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Notes to Accounts of Orient Cement Ltd.

Mar 31, 2017

a) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs,1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

During the year ended 31st March 2017, the amount of per share dividend recognized as distribution to equity shareholders was Rs,1.00 per share (31st March 2016: Rs,1.00 per share).

The Board of Directors, in its meeting on 5th May 2017, have proposed a final dividend of Rs,0.50 per equity share for the financial year ended 31st March 2017. The proposal is subject to the approval of shareholders at the forthcoming Annual General Meeting and if approved would result in a cash outflow of approximately Rs,1,232.88 lacs including corporate dividend tax.

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

1. Term Loans from Banks are secured by way of a first ranking pari passu mortgage on a ii the immovable properties both present and future and first ranking pari passu charge on a ii the movable fixed assets of Chittapur taiuka unit at Guibarga District. Further, the above loans are secured by way of a second charge on all. the current assets of the above unit.

The above loans are repayable in 56 quarterly installments ranging from 1% to 2.5% of the loan amount and repayment starting from 50th June, 2017 and ending on 51st March, 2051. The above loans carry interest

2. Deferred sales tax loan is interest free and payable in 26 unequal installments, starting from February, 2012 and ending on January, 2025.

5. Cash credit from a bank is secured by way of first charge on all the stock and book debts of the Company. The cash credit is repayable on demand and carries interest

4. Commercial papers from a bank are availed for periods ranging from 90 to 180 days and carries interest

| SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

There are no significant areas involving a high degree of judgment or complexity.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans

The cost of defined benefit gratuity plan and its present value of the obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, an employee benefit obligation is highly sensitive to changes in these assumptions particularly the discount rate and estimate of future salary increase. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 32.

Share-based payments

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 33.

GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. The gratuity plan is governed by The Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the balance sheet for the plan.

| EMPLOYEE STOCK OPTION SCHEME

The Company provides share-based payment schemes to its employees. The Company had formulated an employee stock option scheme, namely Employee Stock Option Scheme 2015 (ESOP) during the year ended 31st March 2015 for grant of ESOP. The relevant details of the scheme and grant are as below:

The weighted average remaining contractual life for the stock options outstanding as at 31st March 2017 is 3.93 years (31st March 2016 4.93 years).

The weighted average fair value of the stock options granted was Rs,105.64. The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:

The expected life of the stock is based on current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

LEASES

Operating lease: Company as lessee

Certain office premises, equipments, depots etc are obtained by the Company on operating [ease. The [ease term is for 1-3 years and renewable for further period either mutually or at the option of the Company. Lease agreements have price escalation clauses. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancelable.

| CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs,765.44 lacs (31st March 2016: Rs,2,519.56 lacs, 1st April 2015: Rs,16,414.46 lacs).

* Based on discussions with the solicitors/ favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary. The timing of outflow of resources in not ascertainable.

RELATED PARTY DISCLOSURES List of related parties List of key management personnel

Chairman and Non-Executive Director Mr. CK. Birla

Managing Director & CEO Mr. D.D. Khetrapal

Other Non-Executive Directors Mrs. Amita Birla

Mr. Rajeev Jhawar Mr. V.K. Dhall Mr. R. Jhunjhunwala Mr. Janat Shah Mr. Swapan Dasgupta Chief Financial Officer Mr. Sushil Gupta

Company Secretary Mrs. Deepanjali Gulati

Related party transactions

The details of related parties transactions entered into by the Company for the year ended 31st March 2017 and 31st March

2016, and the details of amounts due to or due from related parties as at 31st March 2017, 31st March 2016 and 1 st April 2015 are as follows:

Note: The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.

I Remuneration paid to the Managing Director & CEO of the Company during the financial year ended March 31, 2017 I has exceeded the limit prescribed under Section 197 read with Schedule V of the Companies Act, 2013.

The Company is in the process of applying to Central Government for waiver of excess remuneration amounting to Rs,444.99 lacs paid to the Managing Director & CEO of the Company during the financial year 2016-17.

I The management has considered that the Company has a single reportable segment based on nature of products, production process, regulatory environment, customers and distribution methods.

Further, the Company is engaged in single product line of manufacturing and selling cement and its customers and non-current assets are located in India only.

I Figures for the year ended 31st March, 2017 are inclusive of figures pertaining to the Company''s plant at Chittapur, Karnataka which had commenced commercial production with effect from 26th September, 2015 and hence are not comparable with the figures of corresponding year ended 31st March, 2016.

US FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s financial liabilities comprise loans and borrowings, security deposits, and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include trade and other receivables, cash and cash equivalents.

The Company is exposed to market risk, credit risk and liquidity risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate financial risk governance framework for the Company. The Risk management committee provides assurance to the Company''s management that the Company''s risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade receivables, borrowings, etc.

Interest rate risk

The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade receivables

Customer credit risk is managed by the respective department subject to Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on individual credit limits as defined by the Company. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on historical data of credit losses.

The ageing analysis of the receivables (gross of provision) has been considered from the date the invoice falls due.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations or at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credits, bank loans among others.

Maturity profile of Financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

* including future interest

CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value and keep the debt equity ratio within acceptable range.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders and issue new shares.

BSH STANDARDS ISSUED BUT NOT EFFECTIVE

The amendments to standards that are issued, but not yet effective, up to date of issuance of the Company''s financial statements are disclosed below.

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of cash flows'' and Ind AS 102, ''Share-based payment’. The amendments are applicable to the Company from April 1, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes. It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ''fair values'', but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that include a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement.

The company will adopt these amendments from their applicability date.

EH FAIR VALUE

The fair value of the financial assets and liabilities approximates their carrying amounts as at the balance sheet date.

^9 FIRST-TIME ADOPTION OF IND AS

These financial statements, for the year ended 31 March 2017, are the first financial statements, the Company has prepared in accordance with Ind AS. For periods upto and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative periods data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet is prepared as at 1st April 2015, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April 2015 and the financial statements as at and for the year ended 31 March 2016.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirement under Ind AS. The Company has applied the following exemption:

- Since there is no change in the functional currency, the Company has elected to continue with the carrying value for all of its property, plant and equipment as recognized in its Indian GAAP financial as deemed cost at the transition date.

- The Company has not applied Ind AS 20 "Accounting for Govt. Grants and Disclosure of Govt. Assistance" retrospectively and has used its previous GAAP carrying amount of deferred sales tax loan at the date of transition to Ind AS as carrying amount on deferred sales tax loan in the balance sheet as at 1st April 2015.

A) Footnotes to the reconciliation of Equity as at 1st April 2015 and 31st March 2016 and Statement of Profit and Loss for the year ended 31st March 2016

a. Depreciation of Property, plant and equipment

Ind AS 16 requires tangible items that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and are expected to be used during more than one period, to be classified as property, plant and equipment. Accordingly, items such as spare parts, stand-by equipment and servicing equipment are capitalized when they meet the definition of property, plant and equipment, i.e., if the company intends to use these during more than one period. Otherwise, such items are classified as inventory. At the date of transition to Ind AS, an increase of Rs,387.09 lacs was recognized as on 1st April 2015 in property, plant and equipment net of accumulated depreciation due to recognition of spare and other items as property, plant and equipment. For the year ended on 31st March 2016, increase in depreciation was charged in the statement of profit and loss Rs,71.33 lacs.

b. Dividend

Under Indian GAAP, proposed dividends including Dividend Distribution Taxes (DDT) are recognized as a liability in the period to which they relate, irrespective of when they are approved by the shareholders. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid.

In case of the Company, the declaration of dividend occurs after period end. Therefore, the liability recorded for dividend has been derecognized against retained earnings on 1st April 2015 and recognized in year ended 31st March 2016. The proposed dividend for the year ended on 31st March 2016, recognized under Indian GAAP was reduced from other payables and with a corresponding impact in the retained earnings.

c. Deferred tax

The various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity. On the date of transition, the net impact on deferred tax liabilities is Rs,32.03 lacs.

d. Re-classifications

The Company has made following reclassification as per the requirements of Ind-AS:

i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

ii) Re-Measurement gains/(losses) on defined benefit plans on long term employee benefit plans are re-classified from profit and loss to OCI.

iii) Non-cash incentives considered as separate performance obligations are netted off with revenue under Ind AS. However, under IGAAP the same was classified under Other Expenses''.

e. Borrowings

Under Indian GAAP, transaction costs incurred in connection with borrowings are amortized upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method.

f. Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit to profit as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

g. Intangible assets

As per the requirements of Ind AS 38, the Company has capitalized Rs,5,169.12 lacs (present value) being the cost of socio economic welfare expenditure and provision thereof has been made in the accounts. For more information, refer note 16.

h. Sale of Goods

Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss as an expense.


Mar 31, 2015

1. Corporate information

Orient Cement Limited (the Company) is a public Company domiciled in India. Its shares are listed on National and Bombay Stock exchanges in India. The cement undertaking of Orient Paper & Industries Limited (OPIL) had been transferred to the Company on a going concern basis w.e.f 1st April, 2012, pursuant to the scheme of arrangement approved by the Hon''ble Orissa High Court.

The Company is primarily engaged in the manufacture and sale of Cement and manufacturing facilities at present are located at Devapur in Telangana and Jalgaon in Maharashtra. The Company is also setting up a Greenfield Cement Project at Chittapur in Karnataka.

2. Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. Terms/ rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2015, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 1.75 per share (including interim dividend Rs. 0.75 per share) (31st March 2014: Rs. 1.50 per share, including interim dividend of Rs. 0.75 per share).

4. Plant & Machinery aggregating to Rs. 60,502.67 lacs has been acquired and installed during the period April 01, 2013 to March 31, 2015 (duly certified by chartered engineers) which, pending commencement of commercial production, has been carried forward as Capital Work-in-Progress in these financial statements. As legally advised, the Company is entitled for Investment Allowance under section 32AC of the Income Tax Act, 1961 ("Act") since the above assets were acquired and installed during the specified period. Accordingly, deduction u/s 32AC on above assets has been considered in computation of current tax for the year ended March 31,2015.

5. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed at least five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

6. CAPITAL AND OTHER COMMITMENTS

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. 16,414.46 lacs (31st March, 2014 Rs.82,351.39 lacs)

(b) For commitments relating to lease arrangements, please refer note

7. CONTINGENT LIABILITIES

(Rs. in Lacs)

31st March 2015 31st March 2014

Demands/claims by various Government authorities and others not acknowledged as debts and contested by the Company:

Excise Duty 3,769.59 3,676.21

Sales Tax 549.55 528.45

Escot Charges 14,398.60 11,010.60

Others 2,156.49 2,169.14

20,874.23 17,384.40

Against the above, payments have 467.29 450.13 been made under protest and/ or debts have been withheld by respective parties.

* Based on discussions with the solicitors/favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary.

8. The Company has been legally advised that it is eligible to claim credit for Advance tax of Rs. 1,698.15 lacs paid by Orient Paper & Industries Limited (demerged Company) under its PAN during the month of June, 2012, being the 1st installment for the financial year 2012-13, in terms of clauses 2.10, 6.1 (h) & (i) and 6.4 of the Scheme of arrangement approved by the Hon''ble High Court. In view of the above, the said payment of advance tax has been considered in the accounts for the year ended 31st March, 2013.

9. Based on the synergies, risks and return associated with business operations and in terms of Accounting Standard-17, the Company is engaged in a single reportable segment of manufacture and sale of cement during the year and hence treated the same as a single reportable segment as per Accounting Standard-17.

The Company at present, operates in India only and therefore the analysis of geographical segments is not applicable to the Company.

10. Charity and donation includes Rs. 200 lacs (31st March, 2014 : Rs. Nil) paid to Satya Electoral Trust, an approved Electoral Trust under the Income Tax Act, 1961.

11. PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped and rearranged wherever necessary, to conform to this year''s classification.


Mar 31, 2013

NOTE 1 CORPORATE INFORMATION

Orient Cement Limited (the Company) is a public Company domiciled in India and incorporated in the previous year on 22nd July, 2011 under the provisions of the Companies Act, 1956. The cement undertaking of Orient Paper & Industries Ltd (OPIL) has been transferred to the Company on a going concern basis w.e.f 1st April, 2012, pursuant to the scheme of arrangement approved by the Hon''ble Orissa High Court.

The Company is primarily engaged in the manufacture and sale of Cement and manufacturing facilities at present are located at Devapur in Andhra Pradesh and Jalgaon in Maharashtra.

NOTE 2 BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

NOTE 3 SCHEME OF ARRANGEMENT

a) Pursuant to the Scheme of Arrangement ("the scheme") approved by the Hon''ble High Court of Orissa, all the assets and liabilities of the Cement undertaking of Orient Paper & Industries Ltd (Demerged Company) have been transferred to and vested in the Company at their respective book values on a going concern basis from 1st April, 2012 being the appointed date.

As per the scheme, appointed date as approved by the Hon''ble High Court is 1st April, 2012 and effective date is 26th February, 2013 being the date on which the certified copy of the order sanctioning the said scheme is filed with the Registrar of Companies, Orissa in accordance with the Companies Act, 1956.

c) Pursuant to the scheme, 5 lacs equity shares of Rs. 1 each of the Company held by the demerged Company (OPIL) stand cancelled and the said amount has been credited to Capital Reserve.

d) Pursuant to the scheme, the Company has issued/alloted 204,868,760 equity shares of Rs. 1 each to the shareholders of the demerged Company aggregating to Rs. 2048.69 lacs, in the ratio of 1 equity share of face value of Rs. 1 each of the Company for every 1 equity share of face value of Rs. 1 each held in the demerged Company.

e) Pursuant to the scheme, the difference between the net book value of assets and liabilities of the Cement undertaking and shares issued to the shareholders of the demerged Company has been credited to General Reserve.

NOTE 4

The Company has not yet ascertained the stamp duty liability payable against Immovable Assets of Cement Undertaking of the Demerged Company transferred to the Company, pursuant to the Scheme of Arrangement approved by Hon''ble Orissa High Court as stated in Note 26 above and hence no provision thereof has been made in these financial statements and the same will be accounted for and capitalised with the respective assets, as and when the liability is ascertained.

NOTE 5 GRATuITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed at least five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to the change in market scenario.

NOTE 6 LEASES

Operating lease: company as lessee

Certain office premises, depots etc are obtained on operating lease. The lease term is for 1-3 years and renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement.

There are no restrictions imposed by lease arrangements. There are no subleases. The leases are cancelable.

NOTE 7 CAPITAL AND OTHER COMMITMENTS

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. 245.78 lacs (31st March, 2012 Rs. Nil)

(b) For commitments relating to lease arrangements, please refer note 30)

NOTE 8 CONTINGENT LIABILITIES

Rs.In lacs

31-Mar-13 31-Mar-12

Demands/claims by various Government authorities and others not acknowledged as debts and contested by the Company:

Excise Duty 9,327.53

Sales Tax 485.44

Escot Charges 7,638.60

Others 1,468.49

* 18920.06

Against the above, payments have been made under protest and/ or debts 323.02

- have been withheld by respective parties.

* Based on discussions with the solicitors/ favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary.

NOTE 9

The Company has been legally advised that it is eligible to claim credit for Advance tax of Rs. 1698.15 lacs paid by Orient Paper & Industries Limited (demerged Company) under its PAN during the month of June,2012, being the 1st installment for the current financial year, in terms of clauses 2.10, 6.1 (h) & (i) and 6.4 of the Scheme of arrangement approved by the Hon,ble High Court. In view of the above, the said payment of advance tax has been considered in these accounts.

NOTE 10

The appointment and remuneration of Rs. 270.05 lacs paid to Managing Director is subject to approval of the shareholders of the Company.

NOTE 11

Based on the Synergies, risks and return associated with business operations and in terms of Accounting Standard-17, the Company is engaged in a single segment of manifactured and sale of cement during the year and hence treated as a single reportable segment as per Accounting Standard-17.

The Company at present, operates in India only and therefore the analysis of geographical segment is not applicable to the Company.

NOTE 12 PREVIOuS YEAR FIGuRES

Previous year''s figures have been regrouped and rearranged wherever necessary. Further, the current year figures being inclusive of figures of Cement undertaking of Orient Paper & Industries limited merged with the Company w.e.f. 1st April, 2012 (pursuant to a scheme of arrangement refer note 26), are not comparable with the previous year''s figures.

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