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Notes to Accounts of Shree Digvijay Cement Company Ltd.

Dec 31, 2014

1. 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 eligible for one vote per share held. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

b) There are no shares allotted either as fully paid up by way of bonus shares or under any contract without payment received in cash during 5 years immediately preceding December 31,2014.

c) 265,212 equity shares (December 31,2013 : 265,212) are kept in abeyance out of the Rights Issue entitlement pending settlement of disputes.

(All amounts in Rs. lacs, unless otherwise stated)

2. CONTINGENT LIABILITIES As at As at December 31, December 31, 2014 2013

Claim against the Company not acknowledged as debts

a) Demand contested by the Company

* Sales tax 107.07 31.69

* Excise duty 3,886.16 3,673.58

* Service tax 85.78 220.80

* Custom duty 451.55 351.55 * Labour cases 154.87 163.34

* Other Cases 199.43 199.47

b) A sum of Rs. 309.84 lacs (December 31, 2013: Rs. 309.84 lacs) on account of arrears, rent, service charges, way leave fees of certain leasehold property, consequent to the Order of the Estate Officer of Mumbai Port Trust (MPT) dated February 28, 2007, has not been provided for as the said property was assigned in an earlier year to M/s Dinbandhu Estate Pvt. Ltd. (the Assignee).The assignment was subject to the approval of MPT which was to be arranged by the Assignee. The Company is contesting the said Order before the High Court.

It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

3. SEGMENT INFORMATION

The Company has been operating in one business segment viz. Manufacturing and Sales of Cement and Clinker and its only production facility is located in India. Therefore the disclosure requirements relating to primary and secondary segments required under Accounting Standard (AS) 17 are not applicable.

4.a RELATED PARTY DISCLOSURES:

Names of the related parties and nature of relationship:

i) Where control exists Holding Company

Votorantim Cimentos EAA Inversiones S.L.

Ultimate Holding Company Votorantim Cimentos S.A.

ii) Other Related Parties with whom transactions have taken place during the year / previous year Fellow Subsidiaries

Votorantim GMBH

Votorantim Cimento Sanve TIC A.S.M

iii) Key Management Personnel

Mr. Suman Mukherjee (Managing Director upto October 31, 2013)

Mr. Chain Singh Jasol (Whole Time Director w.e.f. November 1, 2013)

iv) Relative of Key Management Personnel

Ms. Sanchita Mukherjee (Wife for Mr. Suman Mukherjee upto October 31, 2013)

5. The tax year for the Company being the year ending March 31, the provision for taxation for the year is the aggregate of the provision made for the three months ended March 31, 2014 and the provision based on the figures for the remaining nine months upto December 31, 2014, the ultimate tax liability of which will be determined on the basis of the figures for the period April 1, 2014 to March 31, 2015.

6. Previous year figures have been reclassified to conform to this year''s classification.

The notes are an integral part of these financial statements.


Dec 31, 2013

1 Background

Shree Digvijay Cement Company Limited (the ''Company'') is a public limited company domiciled in India and is listed on the Bombay Stock Exchange (BSE). It is engaged in Manufacturing and selling of cement and cement clinker. The Company has one manufacturing facility at Sikka (via Jamnagar) with installed capacity of 10.75 lacs MT per annum. The Company caters mainly to the domestic market.

(All amounts in Rs. lacs, unless otherwise stated)

As at As at

2 CONTINGENT LIABILITIES December 31, 2013 December 31, 2012

Claim against the Company not acknowledged as debts

(a) Demand contested by the Company

- Sales tax 31.69 25.81

- Excise duty 3,673.58 3,497.53

- Service tax 220.80 150.86

- Custom duty 351.55 351.55

- Labour cases 163.34 268.30

- Other Cases 199.47 202.71

(b) Rent on water pipe lines levied by Panchayat and - 905.56 Irrigation Department, Government of Gujarat

(c) A sum of Rs. 309.84 lacs (December 31, 2012: Rs. 309.84 lacs) on account of arrears, rent, service charges, way leave fees of certain leasehold property, consequent to the Order of the Estate Officer of Mumbai Port Trust (MPT) dated February 28, 2007, has not been provided for as the said property was assigned in an earlier year to M/s Dinbandhu Estate Pvt. Ltd. (the Assignee). The assignment was subject to the approval of MPT which was to be arranged by the Assignee. The Company is contesting the said Order before the High Court.

It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

3 CAPITAL COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account is Rs. 1,529.46 lacs (December 31, 2012: Rs. 835.16 lacs), against which advances paid aggregate Rs. 1,531.44 lacs (December 31, 2012: Rs. 329.75 lacs).

4 Amounts aggregating Rs. Nil (December 31, 2012 : Rs. 211.96 lacs) being Interest on Term Loan capitalised during the year.

5. (a) EMPLOYEE BENEFIT OBLIGATIONS

(i) Defined-Contribution Plans

The Company makes contribution to provident fund and pension fund under the provision of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and to superannuation fund for the qualifying employees as per the Company''s policy.

(ii) Defined-Benefits Plans

The company offers the gratuity under employee benefits scheme to its employees. The following status set out the fund states of the defined benefit schemes and amount recognised in the financials.

The Company contributes to an irrevocable trust due to which contributions once made cannot be refunded to the Company. Hence no gratuity income is recognised in the books.

The actuarial calculations used to estimate defined benefit obligations and expenses are based on the following assumptions which if changed, would affect the defined benefit obligations size, funding requirements and gratuity expense.

The discount rates reflects the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations.

The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority, promotions and other relevant factors, such as demand and supply in the employment market.

The expected rate of return of plan assets is the Company''s expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

6 SEGMENT INFORMATION

The Company has been operating in one business segment viz. Manufacturing and Sales of Cement and Clinker and its only production facility is located in India. Therefore the disclosure requirements relating to primary and secondary segments required under Accounting Standard (AS) 17 are not applicable. 34a RELATED PARTY DISCLOSURES

Names of the related parties and nature of relationship:

i) Where control exists Holding Company

Cimpor Inversions S.A. (up to December 20, 2012)

Votorantim Cimentos EAA Inversions S.L. (w.e.f. December 21, 2012)

Ultimate Holding Company

Cimpor Cimentos Cosmos S.A. (up to December 20, 2012)

Votorantim Cimentos S.A. (w.e.f. December 21, 2012)

ii) Other Related Parties with whom transactions have taken place during the year / previous year Fellow Subsidiaries

Cimpor Trading, S.A. (up to December 20, 2012)

Cimpor-Servicos De Apoio A Gestao De Empresas S.A. (up to December 20, 2012)

Cimporte Tec-Engenharia E Servicos Tecnicos De Apoio AO Group S.A. (upto December 20, 2012)

Votorantim GMBH (w.e.f. December 21, 2012)

Votorantim Cimento Sanve TIC A.S.M (w.e.f. December 21, 2012)

iii) Key Management Personnel

Mr. Suman Mukherjee (Managing Director up to October 31, 2013)

Mr. Chain Singh Jasol (Whole Time Director w.e.f. November 1, 2013)

iv) Relative of Key Management Personnel

Ms. Sanchita Mukherjee (Wife for Mr. Suman Mukherjee up to October 31, 2013)

Note:

1) During current year the Company introduced Voluntary Retirement Scheme, 2013 ("VRS Scheme") w.e.f July 1, 2013 and was in force up to December 31, 2013. The VRS Scheme was applicable to all employees except directors subject to fulfillment of certain conditions. Consequent to above VRS Scheme, 135 employees accepted the offer made under the VRS Scheme. The aggregate compensation to employees who opted for the VRS Scheme is Rs. 1,414.52 lacs. This is disclosed under the head ''Exceptional Item'' in the current year.

2) The Company in earlier year had received a claim for a sum of Rs. 1,253 lacs towards dues on account of interest on electricity duty and penalty thereon for the period commencing on October 1, 2000 and ending on January 12, 2011. The cost relating to earlier period was charged to the Statement of Profit and Loss of the earlier years as an "exceptional item". A sum of Rs. 1,215 lacs was received during such earlier years by the Company from Grasim Industries Ltd. ("Grasim" - the erstwhile holding company) in accordance with directions of Cimpor Inversions SA ("Cimpor" - the then holding company) based on a claim made on Grasim by Cimpor, under the Share Purchase Agreement between Grasim and Cimpor. Supported by legal advice, the sum of Rs. 1,215 lacs was recorded as a liability of the Company and the Company has sought the approval from the Reserve Bank of India for repartriation of said sum received from Grasim to Cimpor. Now consequent upon restructuring of business of holding company between Cimpor and Votorantim Cimentos EAA Inversion S.L., Cimpor has waived its right of claim over the said amount, hence the same has been considered as income and disclosed under the head ''Exceptional Item'' during the financial year ended December 31, 2012.

7 According to the records available with the Company, there were no dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year. Hence disclosures, if any, relating to amounts unpaid as at the period end together with the Interest paid / payable as required under the said Act have not been given.

8 The tax year for the Company being the year ending March 31, the provision for taxation for the year is the aggregate of the provision made for the three months ended March 31, 2013 and the provision based on the figures for the remaining nine months up to December 31, 2013, the ultimate tax liability of which will be determined on the basis of the figures for the period April 1, 2013 to March 31, 2014.

9 Previous year figures have been reclassified to conform to this year''s classification.


Dec 31, 2012

1 Background

Shree Digvijay Cement Company Limited, a public limited company is having its registered office at Digvijaygram, Jamnagar (Gujarat). It is engaged in Manufacturing of cement & cement clinker. The current cement installed capacity is 10.75 lacs MT per annum at Digvijaygram (Sikka), near Jamnagar Gujarat.

(a) Rights, preferences and restrictions attached with shares Equity Shares : The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the board is subject to approval of the shareholder in the ensuring annual general meeting, except in the case of interim dividend. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

(b) Shares held by holding company and subsidiary of holding company 104,091,537 Equity Shares as at 31st December, 2012 (as at 31st December, 2011 104,091,537) are held by Cimpor Inversions S.A. (the ultimate holding company is Cimpor Cimentos De Portugal SGPS, S.A.). However, w.e.f. 21st December 2012, Votorantim Cimentos EAAInversionesS.L is the Holding Company and Votorantim Cimentos S.A is Ultimate Holding Company pending transfer of shares as explained in Footnote below:

Footnote:

Votorantim Cimentos EAA Inversiones S.L (VCEAA) (erstwhile known as Cimentos EAA Inversiones S.L), entered into a contribution agreement dated November 15, 2012 to acquire 104,091,537 shares of the Company from Cimpor Inversiones SA. Subsequently, by swaps of shares of VCEAA, the control of VCEAA was transferred to Votorantim Cimentos S.A. (Votorantim / the acquirer) on December 21, 2012. The shares of the Company were credited to the demat account of VCEAA on February 4, 2013 and Votorantim filed such intimation of transfer of shares with stock exchange vide its letter dated 4th February 2013. Additionally, 2,321,645 shares of the Company acquired by Votorantim in an open offer are held in Escrow Account as at 31st Dec 2012 pending transfer of such shares in demat to Votorantim.

(d) Shares in the Company held by shareholders more than of 5% of the aggregate equity shares as at the reporting date.

(e) There are no shares allotted either as fully paid up by way of bonus shares or under any contract without payment received in cash during 5 years immediately preceding 31st December, 2012.

(f) 265,212 Equity Shares (Previous Year 265,212) are kept in abeyance out of the Rights Issue entitlement pending settlement of disputes.

The External Commercial Borrowings (ECB) Loan taken from Citi Bank in May & August 2011 is secured by the corporate guarantee of Cimpor Inversiones S.A., the erstwhile ultimate holding company. The rate of interest is 10.50% alongwith corresponding Interest Rate Swaps. The ECB Loan is repayable in May & August 2014 after expiry of 3 years from the date of loan in each single instalment. There was no default in payment of interest during the year.

2 CAPITAL COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account is Rs. 835.16 lacs (previous year Rs. 482.31 lacs), against which advances paid aggregate Rs. 329.75 lacs (previous year Rs. 33.16 lacs).

3 Amounts aggregating Rs. 211.96 lacs (previous year Rs.133.26 lacs) being Interest on Term Loan capitalised during the year.

4 SEGMENT INFORMATION

The Company has been operating largely in one business segment viz. Manufacturing and Sales of Cement and Clinker and its only production facility is located in India. Therefore the disclosure requirements relating to primary and secondary segments required under Accounting Standard (AS) 17 are not applicable.

5 EMPLOYEE BENEFIT OBLIGATIONS:-

Defined-Contribution Plans

The Company make provident fund, pension fund and superannuation fund contributions to defined contribution plans for the qualifying employees under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 99.01 lacs (as at 31st December 2011 Rs. 98.32 lacs) for provident fund contribution, Rs. 27.15 lacs (as at 31st December 2011 Rs.29.07 lacs) for family pension fund and Rs. 37.18 lacs (as at 31st December 2011 Rs. 36.23 lacs) for superannuation fund contribution in the statement of profit and loss. The contribution payable to these plans by the Company are at the rates specified in the rules of the schemes.

6 "The Company in earlier year had received a claim for a sum of Rs. 1,253 lacs towards dues on account of interest on electricity duty and penalty thereon for the period commencing on 1st October, 2000 and ending on 12th January, 2011. The cost relating to earlier period was charged to the Profit and Loss Account of the earlier years as an "exceptional item". A sum of Rs. 1,215 lacs was received during such earlier years by the Company from Grasim Industries Ltd. ("Grasim" - the erstwhile holding company) in accordance with directions of Cimpor Inversiones SA ("Cimpor" - the then holding company) based on a claim made on Grasim by Cimpor, under the Share Purchase Agreement between Grasim and Cimpor. Supported by legal advice, the sum of Rs. 1,215 lacs was recorded as a liability of the Company. During the year consequent to restructuring of business of Cimpor which included the transfer of its shareholding to Votorantim Cimentos EEA Inversiones S.L (VCEAA) based on the Share Purchase Agreement and other confirmations between Cimpor and VCEAA, Cimpor has waived its right of claim over the said amount of Rs. 1,215 lacs. The Company has, based on information and documentary evidence in its possession, written back the liability and has considered the same as income under head ''Exceptional Item''."

7 The financial statements for the year ended 31st December, 2011 were earlier prepared as per the then applicable, pre-revised schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st December, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures for the year ended 31st December 2011 have also been reclassified to conform to this year''s classification. The adoption of Revised schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Dec 31, 2011

1 Contingent Liabilities: (Rs. in lacs)

As at

31st Dec 2011 31st Dec 2010

(a) Demand contested by the Company

- Sales tax 25.81 25.81

- Excise duty 3,310.86 607.06

- Service tax 138.66 17.63

- Labour cases 278.20 248.25

- Other Cases 163.45 166.25

(b) Rent on water pipe lines levied by Panchayat and 816.43 737.34 Irrigation Department, Government of Gujarat.

(c) A sum of Rs. 309.84 lacs (previous year Rs. 309.84 lacs) determined as payable on account of arrears, rent, service charges, way leave fees payable in respect of certain leasehold property, consequent to the Order of the Estate Officer of Mumbai Port Trust (MPT) dated 28th February, 2007, has not been provided for as the said property was assigned in an earlier year to M/s Dinbandhu Estate Pvt. Ltd. (the Assignee). The assignment was subject to the approval of MPT which was to be arranged by the Assignee. The Company is contesting the said Order before the High Court.

The Company does not expect any liability to devolve on it in respect of the above.

2 The Company received a claim for a sum of Rs. 1,253 lacs towards dues on account of interest on electricity duty and penalty thereon for the period commencing on 1st October, 2000 and ending on 12th January, 2011. The cost relating to earlier period was charged to the Profit and Loss Account of the previous year as an 'exceptional item". A sum of Rs. 1,215 lacs was received during the period by the Company from Grasim Industries Ltd. ('Grasim" - the erstwhile holding company) in accordance with directions of Cimpor Inversions SA ('Cimpor"

- the present holding company) based on a claim made on Grasim by Cimpor, under the Share Purchase Agreement between Grasim and Cimpor. Supported by legal advice, the sum of Rs. 1,215 lacs has been recorded as a liability of the Company and the Company has sought the approval from the Reserve Bank of India.

3 Estimated amount of contracts remaining to be executed on capital account is Rs. 482.31 lacs (previous year Rs. 6,417.46 lacs), against which advances paid aggregate Rs. 33.16 lacs (previous year Rs. 1,022.69 lacs).

4 In compliance of High Court's orders and pursuant to scheme of arrangement between the Company and Gujarat Composite Ltd, loss incurred from transfer of units was adjusted against the Reserve on Revaluation of Fixed Assets in an earlier year. Consequently, depreciation for the year includes Rs. 6.63 lacs (Previous year Rs. 6.80 lacs) pertaining to depreciation on revalued portion of fixed assets.

5 The information given in Schedule 11 "Current Liabilities" regarding Micro and Small Enterprises has been determine to the extent such parties have been identified on the basis of information available with the Company.

Included in Sundry Creditors are amounts aggregating Rs.1,176.22 lacs (as at 31st December 2010 Rs Nil) being amounts due against purchase of capital assets. This sum has been adjusted in determining the cash flows arising from investing activities relating to acquisition of fixed assets. Cash flows from investing activities relating to cost of acquisition of fixed assets have been adjusted for Rs. 33.12 lacs (previous year Rs Nil) being cement produced by the Company and used in the construction of capital assets.

* excluding provision for compensated absences and gratuity as this amount is determined for the Company as a whole and figures for the Whole Time Director, CEO & Managing Director are not separately available.

** As commission is not payable to the Whole time director or CEO & Managing Director, computation of net profit under section 349 of The Companies Act, 1956 has not been disclosed.

Deferred tax asset in respect of unabsorbed depreciation is recognised considering the deferred tax liability in respect of timing differences arising in respect of depreciation, the reversal of which is virtually certain. Additional deferred tax assets have not been recognised in the absence of virtual certainty of future profits against which such assets could be offset.

6 Segment information:-

The Company has been operating largely in one business segment viz. Manufacturing and Sales of Cement and Clinker and its only production facility is located in India. Therefore the disclosure requirements relating to primary and secondary segments required under Accounting Standard (AS) 17 are not applicable.

Notes:

1 Licensed capacity per annum has not been indicated due to abolition of Industrial license as per Notification No. S.O. 477(E) dt. 25th July, 1991, issued under the Industrial (Development and Regulation) Act, 1951.

2 * As certified by the Management and accepted by the Auditors without verification as it is a technical matter.

* Excludes Cement Samples, Transit loss, damages/ shortages 21 MT (Previous year 1 MT) and Clinker 0 MT (Previous year 355 MT).

* Excludes self consumption for internal consumption 1972 MT (Previous year 551 MT).

* Comprise dissimilar items which cannot be practicably aggregated.

Own Mines / crushed Lime stone consumption 808,453 MT (Previous year 1,078,209 MT)

Note:

The 8,700,000 6% Non-Cumulative Compulsorily Convertible Preference Shares of Rs. 100 each ('CCPS"), which were allotted to the promoters viz. Cimpor Inversions S.A., on a preferential basis, were due for conversion on 8th of September, 2010. To prevent a reduction in the proportion of public shareholding below the minimum threshold specified under the provisions of the Listing Agreement, the promoters allowed their conversion right to lapse. Consequently, the sum of Rs. 8,700 lacs has been transferred to Capital Reserve on extinguishment of 6% Non-Cumulative Compulsory Convertible Preference Shares of Rs. 100 each.

7 Employee Benefit Obligations:- Defined-Contribution Plans

The Company offers its employees defined contribution plans in the form of contribution to provident fund, family pension and superannuation fund. Provident fund and family pension fund cover substantially all regular employees while the superannuation fund covers certain executives. Contributions are paid during the year into separate funds under certain statutory / fiduciary-type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund, contributions into the family pension fund and the superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employee's salary.

A sum of Rs.163.63 lacs (Previous year Rs. 160.76 lacs) has been charged to the revenue account in this respect.

Defined-Benefits Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount). Benefits under the defined benefits plans are typically based either on years of service and the employee's compensation (generally immediately before retirement.) Gratuity substantially covers all regular employees. The Company contributes funds to a Gratuity Trust, which is irrevocable. Commitments are actuarially determined at year-end. On adoption of revised Accounting Standard (AS)-15 on "Employee Benefits" actuarial valuation is done based on 'Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the Profit and Loss Account.

8 Previous year's figures have been regrouped / rearranged wherever necessary to confirm to the classification of the current year.


Dec 31, 2009

1 Contingent Liabilities:

(Rs. in lacs) As at (a) Demand contested by the Company 31st Dec. 2009 31st Mar. 2009 -Sales tax 31.97 26.62

- Excise duty 349.18 339.53 -Service tax 17.63 17.63

- Labour cases 209.90 234.20

- Other Cases 257.26 288.90

- Electricity Duty 948.85 948.85

(b) Rent on water pipe lines levied by Panchayat and

Irrigation Department, Government of Gujarat. 738.46 668.94

(c) A sum of Rs. 309.84 lacs (previous year Rs. 309.84 lacs) determined as payable on account of arrears, rent, service charges, way leave fees payable in respect of certain leasehold property, consequent to the Order of the Estate Officer of Mumbai Port Trust (MPT) dated 28th February, 2007, has not been provided for as the said property was assigned in an earlier year to M/s Dinbandhu Estate Pvt. Ltd. (the Assignee). (In the previous years a sum of Rs. 1,071.21 lacs was claimed by Mumbai Port Trust). The assignment was subject to the approval of MPT which was to be arranged by the Assignee. The Company is contesting the said Order before the High Court.

(d) Outstanding Bank Guarantees Rs. 875.56 lacs (previous year Rs. 357.38 lacs). The Company does not expect any liability to devolve on it in respect of the above.

2 Estimated amount of contracts remaining to be executed on capital account is Rs. 452.32 lacs (previous year Rs. 1,388.68 lacs), against which advances paid aggregate Rs. 35.22 lacs (previous year Rs. 133.78 lacs).

3 Advances recoverable in cash or in kind includes loans and advances given to officers free of interest or at concessional rates of interest aggregating Rs. 32.69 lacs (previous year Rs. 24.36 lacs). Maximum amount outstanding during the year aggregated Rs. 35.89 lacs (previous year Rs. 32.68 lacs).

4 In compliance of High Court orders and pursuant to scheme of arrangement between the Company and Gujarat Composite Ltd, loss incurred from transfer of units was adjusted against the Reserve on Revaluation of Fixed Assets in an earlier year. Consequently, depreciation for the period Apr. 09 to Dec. 09 includes Rs. 4.85 lacs (previous year Rs. 6.34 lacs) pertaining to depreciation on revalued portion of fixed assets.

5 There were no dues payable to Micro and Small vendors covered under Micro, Small and Medium Enterprises Development Act, 2006.

The above information and that given Schedule 10 " Current Liabilities " regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

6 Segment information :

The Company is in the business of manufacturing and sale of cement and clinker which is considered to constitute one single primary (business) segment.

7 "Related Party Disclosures" is as follows:

a) Names of the related parties and description of relationship:

Related Party Relationship

Cimpor Inversiones S.A. Holding Company

Cimpor Cimentos De Portugal SGPS, S.A. Ultimate Holding Company

Cimpor Trading S.A Vigo (Spain) Fellow Subsidiary

Cimpor Services De Apoio A Gesto De Em (Portugal) Fellow Subsidiary

Mr. P. A. Nair Whole Time Director

8 Employee Benefit Obligations :

Defined-Contribution Plans

The Company offers its employees defined contribution plan in the form of provident fund, family pension and superannuation fund. Provident fund and family pension fund cover substantially all regular employees while the superannuation fund covers certain executives. Contributions are paid during the period into separate funds under certain fiduciary-type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund, contributions into the family pension fund and the superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employees salary.

A sum of Rs. 120.28 lacs (Previous Year Rs. 141.15 lacs) has been charged to the revenue account in this respect.

Defined-Benefits Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount). Benefits under the defined benefits plans are typically based either on years of service and the employees compensation (generally immediately before retirement.) Gratuity substantially covers all regular employees. The Company contributes funds to a Gratuity Trust, which is irrevocable. Commitments are actuarially determined at year-end. On adoption of revised Accounting Standard (AS)-15 on "Employee Benefits" actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the profit and loss account.

9 The Company changed its financial year end from 31st March to 31st December annually, with effect from current financial year. Accordingly, the financial statements for the current financial are made up from 1st April, 2009 to 31st December, 2009. The corresponding figured for the previous year relate to the period 1st April, 2008 31st March, 2009. Therefore, the two are not comparable.

10 Previous years figures have been regrouped / rearranged wherever necessary to conform to the classification of the current period.

 
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