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Accounting Policies of India Cements Ltd. Company

Mar 31, 2017

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements upto the year ended 31st March 2016 were prepared in accordance with the Accounting Standards Rules 2006 (as amended) and other relevant provisions of the Companies Act, 2013 (Indian GAAP).

The Ministry of Corporate Affairs (MCA) issued a Notification on 16th February, 2015, making Indian Accounting Standards, issued under Section 133 of Companies Act, 2013 mandatory for certain class of Companies.

As per the Notification, Ind AS is mandatory for the Company for the Financial year commencing 1st April 2016. Accordingly, the Company has adopted Ind AS from 1st April 2016 and the Financial Statements for the year ended 31st March 2017 have been prepared in accordance with the principles laid down in the said Ind AS.

The financial statements are presented in Indian Rupees, which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates.

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:

(i) Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

(ii) Employee''s Defined Benefit plan as per Actuarial valuation.

(iii) Plant, Property and Equipment measured at fair value.

2. FIRST TIME ADOPTION OF Ind AS

The Company has restated the financial statements as at 1st April 2015 (opening), being the transition date, on the following basis:

The amount of transition reserve (component of retained earnings) arising on the same is given below:

a) All Tangible assets, including Property, Plant and Equipments, and Intangible assets were revalued as at the transition date and stated at fair values, resulting in reserve of Rs.239311.71 Lakhs.

b) The restoration obligation of Limestone mines was assessed as at the transition date and provision has been created for Rs.9500.00 Lakhs.

c) Investments have been assessed at fair values and provision for Rs. 1940.85 Lakhs has been created at the transition date.

d) Financial assets and liabilities were assessed for possible credit risks and provision has been created for expected credit losses as at the transition date amounting to Rs.37,448.39 Lakhs.

e) Exchange differences arising on Long term foreign currency loans, which were under Indian GAAP capitalized / accounted as Foreign currency Monetary Item Translation Reserve, as the case may be, are under Ind AS debited to Statement of Profit and Loss. The cumulative difference of Rs.894.78 Lakhs as at the transition date is charged to transition reserve.

f) The balances in Revaluation Reserve account (Rs.30356.30 Lakhs credit) and Goodwill account (Rs.1922.00 Lakhs debit) are also transferred to transition reserve account.

g) Contingencies & provisions have been re-assessed as at the transition date and accordingly created additional provision for Rs.3160.00 Lakhs debit.

h) Deferred tax liability was reassessed as at the transition date based on Balance Sheet approach and created additional liability of Rs. 11214.70 Lakhs.

Exemptions availed as per Ind AS 101:

1) Past Business Combination:

The Company has elected not to apply Ind AS 103-Business Combinations retrospectively to Past Business Combinations that occurred before the transition date of 01-Apr-2015, consequently, the Company has kept the same classification for the past business combinations as in its previous GAAP financial statements.

2) Property, Plant and Equipments:

The Company has elected to measure the PPE at Fair value on transition date.

3) Investments in Subsidiaries & Associates:

The Company has elected to carry its Investments in Subsidiaries & Associates at deemed cost which is its previous GAAP carrying amount at the date of transition to Ind AS.

4) Sales Tax Deferment Loan:

The Company has elected to use the previous GAAP carrying amounts of Sales Tax Deferment Loan existing at the date of transition to Ind AS as the carrying amount of the loan in the opening Ind AS Balance Sheet.

5) Fair Value of Financial Assets and Liabilities:

As per the Ind AS exemption, the Company has not fair valued the financial assets and liabilities retrospectively and has measured the same prospectively.

Note on Scheme of Amalgamation:

The Board of Directors has approved a Scheme of Amalgamation of Trinetra Cement Limited and Trishul Concrete Products Limited with the Company effective 1st January 2014 (Appointed Date) under Sections 391 to 394 of the Companies Act, 1956. Honourable Madras High Court referred the petition to National Company Law Tribunal (NCLT). NCLT after hearing the arguments approved the scheme on 13th April, 2017 and 20th April, 2017 Accordingly the attached financials include the financials of the amalgamating companies.

The Company has sought approval from Stock Exchanges / SEBI for issue of Equity Shares to the shareholders of the amalgamating companies. Pending receipt of the said approval, the amount has been shown under share suspense account.

The goodwill / capital reserve arising on implementation of the scheme has been adjusted against Reserves as contained in the Scheme.

3. SIGNIFICANT ITEMS OF ACCOUNTING POLICY

1 Use of estimates

The preparation of financial statements is in conformity with generally accepted Indian Accounting Standards (Ind AS) principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

2 Inventories

(a) Valuation of Inventories of raw materials, stores, spares, fuels, semi-finished goods and finished goods is done at weighted average cost.

(b) Construction and Infrastructure Projects are valued at cost or net realisable value whichever is lower.

3 Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash at bank, in hand (including cheques in hand) and short term investment with an original maturity of three months or less.

4 Property, Plant and Equipments

Property, Plant and Equipments (PPE) were revalued as at Ind AS transition date, 1st April 2015 and stated at fair values.

Property, Plant and Equipments (PPE) acquired on hire purchase or on Financial Lease are shown at their principal cost, excluding the interest cost included in these agreements which is charged to revenue over the life of the agreement.

Depreciation is provided over the remaining useful lives of the assets, as per Schedule II of the Companies Act, 2013.

Capital Work in Progress of all the cement manufacturing facilities are shown at cost of Acquisition.

Software development costs are capitalized and depreciated along with computers on Straight Line method.(Intangible assets with finite useful life that are acquired separately are carried at cost less accumulated amortization and accumulated impairment, if any) Material items such as Spare parts, Stand-by equipments and service equipments are classified as PPE when they meet the definition of PPE as specified in Ind AS 16.

5 Foreign Currency Transactions

(a) Foreign Exchange transactions are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Assets and liabilities, in Foreign currencies are translated at values prevailing as at the year end. Gains / Losses if any, arising there from are recognized in the Profit and Loss account.

(b) Forward Exchange contracts used to hedge Foreign Currency Transactions are initially recognized at the spot rate on the date of contract. Forward Exchange contracts remaining unsettled at the end of the year are translated at the year end rates. The difference in translation of Forward exchange contracts are recognized in the Profit and Loss Account.

6 (a) Revenue Recognition on Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the value of the consideration received or receivable, net of returns and discounts.

(b) Sales include excise duty, revenue from trade related activities and sales tax deferred as reduced by consideration for assignment of Sales Tax deferral liability, if any, and is net of rebates, discounts and incentives as ascertained by management as per market conditions.

(c) Revenue from Construction and Infrastructure projects under property development division is recognized on percentage of completion method.

(d) Revenue on time charter of ships is recognized on a proportionate basis.

7 Research and Development

Research and Development expenses not resulting in any tangible property / equipment are charged to revenue.

8 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition/construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to Profit and Loss account.

9 Claims / Incomes arising from price escalation and / or any other item of compensation and which are indeterminate are accounted when there is certainty of Income accrual.

10 Investments:

Investments are stated at fair values.

11 Employee Benefits:

Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis for which a trust has been created. The Actuarial gains/losses arising on retirement benefits are also recognized in the Profit and Loss account. Unavailed leave balances are accounted based on respective employee''s earnings as at the balance sheet date on actuarial basis.

12 Fringe Benefits arising on options vested under Employees Stock Options Scheme (ESOS),2006 are charged to Profit and Loss Account and credited to Stock Options Reserve Account. On allotment of shares, corresponding amount is transferred from Stock Option Reserve to Securities Premium Account.

13 Tax Expense:

(a) Current income tax is measured and accounted based on the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961 at the tax rates prevailing during the year.

(b) Deferred tax is measured and accounted based on the tax rates and tax laws enacted or substantively enacted at the Balance Sheet date.

14 Contingent Liabilities / Assets:

Contingent liabilities and contingent assets are not recognized in the books of accounts. Provisions are made for the reliably estimated amount of present obligation to pay for the past events.

Terms / Rights / restrictions attached to shares:

The Company has only one class of Equity share. Each share has a paid up value of Rs.10/-. Every shareholder is entitled to one vote per share, except for the holders of Global Depository Shares, as given below:

During the year 2005-06, the Company allotted 5,12,27,592 underlying equity shares of Rs.10/- each represented by 2,56,13,796 Global Depository Shares (GDSs) in the ratio of 2:1. Holders of these GDSs have no voting rights with respect to the Deposited shares.

During the previous year 2015-16, the Company had declared and distributed a dividend of Re.1.00 per share.

Shares reserved for issue under Employee Stock Option Scheme:

During the year 2006-07, the company announced Employees Stock Option Scheme, 2006 (ESOS 2006) to its employees, which came into force on 1st December 2006. There are no shares reserved for issue under options as at March 31,2016.

As recommended by the Compensation Committee, the Board of Directors has granted, as on 01.04.2017, 18.35 lakhs options to eligible employees under Employees Stock Option Scheme, 2016 (Scheme). The options granted under the Scheme will vest with the employees on 01.04.2018 and the vested options shall be exercised within one year from the date of vesting. On exercise of each option, one equity share of Rs.10/- each fully paid-up will be allotted at a price of Rs.50/- per share, including a premium of Rs.40/- per share.

- Shares are held in the capacity of a Trustee for the shares held by the Wholly owned Subsidiaries in Trusts.


Mar 31, 2016

1. Use of estimates

The preparation of financial statements is in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

2. Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process & Semi-finished goods are valued at cost or net realisable value whichever is lower and do not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

(d) Construction and Infrastructure Projects are valued at cost or net realisable value whichever is lower.

3. Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash at bank, in hand (including cheques in hand) and short term investment with an original maturity of three months or less.

4. Fixed Assets

Fixed Assets are valued and shown adopting the following basis:

(a) Fixed Assets and Capital Work-in-progress of all the cement manufacturing facilities were revalued and shown at revalued amounts as at 31st March 2004. All other Fixed assets acquired are shown at the cost of acquisition.

(b) Fixed assets acquired on the Hire Purchase or on Financial Lease are shown at their principal cost, excluding the interest cost included in these agreements which is charged to revenue over the life of the agreement.

(c) Expenditures and outlays of money on uncompleted projects of the capital nature are shown as capital work-in-progress until such time these projects are completed and commissioned. All costs including financing costs incurred on specific projects / acquisition of undertakings are charged to the concerned heads.

(d) (i) During the year the Company has charged depreciation based on useful life of the assets in accordance with Schedule II of Companies Act, 2013.

(ii) Depreciation on incremental value arising from the revaluation of fixed assets is charged to the Revaluation Reserve Account.

(e) Intangible Assets, which are expected to generate economic benefits are accounted at cost and amortised over the useful life on Straight Line Method.

5. (a) Foreign Currency Transactions

(i) Pursuant to the Companies (Accounting Standard) Amendment Rules, 2011 the Company has exercised the option of adjusting the cost of the depreciable capital assets arising on the exchange differences, in respect of accounting periods commencing from 1st April 2011, on long term foreign currency monetary items, which were hitherto recognized as income or expenses in the period in which they arise. As a result, such exchange difference so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets.

(ii) In respect of other long term foreign currency monetary items, such exchange differences is accumulated in foreign currency monetary items translation difference account and amortized over the balance period of such liability.

(b) Foreign Exchange transactions are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Assets and liabilities, other than those and for the purposes as mentioned in 5(a) above, in Foreign currencies are translated at values prevailing as at the year end. Gains / Losses if any, arising there from are recognised in the Profit and Loss Account.

(c) Forward Exchange contracts used to hedge Foreign Currency Transactions are initially recognised at the spot rate on the date of contract. Forward Exchange contracts remaining unsettled at the end of the year are translated at the year end rates. The difference in translation of Forward exchange contracts are recognised in the Profit and Loss Account. The discount or premium is amortised over the tenure of the contract.

(d) Investments in Equity Capital of overseas Companies registered outside India are carried in the Balance Sheet at the rates at which transaction has been executed.

6 (a) Sales include excise duty, revenue from trade related activities and sales tax deferred as reduced by consideration for assignment of Sales Tax deferral liability if any and is net of rebates, discounts and incentives as ascertained by management as per market conditions.

(b) Revenue from Construction and Infrastructure projects under property development division is recognised on percentage of completion method.

(c) Revenue on time charter of ships is recognized on a proportionate basis.

7. Research and Development

Research and Development expenses not resulting in any tangible property / equipment are charged to revenue.

8. Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

9. Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted when there is certainty of income accrual.

10. Trade investments and investments in subsidiary & associate companies are long term investments and are carried at cost. The other investments are carried at lower of cost or realisable value. Provision for diminution in value is made wherever necessary in accordance with the Accounting Standard.

11. Employee Benefits

Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis for which a trust has been created. The Actuarial gains / losses arising on retirement benefits are also recognised in the Profit and Loss Account. Unavailed leave balances are accounted based on respective employee''s earnings as at the balance sheet date on actuarial basis.

12. Fringe Benefits arising on options vested under Employees Stock Options Scheme (ESOS), 2006 are charged to Profit and Loss Account and credited to Stock Options Reserve Account. On allotment of shares, corresponding amount is transferred from Stock Option Reserve to Securities Premium Account.

13. Premium on Redemption of Debentures / Bonds.

Premium on redemption of Debentures / Bonds is accounted on redemption and set off against the Securities Premium Account.

14. Tax Expense

(a) Current income tax is measured and accounted based on the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961 at the tax rates prevailing during the year.

(b) Deferred Tax

Deferred tax is measured and accounted based on the tax rates and tax laws enacted or substantively enacted at the Balance Sheet date.

15. Contingent liabilities / Assets

Contingent liabilities and contingent assets are not recognised in the books of accounts. Provisions are made for the reliably estimated amount of present obligation to pay for the past events.


Mar 31, 2014

1. Use of estimates

The preparation of Financial Statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the Financial Statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

2. Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process & Semi-finished goods are valued at cost or net realisable value whichever is lower and do not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

(d) Construction and Infrastructure Projects are valued at cost or net realisable value whichever is lower.

3. Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash at bank, in hand (including cheques in hand) and short-term investment with an original maturity of three months or less.

4. Fixed Assets

Fixed Assets are valued and shown adopting the following basis:

(a) Fixed assets and Capital Work-in-Progress of all the cement manufacturing facilities were revalued and shown at revalued amounts as at 31st March 2004. All other fixed assets acquired are shown at the cost of acquisition.

(b) Fixed assets acquired on hire purchase or on Financial Lease are shown at their principal cost, excluding the interest cost included in these agreements which is charged to revenue over the life of the agreement.

(c) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as Capital Work-in-Progress until such time these projects are completed and commissioned. All costs including financing costs incurred on specific projects/ acquisition of undertakings are charged to the concerned heads.

(d) (i) The Company provides depreciation on written down value method for Motor Vehicles and for assets acquired prior to 1.4.1982 at Head Office and at Sankarnagar.

(ii) Software development costs are capitalised and depreciated along with computers on Straight Line method as per Section 205(2)(b) of the Companies Act, 1956.

(iii) Ships are depreciated on Straight Line method, over its estimated useful life.

(iv) Indian Premier League Franchisee Rights are capitalised and amortised over a period of ten years.

(v) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted.

(vi) Depreciation on incremental value arising from the revaluation of fixed assets is charged to the Revaluation Reserve Account.

(vii) Fixed Assets are tested for impairment and impairment loss, if any, is recognised wherever the carrying amount of the asset / group of asset exceeds its estimated recoverable amount. Previously recognised impairment loss, if any, is reversed or further provided depending on changes in circumstances as above.

5. (a) Foreign Currency Transactions

(i) Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011 the Company has exercised the option of adjusting the cost of the depreciable capital assets arising on the exchange differences, in respect of accounting periods commencing from 1st April 2011, on long-term foreign currency monetary items, which were hitherto recognized as income or expenses in the period in which they arise. As a result, such exchange difference so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets.

(ii) In respect of other long-term foreign currency monetary items, such exchange differences are accumulated in foreign currency monetary items translation difference account and amortized over the balance period of such liability.

(b) Foreign Exchange transactions are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Assets and Liabilities, other than those and for the purposes as mentioned in 5(a) above, in Foreign currencies are translated at values prevailing as at the year end. Gains / Losses, if any, arising therefrom are recognised in the Profit and Loss Account.

(c) Forward Exchange contracts used to hedge Foreign Currency Transactions are initially recognised at the spot rate on the date of contract. Forward Exchange contracts remaining unsettled at the end of the year are translated at the year end rates. The difference in translation of Forward Exchange contracts are recognised in the Profit and Loss Account. The discount or premium is amortised over the tenure of the contract.

6. (a) Sales include excise duty, revenue from trade related activities and sales tax deferred as reduced by consideration for assignment of Sales Tax deferral liability and is net of rebates, discounts and incentives.

(b) Revenue from Construction and Infrastructure Projects under Infrastructure Division is recognised on percentage of completion method.

(c) Revenue on time charter of ships is recognized on a proportionate basis.

7. Research and Development

Research and Development expenses not resulting in any tangible property / equipment are charged to revenue.

8. Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

9. Claims / Incomes arising from price escalation and / or any other item of compensation and which are indeterminate are accounted on cash basis.

10. Trade investments, investments in subsidiaries and associate companies are long term investments and are carried at cost. The other investments are carried at lower of cost or realisable value. Provision for diminution in value is made wherever necessary in accordance with the Accounting Standard.

11. Employee Benefits

Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis for which a trust has been created. The actuarial gains / losses arising on retirement benefits are also recognised in the Profit and Loss Account. Unavailed leave balances are accounted based on respective employee''s earnings as at the Balance Sheet date.

12. Fringe Benefits arising on options vested under Employees Stock Option Scheme (ESOS), 2006 are charged to Profit and Loss Account and credited to Stock Options Outstanding Account. On allotment of shares, corresponding amount is transferred from Stock Options Outstanding Account to Securities Premium Account.

13. Premium on Redemption of Debentures / Bonds.

Premium on Redemption of Debentures / Bonds is accounted on redemption and set-off against the Securities Premium Account.

14. Tax Expense

(a) Current income tax is measured and accounted based on the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961 at the tax rates prevailing during the year.

(b) Deferred Tax

Deferred tax is measured and accounted based on the tax rates and tax laws enacted or substantively enacted at the Balance Sheet date.

Terms / Rights / restrictions attached to shares:

The Company has only one class of Equity share. Each share has a paid up value of Rs.10/-. Every shareholder is entitled to one vote per share, except for the holders of Global Depository Receipts / Global Depository Shares, as given below:

During the year 1994-95, the Company allotted 58,57,987 equity shares of Rs.10/- each consequent to issue of equivalent number of Global Depository Receipts (GDRs). Holders of these GDRs have no voting rights with respect to the Deposited shares.

During the year 2005-06, the Company allotted 5,12,27,592 underlying equity shares of Rs.10/- each represented by 2,56,13,796 Global Depository Shares (GDSs) in the ratio of 2:1. Holders of these GDSs have no voting rights with respect to the Deposited shares.

During the previous year 2012-13, the Company had declared and distributed a dividend of Rs.2.00 per share.

Shares reserved for issue under Employees Stock Option Scheme:

During the year 2006-07, the Company announced Employees Stock Option Scheme, 2006 (ESOS 2006) to its employees, which came into force on 1st December 2006.There are no shares reserved for issue under options as at March 31,2014.

SECURITY CLAUSE

(b) Term Loans:

1. Items (b) (i) and (b) (ii) are secured by first equitable mortgage and charge on pari passu basis (with other Lenders / Debenture Trustees) on the immovable and movable assets (with exclusion of assets purchased under Asset Credit Scheme and certain other assets specifically excluded from the purview of the security), subject to prior charge created and / or to be created on the movable assets in favour of the Company''s bankers for working capital requirements. Further loan mentioned in (b) (i) carry an option for conversion into equity shares at par not exceeding 20% of the sanctioned loan / outstanding loan in the advent of certain events and subject to conditions.

2. Item (b) (iii) is secured by a joint first equitable mortgage / charge on the immovable and movable assets (excluding assets purchased under Asset Credit Scheme and certain other assets specifically excluded from the purview of the security) subject to prior charge on the movable assets in favour of the Company''s bankers for working capital requirements.

3. Item (b) (v) is initially secured by first charge on the land situated at Vallur Village, Tiruvallur District, belonging to a subsidiary company and to be secured by way of first exclusive mortgage / charge on certain specified cement plant / assets of the Company.

4. Item (b) (vi) is secured by a first pari passu charge (with other Lenders / Debenture Trustees) on the movable and immovable fixed assets of the Company save and except book debts and subject to prior charges created / to be created in favour of the Company''s bankers on its current assets for securing the borrowings for working capital requirements.

5. Items (b) (vii), (b) (viii) and (b) (xi) are secured by way of exclusive first charge on the immovable properties of the Company being the land and building situated at 142/1 (Old No.93), Santhome High Road, Chennai.

6. Item (b) (ix) is secured by way of first charge on the movable assets pertaining to ship / vessel MV Chennai Selvam and all the ten shares of vessel MV Chennai Selvam.

7. Item (b) (x) is secured by way of exclusive charge on the immovable properties of the Company being land and building situated at 142/1 (Old No.93), Santhome High Road, Chennai, by way of extension and further secured by the movable assets pertaining to ship / vessel MV Chennai Selvam and all the ten shares of vessel MV Chennai Selvam.

8. Items (b) (xii), (b) (xxii) and (b) (xxiii) are secured by way of hypothecation of movable fixed assets of the Company''s plant at Vishnupuram, Nalgonda District excluding the movable assets of thermal power plant and further secured by a first pari passu mortgage and charge on the immovable properties of the Company.

9. Item (b) (xiii) is secured by a pari passu charge on all the movable assets of the Company excluding the current assets and movable assets at Chennai and Parli grinding units and further secured by a joint first equitable mortgage / charge on the immovable properties excluding immovable properties of Chennai and Parli grinding units of the Company.

10. Item (b) (xiv) is secured by way of hypothecation of the movable fixed assets of the proposed thermal power plant of the Company at Vishnupuram, Nalgonda District, Andhra Pradesh.

11. Item (b) (xv) is secured by way of hypothecation of the movable fixed assets of the Company''s captive power plant at Vishnupuram and further secured by a joint first equitable mortgage and pari passu charge on the immovable properties of the Company.

12. Item (b) (xvi) is secured by way of hypothecation of all movable properties on pari passu basis subject to prior charge on the movable assets in favour of the Company''s bankers for working capital requirements and further secured by a joint first equitable mortgage and pari passu charge on the immovable properties of the Company.

13. Item (b) (xvii) is secured by exclusive charge on the land situated at Vallur Village, Tiruvallur District, belonging to a subsidiary company.

14. Item (b) (xviii) and (b) (xix) are secured by joint equitable mortgage on the land and building situated at No.9, Boat Club Road, III Avenue, R.A. Puram, Chennai.


Mar 31, 2013

1. Use of estimates

The preparation of Financial Statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the Financial Statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

2. Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares and fuels are at weighted average cost.

(b) Work-in-Process & Semi-finished goods are valued at cost or net realisable value whichever is lower and do not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

(d) Construction and Infrastructure Projects are valued at cost or net realisable value whichever is lower.

3. Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash at bank, in hand (including cheques in hand) and short-term investment with an original maturity of three months or less.

4. Fixed Assets

Fixed Assets are valued and shown adopting the following basis:

(a) Fixed assets and Capital Work-in-Progress of all the cement manufacturing facilities were revalued and shown at revalued amounts as at 31st March 2004. All other fixed assets acquired are shown at the cost of acquisition.

(b) Fixed assets acquired on hire purchase or on Financial Lease are shown at their principal cost, excluding the interest cost included in these agreements which is charged to revenue over the life of the agreement.

(c) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as Capital Work-in-Progress until such time these projects are completed and commissioned. All costs including financing costs incurred on specific projects/ acquisition of undertakings are charged to the concerned heads.

(d) (i) The Company provides depreciation on written down value method for Motor Vehicles and for assets acquired prior to

1.4.1982 at Head Office and at Sankarnagar. (ii) Software development costs are capitalised and depreciated along with computers on Straight Line method as per

Section 205(2)(b) of the Companies Act, 1956. (iii) Ships are depreciated on Straight Line method, over its estimated useful life. (iv) Indian Premier League Franchisee Rights are capitalised and amortised over a period of ten years. (v) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted. (vi) Depreciation on incremental value arising from the revaluation of fixed assets is charged to the Revaluation Reserve Account. (vii) Fixed Assets are tested for impairment and impairment loss, if any, is recognised wherever the carrying amount of the asset / group of asset exceeds its estimated recoverable amount. Previously recognised impairment loss, if any, is reversed or further provided depending on changes in circumstances as above.

5. (a) Foreign Currency Transactions

(i) Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011 the Company has exercised the option of adjusting the cost of the depreciable capital assets arising on the exchange differences, in respect of accounting periods commencing from 1st April 2011, on long-term foreign currency monetary items, which were hitherto recognized as income or expenses in the period in which they arise. As a result, such exchange difference so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets.

(ii) In respect of other long-term foreign currency monetary items, such exchange differences are accumulated in foreign currency monetary items translation difference account and amortized over the balance period of such liability.

(b) Foreign Exchange transactions are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Assets and Liabilities, other than those and for the purposes as mentioned in 5(a) above, in Foreign currencies are translated at values prevailing as at the year end. Gains / Losses, if any, arising therefrom are recognised in the Profit and Loss Account.

(c) Forward Exchange contracts used to hedge Foreign Currency Transactions are initially recognised at the spot rate on the date of contract. Forward Exchange contracts remaining unsettled at the end of the year are translated at the year end rates. The difference in translation of Forward Exchange contracts are recognised in the Profit and Loss Account. The discount or premium is amortised over the tenure of the contract.

6. (a) Sales include excise duty, revenue from trade related activities and sales tax deferred as reduced by consideration for assignment of Sales Tax deferral liability and is net of rebates, discounts and incentives.

(b) Revenue from Construction and Infrastructure Projects under Infrastructure Division is recognised on percentage of completion method.

(c) Revenue on time charter of ships is recognized on a proportionate basis.

7. Research and Development

Research and Development expenses not resulting in any tangible property / equipment are charged to revenue.

8. Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

9. Claims / Incomes arising from price escalation and / or any other item of compensation and which are indeterminate are accounted on cash basis.

10. Trade investments, investments in subsidiaries and associate companies are long term investments and are carried at cost. The other investments are carried at lower of cost or realisable value. Provision for diminution in value is made wherever necessary in accordance with the Accounting Standard.

11. Employee Benefits

Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis for which a trust has been created. The actuarial gains / losses arising on retirement benefits are also recognised in the Profit and Loss Account. Unavailed leave balances are accounted based on respective employee''s earnings as at the Balance Sheet date.

12. Fringe Benefits arising on options vested under Employees Stock Option Scheme (ESOS), 2006 are charged to Profit and Loss Account and credited to Stock Options Outstanding Account. On allotment of shares, corresponding amount is transferred from Stock Options Outstanding Account to Securities Premium Account.

13. Premium on Redemption of Debentures / Bonds

Premium on Redemption of Debentures / Bonds is accounted on redemption and set-off against the Securities Premium Account.

14. Tax Expense

(a) Current income tax is measured and accounted based on the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961 at the tax rates prevailing during the year.

(b) Deferred Tax

Deferred tax is measured and accounted based on the tax rates and tax laws enacted or substantively enacted at the Balance Sheet date.


Mar 31, 2012

1. Use of estimates

The preparation of Financial Statements is in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the Financial Statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

2. Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process & Semi-finished goods are valued at cost or net realisable value whichever is lower and do not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

(d) Real Estate Projects are valued at cost or net realisable value whichever is lower.

3. Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash at bank, in hand (including cheques in hand) and short-term investment with an original maturity of three months or less.

4. Fixed Assets

Fixed Assets are valued and shown adopting the following basis:

(a) Fixed assets and Capital Work-in-Progress of all the cement manufacturing facilities were revalued and shown at revalued amounts as at 31st March 2004. All other fixed assets acquired are shown at the cost of acquisition.

(b) Fixed assets acquired on hire purchase or on Financial Lease are shown at their principal cost, excluding the interest cost included in these agreements which is charged to revenue over the life of the agreement.

(c) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as Capital Work-in-Progress until such time these projects are completed and commissioned. All costs including financing costs incurred on specific projects/ acquisition of undertakings are charged to the concerned heads.

(d) (i) The Company provides depreciation on written down value method for Motor Vehicles and for assets acquired prior to

1.4.1982 at Head Office and at Sankarnagar.

(ii) Software development costs are capitalised and depreciated alongwith computers on Straight Line method as per Section 205(2)(b) of the Companies Act, 1956.

(iii) Ships are depreciated on Straight Line method, over its estimated useful life.

(iv) Long-term Franchisee Rights are capitalised and amortised over a period of ten years.

(v) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted.

(vi) Depreciation on incremental value arising from the revaluation of fixed assets is charged to the Revaluation Reserve Account.

(vii) Fixed Assets are tested for impairment and impairment loss, if any, is recognised wherever the carrying amount of the asset / group of asset exceeds its estimated recoverable amount. Previously recognised impairment loss, if any, is reversed or further provided depending on changes in circumstances as above.

5. (a) Foreign Currency Transactions

(i) Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011 the company has exercised the option of adjusting the cost of the depreciable capital assets arising on the exchange differences, in respect of accounting periods commencing from 1st April 2011, on long-term foreign currency monetary items, which were hitherto recognized as income or expenses in the period in which they arise. As a result, such exchange difference so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets.

(ii) In respect of other long-term foreign currency monetary items, such exchange differences are accumulated in foreign currency monetary items translation difference account and amortized over the balance period of such liability.

(b) Foreign Exchange transactions are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Assets and Liabilities, other than those and for the purposes as mentioned in 5(a) above, in Foreign currencies are translated at values prevailing as at the year end. Gains / Losses, if any, arising therefrom are recognised in the Profit and Loss Account.

(c) Forward Exchange contracts used to hedge Foreign Currency Transactions are initially recognised at the spot rate on the date of contract. Forward Exchange contracts remaining unsettled at the end of the year are translated at the year end rates. The difference in translation of Forward exchange contracts are recognised in the Profit and Loss Account. The discount or premium is amortised over the tenure of the contract.

6. (a) Sales include excise duty, revenue from trade related activities and sales tax deferred as reduced by consideration for assignment of Sales Tax deferral liability and is net of rebates, discounts and incentives.

(b) Revenue from construction projects under Real Estate and Property Development Division is recognised on percentage of completion method.

(c) Revenue on time charter of ships is recognized on a proportionate basis.

7. Research and Development

Research and Development expenses not resulting in any tangible property / equipment are charged to revenue.

8. Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

9. Claims / Incomes arising from price escalation and / or any other item of compensation and which are indeterminate are accounted on cash basis.

10. Trade investments and investments in subsidiary companies are long term investments and are carried at cost. The other investments are carried at lower of cost or realisable value. Provision for diminution in value is made wherever necessary in accordance with the Accounting Standard.

11. Employee Benefits

Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis for which a trust has been created. The actuarial gains / losses arising on retirement benefits are also recognised in the Profit and Loss Account. Unavailed leave balances are accounted based on respective employee's earnings as at the Balance Sheet date.

12. Fringe Benefits arising on options vested under Employees Stock Option Scheme (ESOS), 2006 are charged to Profit and Loss Account and credited to Stock Options Outstanding Account. On allotment of shares, corresponding amount is transferred from Stock Options Outstanding Account to Securities Premium Account.

13. Premium on Redemption of Debentures / Bonds

Premium on Redemption of Debentures / Bonds is accounted on redemption and set-off against the Securities Premium Account.

14. Tax Expense

(a) Current income tax is measured and accounted based on the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961 at the tax rates prevailing during the year.

(b) Deferred Tax

Deferred tax is measured and accounted based on the tax rates and tax laws enacted or substantively enacted at the Balance Sheet date.


Mar 31, 2011

1. Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP), generally under the historical cost convention on accrual basis and exceptions to this basis, if any, are herein specifically mentioned. GAAP comprises of mandatory Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI), the provisions of the Indian Companies Act, 1956 and the Guidelines issued by ICAI and Securities and Exchange Board of India (SEBI). Accounting policies have been consistently adopted except where a change in existing GAAP requires a change in accounting policy hitherto in use.

2. Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

3. Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work in Process & Semi-finished goods are valued at cost or net realisable value whichever is lower. The value of WIP and Semi- finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

(d) Real Estate Projects are valued at cost or net realisable value whichever is lower.

4. Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash at bank, in hand (including cheques in hand) and short term investment with an original maturity of three months or less.

5. Fixed Assets

Fixed Assets are valued and shown adopting the following basis:

(a) Fixed assets and Capital work-in-progress of all the cement manufacturing facilities are revalued and shown at revalued amounts as at 31st March 2004. All other Fixed assets acquired are shown at the cost of acquisition.

(b) Fixed assets acquired on hire purchase or on Financial Lease are shown at their principal cost, excluding the interest cost included in these agreements which is charged to revenue over the tenure of the agreement.

(c) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and commissioned. All costs including financing costs incurred on specific projects/acquisition of undertakings are charged to the concerned heads.

(d) (i) The company provides depreciation on written down value method for Motor Vehicles and for assets acquired prior to 1-4-1982 at Head Office and at Sankarnagar.

(ii) Software development costs are capitalised and depreciated along with computers on Straight Line method as per Section 205(2)(b) of the Companies Act, 1956.

(iii) Ships are depreciated on Straight Line method, over its estimated useful life.

(iv) Long term Franchisee Rights are capitalised and amortised over a period of ten years.

(v) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted.

(vi) The depreciation on incremental value arising from the revaluation of fixed assets is charged to the Revaluation Reserve Account.

6 (a) Foreign Currency Transactions Where Foreign Currency loans have been availed to acquire fixed assets from outside India, the outstanding liability on these loans is stated at the exchange rate of the rupee as at the year end or at contracted rates with a corresponding adjustment to the carrying cost of the relevant assets. Depreciation is charged to accounts on the values so adjusted over the remaining life of the asset.

(b) Foreign Exchange transactions are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current Assets and all Liabilities (other than for acquiring fixed assets as mentioned in 6(a) above), in Foreign currencies are translated at values prevailing as at the year end. Gains/Losses, if any, arising therefrom are recognised in the Profit and Loss Account.

(c) Forward Exchange contracts used to hedge Foreign Currency Transactions are initially recognised at the spot-rate on the date of contract. Forward Exchange contracts remaining unsettled at the end of the year are translated at the year end rates. The difference in translation of Forward Exchange contracts are recognised in the Profit and Loss Account. The discount or premium is amortised over the life of the contract.

7. (a) Sales include excise duty, revenue from trade related activities and sales tax deferred as reduced by consideration for assignment of Sales Tax deferral liability and is net of rebates, discounts and incentives.

(b) Revenue from construction projects under Real Estate and Property Development Division is recognised on percentage of completion method.

(c) Revenue on time charter of ships is recognized on a proportionate basis.

8. Research and Development

Research and Development expenses not resulting in any tangible property/equipment are charged to revenue.

9. Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

10. Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

11. Trade investments and investments in subsidiary companies are long term investments and are carried at cost. The other investments are carried at lower of cost or realisable value. Provision for diminution in value is made wherever necessary in accordance with the mandatory Accounting Standard.

12. Employee Benefits

Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis for which a trust has been created. The Actuarial gains / losses arising on retirement benefits are also recognised in the Profit and Loss Account. Unavailed leave balances are accounted based on respective employee's earnings as at the balance sheet date.

13. Fringe Benefits arising on options vested under Employees Stock Options Scheme (ESOS), 2006 are charged to Profit and Loss Account and credited to Stock Options Reserve Account. On allotment of shares, corresponding amount is transferred from Stock Options Reserve Account to Securities Premium Account.

14. Premium on redemption of Debentures/Bonds

Premium on redemption of Debentures / Bonds is accounted on redemption and set-off against the Securities Premium Account.

15. Tax Expense

(a) Current income tax is measured and accounted based on the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961 at the tax rates prevailing during the year.

(b) Deferred Tax

Deferred tax is measured and accounted based on the tax rates and tax laws enacted or substantively enacted at the Balance Sheet date.


Mar 31, 2010

1. The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP), generally under the historical cost convention on accrual basis and exceptions to this basis, if any, are herein specifically mentioned. GAAP comprises mandatory Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI), the provisions of the Indian Companies Act, 1956 and the Guidelines issued by ICAI and Securities and Exchange Board of India (SEBI).

2. Fixed Assets are valued and shown adopting the following basis:

(a) Fixed assets and Capital work-in-progress of all the cement manufacturing facilities are shown at revalued amounts as at 31a March 2004. All other Fixed assets acquired are shown at the cost of acquisition. All costs including financing costs and applicable overheads incurred on specific projects/acquisition of undertakings are also capitalised.

(b) Fixed assets acquired on hire purchase or on Financial Lease are shown at their principal cost, excluding the interest cost included in these agreements which is charged to revenue over the tenure of the agreement

(c) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and commissioned.

(d) (i) The company provides depreciation on written down value method for Motor Vehicles and for assets acquired prior to 1 -4-1982 at

Head Office and at Sankarnagar. (ii) Software development costs and Computers are depreciated on Straight Line method as per Section 205(2)(b) of the Companies Act,

1956. (iii) Ships are depreciated on Straight Line method, over its estimated useful life. (iv) Long term Franchisee Rights are capitalised and amortised over the initial period of ten years. (v) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted. (vi) The depreciation on incremental value arising from the revaluation of fixed assets is charged to the Revaluation Reserve Account. (vii) Fixed assets are tested for impairment and impairment toss, if any, is provided by a charge to the Profit and Loss Account.

3. (a) Where Foreign Currency loans have been availed to acquire fixed assets from outside India, the outstanding liability on these loans is

stated at the exchange rate of the rupee as at the year end of at contracted rates with a corresponding adjustment to the carrying cost of the relevant assets. Depreciation is charged to accounts on the values so adjusted over the remaining life of the asset. (b) Foreign Exchange transactions are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current Assets and all Liabilities, (other than for acquiring fixed assets as mentioned in 3(a) above), in Foreign currencies are translated at values prevailing as at the year end. Gains/Losses if any, arising therefrom are recognised in the Profit and Loss Account.

4. (a) Sales irducteexdsediJty, revenue from tracle related adMties and sales tax deferred as reduce

Tax deferral liability and is net of rebates, discounts and incentives.

(b) Revenue from construction projects under Real Estate and Property Development Division is recognised on percentage of completion method.

(c) Revenue on time charter of ships is recognized on a proportionate basis.

5. Valuation of inventories of raw materials, packing materials, stores, spares, fuels and work-in-process is at weighted average cost. Semi- finished goods, finished goods and Real Estate Projects are valued at cost or net realisable value whichever is tower. The value of finished goods includes excise duty.

6. Research and Development expehses not resulting in any property/equipment are charged to revenue under nominal heads.

7. Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use.

8. Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on fmalization.

9. Trade investments and investments in subsidiary companies are long term investments and are carried at cost. The other investments are carried at lower of cost or realisable value. Provision for diminution value is made wherever necessary in accordance with the Accounting Standard.

10. Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis for which a trust has been created. The Actuarial gains / losses arising on retirement benefits are also recognised in the Profit and Loss account. Unavailed leave balances are accounted based on actuarial principles.

11. Fringe Benefits arising on options vested under Employees Stock Options Scheme (ESOS), 2006 are charged to Profit and Loss Account and credited to Stock Options Reserve Account. On allotment of shares, corresponding amount is transferred from Stock Options Reserve Account to Securities Premium Account.

12. Premium on redemption of Debentures / Bonds is accounted on redemption and set off against the Securities Premium Account.

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