Notes to Accounts of Shri Keshav Cements & Infra Ltd.

Mar 31, 2023

Company has only one class of shares referred to as equity shares having par value of Rs.10 each. Each holder of shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts.

Shares held by promoters at the end of the year

The company has no holding company.

No shares have been reserved for issue under options and contracts or commitments for the sale of shares or disinvestment.

No class of shares have been allotted as fully paid up pursuant to contract(s) without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the period of 5 years immediately preceding the Balance Sheet date.

iii) 3373 Lakhs & 767 Lakhs Term Loans from Canara Bank

Loan of Rs.3373 Lakhs and subsequent additional facility of Rs.767 Lakhs have been secured by mortgage of 850TPD Cement Plant II, along with mortgage of 35 Acres and 15 Guntas land and building at Plant II (Lokapur plant) owned and maintained by the Company. Fixed deposits of Rs.8 Lakhs are an additional security on the loan along with Rs.8000 Lakhs loan.

iv) 8000 Lakhs Loan from Canara Bank

The loan of Rs.8000 Lakhs is secured by a first charge on the project land of 95 Acres and 6 Guntas at S. No. 241, 242, 243/1, 243/3, 243/2, 244, 246, 250/1, 250/3, 250/4, 250/5, 251,255/1, 255/2, 256/1, 256/2, 256/3, 256/4, 257/1, 257/2, 257/3, 257/4, 258/1, 258/2, 258/3 and 258/4 (located at Bisarhalli Taluka and District Koppal, Karnataka), along with hypothecation on 20MW AC supply unit and associated equipments. Fixed deposits of Rs.8 Lakhs are an additional security on the loan along with Rs.4140 Lakhs loan.

v) 2000 Lakhs Working Capital Term Loan under GECL Scheme

The company has availed working capital term loan from Canara Bank under GECL Scheme 2.0. A secondary charge on the assets which have been offered as security to the bank for the other loans of the company.

vi) 1900 Lakhs Working Capital Term Loan under GECL Scheme

The company has availed working capital term loan from Canara Bank under GECL Scheme 2.0. A secondary charge on the assets which have been offered as security to the bank for the other loans of the company.

vii) 4000 Lakhs Loan from Canara Bank

This loan is secured by a first charge on land & Building (Civil Construction) situated at Bisarhalli of 47 acres 06 gunta owned by the company, bearing S.No. 245, B248/2, 249/1, 249/2, 250/2, 255/3, 255/4, 255/5 and 255/6, along with charge of Plant &

Machinery located at Bisarahalli.

viii) Sales tax Deferment Loan

The company has received three tranches of Interest free SGST loan from State Government of Karnataka granted under SGST promotion scheme. The same has been considered as a Government grant. This is secured by bank guarantees. The loans have a moratorium period of 10 Years and shall be repaid at the end of the moratorium period, maturing in the calendar year 2032 for all the three tranches.

ix) Unsecured Loan from Directors & Other Related Parties

This loan represents unsecured loans received from various directors and individual related parties, carrying an interest rate at the rate of 6% (Classified as Current Borrowings). Long-term loans obtained from Neel Holistic Infra Private Limited (formerly known as Katwa Constructions Company Private Limited) represent unsecured loans carrying an interest rate of 10% on Rs.900 Lakhs obtained on 29th March 2023 and 8% on other balances. However, if the Rs.900 Lakhs loan is prepaid within 1 year from the date of disbursement, the interest rate shall be 8%.

The terms of these loans were amended at the Board Meeting dated 16th March 2023 (and subsequent Extraordinary General Meeting dated 12th April 2023) of the company granting the right to the lenders to get the outstanding unsecured loan (as on 16th March 2023) converted into equity shares of the company at such price and on such date/time as may be determined by the Board after complying with the requisite sections/provisions/rules etc. as may be applicable to the Borrower Company'' for such conversion and subject to the approval of Shareholders and such other regulatory authority, as may be applicable from time to time.

As per the same, loans amounting to Rs.2400 Lakhs has been converted into equity shares at the valuation of Rs.125 per equity share, basis the resolution passed by the members in the EGM dated 12th April 2023. Consequently, this portion of the loan has been classified under ''Other Equity'' as on 31st March 2023 as per the principals laid down in IND AS 109.

x) Bank Overdraft

This loan is secured by a first charge on mortgage & hypothecation of stock and book debts of the company.

Common Collateral for both Work Capital Loans (Bank Overdrafts) and Term Loan Facilities

All loans (Working Capital & Term loans) have a common collateral - First charge of Mortgage & Hypothecation of Cement Plant I at Kaladgi (Dist. Bagalkot) including Land measuring 14 Acres and 8 Gunta, buildings and machinery at the same location.

Additionally, the loans carry the following guarantees -

Personal Guarantee of Mr. Venkatesh H Katwa (Chairman), Mr. Vilas H Katwa (MD), Mr. Deepak H Katwa (Executive Director & CFO) and Mr. H D Katwa (Chairman Emeritus)

Corporate Guarantee of M/s Katwa Infotech Ltd

27. CONTINGENT LIABILITIES AND COMMITMENTS
Particulars	Brief Description of the Matter	As At March 31, 2023	As At March 31, 2022
GST	Advance payments made by the company in resposne to Search & Seizure proceedings, conducted by GST Intelligence at company premises. [The same is appearing as part of Other Current Assets in the Financial Statements]	859.63	-
Cash outflows/asset write offs in respect of the above are determinable only on the receipt of judgements pending at various forums/authorities
Particulars	Brief Description of the Commitment	As At March 31, 2023	As At March 31, 2022
Capital Commitments	Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances)	141.24	-

The financial instruments are categorised into two levels based on the inputs used to arrive at fair value measurement as described below: Level 1: It includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments.

2) Financial Risk Management Objective and policies:

Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include Security deposits, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

2.1. 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 of risk interest rate risk. Financial instruments affected by market risk include loans and borrowings and deposits. The sensitivity analyses in the following sections relate to the position as at March 31, 2023 and March 31,2022.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions; and the non-financial assets and liabilities.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2023 and March 31, 2022.

2.2 Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.

The Company''s credit risk is primarily to the amount due from customers and loans. The Company maintains a defined credit policy and monitors the exposures to these credit risks on an ongoing basis. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with scheduled commercial banks with high credit ratings assigned by domestic credit rating agencies.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are unsecured and are derived from revenue earned from customers primarily located in India. The Company does monitor the economic environment in which it operates and the Company manages its Credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of customers to which the Company grants credit terms in the normal course ofbusiness.

On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade receivable. The management uses a simplified approach (i.e. based on lifetime ECL) for the purpose of impairment loss allowance, the Company estimates amounts based on the business environment in which the Company operates, and management considers that the trade receivables are in default (credit impaired) when counter party fails to make payments as per terms of sale/service agreements. However the Company based upon historical experience determine an impairment allowance for loss on receivables.

When a trade receivable is credit impaired, it is written off against trade receivables and the amount of the loss is recognised in the income statement. Subsequent recoveries of amounts previously written off are credited to the income statement.

The gross carrying amount of trade receivables is Rs.434.63 Lakhs (March 31, 2022: Rs.547.48 Lakhs). Trade receivables are generally realised within the credit period. The Company believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour.

2.3 Liquidity Risk:

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities.

Company accesses domestic financial markets, Banks and Financial Institutions to meet its liquidity requirements. The company’s liquidity is managed centrally with operating units forecasting their cash and liquidity requirements.

29. CAPITAL MANAGEMENT

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 or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company''s policy is to keep the gearing ratio between 40% and 60%. The gearing ratio of the company during the reporting period (including previous period) is substantially high due to substantial long term debt fund raised for the purpose of expansion of plant capacity and solar power generation plant set up. The management is of the opinion that the new investment will reduce the cost of production and increase the profitability of the company in near future and reduce the debt. The company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the Company''s capital management is to maximise the shareholder value.

High Gearing ratio is mainly attributed to the significant borrowings for solar power plant at Bisarhalli and cement plant expansion at Lokapur. These expansion project have been completed resulting in depreciation charge and Interest cost to the equity.

30 SEGMENT INFORMATION

The company''s operating segments are established on the basis of those components that are evaluated regularly by the Executive Committee (the ''Chief Operating Decision Maker'' as defined in Ind AS 108- ''Operating Segments''), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the deferring risks and returns and internal business reporting systems.

The company has four principal operating segments; viz. 1. Manufacturing and trading in Cements (MTC), 2. Trading in Coal (TC), 3. Dealers of Petrol and Diesel (TPD), and 4. Solar Energy generation and Sale (SP).

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

i. Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

ii. Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

31 Leases

On adoption of IND AS-116, the Company recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IND AS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 April 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 April 2019 was 12.0% p.a.

32 OTHER EXPLANATORY INFORMATION

1 Dues to Micro, Small and Medium enterprises

The Company has Rs. 105.10 Lakhs (PY Rs.165.62 Lakhs) dues to micro and small enterprises as at 31st March 2023. However the same is not outstanding for more than 45 Days. The information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

2 Subsequent events:

The company has converted a portion of the loans obtained from the Promoter Group into Equity Shares vide the Extraordinary General Meeting held on 12th April 2023 (Board Meeting dated 16th March 2023), amounting to Rs.2400 Lakhs at the valuation of Rs.125 per equity share. Additionally, the company has also issued equity shares and share warrants to other investors in the same meeting.

3 All amounts have been rounded off to nearest rupee in lakhs and due to this rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.

4 The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current requirements.

5 The Company does not have any transactions with companies struck-off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

6 The Company does not have any immovable property (other than properties where the Company is a lessee and the lease agreements are duly executed in the favour of the lessee) whose title deeds are not held in the name of the Company.

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

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

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

10 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

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

11 The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies ("ROC") beyond the statutory period.

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

13 The Company has not been declared a wilful defaulter by any bank or financial institutions or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

14 The Company has not used any borrowings from banks and financial institutions for purpose other than for which it was taken.

15 These financial statements were approved for issue by the Board of Directors on May 25, 2023.

35 Disclosure on Government Grants

(a) Sales Tax deferment loan has been considered as a government grant and the difference between the fair value and nominal value as on date is recognized as an income over the life of the grant. Every year, interest expense is accounted based on the fair interest rate used for determining the fair value of the loan on the date of receipt of the loan.

(b) Accordingly, an amount of Rs. 65.12 Lakhs (PY - 19.24 Lakhs) has been accounted as Other Income in respect of the same.

(c) Additionally, an amount of Rs.41.00 Lakhs (PY - 19.24 Lakhs) has been accounted as Interest Expense on account of the changes in the Fair Value.

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Mar 31, 2018

A.1 Corporate information and significant accounting policies

Corporate information

Shri Keshav Cements and Infra Limited (Formerly Katwa Udyog Limited) (''the Company'') is a public limited company domiciled in India and registered under the Companies Act, 1956. The Company was incorporated on March 17, 1993 and is engaged in the business of manufacturing and trading in cements, trading in coal, trading in petroleum products and in the business of generation and distribution of solar energy.

2. Company has only one class of shares referred to as equity shares having par value of Rs.10each. Each holder of shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential a mounts.

i) Loan from Syndicate Bank (1350 lakhs)

This loan is secured by a first charge on all the fixed assets (both present and future)of the company in respect of Unit I & II. This loan is repayable full on 31st August 2016 and hence it is classified under other current financial liabilities. (Also refer note 14)

ii) Axis Bank Loan 704 Lakhs

a) 454 Lakhs loan

This loan is secured on all the fixed assets of the company along with Syndicate bank and it is taken to take over the existing term loan of Karnataka bank. This loan is repaid full on 31st August 2018 hence classified under other current financial liabilities. (Also refer Note 14)

b) 250 Lakhs loan

This loan is secured on the personal property and on personal guarantee of the directors. This loan preclosed on 31st March 2018 hence classified under other current financial liabilities. (Also refer Note 14)

iii) 7.3 Lakhs of loan for Bolero

This loan is secured by hypothecation of Bolero car.

iv) 500 lakhs loan from Sarawat Bank for business needs

This loan is secured on all piece and parcel of the property comprising land with building, bearing plot no. 2 out of Sy no. 215/2, situated at 6th cross, Nazar camp, Madhavpur, Vadagaon, Belgaum - 590005. This loan is repayable in 120 equated monthly installments.

v) 24 lakhs of loan for Innova

This loan is secured by hypothecation of Innova car.

vi) 4140 Lakhs Term Loan from Syndicate Bank for Project Expansion

Loan of Rs. 3373 Lakhs is secured by a first charge on the hypothecation of RM, WIP, Stock in trade, assignments of both units and mortgage / hypothecation of entire block of fixed assets incl 35 acres of land at Lokapur plant. This loan is taken to enhance the grinding capacity of the cement mill at lokapur plant from 200 TPD to 1100 TPD . Repayment period of this loan is 9 Years and 3 Months. An additional loan of Rs.767 Lakhs has been taken on the same terms ans conditions to meet the additional cost of pollution control equipment and additional crusher units.

vii) 8000 Lakhs Loan from Syndicate Bank for Solar Project

This loan is secured by a first charge on project land 103 acres 34 gunta in the name of Vilas Katwa, his wife Smt. Tina V Katwa and Deepak Katwa and his wife Smt. Prajyokta Katwa, valued at Rs 684 Lakhs, hypothecation of 20 MW AC supply unit valued at 99.52 crores and associated securities like power excavation, bay extension erection worth Rs 876 Lakhs. This loan is taken for setting up 20MW captive solar power at Bisarahalli with the cost of Rs 11922 Lakhs. Repayment term is 13 years including the moratorium period of 1 year.

viii) Bank Overdraft

This loan is secured by a first charge on mortgage & hypothecation of block of fixed assets incl land 14 acres 8 guntas and building and machinery of cement plant at plant Kaladgi.

There are no amounts outstanding to Micro, Small and Medium Enterprises as at March 31, 2018 and no amount were over due during the year for which disclosure requirements under Micro, Small and Medium Enterprises Development Act, 2006 are applicable.

3. CONTINGENT LIABILITIES AND COMMITMENTS

i. Contingent liabilities and Commitments as at 31 March 2018: Nil (Previous year As at 31 March 2017: Nil).

ii. The Sale Tax officer Kolhapur, Maharastra has raised a demand related to FY 2012-13 amounting to Rs 34.95 Lakhs (Incl interest and penalty), however the company has filed an appeal against the order by depositing 10% of the disputed MVAT amount of Rs 1.75 Lakhs and the management is of the view that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

The financial instruments are categorised into two levels based on the inputs used to arrive at fair value measurement as described below:

Level 1: Quoted Prices (Unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

1) Financial Risk Management Objective and policies:

"Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include Security deposits, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company senior management oversees the management of these risks.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below."

1.1. 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 of risk interest rate risk. Financial instruments affected by market risk include loans and borrowings and deposits.

The sensitivity analyses in the following sections relate to the position as at March 31, 2018 and March 31, 2017.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt.

"The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions; and the non-financial assets and liabilities."

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

2.2 Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

2.3 Credit Risk:

"Credit risk is the risk that a customer or counter party to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises from company''s outstanding receivables from customers."

"The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Sales made to dealers on credit are generally secured through Security deposit amount received from dealers."

2.4 Liquidity Risk:

"Liquidity risk arises from the Company''s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities. Company accesses domestic financial markets, Banks and Financial Institutions to meet its liquidity requirements. The company''s liquidity is managed centrally with operating units forecasting their cash and liquidity requirements."

Maturity Profile of Financial Liabilities based on contractual undiscounted amounts:

4. CAPITAL MANAGEMENT

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 or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company''s policy is to keep the gearing ratio between 40% and 60%. The gearing ratio of the company during the reporting period (including previous period) is substantially high due to substantial long term debt fund raised for the purpose of expansion of plant capacity and solar power generation plant set up. The management is of the opinion that the new investment will reduce the cost of production and increase the profitability of the company in near future and reduce the debt. The company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholder value.

5. SEGMENT INFORMATION

The company''s operating segments are established on the basis of those components that are evaluated regularly by the Executive Committee (the ''Chief Operating Decision Maker'' as defined in Ind AS 108- ''Operating Segments''), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the deferring risks and returns and internal business reporting systems.

The company has three principal operating segments; viz.

1. Manufacturing and trading in Cements (MTC), 2. Trading in Coal (TC) and 3. Dealers of Petrol and Diesel (TPD).

"The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting."

"i. Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”."

"ii. Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”."

"iii. The business, which were not reportable segments during the year, have been grouped under the “Others” segment. This mainly comprises of sale of Clinker, Fly ash and other anciliary products."

Explanations to the reconciliation of Statement of Profit and loss as previously reported under IGAAP to Ind AS:

I. Revenue from operations:

"As per Schedule III Division II of Companies Act, 2013, revenue from sale of products should be inclusive of Excise Duty. Further, reclassification of Other operative income to Other income made. There is no adjustment as per Ind AS."

II. Coast of material consumed and other manufacturing expenses:

Reclassification of raw material, packing material, work in progress, stores and spares and stock in trade inventory and their consumption made as per revised Schedule II format. There is no adjustment for the value as per Ind AS.

III. Employee Benefit Expenses:

Gratuity provision is accounted as per Ind AS 19- "Employee Benefits". Further, Directors remuneration is reclassified from Sitting Fees under Other expenses.

IV. Finance Costs

"Amount includes adjustment regarding interest recognition as per EIR method, considering net cash flow in relation to the respective borrowing."

V. Depreciation and amortisation expenses

The shown reduction to charge of depreciation is due to revised estimate of useful life of the asset as per Schedule II of The Companies Act 2013.

VI. Other Expenses:

Director remuneration and Excise Duty paid is reclassified from Other expenses and Revenue from operation respectively.

VII. Other comprehensive income:

Actuarial Gain/(Loss) is recognised as Other comprehensive income as per IndAS 19- "Employee Benefits".

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Mar 31, 2015

A) NOTES ON ACCOUNTS:

i) The previous year's figures have been reworked, regrouped, rearranged and re-classified wherever necessary.

ii) The sundry debtors, sundry creditors and advances are subject to Confirmation and are stated as per books.

ii) In the opinion of the Directors, current assets, loans and advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

iii) The unit is cement-manufacturing unit. During the year Company has manufactured cement. Company was also engaged in coke & Cement trading and petrol pump activities. The various quantity of raw material consumption and other inputs required for production of cement and consumption of electricity and other manufacturing expenses are highly technical in nature therefore; we have totally relied on the statement given by the management.

iv) Inventory valuation is as valued and certified by the management.

v) The previous year's modvat balance brought forward is Rs. 3,39,383/- during the year Company has availed modvat credit of Rs. 1,02,17,373 /- comprises of modvat credit on capital goods Rs. 11,61,820/- and modvat credit on raw material Rs. 83,55,814/-, and on Service Tax Rs. 6,99,739/-. The Company has deducted modvat credit and balance is carried forwarded.

vi) As per the guidance note issued by the Institute of Chartered Accountants of India the Company has worked out MAT credit of Rs. 2,28,35,284/- and it is shown under the head Other Current Assets as 'MAT Credit entitlement.

b) IMPAIRMENT OF ASSETS AS -28:

On the aspect of compliance of AS-28 on impairment of assets, the management asserts that its assets have not undergone by impairment. Therefore no provision is called for the impairment of assets.

c) BORROWING COSTS AS-16 :

There are no items of borrowing cost hence nothing is reportable.

d) RELATED PARTY DISCLOUSERS AS-18 :

It is reported by the management and as per the information and explanations given to us. In our verification of books of accounts there are related party transactions:

As per Accounting Standard (AS-18) "Related Party Disclosures" notified in the Companies (Accounting Standards) Rules 2006, the disclosures of transactions with the related as defined in AS-18 are given below:

e) Key Management Personnel

1. Mr. Venkatesh Katwa Chairman

2. Mr. Vilas H. Katwa Managing Director

3. Mr. Deepak Katwa Director

II. Relative of Key Management Personnel

1. Mr. H.D. Katwa

2. Mrs. N.H. Katwa

3. Mr. Y. M. Katwa HUF

4. Mr. P.G. Katwa HUF

III. Enterprises where key management personnel have significant influence

1. Katwa Finlease Limited

2. Katwa Infotech Limited

3. Katwa Construction Co. Ltd.

4. Katwa Oil Limited

5. Katwa Finance & Investment Co. Ltd.

6. Katwa Inc (100% subsidiary of Katwa Infotech Ltd)

f) AMOUNT DUE TO MICRO SMALL AND MEDIUM ENTERPRISES: DISCLOSER UNDER MSMED ACT 2006:

It is reported by the management that based on the information so far available with company up to 30th April, 2015 in respect of MSEs (as defined in "The Micro Small and Medium Enterprises Development Act 2006") the payments have been made to MSEs as per the terms and conditions of payments and on the agreed dates, hence interest provision is not made.

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Mar 31, 2014

A) AMOUNT DUE TO MICRO SMALL AND MEDIUM ENTERPRISES: DISCLOSER UNDER MSMED ACT 2006

It is reported by the management that based on the information so far available with company up to 30th April, 2014 in respect of MSEs (as defined in ''The Micro Small and Medium Enterprises Development Act 2006") the payments have been made to MSEs as per the terms and conditions of payments and on the agreed dates, hence interest provision is not made.

1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT

PROVIDED FOR)_

As at 31 As at 31 Particulars March 2014 March 2013

(A) Contingent Liabilities

(a) Claims against the company not acknowledged as debts

(b) Guarantees Nil Nil

(c) Other money for which company is contingently liable -Bills discounted with banks

(B) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Nil Nil

(b) Uncalled liability on shares and other investments partly paid

(c) Others

TOTAL HA) (B)]

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Mar 31, 2013

I) The previous year''s figures have been reworked, regrouped, rearranged and re-classified wherever necessary.

ii) The sundry debtors, sundry creditors and advances are subject to Confirmation and are stated as per books.

ii) In the opinion of the Directors, current assets, loans and advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

iii) The unit is cement-manufacturing unit. During the year Company has manufactured cement. Company was also engaged in coke & Cement trading and petrol pump activities. The various quantity of raw material consumption and other inputs required for production of cement and consumption of electricity and other- manufacturing expenses are highly technical in nature therefore; we have totally relied on the statement given by the management.

iv) Inventory valuation is as valued and certified by the management.

v) Company has availed modvat credit of Rs. 95,20,145/- comprises of modvat credit on capital goods Rs. 20,40,154/- and modvat credit on raw material Rs. 74,79,991/-, The Company has deducted modvat credit of Rs. 20,40,154/- from the plant and machinery & Rs. 74,79,991/- from the raw materials. Balance amount of modvat of Rs. 19,03,946/-is carried forwarded.

vi) As per the guidance note issued by the Institute of Chartered Accountants of India the Company has worked out MAT credit of Rs. 1,68,22,620/- and it is shown under the head Loans and Advances as''MAT Credit C/fd.''.

a) IMPAIRMENT OF ASSETS AS-28:

On the aspect of compliance of AS-28 on impairment of assets, the management asserts that its assets have not undergone by impairment. Therefore no provision is called for the impairment of assets.

b) BORROWING COSTS AS-16:

There are no items of borrowing cost hence nothing is reportable.

c) RELATED PARTY DISCLOUSERS AS-18:

It is reported by the management and as per the information and explanations given to us. In our verification of books of accounts there are related party transactions:

As per Accounting Standard (AS-18) "Related Party Disclosures" notified in the Companies (Accounting Standards) Rules 2006, the disclosures of transactions with the related as defined in AS-18 are given below:

I. Key Management Personnel

1. Mr. Venkatesh Katwa Chairman

2. Mr. Vilas H. Katwa Managing Director -. ''

3. Mr. Deepak Katwa Director

II. Relative of Key Management Personnel

1. Mr. H.D. Katwa

2. Mrs. N.H. Katwa

3. Mr. Y. M. Katwa HUF

4. Mr. P.G. Katwa HUF

III. Enterprises where key management personnel have significant influence

1. Katwa Finlease Limited

2. Katwa Infotech Limited

3. Katwa Construction Co. Ltd.

4. Katwa Oil Limited

5. Katwa Finance & Investment Co. Ltd.

6. Katwa Inc (100% subsidiary of Katwa Infotech Ltd)

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Mar 31, 2012

(1) Investments valued at other than cost All the above investments stated at cost except the following:

(i) Investments in partnership firms are stated at amount invested as capital contributions from time to time as adjusted by interest on capital, share or profit/loss from firm and drawings by the company from the firm

(ii] Investments in shares of a subsidary) shown as traded investments has been valued at cost less other than temporary diminution in value .

(2) Quoted Investments -

Aggregate amount Market value

(3) Unquoted Investments

Aggregate amount

Note:

Mode of Valuation :

(a} Raw Materials, Stores and Spares, Loose Tools and Packing materials are valued at cost

(b) Work-in-Progress are valued at cost or Net Realisable Value, whichever is lower

(c]Finished Goods and stock-in-trade are valued at cost or Net Realisable Value, whichever is lower

(A) Trade receivables outstanding for more than six months from the date they became due for pay- ment

(i) Secured, considered good

(ii) Unsecured considered good

(iii) Doubtful

Less: Allowance for bad and doubtful advances

(B) Trade Receivables (others)

(i) Secured, considered good

(ii) Unsecured considered good

(iii) Doubtful

Less: Allowance for bad and doubtful advances

4 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Rs. Rs.

As at 31 As at 31 Particulars March 2012 March 2011

(A) Contingent Liabilities

(a) Claims against the company not acknowledged as debts

(b) Guarantees

(c) Other money for which company is contingently liable -Bills discounted with banks

(B) Commitments

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

(b) Uncalled liability on shares and other investments partly paid

(c) Others

TOTAL (A) (B)l

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Mar 31, 2010

I) The previous years figures have been reworked, regrouped, rearranged and re-classified wherever necessary. h) The sundry debtors, sundry creditors and advances are subject to Confirmation and are stated at book balances thereof.

ii) In the opinion of the Directors, current assets, loans and advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

iii) The unit is cement-manufacturing unit. During the year Company has manufactured cement. Company was also engaged in coke & Cement trading activities. The various quantity of raw material consumption and other inputs required for production of cement and consumption of electricity and other manufacturing expenses are highly technical in nature therefore; we have totally relied on the statement given by the management.

iv) Inventory valuation is as valued and certified by the management.

v) Company has availed modvat credit of Rs. 41,88,044/-comprises of modvat credit on capital goods Rs. 13,07,4191- and modvat credit on raw material Rs. 25,94,999/-, and Service Tax of Rs. 2,85,622/- The Company has deducted modvat credit of Rs. 24,04,118/- from the plant and machinery & Rs. 48,3 8,945/- from the raw materials. Balance amount of modvat of Rs. 2,69,668/-is carried forwarded.

b IMPAIRMENT OF ASSETS AS-28:

On the aspect of compliance of AS-28 on impairment of assets, the management asserts that its assets have not undergone by impairment. Therefore no provision is called for the impairment of assets.

c. BORROWING COSTS AS-16:

There are no items of borrowing cost hence nothing is reportable.

d. RELATED PARTY DISCLOUSERSAS-18:

It is reported by the management and as per the information and explanations given to us. In our verification of books of accounts there are related party transactions:

As per Accounting Standard (AS-18) "Related Party Disclosures" notified in the Companies (Accounting Standards) Rules 2006, the disclosures of transactions with the related as defined in AS-18 are given below:

L Key Management Personnel

1. Mr. H.D. Katwa, Chairman

2. Mr. Venkatesh Katwa Chairman

3. Mr. Vilas H. Katwa Managing Director

4. Mr. Deepak Katwa Director

II. Relative of Key Management Personnel

1. Mrs. N.H. Katwa Director

III. Enterprises where key management personnel have significant influence

1. Katwa Finlease Limited

2. Katwa Infotech Limited

3. Katwa Construction Co. Ltd.

4. Katwa Oil Limited

5. Katwa Finance & Investment Co. Ltd.

6. Katwa Inc (100% subsidiary of Katwa Infotech Ltd)