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Notes to Accounts of Shiva Cement Ltd.

Mar 31, 2023

5.1. Projects has been grouped into various heads basis nature of the projects.

5.2. Capital work-in-progress includes borrowing cost of C 10,544.59 lakhs (as at 31.03.2022 C 3,433.97 lakhs).

5.3. Capital work-in-progress includes trial run expenditure amounting C 1,238.06 lakhs.

5.4. There were no capital work-in-progress assets where completion was overdue against original planned timelines or where estimated cost exceeded its original plant cost as on 31.03.2023 (for the year ended 31.03.2022: C NIL).

8.1. Projects has been grouped into various heads basis nature of the projects.

8.2. There were no intangible asset under development assets where completion was overdue against original planned timelines or where estimated cost exceeded its original plant cost as on 31.03.2023 (for the year ended 31.03.2022: CNIL).

8.3. I ntangible assets under development include expenditure incurred on development of mining rights and other related costs for mines which are yet to be made operational and expenditure towards software upgrades.

7.1. Mining rights includes:

a) Acquisition cost incurred for mines such as stamp duty, registration fees and other such costs have been capitalised as Intangible Assets.

b) Restoration liabilities estimated through a mining expert and accordingly the Company recognised mining rights and corresponding liability (refer note 21.1).

Note 11. Deferred tax assets (net)

Indian companies are subject to Indian income tax on a standalone basis. For each fiscal year, the entity profit and loss is subject to the higher of the regular income tax payable or the Minimum Alternative Tax (âMATâ).

Statutory income taxes are assessed based on book profits prepared under generally accepted accounting principles in India adjusted in accordance with the provisions of the (Indian) Income Tax Act, 1961. Statutory income tax is charged at 25% plus a surcharge and education cess.

MAT is assessed on book profits adjusted for certain items as compared to the adjustments followed for assessing regular income tax under normal provisions. MAT paid in excess of regular income tax during a year can be set off against regular income taxes within a period of fifteen years succeeding the fiscal year in which MAT credit arises subject to the limits prescribed.

Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.

Wherever the Company has a present obligation and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation, such amounts have been adequately provided for, and the Company does not currently estimate any probable material incremental tax liabilities in respect of these matters (refer note 37 (a)).

(i) Rights, preferences and restriction attached to Equity Shares

The Company has only one class of equity shares having a par value of C 2/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

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

(ii) Terms/rights attached to 1% Optional Convertible Cumulative Redeemable Preference Share (OCCRPS)

The Company has one class of Preference Shares. These shares carry cumulative dividend @ 1%. These OCCRPS are convertible into Equity Shares at the option of the Holder within a period of 18 months from the date of allotment, in one or more tranches, at a price determined on the relevant date or to be redeemed at par upon maturity after 18 months but within 9 years from date of allotment.

The option to convert the instrument into Equity shares lapsed on 04.08.2022 (valuation date), and hence the nature of instrument changes from this date and will be redeemed at par upon maturity. Accordingly, future estimated cash flows of principal on redemption and cumulative coupon of 1% for 9 years are discounted at pre tax borrowing rate of 9.5% to determine the fair value of the instrument at valuation date.

Capital Reserve:

Reserve is primarily created out of share forfeiture amounting C 214.50 lakhs and amalgamation reserve amounting C 566.03 lakhs as per statutory requirement.

Security premium reserve:

The amount received in excess of face value of the equity shares is recognised in securities premium. This reserve is utilised in accordance with the specific provisions of the Companies Act, 2013

Equity component of optionally convertible cumulative redeemable preference shares (OCCRPS)

During the year, upon expiry of conversion options given in OCCRPS, the Company has computed equity portion (based on concessional rate of interest in OCCRPS) amounting to C 4,483.73 lakhs.

Retained earning:

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings includes re-measurement loss/(gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

(i) The above unsecured loan from related party has been taken from holding company, M/s. JSW Cement Limited. The tenure of the loan is 3 years from the date of disbursement or such extended time as may be agreed and repayable at the end of the tenure alongwith interest accrued on the same. The rate of interest is 8.00% per annum.

(ii) The Company raised fund of C 10,000 lakhs by issue of One crore 1% optionally convertible cumulative redeemable preference share (OCCRPS) of C 100 each. These OCCRPS are convertible into Equity Shares at the option of the Holder within a period of 18 months from the date of allotment in one or more tranches, at a price determined on the relevant date or to be redeemed at par upon maturity after 18 months but within 9 years from date of allotment.

The difference between the issue price of OCCRPS and the fair value on valuation date C 4,483.73 lakhs treated as Equity component of compounded financial instrument in the financial statement for the year ended 31.03.2023.

(iii) Out of the sanctioned amount of C 1,06,600 lakhs by consortium of Banks having Axis Bank Limited as a lead banker with other Banks such as Bank of India, Bank of Maharastra & Punjab National Bank, disbursement of loan made during the year is for C 30,266.49 lakhs (Previous year: C 30,990.94 lakhs). Cumulative disbursement of loan done by the banks as on 31.03.2023 is C 61,257.43 lakhs. The applicable rate of interest is of 8.75% per annum till 17.12.2022 & 9.65% from 18.12.2022 to 31.03.2023 during construction period. (8.50% after date of schedule operation 30.09.2023) and payable on monthly basis.

a) Term of Repayment

- 9 years (36 quarterly structured repayment) after one year of moratorium from schedule date of operation i.e. 30.09.2024

b) Nature of security

- First pari passu charge on project fixed assets (both moveable & immoveable) including assignment of lease hold right of the land acquired for mining and project.

- Unconditional and irrevocable Corporate Guarantee of JSW Cement Limited - Holding company.

(iv) Term loans were applied for the purpose for which the Term loans have been obtained from Banks.

(v) As per the term sheet, the Company is not required to file Stock statements or any Bank returns with its bankers.

(vi) All charges are registered with ROC within statutory period by the Company.

(vii) The Company has not declared wilful defaulter by any bank or financial institution or lender during the year.

Note 20.2. Lease liabilities

The Company incurred C Nil for the year ended March 31, 2023 (C 2.74 lakhs for year ended March 31, 2022) towards expenses relating to short-term leases and leases of low-value assets. The total cash outflow for leases is C Nil for the year ended March 31, 2023 (C 2.74 lakhs for year ended March 31, 2022), including cash outflow for short-term and low value leases.

The Company does not face 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.

Ind AS 115 Revenue from Contracts with Customers

The Company recognises revenue when control over the promised goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

The Company has assessed and determined the following categories for disaggregation of revenue in addition to that provided under segment disclosure (refer note 37 e):

25.1. The credit period on sales of goods ranges from 0 to 30 days with or without security.

25.2. As at March 31, 2023, C 130.33 lakhs (previous C 129.26 lakhs) was recognised as provision for allowance for doubtful debts on trade receivables.

25.3. Contract liabilities include short-term advances received for sale of goods. The outstanding balances of these accounts decreased in due to adjustment against receivable balances. Short-term advances are detailed in note 24.

25.4. Out of the total contract liabilities outstanding as on March 31, 2023, C 3.83 lakhs (previous C 51.50 lakhs) will be recognised by March 31, 2023 and remaining thereafter.

25.5. Trade receivables are in respect of sales made during trial run operations (Refer note 36).

Note 33. Income tax

Note 34. Financial instruments A. Capital risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity. The Company''s capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by bank borrowing and funding from holding company.

The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the asset and closely monitors its judicious allocation amongst competing capital expansion projects and strategic acquisitions, to capture market opportunities at minimum risk. The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, Bank balances other than cash and cash equivalents and current investments.

Fair value hierarchy of financial instruments

The Company has established the following fair value hierarchy that categories the value into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: The hierarchy uses quoted (adjusted) prices in active markets for identical assets or liabilities. The fair value of all bonds which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (for example traded bonds) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on company specific estimates. The mutual fund units are valued using the closing net asset value. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Calculation of fair values:

The fair values of the financial assets and liabilities are defined as the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the year ended 31.03.2023.

Financial assets and Financial liabilities

Cash and Cash equivalents, trade receivables, investments in term deposits, other financial assets, trade payables, and other financial liabilities (other than those specifically disclosed) have fair values that approximate to their carrying amounts due to their short-term nature.

Loans have fair values that approximate to their carrying amounts AS it is based on the net Present value of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

The carrying amount of Trade Receivable, Trade Payable, Capital Creditors, Cash and Cash Equivalents and other Bank Balances are considered to be the same as their fair values due to their short-term nature. The management considers that the carrying amount of financial assets and financial liabilities recognised in the financial statements approximate their fair values.

The management consider that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair values.

Financial risk management

Board of Directors of the Company has developed and monitoring the Company''s risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

The risk management policies aim to mitigate the following risks arising from the financial instruments:

i) Market risk

ii) Credit risk

iii) Liquidity risk

Risk management framework

The Company''s principal financial liabilities, comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company operations. The Company''s principal financial assets, include trade and other receivables, investments and cash and cash equivalents that derive directly from its operations.

Board of Directors of the Company have developed and are monitoring the Company''s risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and processes for measuring and managing risk, and the Company''s management of capital.

i) Market Risk

Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowings.

All such transactions are carried out within the guidelines set by the management.

a) Interest Rate Risk

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 is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

Interest Rate Sensitivity -

The sensitivity analysis below have been determined based on the exposure to interest rates for financial instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 100 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

b) Commodity risk

Commodity price risk for the Company is mainly related to fluctuations in coal prices linked to various external factors, which can affect the production cost of the Company. Since the fuel costs is one of the primary costs drivers, any fluctuation in fuel prices can lead to drop in operating margin. To manage this risk, the Company take steps to optimise the fuel mix and to pursue longer term and fixed contracts, where Additionally, processes and policies related to such risks are reviewed and controlled by senior management and fuel requirement are monitored by the procurement team.

ii) Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The carrying amount of financial assets represent the maximum credit risk exposure.

(a) Trade receivables

Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. No single customer accounted for 10.0% or more of revenue in any of the years indicated except sales to holding company. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Our historical experience of collecting receivables indicate a low credit risk. Hence, trade receivables are considered to be a single class of financial assets.

iii. Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short-term operational needs as well as for long-term capital expenditure growth projects. The Company generate sufficient cash flow for operation, which together with the available cash and cash equivalent provide liquidity in the short-term & long-term. The Company has established an appropriate liquidity risk management frame work for the management of the Company''s short, medium & long-term funding and liquidity management requirement. The Company manages liquidity risk by maintaining adequate reserve, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by maching the maturity profile of financial asset and liability.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods and its non-derivative financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

^a)	Contingent liabilities not provided for in respect of disputed claims/levies:		C in lakhs
	Particular	As at 31.03.2023	As at 31.03.2022
	Orissa Sales Tax, VAT, CST	130.00	130.00
	Entry Tax	6.38	6.38
	Income tax	3,048.73	466.32
	Compensation for excess mining of Limistone	-	1,857.74
	Interest @ 1% on Optionaly convertible cumulative redeemable preference shares (OCCRPS)	216.67	116.67
	Total	3,401.78	2,577.11
b)	Commitments		C in lakhs
	Particular	As at 31.03.2023	As at 31.03.2022
	Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance)	8,883.05	17,870.04

c) The Company is yet to receive balance confirmation in respect of certain Trade Payables, Advances and Trade Receivables. The Management does not expect any material difference affecting the amount at which they are stated.

d) Employee Benefits:

i) Defined Contribution Plan:

The Company operates defined contribution retirement benefit plans for all qualifying employees. Under these plans, the Company is required to contribute a specified percentage of payroll costs.

Company''s contribution to provident fund recognised in statement of Profit and Loss C 23.90 lakhs (Previous year: C 22.55 lakhs) (included in note 28).

ii) Defined Benefit Plans

Under the Gratuity plan, the eligible employees are entitled to post-retirement benefit at the rate of 15 days salary for each year of service until the retirement age of 58 and 60 without any payment ceiling. The vesting period for Gratuity as payable under The Payment of Gratuity Act is 5 years.

Under the compensated absences plan, leave encashment is payable to all eligible employees on separation from the Company due to death, retirement, superannuation or resignation. At the rate of daily salary, as per current accumulation of leave days.

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

The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for estimate term of the obligations.

iv) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate,expected salary increase and attrition. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting year, while holding all other assumptions constant.

e) Segment Reporting

The Company is primarily in the business of manufacturing and sale of cement and cement related product. As per Ind AS 108 âOperating Segmentsâ specified under Section 133 of the Companies Act, 2013, there are no other reportable business applicable to the Company.

vi) Compensated Absences

Under the compensated absences plan, leave encashment is payable to certain eligible employees on separation from the Company due to death,retirement, superannuation or resignation. Employees are entitled to encash leave while serving the Company at the rate of daily salary, as per current accumulation of leave days.

The Company also has leave policy for certain employees to compulsorily encash unavailed leave on December 31, every year at the current basic salary.

vii) The Code on Social Security, 2020 (âthe Codeâ) relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect.

Key managerial persons such as Whole Time Director, Chief Financial Officer, Company Secretary are in receipt of remuneration from the holding company.

Terms & Conditions Sales:

The sales to related parties are made on terms equivalent to those that prevail in arm''s length transactions and in the ordinary course of business. Sales transactions are based on prevailing price lists and memorandum of understanding signed with related parties. For the year ended 31.03.2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties.

Purchases:

The purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions and in the ordinary course of business. Purchase transactions are made on normal commercial terms and conditions and market rates.

Loan from Related Party:

The Company has availed loan from its holding company for general corporate purpose. The loan balance as on 31.03.2023 was amounting C 62,136.91 lakhs. The loan is unsecured and carry an interest 8.00% per annum and repayable after the end of the tenure.

Corporate Guarantee by Related Party:

The holding company, JSW Cement Limited has issued corporator guarantee to banks on behalf of and in respect of loan availed by the Company.

i) During the year ended 31.03.2023, the Company has incurred a loss of C 8,044.18 lakhs and as on 31.03.2023, the Company''s accumulated loss is C 22,234.75 lakhs resulting in erosion of net-worth of the Company. The Management is hopeful of improving the performance of the Company after expansion and commissioning of 4000 TPD clinkerisation unit. The management is confident that the Company will be able to operate as a âGoing Concernâ and meet its liabilities as they fall due for payment based on its future business plans as indicated in this note and continues support being received from its shareholders/lenders. Accordingly, these financial statements continue to be presented on a going concern basis.

j) Other Statutory information

1. The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

2. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

3. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

4. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

5. The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

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

7. The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

8. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

9. Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of account.

10. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

11. The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

12. The Company does not have any transactions with companies which are struck off.

k) The financial statements are approved for issue by the audit committee at its meeting held on 16.05.2023 and by the board of directors on 16.05.2023.

m) Previous year''s figures have been regrouped/reclassified wherever necessary including those as required in keeping with revised Schedule III amendments.

Mar 31, 2018

1. General Information

Shiva Cement Limited (âthe Companyâ) is engaged in the business of manufacture and sale of cement, clinker and trading of allied products. The company is operating its integrated cement plant having cement production capacity of 1,32,000 MT and clinker production capacity of 1,15,500 MT.

Shiva Cement Limited is a public limited company and is listed on Bombay Stock Exchange having its registered office at YY-5, Civil Township, Rourkela, Sundargarh, Odisha.

2. Key sources of estimation uncertainty and Recent Accounting Pronouncements:

A. Key sources of estimation uncertainty

In the course of applying the policies outlined in all notes under section 2 above, the Company is required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future period.

i) Useful lives of property, plant and equipment

The Company uses its technical expertise along with historical and industry trends for determining the economic life of an asset/component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate. In case of a revision, the unamortized depreciable amount is charged over the remaining useful life of the assets.

ii) Mines restoration obligation

In determining the fair value of the Mines Restoration Obligation, assumptions and estimates are made in relation to mining reserve, discount rates, the expected cost of mines restoration and the expected timing of those costs.

iii) Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

iv) Fair value measurements

When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include consideration of inputs such as liquidity risk, credit risk and volatility. v ) Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. vi) Defined benefits plans

The cost of defined benefit plan and other postemployment benefits and the present value of such obligations are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual development in the future. These include the determination of the discount rate, future salary escalations and mortality rates etc. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

B. Recent Accounting Pronouncements

(i) IND AS 115 - Revenue from Contracts with Customers:

On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Ind AS 115, Revenue from Contract with Customers effective from April 1, 2018. The core principle of the new standard is that an entity should recognize revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers. Control of an asset refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset. Control includes the ability to prevent other entities from directing the use of, and obtaining the benefits from, an asset.

(ii) IND AS 21 - Foreign currency transactions and advance consideration

On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 effective from April 1, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

(iii) Amendments to Ind AS 12

Amendments to Ind AS 12, Income Taxes clarifying the requirements for recognising deferred tax assets on unrealised losses. The amendments clarify the accounting for deferred tax where an asset is measured at fair value and that fair value is below the assetâs tax base. They also clarify certain other aspects of accounting for deferred tax assets. These amendments only clarify the existence of guidance of Ind AS 12 and do not change the underlying principles for recognition of deferred tax asset.

b Fixed Assets include assets with net block of Rs. 95.52 Lakhs (Previous Year Rs. 119.32 Lakhs) not owned by the Company. c The land at kalunga and the land at Teleghana on which factories have been built were taken on 90 years lease from Industrial Development Corporation of Odissa. d Certain property, plant and equipment are pledged against borrowings ,the details relating to which have been described in Note 17 pertaining to borrowings.

e The Company has reviewed the useful lives and the residual value of Property,Plant and equipment and intangible assets in accordance with requirement of IND AS and revised the useful life of Property,plant and equipments and Intangible assets. Accordingly, depreciation for the current year is higher by Rs. 24.34 Lakhs.

Deferred Tax benefits are recognised on assets to the extent that it is probable that taxable profit will be available against which the deductible temporary differences will be utilised against which the asset can be utilised

3.1. Includes deposits of Rs. 63.05 lakhs ( as at 31.03.2017 - Rs. 65.17 lakhs, as at 31.03.2016- Rs. 78.11 lakhs ) are pledged with bank against cash credit facilities.

3.2. Includes deposits of Rs. 68.79 lakhs ( as at 31.03.2017 - Rs. 1.96 lakhs , as at 31.03.2016- Rs. 1.79 lakhs) given as security to Government department and others.

(i) Terms/rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs. 2/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.

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

4.1 . Trade Payables are based on the information available with the Company regarding the status of the suppliers as defined under the âMicro, Small and Medium Enterprises Development Act, 2006â and there are no delays in payments to Micro, Small, and Medium Enterprises as required to be disclosed under the said Act.

5.1. There are no amounts due and outstanding to Investor Education and Protection Fund as at 31.03.2018, 31.03.2017 and 01.04.2016.

5.2 Others include the liability related to Employees, Rebate and Discount to Customers etc.

Note 6 . Financial instruments

A. Capital risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity. The Companyâs capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings and strategic acquisitions. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by bank borrowing and funding from holding company.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, Bank balances other than cash and cash equivalents and current investments.

(i) Equity includes all capital and reserves of the company that are managed as capital

(ii) Debt is defined as long-term and short-term borrowings .

A. Risk management framework

The Company has a Risk Management Committee established by its Board of Directors for overseeing the Risk Management Framework and developing and monitoring the Companyâs risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Companyâs activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

B. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Market risk

- Interest rate risk

- Credit risk ; and

- Liquidity risk

i. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates and interest rates.The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Companyâs policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the Management and the internal auditors on a continuous basis. The Company does not enter into or trade financial instruments, including derivatives for speculative purposes.

ii. Interest rate risk

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 is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities, after the impact of hedge accounting, assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

iii. Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Companyâs credit risk arises principally from the trade receivables, loans, cash & cash equivalents, derivatives.

(a) Trade receivables

Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an individual credit limits defined in accordance with the assessment.Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. No single customer accounted for 10.0% or more of revenue in any of the years indicated. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

(b) Cash and cash equivalents :

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. The Companyâs maximum exposure to the credit risk for the components of balance sheet as 31st March 18, 31st March 17 and 1st April 16 is the carrying amounts mentioned in Note no 12 .

iv. Liquidity risk management

The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods and its non-derivative financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

Collateral

The Company has pledged part of its trade receivables, short term investments and cash and cash equivalents in order to fulfil certain collateral requirements for the banking facilities extended to the Company. There is obligation to return the securities to the Company once these banking facilities are surrendered.

c) In the opinion of the Management, the current assets, the loans and advances have a value on realisation atleast equal to the amount at which they are stated in Balance Sheet in ordinary course of business. Provisions are for all known liabilities and the same is adequate and not in excess of what is required.

d) The Company is yet to receive balance confirmation in respect of certain Trade Payables, Advances and Trade Receivables. The Management does not expect any material difference affecting the amount at which they are stated.

e) Exceptional Item:

-Exceptional item for the year ended March 31, 2018 amounting to Rs. 1011.41 lakhs represents settlement of old quality claims and interest on disputed security deposit under long-term supply agreement of cement.

-Exceptional items for the previous year ended March 31,2017 amounting to Rs. 1109.54 Lakhs includes prior period interest on statutory dues, security deposits written off and consultancy charges.

f) Employee Benefits:

i) Defined Contribution Plan:

The company operates defined contribution retirement benefit plans for all qualifying employees.

ii) Defined Benefit Plans - Gratuity:

The plans in India typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

No other post-retirement benefits are provided to these employees.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at 31 March 2018 by external agencies. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Companyâs contribution to Provident Fund recognized in statement of Profit and Loss Rs. 21.92 Lakhs (Previous Year Rs. 20.85 Lakhs). Companyâs contribution to ESIC recognized in statement of Profit and Loss Rs. 8.37 Lakhs (Previous Year Rs. 8.02 Lakhs).

g) Segment Reporting

The Company is primarily in the business of manufacturing and sale of cement and cement related product. As per IND AS 108 âOperating Segmentsâ specified under Section 133 of the Companies Act 2013, there are no other reportable business applicable to the company Non-current operating assets

All non - current assets, financial instruments, deferred tax assets of the company are located in India.

NOTES:

1. To comply with the Companies (Accounting Standard) Rules, 2006, certain account balances have been regrouped as per the format prescribed under Division II of Schedule III to the Companies Act, 2013.

2. Financial liabilities and related transaction costs:

Borrowings and other financial liabilities which were recognized at historical cost under previous GAAP have been recognized at amortised cost under Ind AS with the difference been adjusted to opening retained earnings.

Under previous GAAP, transaction costs incurred in connection with borrowings were amortised equally over the tenure of the borrowings. Under Ind AS, transaction costs are deducted from the initial recognition amount of the financial liability and charged over the tenure of borrowing using the effective interest method.

Difference in the un-amortised borrowing cost as per Ind AS and previous GAAP on transition date has been adjusted to the cost of asset under construction or opening retained earnings, as applicable.

3. Financial assets at amortised cost:

Certain financial assets held on with an objective to collect contractual cash flows in the nature of principal and interest have been recognized at amortised cost on transition date as against historical cost under the previous GAAP with the difference been adjusted to the opening retained earnings.

4. Deferred tax as per balance sheet approach:

Under previous GAAP, deferred tax was accounted using the income statement approach, on the timing differences between the taxable profit and accounting profits for the period. Under Ind AS, deferred tax is recognized following balance sheet approach on the temporary differences between the carrying amount of asset or liability in the balance sheet and its tax base. In addition, various transitional adjustments has also lead to recognition of deferred taxes on new temporary differences.

5. Excise duty:

Under previous GAAP, revenue from sale of goods was presented net of excise duty whereas under Ind AS the revenue from sale of goods is presented inclusive of excise duty. The excise duty is presented on the face of the Statement of Profit and Loss as part of expenses.

6. Defined benefit liabilities:

Under Ind AS, Remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined liability, are recognized in other comprehensive income instead of profit or loss in previous GAAP.

7. Property,plant and equipments

Under IGAAP, Leasehold Land were classified as Fixed Assets as the standard on the leases excluded Land. However, as per IND AS - 17, where the substantial risk and rewards incidental to ownership of an asset has not been transferred in the name of the company, the company has classified such land under Operating lease. The amount paid towards such leases has been shown as Pre payments under Other non current assets.

8. Other comprehensive income:

Under Ind AS, all items of income and expense recognized in the period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss and âother comprehensive incomeâ includes remeasurements of defined benefit plans and fair value gain or losses on FVTOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

Mar 31, 2016

Term Loan-2 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 6.76 Lakhs and last installment of Rs 6.77 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 1 year 15 days.

Term Loan-3 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.04 Lakhs and last installment of Rs 3.04 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 1 year 15 days.

Term Loan-4 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.77 Lakhs and last installment of Rs 3.77 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 1 year 15 days.

(c) The Term Loan from IDBI Bank Ltd is repayable in 18 quarterly unequal installments as given below from July,2016. The loan is secured by first charge on entire fixed assets of the company situated at Telighana, Kutra present and future except those which are charged to Tata Capital & second charge on the current assets of the company, Pledge of 5 lakh number of equity shares of the promoters, Lien on Fixed deposits of Rs. 55 Lacs, Pledge of additional 1 crore number of equity shares having face value of Rs 2/- per share, & Mortgage of additional around 25 Acres land at Telighana Plant having approx market value about Rs. 4.25 Crores as per agreement dated 26/03/2016. The period of maturity as on Balance Sheet date is 4 years 7 months.

Mar 31, 2015

1.1 Related party transaction

Details of related parties:

Description of relationship Names of related parties

Associates Shivom Minerals Ltd.

Key Management Personnel (KMP) Mr. R.P. Gupta

Mr.Akash Gupta

Relatives of KMP Smt Anubha Bhoir (Daughter of Managing Director)

Smt Shilpi Agarwal (Daughter of Managing Director)

Master Raghav Gupta (Son of Executive Director)

Master Rachit Gupta (Grandson of Managing Director)

Sri Jatin Bhoir (Husband of Daughter of Managing Director)

Company in which KMP / Relatives of KMP can exercise significant influence Unicon Merchants (p) Ltd. In which Mr. R.P.Gupta and

Mr. Akash Gupta are directors.

1.2 Balances of parties are subject confirmation & reconciliation and consequential adjustment, if any.

1.3 Self consumption of cement by the company for its expansion project and testing work has been provided at estimated cost as determined by the management.

1.4 Sales of products (Note No. 19) includes raw materials like slag, coal etc.

1.5 Value of imports on C.I.F basis is Nil ( P.Y Import of Capital goods Rs. Nil)

1.6 Number of Employees who were in receipt of or entitled to receive emoluments including benefits aggregating to Rs.60.00 Lakhs or more per annum if employed for full year or Rs.5.00 Lakhs per month or more if employed for part of the year - NONE. (Previous year - None)

1.7 Sales of products includes traded goods in raw materials like slag, coal etc.

1.8 MAT credit entitlement of Rs. 415.98 Lakhs (Previous year Rs. 360.72 Lakhs) is treated as an asset which shall be adjusted against future income tax liability in coming years.

Mar 31, 2014

1. (a) Terms/rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs 2/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.

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

(b) Terms/rights attached to 9% Non Cumulative Redeemable Preference Shares

The company has only one class of Preference Shares. These shares carry non cumulative dividend @ 9% These NCRP Shares are redeemable in four installments by 2014-15 (out of which 40% has been redeemed) with an option to the holders & the company to mutually alter and vary the terms of these NCRP''s before and after their allotment.

(C) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date:

1,70,00,000 equity shares (Previous year-1,70,00,000 equity shares) out of the issued, subscribed and paid up share capital were alloted as bonus shares in the last five years.

* Note - Public deposits includes Rs.7.82 Lakhs (Previous year Rs.7.64 Lakhs) from related parties.

2. Details of Security and Terms of repayment of Loans are as under:

(a) The Term loan from Bank of Baroda is secured by the hypothecation of car Scorpio and personal guarantee of Directors (Mr. R.P.Gupta and Mr. Akash Gupta) as specified in the loan agreement executed on 15-11-2011. The loan is repayable in 48 monthly installments of Rs.0.24 Lakhs each. It carries floating rate of interest @ 12.5%. The period of maturity as on Balance Sheet date is 1 years 8 months.

(b) The Term Loan from ICICI Bank Ltd carries interest @ 13.25% (floating) p.a. The loan is repayable in 23 EMI of Rs. 1.34 Lakh along with interest, from Oct, 2013. The loan is secured by first & exclusive charge on Vehicles, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 24/09/2013. The period of maturity as on Balance Sheet date is 17 months.

(c) The Term loan from Tata Capital Financial Services Ltd. are :

Term Loan-1 from Tata Capital Financial Services Ltd. carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 6.83 Lakhs and 1 installment of Rs 6.83 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 3 years 15 days.

Term Loan-2 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 6.76 Lakhs and 1 installment of Rs 6.77 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 3 years 15 days.

Term Loan-3 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.04 Lakhs and 1 installment of Rs 3.04 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 3 years 15 days.

Term Loan-4 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.77 Lakhs and 1 installment of Rs 3.77) Lakhs along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipments purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 3 years 15 days.

(d) Term Loan from Religare Finvest Ltd carries interest @ 18 % p.a. The loan is repayable in 12 EMI of Rs 4.58 Lakhs along with interest, from 1st July, 2013 as per agreement dated 27/09/2013. The period of maturity as on Balance Sheet date is 3 months.

(e) Term Loan from Tata Capital Financial Services Ltd carries interest @ 18% p.a. The loan is repayable in 12 EMI of Rs.2.37 Lakhs along with interest, from Oct, 2013. The period of maturity as on Balance Sheet date is 6 months.

(f) Unsecured loans from bodies corporate carries interest @ 12% applicable from April 2014 and are repayable after 12 months.

31/03/2014

Particulars Period Demand Paid under Protest

3. Contingent liabilities not provided for

(i) Orissa Sales Tax

1995-96 47.25 8.00

1992-93 to 1995-96 999 4.35 1998-99 1.89 1.00

2003-04 57.84 27.50 2004-05 69.71 8.00

JuneÂ03 to SeptÂ03 1.44 - Central Sales Tax

1995-96 8.69 -

1998-99 0.27 0.08

2003-04 3.01 1.30

Entry Tax

1999-2000 0.58 0.20

2001-02 4.20 2.60

2002-03 148 040

2003-04 160 120

2004-05 1.27 0.35

2008-11 2.95 0.23

Income Tax (TDS)

2008-12 307.11 5.25

Total 519.26 60.46

31/03/2013

Particulars Period Demand Paid under Protest

(i) Orissa Sales Tax

1995-96 47.25 8.00

1992-93 to 1995-96 999 4.35 1998-99 1.89 1.00

2003-04 57.84 27.50 2004-05 69.71 8.00

JuneÂ03 to SeptÂ03 1.44 - Central Sales Tax

1995-96 8.69 -

1998-99 0.27 0.08

2003-04 3.01 1.30

Entry Tax

1999-2000 0.58 0.20

2001-02 4.20 2.60

2002-03 148 0.40

2003-04 160 120

2004-05 1.27 0.35

2008-11 2.95 0.23

Income Tax (TDS)

2008-12 - -

Total 212.15 55.21

31/03/2014 31/03/2013

(ii) Bank guarantees issued by the bank on behalf of the company 40.19 46.82

(iii) Commitments : 31/03/2014 31/03/2013

Estimated amount of contracts remaning to be executed on capital acoount and not provided for

Tangible Assets 147.50 145.00

Intengible Assets - -

4. Balances of parties are subject confirmation & reconciliation and consequential adjustment, if any.

5. Self consumption of cement by the company for its expansion project and testing work has been provided at estimated cost as determined by the management.

6. Sales of products (Note No. 19) includes raw materials Like slag, coal etc.

7. Value of imports on C.I.F basis is Nil ( P.Y Import of Capital goods Rs. Nil)

8. Number of Employees who were in receipt of or entitled to receive emoluments including benefits aggregating to Rs.60.00 lacs or more per annum if employed for full year or Rs.5.00 lacs per month or more if employed for part of the year - NONE. (Previous year - None)

9. Sales of products includes traded goods in raw materials Like slag, coal etc.

10. MAT credit entitlement of Rs. 360.73 lacs (Previous year Rs. 286.06 lacs is treated as an asset which shall be adjusted against future income tax liability in coming years).

11. The previous year figures have been re-worked, re-arranged, re-grouped, and re-classified, wherever considered necessary to conform to the current year figures.

Mar 31, 2013

31/03/2013 31/03/2012

Particulars Period Demand Paid under Demand Paid under Protest Protest

1.1 Contingent liabilities

(i) Orissa Sales Tax

1995-96 * 47.25 8.00 47.25 8.00

1992-93 to 1995-96 9B(3) 9.99 4.35 9.99 4.35

1998-99 1.89 1.00 1.89 1.00

2003-04 57.84 27.50 57.84 27. 50

2004-05 69.71 8.00 69.71 8.00

June 03 to Sept 03 1.44 0.00 1.44 0.00

2005-07 - - 8.60 2.07

Central Sales Tax

1996-96* 8.69 - 8.69 -

1998-99 0.27 0.08 0.27 0.08

2003-04 3.01 1.30 3.01 1.30

Entry Tax

1999-2000 0.58 0.20 0.58 0.20

2001-02 4.20 2.60 4.20 2.60

2002-03 1.48 0.40 1.48 0.40

2003-04 1.60 1.20 1.60 1.20

2004-05 1.27 0.35 1.27 0.35

2005-08 - - 0.30 0.12

2008-11 2.95 0.23 - -

Total 212.15 55.21 218.10 57.17

(ii) Contigent Liabilities not provided for : 31/03/2013 31/03/2012

Bank guarantees issued by on behalf of the company 46.82 46.82

(iii) Commitments : 31/03/2013 31/03/2012

Estimated amount of contracts remaining to be executed on capital account and not provided for ]Tangible Assets 145.00 122.50

Intangible Assets - -

Note: Related parties have been identified by the Management. 27.5. Balances of parties are subject confirmation & reconciliation and consequential adjustment, if any. 27.6. Own consumption of cement by the unit for its expansion and testing work has been provided at estimated cost as determined by the management.

1.2 Sales of product (Note No.20) includes raw material Like slag, coal etc.

1.3. Value of imports on C.I.F basis is Nil ( P.Y Import of Capital goods Rs. Nil )

1.4. Number of employees who were in receipt of or entitled to receive emoluments including benefits aggregating to Rs. 60.00 Lakhs or more per annum if employed for full year or Rs. 5.00 Lakhs per month or more if employed for part of the year - NONE.

1.5. Sales of product (Note No.19) includes raw material Like slag, coal etc.

1.6. MAT credit entitlement of Rs. 286.06 Lakhs (including earlier years Rs.207.59 Lakhs is treated as an asset which shall be adjusted against future income tax liability in coming years.

Mar 31, 2012

(i) (b) Terms/rights attached to 9% Non Cumulative Redeemable Preference Shares

The company has only one class of Preference Shares. These shares carry non cumulative dividend @ 9% These NCRP Shares are redeemable in four installments by 2014-15 with an option to the holders & the company to mutually alter and vary the terms of these NCRP's before and after their allotment.

(ii) Details of shares held by each shareholder holding more than 5% shares:

(iii) Shares reserved for issue

There were 50,00,000 Equity shares warrants outstanding as on the balance sheet date (Previous year 1,26,36,028 Equity shares warrants) issued at a price of Rs. 11/- each convertible into Equity shares of face value of Rs. 21- each at a premium of Rs.9/- per share (Refer Note 28.1).

(v) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date:

1,65,00,000 equity shares (Previous year-1,57,36,397 equity shares) out of the issued .subscribed and up share capital were alloted as bonus shares in the last five years.

Security and Terms of repayment of Term Loans as under :

(a) Term loan from IDBI Bank carries interest @ 14.75% p.a. and is repayable in 14 quarterly installments (9 instalments of Rs. 70 lacs, 4 instalments of Rs. 90 lacs and one instalment of Rs. 91 lacs along with interest commencing from 01-06-2009. The loan is secured by first charge on movable and immovable assets of the company as per agreement dated 25 May, 2010. Further, the loan is also secured by personal guarantee of Mr. R. P Gupta, MD and Mr. Akash Gupta, ED of the company. The period of maturity as on Balance Sheet date is six months.

(b) Term Loan (FITL)from IPICOL Ltd carries interest 11% p.a. and repayable in 12 quarterly installments of Rs. 2.89 Lakhs each along with interest, from May, 2011. The loan is secured by hypothecation of Fixed assets of the company. The period of maturity as on Balance Sheet date is two years.

(c) Term loan from Bank of Baroda (Personal guarantee of Mr. R. P. Gupta MD and Mr. Akash Gupta ED provided) and is :

- Secured by the hypothecation of Maruti SX4 Car and as per loan agreement executed on 22-04-2009. The loan is repayable in 48 monthly instalments of Rs. 0.18 Lakhs each and carries floating rate of interest @ 12.75%. The period of maturity as on Balance Sheet date is 1 year 1 month.

- Secured by the hypothecation of Toyota Car as per the loan agreement executed on 03-02-2009.The loan is repayable in 48 monthly instalments of Rs.0.28 Lakhs each and carries floating rate of interest @ 12.75%. The period of maturity as on Balance Sheet date is 11 months.

-Secured by the hypothication of Mahindra Scorpio Car as per loan agreement executed on 15-11-2011. The loan is repayable in 48 monthly instalments of Rs.0.24 Lakhs each. It carries floating rate of interest@13%. The period of maturity as on balance sheet date is 3 years 8 months.

Notes:

(ii) (a) The working capital loan is secured by personal gurantee of Mr. R.P.Gupta, MD and Mr. Akash Gupta, ED of the company.

(ii) (b) Working capital loan from banks is secured against entire current assets including book debt of the company and second charge on the entire movable & immovable fixed assets of the company, as per agreement dated 13th Jan, 2012 , the loan is further secured by lien over Fixed deposits of Rs. 55 lacs and pledge of 5 lacs nos. of equity shares by the promoters and personal guarantee of Shri R.RGupta, MD and Shri Akash Gupta, ED. The working capital loan is repayable on demand and carries rate of interest of 16.25%.

-Trade payables as on 31-03-2012 includes amount aggregating to Rs.36.49 Lakhs due to small Scale Industries undertaking. Out of the above amount due to exceeds Rs. 1.0 Lakhs & outstanding for more than 30 days is Rs.3.51 Lakhs as listed below:-

Names : Proton Steels Ltd., Jagannath Plastic Packs Ltd

Disclosure of Trade Payables under current liabilities is based on the information available with the company/firm regarding the status of suppliers as defined under the Micro, Small & Medium Enterprises Development Act, 2006. Amount overdue as on 31st march,2012 to Micro & Small Enterprises on account if Principal Amount Rs. nill(Previous Year Rs.Nill) and interest Rs. Nill (Previous year Rs. Nill)

Note :

(i) Depreciation on Plant & Machinery, Elect.lnstallation/DG Set and Pollution Control Equipment has not been provided for 100 days of Kiln unit and 10 days on Cement plant on which respective units/items were not used due to operational shutdown of the respective units for maintenance / other purposes.

(ii) The land at Kalunga on which Factory has been built is taken on 90 years lease from Industrial Developments Corporation of Orissa. The land atTeleghana on which factory has been built is taken on 90 years lease from Orissa Industrial Infrastructure Development Corporation.

(iii) The Kalunga plant of the company was closed since 27th September, 2002, hence no depreciation is Provided.

2.1 Amount received against share warrants

The Board of Directors of the Company at their meeting held on 7 December, 2010 and as approved at its Extra Ordinary General Meeting held on 29 November, 2010 have alloted 1,10,36,028 warrants, convertible into 1,10,36,028 equity shares of Rs. 21- each at a premium of Rs. 9/- per share on preferential allotment basis, pursuant to Section 81(1 A) of the Companies Act, 1956, at a conversion price of Rs. 11/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard to the promoters and the 25% application money amounting to Rs. 303.49 lakhs was received from them, out of which 60,36,028 equity shares warrants were converted into equity on 16th Sep, 2011. The balance 50,00,000 warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before 6th June, 2012. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

31/03/2012 31/03/2011

Particulars Period Demand Paid under Demand Paid under Protest Protest

2.2 Contingent liabilities

(i) Orissa Sales Tax

1995-96* 47.25 8.00 47.25 8.00

1992-93 to 1995-96 9B(3) 9.99 4.35 9.99 4.35

1998-99 1.89 1.00 1.89 1.00

2003-04 57.84 27.50 57.84 27.50

2004-05 69.71 8.00 69.71 8.00

June 03 to Sept 03 1.44 - 1.44 -

Central Sales Tax

1995-96* 8.69 - 8.69 -

1998-99 0.27 0.08 0.27 0.08

2003-04 3.01 1.130 3.01 1..30

Entry Tax

1999-2000 0.58 0.20 0.58 0.20

2001-02 4.20 2.60 4.20 2.60

2002-03 1.48 0.40 1.48 0.40

2003-04 1.60 1.20 1.60 1.20

2004-05 1.27 0.35 1.27 0.35

Apr'05to June'08 O.30 0.12 0.30 0.12

Orissa VAT Tax

Apr'05 to Mar'07 8.60 2.07 8.60 2.07

Total 218.10 57.17 218.10 57.17

* Total demand has been stayed by Hon'ble Odisha High Court. As per leagal opinion obtained by the Company the liability of the company shall be Nil.

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for

Tangible assets

2.3. Balances in personal accounts are subject to confirmation from parties concerned.

2.4. Own consumption of cement by the unit for its expansion and testing work has been provided at estimated cost as determined by the management.

2.5. Sale of products (Note No.20) include Rs.2901.44 lakhs traded goods, similarly cost of materials (Note No.22 (a) includes Rs.2297.04 lakhs traded goods.

2.6. MAT credit entitlement of Rs. 207.59 Lakhs (including earlier years Rs.146.85 Lakhs is treated as an asset which shall be adjusted against future income tax liability in coming years.

The Gratuity Liability as per Actuarial valuation is Rs. 74.44 lakhs as on 31/03/2012.

2.7. The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

Mar 31, 2011

1. The Company is Cement manufacturing Company dealing in Cement and allied products. All activities of the company revolve around main business. As such there are no reportable segments as defined by Accounting Standard(AS)- 17 (Segment Reporting) issued by the Institute of Chartered Accountants of India.

2. The Company has made preferential Issue of 110.36 lakh Equity Share Warrants of Rs.2/- each at a premium of Rs.9/- per warrant to Promoters Group and has received Rs.303.49 Lakhs towards application money.

3. The Company has made provision for Gratuity during the year. However Acturial valuation Certificate for the same has not been obtained. Gratuity Provision of Rs. 86.05 Lacs is shown under Unsecured Loans being Long term Liability.

4. The present value of obligation is determined based on valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measurement each unit separately to build up the final obligation.

5. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 387.00 Lacs (Previous year - Rs. 375.00 Lacs).

6. MAT Credit Entitlement of Rs. 146.85 Lacs (including earlier years Rs. 79.53 Lacs) is treated as an asset which shall be adjusted against future income tax liability in coming years.

7. Balances in personal accounts are subject to confirmation from parties concerned.

8. The land at Kalunga on which Factory has been built is taken on 99 years lease from Industrial Developments Corporation of Odisha. The land at Teleghana on which factory has been built is taken on 90 years lease from Orissa Industrial Infrastructure Development Corporation.

9. The Kalunga plant of the company was closed since 27th September, 2002.

10. Previous years figure have been re-arranged, re-grouped, re-worked & re-classified wherever considered necessary.

11. Related party disclosure as required by Accounting Standard (AS)-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are given below :-

(a) Particulars of Associated Companies Shivom Minerals Limited

(b) Key Management Personnel

Sri R P. Gupta Managing Director

Sri Akash Gupta Executive Director

Sri B. K. Mangaraj Director (Works)

(c) Relatives of Key Management Personnel

Name of related Party Nature of relationship

Anubha Bhoir Daughter of Managing Director

Raghav Gupta Son of Executive Director Shilpi Agarwal Daughter of Managing Director

12. Contingent Liabilities for:

Particulars Period Demand Paid under Protest

Orissa Sales Tax 1995-96* 47.25 8.00

1992-93 to 1995-96 9B (3) 9.98 4.35

1998-99 1.89 1.00

2003-04 57.84 27.50

2004-05 69.71 8.00

June03 to Sept03 1.44 -

Central Sales Tax 1995-96* 8.69 -

1998-99 0.27 0.08

2003-04 3.01 1.30

Entry Tax 1999-2000 0.57 0.20

2001-02 4.20 2.60

2002-03 1.48 0.40

2003-04 1.60 1.20

2004-05 1.27 0.35

Apr05 to June08 0.30 0.12

Orissa VAT Tax Apr05 to Mart07 8.60 2.07

Total 218.10 57.17

* Total Demand has been stayed by Honble Orissa High Court. As per legal opinion obtained by the Company, the liability of the Company shall be NIL.

13. Own consumption of cement by the unit for its expansion and testing work has been provided at estimated cost as determined by the management.

14. Sundry Creditors for the year ended 31/03/2011 includes amount aggregating to Rs. 38.74 Lacs due to Small Scale Industrial undertaking. Out of the above amount due exceeding Rs. 1.00 Lacs and outstanding for more than 30 days is Rs. 14.84 Lacs as listed below :-

Names : Proton Steels Ltd., Mittal Polypacks Pvt. Ltd.

Disclosure of Sundry Creditors under Current Liabilities is based on the information available with the Company/firm regarding the status of suppliers as defined under the Micro, Small & Medium Enterprises Development Act, 2006. Amount overdue as on 31st March 2011 to Micro and Small Enterprises on account of Principal Amount Rs. NIL (Previous year Rs.NIL) and Interest Rs.NIL (Previous year Rs.NIL).

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