i. Besides the land specified above, the Company holds other leasehold land For which only ground rent is payable.

ii. Leasehold land at Cement Plants is acquired For mining purpose. The land can be transferred with the permission of the Collector.

iii. Details of Immovable Properties whose Title deeds are not held in the name of the Company:

b. In the year 2005, due to several adversities, the project was suspended. However, the Company intends to install the assets at a later date, depending on market conditions. Therefore, considering utilisation of assets in future, the Expansion Project Assets have been valued by a project consultant. Based on the valuation report obtained from the project consultant, the aggregate provision for impairment as at March 31, 2024 is ' 5,239.15 lakhs (Previous Year: ' 4597.78 lakhs) which includes an amount of ' 641.37 lakhs as additional provision for impairment made during the year ended March 31,2024.

iv. Buildings and Jetty include a Private Jetty having a gross block of ? 2,589.70 lakhs (Previous Year: ' 2,589.70 lakhs), net block of ? 216.33 lakhs (Previous Year: ' 271.27 lakhs), constructed by the Company under the license to use agreement with Gujarat Maritime Board (GMB) on the land provided by them. The present agreement is For 10 years effective From November 01, 2015 and valid upto October 31, 2025.

v. Residential Flat in Mumbai has been mortgaged in favour of HDFC Bank Limited as security for providing Bank Guarantees and Letters of Credit.

vi. The deductions under Plant and Equipment includes an amount of ? 31.00 lakhs (Previous Year: ? Nil) For Gross Block and ' 22.98 lakhs (Previous Year: ' Nil) for Accumulated Depreciation, in respect of certain machineries held For disposal. The same is classified under other current assets in Note 13 at lower of its carrying amount and Fair value less estimated costs to sell.

vii. Impairment of Assets:

a The Company had incurred an aggregate sum of ? 8,107.17 lakhs (Previous Year: ? 8,107.17 lakhs) towards Expansion Project Assets and shown the same under Capital Work-in-progress (CWIP). The expenditure includes cost of imported plant purchased (including related stores and spares), civil work carried out and pre-operative expenses (including interest capitalised). During earlier years, spares of the value of ? 269.02 lakhs were consumed. Balance of ? 7,838.15 lakhs For this project is included in closing balance of CWIP.

14.2 Rights, Preferences and Restrictions

Equity Shares

i. The Company has only one class of equity shares referred to as equity shares having a par value of ? 10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian rupees. The final dividend, if any, proposed by the Board of Directors is recorded as a liability on the date of the approval of the shareholders in the coming Annual General Meeting; in case of interim dividend, it is recorded as a liability on the date of declaration by the Board of Directors of the Company.

iii. In the event of liquidation, the equity shareholders are eligible to receive the residual assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. At present, there is no outstanding Preference Shares.

The Company has made allotment of Shares, in the current year, to shareholders of erstwhile Gujarat Sidhee Cement Limited, pursuant to Scheme of Amalgamation. (Refer Note 44)

Entire change in the Number of shares held by shareholders holding more than 5% and in the Number of shares held by promoters (except Subhash Chandra Khanna) as at March 31, 2024, as compared with previous year is due to aforesaid allotment.

The description of the nature and purpose of each reserve within equity is as follows :

a. Capital Reserve

It represents reserve created on capital receipt. It also consists of,

i. Reduction of paid up capital of erstwhile Gujarat Sidhee Cement Limited in earlier year in pursuance of Hon'ble BIFR order,

ii. Government Subsidy received in earlier years and

iii. Capital reserve on Common Control Business Combination.

b. Capital Redemption Reserve

This reserve was created on redemption of Preference Shares by transfer from General Reserve.

c. Securities Premium

It represents the amount of premium over face value on shares issued.

d. Share Options Outstanding

The Company has Saurashtra Employee Stock Option Scheme 2017 (ESOS 2017) under which options to subscribe for the Company's shares have been granted to the senior management and executives from middle management. This reserve is used to recognise the value of equity settled share-based payments provided to option grantees. Refer Note 42 for further details of the plan.

e. General Reserve

The General reserve was created in earlier years pursuant to the provisions of the Companies Act, 1956 wherein certain percentage of profits were required to be transferred to General Reserve before declaring dividends. General reserve is a free reserve available to the Company.

F. Retained Earnings

Retained Earnings are the profits that the Company has earned, net of amount distributed as dividends and including adjustments on account of transition to Ind AS.

g. Equity Instruments through Other Comprehensive Income

This represents cumulative gains / (losses) arising on the measurement of equity shares (other than subsidiaries and associate) at fair value through other comprehensive income.

16.1 A security and Repayment Terms:

i. Term Loans in respect of finance availed for purchase of vehicles / equipments are repayable in 36 to 60 equated monthly instalments carrying varied interest from 6.80% to 9.15% p.a. These loans are secured by hypothecation of vehicles and equipment financed there under.

ii. During the year, the Company has received sanction of Term Loan of ' 4,400.00 lakhs which is secured by first charge by way of hypothecation of the current assets of the Company. It is also secured by Equitable Mortgage of Land and Building and hypothecation of Plant and Machinery, existing and future, situated at Sidheegram Plant and personal guarantee of one Promoter Director of the Company. As at the year end, there is no drawl of funds from the said Term Loan and therefore outstanding amount is ' Nil.

iii. The charges, which are required to be registered with the Registrar of Companies (ROC), have been registered within the time limit except charge in respect of vehicle loans taken from HDFC Bank Limited and BMW Financial Services India Private Limited ('the lenders') for which the lenders did not require to create the charge as vehicles were hypothecated in favour of the lenders with Regional Transport Office (RTO) as per the provisions of The Motor Vehicles Act, 1988. The principal amount of such loans as continued is ' 156.11 lakhs (Previous Year: ' 156.11 lakhs), the balance of which is ' 35.13 lakhs as at March 31,2024 (Previous Year: ' 69.02 lakhs).

The satisfaction of charges which are required to be registered with the Registrar of Companies (ROC), have been registered within the time limit except satisfaction of charge in respect of loans taken from SREI Infrastructure Finance Limited ("the lender") due to non receipt of No Objection Certificate from the lender. The Company has repaid entire dues and there is no outstanding balance to the lender as at the end of current year and previous year.

B The Company has utilised funds raised from borrowings from banks and financial institutions for the specific

purposes for which they were taken.

19.1 Security:

Cash Credit / Working Capital Demand Loan

The Working Capital facilities are secured by first charge by way of hypothecation of current assets, namely stocks of raw materials, semi finished and finished goods, consumable stores and spares, bills receivables, book debts, both, present and future. It is also secured by Equitable Mortgage of Land and Building and hypothecation of Plant and Machinery, existing and future, situated at both Ranavav and Sidheegram Plants and personal guarantee of one Promoter Director of the Company.

Overdraft

Overdraft from bank is secured against lien of fixed deposits with bank of ? 6,903.78 lakhs (Previous Year: ? 7,906.17 lakhs) - Refer Notes 5 and 10.

F Total cash outflow For leases From Financing Activities recognised in the Statement of Cash Flows is ? 100.38 lakhs (Previous Year: ? 151.25 lakhs).

H Lease Income of ' 17.48 lakhs (Previous Year : ' 25.05 lakhs) has been recognised in the Statement of Profit and Loss under Other Income - Miscellaneous Income.

37 Employee benefits

As per Ind AS - 19 - "Employee Benefits", the disclosures of Employee Benefits is given as below:-

37.1 Defined Contribution Plans

The Company's contribution to Provident Fund and Superannuation Fund aggregating to ? 516.76 lakhs (Previous Year: ? 512.42 lakhs) has been recognised in the Statement of Profit and Loss under the head Employee Benefits Expense. (Refer Note 30)

37.3 The fund is managed by a trust and it is governed by the Board of Trustees. Present strength of trustees is five. The trustees are responsible for the governance of the plan. The day-to-day administration of the scheme is carried out by the trustees. It is the trustee's duty to look after assets on behalf of employees who are entitled to benefit from those assets at future date. Investment of assets of fund is key responsibility of the trustees.

37.4 Risk to the Plani. Actuarial Risk:

The plan is subject to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employee in future.

ii. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows.

iii. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

iv. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

xi. The estimate of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors, including supply and demand in the employment market.

xii. Expected rate of return on Plan Assets is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations which is 10 years.

xiii. Asset Liability matching strategy

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested.

The trustees of the plan have outsourced the investment management of the fund to an Insurance Company. The Insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy.

There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company's philosophy is to fund these benefits based on its own liquidity.

*The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

38 Segment Reporting

The Company operates in two reportable segment i.e. manufacture of i. Cement and Clinker and ii. Paints as per Ind AS 108 - Operating Segment. Segments have been identified taking into account nature of product and differential risk and return of the segment. The business segments are reviewed by the Managing Director of the Company (CODM).

C Terms and conditions of transactions and balances with related parties

i. The transactions with related parties are made in the normal course of business and on terms equivalent to those that prevail in arm's length transactions.

ii. Outstanding balances at the year end are unsecured and interest Free and settlement occurs through bank.

iii. There have been no guarantees provided or received for any related party transaction.

iv. The Company has not recorded any impairment of receivables relating to amounts owed by related parties during the current year.

40 Capital Management:

The primary objective of Company's Capital Management is to maximize shareholder value without having any adverse impact on interests of other stakeholders. At the same time, company strives to maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the Company's Capital Management, debt includes borrowings and current maturities of long term debt and equity includes issued equity share capital, share premium and all other equity.

Erstwhile Gujarat Sidhee Cement Limited had Employee Stock Option Scheme viz. Gujarat Sidhee Employee Stock Option Scheme 2017 (ESOS 2017). In accordance with the Scheme, stock options were granted on February 8, 2018.

Pursuant to the Scheme of Amalgamation, during previous year, 1,60,069 options have been granted to eligible employees, in respect of outstanding options of erstwhile Gujarat Sidhee Cement Limited, taking into account the Share Exchange Ratio. The new options granted shall be governed by Saurashtra Employee Stock Option Scheme 2017 (ESOS 2017).

The fair value of Bank Deposits with more than 12 months maturities & earmarked balances and fair value of borrowed funds approximate carrying value as the interest rate of the said instruments are at the prevailing market rate of interest.

The carrying amount of financial assets and financial liabilities (other than borrowed funds) measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

43.2 Fair Value Measurement

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

i. Receivables are evaluated by the Company based on history of past default as well as individual credit worthiness of the customer. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables, if required.

ii. The fair value of interest free loans given is estimated by discounting future cash flows using rates currently available for loans with similar terms, credit risk and remaining maturities.

iii. The fair values of quoted equity instruments are derived from quoted market prices in active markets.

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

Level 1 - This hierarchy uses quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on company 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.

Since the Level 3 investment value is not significant, 1% increase (decrease) in the input will have negligible impact.

43.3 Financial Risk Management Framework:

The Company's principal financial liabilities comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the company's operations. The Company's principal financial assets comprises of trade and other receivables, cash and cash equivalents and bank balances other than cash and cash equivalents that are derived directly from its operations.

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 to i) overdraft against fixed deposits and ii) Cash Credit. The Company doesn't have foreign currency borrowings. The company parks surplus funds in fixed deposits and avails overdraft against same to meet temporary fund requirement. The interest rate on overdraft is linked with interest rate on fixed deposit. Any adverse movement in interest rate will not affect profit before tax since the same will be offset by interest income earned on corresponding fixed deposit. Hence the interest rate risk is self mitigated in the case of overdraft. The Cash Credit facility has floating interest rate.

Interest rate exposure:

Interest rate exposure is in respect of Cash Credit. Amount outstanding as at March 31, 2024 is ? 1,102.03 lakhs, Previous Year: ? 1.25 lakhs.

There is no significant interest rate risk in respect of overdraft against fixed deposits as the same has fixed margin over the interest rates of fixed deposits.

Interest rate sensitivity For unhedged exposure:

1% increase / decrease in interest rate will impact profit before tax by ? 11.02 lakhs p.a., Previous Year: ? 0.01 lakhs p.a.

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period.

Commodity Price Risk:

Commodity price risk arises due to fluctuation in prices of coal, pet coke and other products. The company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs.

Credit Risk Management:

Credit risk arises when a customer or counterparty does 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) and from its investing activities mainly deposits with banks and foreign exchange transactions. The Company has no significant concentration of credit risk with any counterparty.

Trade Receivables:

Customer credit is managed as per Company's established policy procedures and control related to customer credit risk management. The Company has credit evaluation policy for each customer and based on the evaluation maximum exposure limit of each customer is defined. Wherever the Company assesses the credit risk as high the exposure is backed by either bank guarantee / letter of credit or security deposits.

Export sales is mainly against advance payment or letter of credit.

Generally deposits are taken from domestic debtors. Apart from deposit, there is a third party agent area wise. In case any customer defaults, the amount is first recovered from third party agent, then from the agent's commission. Each outstanding customer receivable is regularly monitored and if outstanding is above due date, further sales orders are controlled and can only be fulfilled if there is a proper justification. The Company does not have higher concentration of credit risks to a single customer.

Total Trade receivable as at March 31, 2024 is ? 8,887.83 lakhs, Previous Year: ? 7,862.24 lakhs.

In view of above credit policy and considering past history of insignificant bad debts, instead of recognising allowance for expected credit loss based on provision matrix, which uses an estimated default rate, the

44 During the previous year, the Scheme of Amalgamation of Gujarat Sidhee Cement Limited ("erstwhile GSCL") with the Company ('Scheme') was sanctioned by Hon'ble National Company Law Tribunal (NCLT) Ahmedabad Bench vide order dated March 16, 2023. The Scheme has become effective on March 30, 2023, with January 1, 2022 as appointed date, upon filing of the certified copy of the order passed by NCLT with the Registrar of Companies. In terms of the Scheme, all the assets, liabilities, reserves and surplus of erstwhile GSCL have been transferred to and vested in the Company. Consequent on the Scheme coming into effect and in accordance with the Share Exchange Ratio enshrined in the Scheme, on April 26, 2023, the Company has allotted its 5,40,09,641 equity shares of ?10/- each (fully paid-up) to the equity shareholders of erstwhile GSCL as on the 'Record Date' fixed for the said purpose. Accordingly, the amount of ' 5,400.96 lakhs disclosed as Equity Share Capital Suspense Account as at March 31, 2023 has been transferred to Equity Share Capital.

46 Additional Regulatory Information

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.

i. The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters, directors, KMPs, related parties, which are repayable on demand or where the agreement does not specify any terms or period of repayment.

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

iii. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

iv. Ratios - Refer Note 47.

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

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

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

vi. The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding, that the Company shall:

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

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

Additional Information

Additional Information pursuant to Clause 7(l) of General Instructions for preparation of Statement of Profit and Loss as given in Part II of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.

i. The Company does not have any transaction which is not recorded in the books of accounts but 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).

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