge on Company's Fixed Assets both present and future.

2. Unsecured Loans comprises of loan from a director - Rs. 7 lakhs (Previous period: Rs.Nil), term loan from bank - Rs. 2, 350 lakhs (Previous period: Rs.2, 500 lakhs) and Intercorporate Deposit from a financial institution - Rs. 600 lakhs (Previous period: Rs.1, 000 lakhs). One of the Directors of the Company has given a personal guarantee and pledge of shares owned by him, for repayment of the term loan from bank.

3. Contingent liabilities:

(i) Claims against the Company not acknowledged as debts - Rs.24.76 lakhs (Previous period: Rs.241.03 lakhs).

(ii) Guarantees given by the Company's bankers and counter guaranteed by the Company - Rs.1, 158.73 lakhs (Previous period: Rs. 478.70 lakhs).

(iii) Energy Development Cess disputed Rs.371.02 lakhs (Previous period: Rs. Nil).

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs.281.89 lakhs (Previous period: Rs.23.58 lakhs).

5. Capital work-in-progress includes capital advances of Rs.304.72 lakhs (Previous period: Rs.312.36 lakhs).

6. Term Deposits with scheduled banks include deposits of Rs.1.25 lakhs (Previous period: Rs.7.55 lakhs) on which the bank has lien for guarantee given by them.

7. The Company has during the year incurred Rs.10.01 lakhs (Previous period: Rs.17.39 lakhs) for a new project. Such expenses have been treated as prepaid and carried forward in the Balance Sheet. The cumulative expenditure as on June 30, 2002 is Rs.71.98 lakhs (Previous period Rs.61.97 lakhs).

8. Amount recoverable in cash or kind includes Rs.0.30 lakhs (Previous period: Rs.0.33 lakhs) due from an officer of the Company. Maximum amount outstanding during the year - Rs.0.33 lakhs (Previous period: Rs.0.37 lakhs).

9. Sundry Creditors include an amount of Rs.190 lakhs (Previous period: Rs.127.07 lakhs) payable to small scale industrial units on the Balance Sheet date. Amount outstanding for more than 30 days in excess of Rs. 1 lakh is: RAS Polytex Pvt. Ltd. - Rs.10.78 lakhs, Shanghvi Engineering - Rs.2.44 lakhs. These amounts have since been paid.

10. Deferred revenue expenses as at the year end comprises of:

2001-2002 2000-2001 Rs.Lakhs Rs.Lakhs Market development expenses 44.37 120.11 Mines development expenses 418.93 442.93 Expenses related to lease assets 55.24 687.19 Restructuring fees 705.28 886.96 Total 1,723.82 2,137.19

11. (i) Unfavourable exchange fluctuation - Rs.391.67 lakhs (Previous period: Rs.764.21 lakhs) on account of Foreign currency loan has been added to the cost of fixed assets.

(ii) Loss on exchange fluctuation of Rs.11.06 lakhs (Previous period: Loss Rs.4.19 lakhs) is included under the related head of expenses.

12. Details of Managerial Remuneration

2001-2002 2000-2001 (15 months) Rs.Lakhs Rs.Lakhs

39.29 33.31 Contribution to Provident and other funds 14.47 12.98 Perquisites 1.59 13.34

Total 55.35 59.63

13. Remuneration to auditors:

2001-2002 2000-2001 (15 months) Rs.Lakhs Rs.Lakhs Audit fees 5.50 6.00 Tax Audit fees 1.40 1.25 Other services 1.75 2.22 Expenses reimbursed 0.24 0.19

Total 8.89 9.66

14. Following expenditure during the current year has been considered for capitalisation of fixed assets and assets to that extent reduced from the respective accounts: 2001-2002 2000-2001 Rs. Lakhs (15 months) Rs.Lakhs

Repairs 0.20 1.16 Salaries, wages and bonus 2.67 5.39 Rent 0.03 0.27 Rates and taxes 0.08 0.17 Insurance 0.29 0.97 Travelling and Communication 2.35 6.77 Depreciation 0.48 0.96 Power and fuel 8.52 4.56 Stores and spares 0.04 0.04 Miscellaneous expenses 0.93 24.25

Total 15.59 44.54

15. The Company has taken certain assets on lease, the original cost of which is Rs.6, 228 lakhs (Previous period: Rs. 6, 228 lakhs). Lease Rentals on such assets are charged to Profit & Loss Account as per terms of the lease agreement with lessors without considering the arrangement as Finance Lease. The future lease rent obligations against these assets as at Balance Sheet date are Rs. 7, 306; 24 lakhs (Previous period: Rs. 9, 100.04 lakhs).

16. Provision for taxation represent provision made for Wealth Tax.

17. In absence of profit. Debenture Redemption Reserve is not created.

18. The Company is engaged only in cement business and there are no separate reportable segments as per Accounting Standard -17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

19. (i) The Company does not have any related party relationship, where control exists.

(ii) Following are the transactions with related party as defined under Accounting Standard -18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India.

Rs.Lakhs Name Relationship Nature of transaction R & S Business Firm in which Director and/or Rent and mainte- Centre relative (s) has significant nance charges influence Sonata Information Company in which Director and/ Licence for Technology Ltd. or relative (s) has significant Software ibfluence Exide Industries Company in which Director and/ Purchase of Ltd or relative (s) has significant Store items influence G. M. Kapadia & Co. Firm in which Director is a Professional Fees partner

Mr. S. N. Shah Managing Director Remuneration

Mr. M. Chhabra Executive Director Remuneration



Rs.Lakhs Name Amount of Amount transaction outstanding as on 30.6.2002

R & S Business 22.03 3.94 Centre

Sonata Information 8.23 Nil Technology Ltd.

Exide Industries Ltd. 4.77 Nil G. M. Kapadia & Co. 0.37 Nil

Mr. S. N. Shah 32.13 Nil

Mr. M. Chhabra 23.22 Nil

20. To comply with the mandatory Accounting Standard 22 (AS - 22) on Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, the Company has worked out deferred tax in respect of timing difference between the Book Profit/Loss and Tax Profit/Loss. Further deferred tax asset is also recognised in respect of Book Loss. Based on various improvements carried out at the plant, such as replacement, upgradation and retrofitting of major equipments and the arrangements made for increase in production and sales of blended cement, the Board of Directors is confident that there is no uncertainty of making sufficient profit in near future, so that the deferred tax asset created shall be reversed. Accordingly, the deferred tax of Rs.3, 760.63 lakhs upto 30th June, 2001 has been adjusted from debit balance in Profit & Loss Account as per the transitional provisions.in AS - 22 and current year deferred tax of Rs.478.10 lakhs is being recognised in the Profit & Loss Account of the current year.

21. Details of earnings in Foreign currency:

F.O.B. Value of Exports - Rs. 145.36 lakhs (Previous period: Rs. 29.68 lakhs).

22. Previous year figures are for 15-month period and hence are not strictly comparable with the figures of current year, which are for 12-month.

23. Figures for the Previous period have been regrouped wherever necessary.


Jun 30, 2001

1. Debentures comprises of 38,00,000, 13.5% Non-convertible Debentures (NCD) of Rs. 150 each. Further, 62,250 forfeited NCDs can be re-issued in future at the option of the Company. The NCDs are redeemable at par in four instalments commencing from March 22, 2001. The first instalment has been paid on due date in the current year.

NCDs and Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, subject to prior charges on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

Working Capital Loan/Cash Credit facility from banks are secured by hypothecation of stocks, stores and book debts and second charge on Company's Fixed Assets both present and future.

2. Unsecured Loans comprises of loan from a Director - Rs. Nil (Previous year : Rs.3,004.50 lakhs), term loan from financial institution - Rs. 2,500 lakhs (Previous year : Rs.1,500 lakhs) and Intercorporate Deposit from a financial institution - Rs. 1,000 lakhs (Previous year : Rs.2,000 lakhs). One of the Directors of the Company has given a personal guarantee and pledge of shares owned by him, for repayment of the term loan from financial institution.

3. Contingent liabilities

(i) Claims against the Company not acknowledged as debts - Rs. 241.03 lakhs (Previous year : Rs.322.36 lakhs).

(ii) Guarantees given by the Company's bankers and counter guaranteed by the Company - Rs. 478.70 lakhs (Previous year : Rs. 495.55 lakhs).

4. For working out the actuarial liability for leave encashment, the assumption in respect of interest rate and increase in salary has been changed in the current year as compared to the previous year. On account of change of the assumption, charge for the current year is lower by Rs. 20.54 lakhs.

5. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 23.58 lakhs (Previous year : Rs. 538.85 lakhs).

6. Capital work-in-progress includes capital advances of Rs. 312.36 lakhs (Previous year : Rs. 394.51 lakhs) and Mines Development expenditure on land, which is not yet being used for extraction of Limestone Rs. 284.19 lakhs (Previous year : Rs. 55.53 lakhs)

7. Term Deposits with scheduled banks include deposits of Rs. 7.55 lakhs (Previous year : Rs.13.45 lakhs) on which the bank has lien for guarantee given by them.

8. The Company has during the year incurred Rs. 17.39 lakhs (Previous year : Rs.10.12 lakhs) for a new prefect. Such expenses have been treated as prepaid and carried forward in the balance Sheet. The cumulative expenditure as on June 30, 2001 is Rs. 61.97 lakhs (Previous year Rs.44.58 lakhs).

9. Amount recoverable in cash or kind includes Rs. 0.33 lakhs (Previous year : Rs.0.37 lakhs) due from an officer of the Company. Maximum amount outstanding during the year Rs. 0.37 lakhs (Previous year : Rs.0.40 lakhs).

10. Sundry Creditors include an amount of Rs. 127.07 lakhs (Previous year : Rs.49.A2 lakhs) payable to small scale industrial units on the Balance Sheet date. Amount outstanding for more than 30 days in excess of Rs. 1 lakh is: Indochem Industries Ltd. - Rs.1.39 lakhs, Shanghvi Engineering - Rs.12.90 lakhs. Pioneer Industries - Rs.1.74 lakhs. These amounts have since been paid.

11. The Company has taken certain assets on lease, the original cost of which is Rs. 6,228 lakhs (Previous year Rs. 6,228 lakhs). Lease Rentals on such assets are charged to Profit & Loss Account as per terms of the lease agreement with lessors without considering the arrangement as Finance Lease. The future lease rent obligations against these assets as at Balance Sheet date are Rs. 9,100.04 lakhs (Previous year : Rs. 10,570.36 lakhs).

12. The Company has made a provision of Rs. 42.86 lakhs for Excise Duty on finished goods lying in factory premises as on 30th June.2001, as per the requirement of AS-2 (Revised) on valuation of inventories. Such unpaid Excise Duty has been considered in the valuation of inventories. This change, however, has no impact on the results for the year.

13. Provision for taxation represents provision made for Wealth Tax.

14. In absence of profit. Debenture Redemption Reserve is not created.

15. Details of earnings in Foreign currency :

F.O.B. Value of Exports - Rs. 29.68 lakhs (Previous year : Rs. 78.16 lakhs).

16. The Company has extended its financial year from 31st March,2001 to 30th June,2001. On account of this, current year figures are for 15-month period and hence are not strictly comparable with the figures of previous year.

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


Mar 31, 2000

1. Debentures comprise of 38,00,000, 13.5% Non-Convertible Debentures (NCD) of Rs. 150 each. Further, 62,250 forfeited NCDs can be re-issued in future at the option of the Company. The NCDs are redeemable at par in four instalments commencing from March 22, 2001.

NCDs and Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, situated at Mumbai in the State of Maharashtra and at Satna in the State of Madhya Pradesh, subject to prior charges on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

Working Capital Loan / Cash Credit facility from banks are secured by hypothecation of stocks, stores and book debts and second charge on Company's Fixed Assets both present and future, situated at Mumbai in the State of Maharashtra and at Satna in the State of Madhya Pradesh.

2. Unsecured Loans comprise of loan from a director - Rs. 3,004.50 lakhs (Previous year : Rs. 2,987 lakhs), term loan from financial institution - Rs. 1,500 lakhs (Previous year : Rs. Nil) and Intercorporate Deposit from a financial institution - Rs. 2,000 lakhs (Previous year : Rs. Nil). One of the Directors of the Company has given a personal guarantee for repayment of the term loan to financial institution.

3. Contingent liabilities

(i) Claims against the Company not acknowledged as debts Rs. 322.36 lakhs (Previous year : Rs. 319.18 lakhs).

(ii) Guarantees given by the Company's bankers and counter guaranteed by the Company Rs. 495.55 lakhs (Previous year : Rs. 454.74 lakhs).

4. Estimated amount of Contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 538.85 lakhs (Previous year : Rs. 466.69 lakhs).

5. Capital work-in-progress includes capital advances Rs. 394.51, lakhs (Previous year : Rs. 261.18 lakhs).

6. During the year, the Company has capitalised Rs. 64.38 lakhs being the cost of new software system installed. Such cost was earlier charged to Revenue Account. Further Rs. 32.57 lakhs which was charged off in the earlier year has also been capitalised in the current year by corresponding credit to the related expense heads. The impact of the above changes, net of depreciation, is that loss for the year is lower by Rs. 80.48 lakhs.

7. Term deposits with scheduled banks include deposits of Rs. 13.45 lakhs (Previous year : Rs. 12.55 lakhs) on which the bank has lien for guarantee given by them.

8. The Company has during the year incurred Rs. 10.12 lakhs (Previous year : Rs. 8.16 lakhs) for a new project. Such expenses have been treated as prepaid and carried forward in the Balance Sheet. The cumulative expenditure as on 31st March, 2000 is Rs. 44.58 lakhs (Previous year : Rs. 34.46 lakhs).

9. Amount recoverable in cash or kind includes - Rs. 0.37 lakhs (Previous year : Rs. 0.40 lakhs) due from an officer of the Company. Maximum amount outstanding during the year Rs. 0.40 lakhs (Previous year : Rs. 0.43 lakhs).

10. Sundry creditors include an amount of Rs. 49.62 lakhs (Previous year : Rs. 38.62 lakhs) payable to small scale industrial units on the Balance Sheet date. Amount outstanding for more than 30 days in excess of Rs. 1 lakh is : Jamshedpur Welpack Poly Industries Pvt. Ltd Rs. 3.99 lakhs. This amount has since been paid.

11. During the year, the Company introduced blended cement under the brand name "CHAMPION". Market development expenses of Rs. 76.11 lakhs, incurred for introducing this product, have been treated as deferred revenue expenses and are being amortised over a period of five years, as per practice followed in the earlier years.

12. The Company has taken certain assets on lease, the original cost of which is Rs. 5,651 lakhs (Previous year Rs. 4,639 lakhs). Lease Rentals on such assets are charged to Profit & Loss Account as per terms of the lease agreement with lessors without considering the arrangement as Finance Lease. The future lease rent obligations against these assets as at Balance Sheet date are Rs. 10,570.36 lakhs (Previous year : Rs. 8,040.51 lakhs).

13. Excise Duty on finished goods of Rs. 29.65 lakhs is accounted on clearance of goods from the factory. Such treatment, however, has no impact on the result for the year.

14. Provision for taxation represents provision made for Wealth Tax.

15. In the absence of profit, Debenture Redemption Reserve is not created.


Mar 31, 1999

1. Debentures comprise of 38,00,000, 13.5% Non-Convertible Debentures (NCD) of Rs. 150 each. Further, 62,250 forfeited NCDs can be re-issued in future at the option of the Company. The NCDs are redeemable at par in four instalments commencing from March 22, 2001.

NCDs and Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, situated at Mumbai in the State of Maharashtra and at Satna in the State of Madhya Pradesh, subject to prior charges on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

Working Capital Loan / Cash Credit facility from banks are secured by hypothecation of stocks, stores and book debts and second charge on Company's Fixed Assets both present and future, situated at Mumbai in the State of Maharashtra and at Satna in the State of Madhya Pradesh.

2. Unsecured Loan comprise of loan from a director - Rs. 2,987 lakhs (Previous year : Rs 27 lakhs), from relatives of a director - Rs. Nil (Previous year : Rs. 1,250 lakhs) and Intercorporate Deposit from an associate company of a director - Rs. Nil (Previous year : Rs. 200 lakhs)

3. Contingent liabilities

(i) Claims against the Company not acknowledged as debts Rs. 319.18 lakhs (Previous year : Rs. 209.75 lakhs).

(ii) Guarantees given by the Company's bankers and counter guaranteed by the Company - Rs. 454.74 lakhs (Previous year : Rs 221.22 lakhs).

4. Estimated amount of Contracts remaining to be executed on capital account and not provided for (net of advances) - Rs. 466.69 lakhs (Previous year : Rs. 468.98 lakhs).

5. Capital work-in-progress includes capital advances - Rs. 261.18 lakhs (Previous year Rs. 260.62 lakhs) 6. Term deposit with scheduled banks include deposits of Rs. 12.55 lakhs (Previous Year : Rs. 13.80 lakhs) on which the bank has lien for guarantee given by them. 7. The Company has taken certain assets on lease, the original cost of which is Rs.4,639 lakhs. Lease Rentals on such assets are charged to Profit & Loss Account as per terms of the lease agreement with lessors without considering the arrangement as Finance Lease. The future lease rent obligations against these assets as at Balance Sheet date are Rs. 8,040.51 lakhs (Previous year : Rs. 8,647.76 lakhs).

8. Excise Duty is accounted on clearance of goods from the factory. Such treatment has no impact on Profit / Loss for the year.

9. Provision for taxation represents provision made for Wealth Tax.

10. In the absence of profit, Debenture Redemption Reserve is not created.

11. Licensed & Installed Capacity, Production, Stocks and Turnover :


Mar 31, 1998

1. The Company has started commercial production during the year on 1 August, 1997. Profit & Loss account is prepared for the first time and is for the period of eight months. As such, there are no previous year figures in respect of Profit and Loss account.

2. Debentures comprise of 38,00,000, 13.5% Non-Convertible Debentures (NCD) of Rs. 150 each. Further, 62,250 forfeited NCDs can be re-issued in future at the option of the Company. The NCDs are redeemable at par in four instalments commencing from March 22, 2001.

NCDs and Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, situated at Mumbai in the State of Maharashtra and at Satna in the State of Madhya Pradesh, subject to prior charges on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

Working Capital Loan/Cash Credit facility from banks are secured by hypothecation of stocks, stores and book debts.

3. Unsecured Loans comprise of loan from a director Rs. 27 lakhs (Previous year : Rs. 10 lakhs), from relatives of a director Rs. 1,250 lakhs (Previous year : Nil) and Intercorporate Deposit from an associate company of a director Rs. 200 lakhs (Previous year : Nil)

4. Term deposit with scheduled banks include deposits of Rs. 13.80 lakhs (Previous year : Rs. 5 lakhs) on which the bank has lien for guarantee given by them.

5. The Company has taken on lease certain assets at an original cost of Rs. 4,639 lakhs. The future lease rent obligations against these assets are Rs. 8,647.76 lakhs as at 31st March, 1998.


Mar 31, 1997

Not available since the information is taken from 199803 annual report.


Mar 31, 1996

2. Profit and Loss account has not been prepared as the project is under implementation and commercial production has not commenced.

3. 38,00,000, 13.5% Non-convertible Debentures of Rs.150/- each (NCDs) and the Term Loans are secured by a pari passu charge on the Company's movable and immovable properties, both present and future, situated at Mumbai in the State of Maharashtra and at Satna in the State of Madhya Pradesh subject to prior charges, on specific assets in favour of the Company's bankers towards working capital facilities and HDFC towards housing colony.

The NCDs are redeemable at par in four equal annual instalments commencing from 22nd March, 2001.

6. Exchange difference of Rs. 58.50 lakhs (credit) arisen during the year on account of foreign currency loan has been adjusted in capital work-in-progress. Capital work-in-progress includes capital advances Rs.2,006.52 lakhs (Previous year Rs.4,016.85 lakhs).

7. Capital work in progress (CWIP) includes certain assets on which Modvat is available as per the Central Excise laws. At present, such assets are shown as CWIP at value including excise duty element. The eligible Modvat will be reduced from the value of respective assets at the time of capitalisation of such assets.

8. During the year, the Company purchased and sold 30,00,000 debentures of Rs.100 each issued by Kotak Mahinhdra Finance Limited.

9. Amount recoverable in cash or in kind includes Rs.0.50 lakhs (Previous year 0.29 Lakhs) due from an officer of the Company. Maximum amount outstanding during the year Rs.0.50 lakhs (Previous year : Rs.0.31 lakhs)

10. Sundry creditors include amount payable to Directors Rs.0.08 lakhs (Previous year Nil).


Mar 31, 1995

Profit and Loss account has not been prepared as the project is under implementation and commercial production has not commenced.

Share Capital includes 3,80,00,000 Equity Shares allotted on conversion of Part A of the partly convertible Debentures.

38,00,000, 13.5% secured redeemable partly convertible Debentures of Rs. 250/- each comprising convertible Part A of Rs. 100/- each and non-convertible Part B of Rs. 150/- each were allotted during the year. Part A of Rs. 100/- each was converted into fully paid up equity Shares of Rs. 10/- each upon allotment. Out of the non- convertible Part B of Rs. 150/- each (NCD), Rs. 22/- is paid up in respect of 28,12,000 NCDs, whereas Rs. 150/- each is paid up in respect of the balance 9,88,000 NCDs. The NCDs are redeemable at par in four equal annual instalments commencing from 22nd March, 2001.

The NCDs are secured/ to be secured by a pari passu first charge on the Company's movable and immovable properties, both present and future, situated at Bombay in the state of Maharashtra and at Satna in the state of Madhya Pradesh.

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