(d) ‘Reclassified’ represents reclassification of freehold land from Property, Plant & Equipment to Investment Property - Land, in view of change in its usage.
(e) ‘Scrap of assets’ represents component of assets that were derecognised due to wear and tear and damages, since no future benefit is expected from those components and thus replaced by new components.
(f) All the title deeds of immovable properties are held in the name of the Company.
(g) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Asset) since the Company has adopted cost model as its accounting policy to an entire class of Property, Plant and Equipment in accordance with Ind AS 16.
(h) The carrying value of PPE are reviewed for impairment at each reporting date and the Company does not have impairment loss during the year ended 31st March 2025 and 31st March 2024 and accumulated impairment as at the reporting dates.
(a) Capital Work-in-Progress includes borrowing cost of Rs.56.80 Crores (PY: Rs.52.64 Crores), computed at a weighted
average interest rate of 8.08% p.a. (PY: 8.09% p.a.) applicable to entity’s borrowings outstanding during the year.
(b) Refer Note No.60(b) and 60(c) for information relating to Ageing Schedule and Completion schedule whose completion is overdue or cost exceeded as per the original plan.
(c) The amount of expenditure recognised in the carrying amount of an item of Property, Plant and Equipment in the course of its construction, included in Capital Work-in-Progress are furnished in Note No. 61.
(d) ‘Scrap of assets’ represents assets derecognised from financial statements since no future benefit is expected from its use or disposal.
(e) The company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.
(f) The fair valuation of the investment properties are determined annually by an internal technical team, measured using the technique of quoted prices for similar assets in the active markets or recent price of similar properties in less active markets and adjusted to reflect those differences. All resulting fair value estimates for investment properties as given below are included in Level 2.
(a) Deductions / adjustments represent intangible assets de-recognised from the financial statements since no future economic benefit is expected.
(b) The Company has not revalued its Intangible Assets since the Company has adopted cost model as its accounting policy to an entire class of Intangible Assets in accordance with Ind AS 38.
(c) The carrying value of intangible assets are reviewed for impairment at each reporting date and the Company does not have impairment loss during the year ended 31st March 2025 and 31st March 2024 and accumulated impairment as at the reporting dates.
(d) All the above intangible assets are acquired separately through transactions with third parties and the Company does not have any internally developed intangible assets.
(e) The estimated remaining Amortisation period for the net carrying value of intangible assets that are material to the Company as at 31st March 2025: Mining Rights: 3 to 49 years.
(f) The Company has incurred expenditure for the Research and Development Center (R & D Center) towards in-house research amounting to Rs.8.19 Crores (PY:Rs.8.51 Crores) that are recognised as an expense under respective heads of accounts in the Statement of Profit and Loss.
(a) The Company has accounted for investments in Subsidiaries and Associates at Cost. Refer Note No.55(a) and Note No.55(b) for information on principal place of business / country of incorporation and the Company’s interest /percentage of shareholding in the above subsidiaries and associates.
(b) The carrying amount of Investment in Subsidiaries /Associates is tested for impairment in accordance with Ind AS 36. These investments are strategic and long term in nature. Impairment testing is carried out for listed securities based on fair market value prevailing in stock exchange. However, in case of unlisted securities, impairment testing is carried out based on DCF method. Accordingly, no impairment is considered necessary as at the reporting date.
(a) The company’s investment of Rs.22.12 Crores (16,08,000 equity shares, out of which 3,08,200 shares were held jointly with related party) in Andhra Pradesh Gas Power Corporation Limited (APGPCL) has helped so far to source 6 MW of power at economical rates from APGPCL compared to the rates charged by AP State Electricity Board. However, in view of cancellation of Natural Gas allocation for APGPCL by Ministry of Petroleum and Natural Gas, the price per unit is not commercially viable for the participating industries including the Company. Consequently, APGPCL ceased its operations, shut down its plants and terminated its workforce, which invited the attention of material uncertainty on APGPCLs ability to continue as a going concern. Considering the absence of immediate prospects for plant restoration and prevailing uncertainties, the fair value of APGPCL investments is determined as Nil and recognised the resulting loss in carrying amount of investments of Rs.22.12 Crores as ‘Fair value loss on investments’ in Other Comprehensive Income during FY24. As at the current reporting date, there has been no change in the operational status or outlook of APGPCL. Accordingly, the fair value of the Company’s investment continues to be assessed at Nil. However, the Company shall re-assess the fair value at each reporting date based on various inputs like resumption of operations, availability of power at subsidised prices etc. and recognise the gain in subsequent period in Other Comprehensive Income.
(b) During FY24, the Company opted to designate the investment in CCPS of Swiggy Limited (formerly known as Bundl Technologies Private Limited), being instruments entirely equity in nature in accordance with Ind AS 32 and certain other equity shares, measured at Fair Value through Other Comprehensive Income (FVTOCI) in accordance with Ind AS 109 as
these investments are not held for trading purpose and disclosing their fair value fluctuation in profit or loss will not reflect the purpose of holding. During FY25, 14,49,275 CCPS were sold, and the remaining CCPS were converted into equity shares in the ratio of 1:1 and subsequently listed on an active market. Accordingly, the investment has been reclassified to ‘Quoted Equity investments designated at FVTOCi’.
(c) Refer Note No. 57 for information about fair value hierarchy under Disclosure of Fair value measurements.
(a) Loans are non-derivative financial assets and are carried at Amortised Cost, which generate a fixed or variable interest income for the Company.
(b) Secured Loans and considered good are covered by way of deposit of original title deeds / hypothecation of assets / creation of second charge of the underlying immovable properties.
(c) Loans to Subsidiaries represent Rs. 13.45 Crores (PY: 10.10 Crores) towards working capital in the normal course of business. Refer Note No. 56(a)(23) for details about maximum amount of loans outstanding during the year
(d) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand or without specifying any terms or period of repayment.
(e) The details of loans outstanding with KMPs given as per Company’s policy are furnished in Note No. 56(c)(8).
(a) Secured Capital Advances are covered by way of Bank guarantees.
(b) The Company was declared as the Preferred Bidder by Department of Mines and Geology, Government of Karnataka for the Bommanalli Limestone Block in Kalburgi District, Karnataka and have been issued Letter of Intent dated 11-05-2022 for the grant of mining lease. Accordingly, as per the terms of LOI for grant of ML, the Company has deposited of Rs.40.31 Crores (PY: Rs.40.31 Crores) with Department of Mines & Geology, as at the reporting date, towards upfront payment which are eligible for adjustment against royalty payable, upon commencement of production of mineral.
(c) The Company has not given any advances to directors or other officers of the Company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member.
(b) The Average inventory Holding period stood at 43 days for the year ended 31-03-2025 (PY: 36 days)
(c) The total carrying amount of inventories as at the reporting date has been pledged as security for Short term Borrowings.
(d) The Comapny does not have write-down of inventories recognised as an expense during the year. The amount of inventories consumed for production purposes are recognised as an expense under the respective heads in the Statement of Profit or Loss.
(b) Trade receivables are neither due from directors or other officers of the Company either severally or jointly with any other person, nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.
(c) Trade receivables in respect of cement are generally non-interest bearing. The average collection period stood at 34 days for the year ended 31-03-2025 (PY: 26 days).
(d) The Company has derecognised trade receivables of certain customers amounting to Rs.821.63 Crores (PY: Rs.574.72 Crores) in view of factoring facility availed from banks on non-recourse basis. However, a sum of Rs.518.67 Crores (PY: Rs.339.30 Crores), being the amount directly remitted by the customers to the Company subsequent to factoring, is disclosed as other financial liabilities, which is payable to the bank on respective due dates as per the terms of factoring arrangement. [Refer Note No.35].
(e) Refer Note No.58 & 60(e) for information about risk profile of Trade Receivables under Financial Risk Management and Ageing Schedule respectively.
(f) The Company considers its maximum exposure to credit risk with respect to customers as at the reporting date
to be Rs. 721.91 Crores (PY: Rs.852.15 Crores), which is the carrying value of trade receivables after allowance for
expected credit losses.
(g) The total carrying amount of trade receivables has been pledged as security for Short term Borrowings.
(a) Loans are non-derivative financial assets and are carried at Amortised Cost, which generate a fixed or variable interest income for the Company.
(b) Secured Loans and considered good are covered by way of deposit of original title deeds / hypothecation of assets / creation of second charge of the underlying immovable properties.
(c) Loans to Subsidiaries comprises Nil (PY: Rs.2.23 Crores) towards outstanding loans in connection with funding for acquisition of capital asset and Rs.6.80 Crores (PY: Rs.2.60 Crores) towards working capital in the normal course of business. Refer Note No. 56(a)(23) for details about maximum amount of loans outstanding during the year.
(d) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand or without specifying any terms or period of repayment.
(e) The details of loans outstanding with KMPs given as per Company’s policy are furnished in Note No. 56(c)(8).
(ii) Terms/Rights/Restrictions attached to Equity Shares
The Company has one class of equity shares having a face value of Re.1/- each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividend in Indian Rupees. In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(v) The Company does not have any shares held by its holding company or its ultimate holding company including shares held by subsidiaries or associates of the holding company or the ultimate holding company.
(vi) There are no instances of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of 5 years immediately preceding the Balance Sheet date. Further, there are no shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment.
(vii) The Company does not have any calls unpaid by directors or officers of the Company.
(iii) As per Companies (Share capital and Debentures) Amendment Rules 2019 notified on 16-08-2019, Debenture Redemption Reserve is not required to be created for privately placed debentures issued by listed companies. Since the Company has issued debentures by way of private placement, the debenture redemption reserve is not created.
(iv) The transaction cost on issue of NCDs pertaining to Series I, Series J Series K Series L, Series M, Series N is
adjusted against NCDs upon initial recognition and the same is amortised based on Effective interest Rate method over the tenure of the Borrowings based on Amortised Cost model in accordance with indAS 109. The un-amortised transaction cost adjusted against NCDs as at the reporting date is Rs.2.46 Crores (PY: Rs.3.17 Crores). The Company has not incurred transaction cost in respect of NCD Series G & Series H, consequently coupon rate remains the effective interest rate for such NCD series.
(c) Soft Loan from Government
(i) The Company has opted to apply the fair value measurements for the loans availed at a concessional rate prospectively and accordingly, the Company has used its previous GAAP carrying amount of the loan at the date of transition to Ind AS as the carrying amount of the loan in the opening Ind AS Balance sheet. The Company has measured the loans at fair value which are availed at a concessional rate subsequent to transition date. The difference between fair value of the loan and the carrying amount is classified as Deferred Government Grants.
(d) Interest free Deferred Sales tax Liability
(i) The Company has opted to apply the fair value measurements for the loans availed at a concessional rate prospectively and accordingly, the Company has used its previous GAAP carrying amount of the loan at the date of transition to Ind AS as the carrying amount of the loan in the opening Ind AS Balance sheet. The Company has not availed any interest free loan after the transition date.
(ii) The Company has availed Interest free Deferred Sales tax liability from State Government under Deferral Sales tax scheme for the Investments made in Jayanthipuram plant, which are measured at transaction value.
(a) Amount recognised in Other Comprehensive Income represent remeasurement losses on defined benefit obligations i.e Gratuity fund, recognised in OCI.
(b) Refer Note No.51 & 52 for disclosures pertaining to defined contribution plan and defined benefit obligations under Ind AS 19.
(c) Refer Note No. 61 for the information relating to amount of expenditure recognised in the carrying amount of an item of Property, Plant and Equipment in the course of its construction, included in Capital Work-in-Progress.
(d) The Central Government has published The Code on Social Security, 2020 and Industrial Relations Code,2020 (“the codes’) in the Gazette of India, interalia, subsuming various existing labour and industrial laws which deals with employees including post-employment period. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes if any will be assessed and recognised post notification of relevant provisions.
(e) Employee Benefits Expense include Rs.0.76 Crores (PY: Rs.0.97 Crores) pertaining to employees working under CSR Division of the Company, which qualify as Administrative Overheads in accordance with Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time.
(e) The Company is required to spend gross CSR expenditure of Rs. 12.01 Crores for the year (PY: Rs. 15.99 Crores) in accordance with Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014. As against this, the Company has spent Rs. 15.21 Crores (PY: Rs. 19.49 Crores) in the following categories, in cash, for the purposes other than the construction / acquisition of assets and Rs.0.76 Crores (PY: Rs.0.97 Crores) towards employee benefits expenses pertaining to employees working under CSR division. Consequently the Company has spent an excess of Rs.3.96 Crores (PY: 4.47 Crores) for the year and carried forward excess spent CSR of Rs.8.48 Crores (PY: Rs.5.33 Crores) as at the reporting date, which is eligible for adjustment in subsequent years.
Note: During FY24, the Company has provided representations / warranties / indemnities to Swiggy Limited (formerly known as Swiggy Private Limited or Bundl Technologies Private Limited) for an aggregate indemnification liability of the Company not to exceed Rs.86.57 Crores, in connection with the Share Subscription and Purchase Agreement (“SSPA) for sale and transfer of its entire shareholding of 49,95,16,202 equity shares held in erstwhile Associate viz. Lynks Logistics Limited (“Lynks”) to “Swiggy’,’ in exchange for Compulsory Convertible Preference Shares (CCPS) issued by Swiggy to the Company. [Refer Note No.56(a)(27)].
(a) It is not practicable for the Company to estimate the timings of cash outflows, if any pertaining to the pending resolution of the respective disputes, as it is determinable only on receipt of judgments from the respective appellate authorities.
(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.
(c) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required, or disclosed as contingent liabilities where applicable.
49.2.1 Income tax assessments have been completed up to the financial year ended 31-03-2023 i.e., Assessment year 2023-24.
I n respect of Assessment years 2013-14 and 2020-21, the Company has preferred appeals against the tax demand of Rs.1.31 Crores (PY: Rs.83.11 Crores), which are pending before appellate authorities for various disallowances in assessments. The demand raised by Assessing Officer during previous year for Rs.21.41 Crores pertaining to Assessment year 2021-22 was ultimately cancelled by Assessing Officer based on the directions from Dispute Resolution Panel, during the current year.
I n respect of Assessment years 1997-98 to 2018-19, the Department has preferred appeals against the assessment orders passed in favour of the Company, for a tax demand of Rs.63.91 Crores (PY: Rs.6705 Crores), which are pending before various appellate authorities.
The Company has paid so far Rs.11.95 Crores (PY: Rs.27.23 Crores) as pre-deposit in compliance of interim orders pertaining to the appeals pending with appellate authorities. Such disputed amounts paid are held in “Deposits under protest, in appeals” under other non-current assets.
The management believes that the above issues may not crystallise into tax liability based on the decisions favourable to the Company.
49.2.2 I n respect of pending appeals before the appellate authorities under State Sales Tax Acts / VAT Acts & CST Act in various states, as against net tax demands amounting to Rs.9.73 Crores (PY: Rs.9.83 Crores), a sum of Rs.3.17 Crores (PY: Rs.3.23 Crores) has been paid as pre-deposits. Consequently, Rs.6.56 Crores (PY: Rs. 6.60 Crores) remain un-paid as at the reporting date. The amount paid under protest is held in “Deposits under protest, in appeals” under other non-current assets.
In respect of appeals filed by the company under GST Acts, for the years 2017-18 to 2020-21, that are pending before the appellate authorities against the demand of Rs.35.42 Crores (PY: Rs.65.99 Crores) towards various disallowances
of input tax credit and levy of tax on corporate guarantees, a sum of Rs.1.77 Crores (PY: Rs.4.47 Crores) have been paid as pre-deposits in compliance of interim orders. The said amount is held in “Deposits under protest, in appeals” under other non-current assets. Consequently, Rs.33.65 Crores (PY: Rs.61.52 Crores) remain un-paid as at the reporting date.
The management believes that the above issues may not crystallise into tax liability based on the decisions favourable to the Company.
49.2.3 In respect of levy of differential Excise Duty on bulk cement and supplies to industrial consumers, levy of excise duty on cement / dry mortar based on MRP including interest and penalty amounting to Rs.127.77 Crores (PY: Rs.133.93 Crores) demanded by the Department, a sum of Rs.123.36 Crores (PY: Rs.129.29 Crores) remain un-paid as at the reporting date. The Company has paid so far Rs.4.41 Crores (PY: Rs.4.64 Crores) as pre-deposit in compliance of the interim orders by the appellate authorities and is held in “Deposits under protest, in appeals” under other non-current assets as at the reporting date. The levy of excise duty on cement has been decided by various tribunals in favour of the industry including the company. The management believes that out of the disputed demands of Rs.127.77 Crores (PY: Rs.133.93 Crores), a sum of Rs.118.90 Crores (PY: Rs.125.07 Crores) may not crystallise into a liability since the issues covered under the appeals are backed by favourable judgments from various tribunals. However, in the matter of levy of excise duty on cement, the department has preferred appeal before the Hon’ble Supreme Court against the favourable order received by the company for one of its units, which is pending.
In respect of disallowance of CENVAT credit on inputs, capital goods, service tax on goods transports agency amounting to Rs.127.18 Crores (PY: Rs.193.58 Crores), a sum of Rs.118.10 Crores (PY: Rs.178.15 Crores) remain un-paid as at the reporting date. The Company has paid so far Rs.9.08 Crores (PY: Rs.15.43 Crores) as pre-deposit in compliance of the interim orders by the appellate authorities and such pre deposits were held in “Deposits under protest, in appeals” under other non-current assets as at the reporting date. The management believes that out of the disputed demands of Rs.127.18 Crores (PY: Rs.193.58 Crores), a sum of Rs.122.10 Crores (PY: Rs.150.14 Crores) may not crystallise into a liability since the issues covered under the appeals are backed by favourable judgments.
49.2.4 TANGEDCO has raised a demand towards compensation charges of Rs.0.92 Crores alleging that the Company has exceeded the quota of power consumption during evening peak hours. The Company has filed writ petition before the High Court of Madras and the same has been admitted. However, the Company had deposited the amount of Rs.0.92 Crores under protest and the same is held in “Deposits under protest, in appeals” under other non-current assets.
49.2.5 Government of Karnataka has imposed Environmental Protection Fee of Rs.5.80 crores, in connection with Company’s mining leases. In the writ petitions filed by the Company and other similarly affected companies, the High Court of Karnataka, has stayed the imposition of the fee. As per the interim order, the Company has deposited a sum of Rs.2.90 Crores (PY: Rs.2.90 Crores) and the same is held in “Deposits under protest, in appeals” under other non-current assets.
49.2.6 The Competition Commission of India (CCI) vide its order dated 31-08-2016 had imposed a penalty of Rs. 258.63 Crores on the company towards alleged cartelisation. Our appeal along with the appeals of other cement companies had been dismissed by NCLAT vide its order dated 25-07-2018. Against the order, the company appealed to the Honourable Supreme Court, which by its order dated 05-10-2018 admitted the appeal and directed to continue the interim order passed by NCLAT. Accordingly, the company redeposited Rs.25.86 Crores being 10% of the penalty and the said deposit is classified under “Bank Balances other than Cash and Cash Equivalents” The Company backed by legal opinion, believes that it has a good case and hence no provision is made.
49.2.7 The Writ Petitions filed by the company in the Madras High Court against Tamil Nadu Electricity Board (TNEB) towards levy of electricity tax at 15% on the generation of power from captive generator sets using furnace oil are pending. The levy pertains to the period 01-01-1992 to 30-10-1997 The total disputed amount of Rs.1.34 Crores has been paid under protest and the same is held in “Deposits under protest, in appeals” under other non-current assets.
49.2.8 Southern Power Distribution Company of Andhra Pradesh Limited has demanded an amount of Rs.0.32 Crores towards alleged excess load factor incentives allowed by them. The Company has filed an appeal before High Court of Andhra Pradesh and obtained an order of interim stay.
49.2.9 Andhra Pradesh Transmission Corporation Limited (APTRANSCO) has levied Rs.5.91 Crores as Fuel Surcharge Adjustment (FSA) for the period from Apr 2008 to Dec 2012. Out of that, the company has paid and expensed Rs.3.85 Crores and the balance amount of Rs.2.06 Crores is not presently enforceable for the reasons that a part of the amount is covered in the appeal filed by the APTRANSCO before Supreme Court and the interim order granted in favour of the company by the Honourable AP High court. APERC has ordered that this FSA is not leviable from Jan 2013 onwards.
49.2.10 The Director of Geology & Mining, Government of Tamil Nadu had raised additional Royalty demand on limestone, based on production of cement by the company instead of basing it on actual quantity of limestone mined. The demand for the company is Rs.9.66 Crores for the period from the year 1989 to year 2001. In the Writ petitions filed by the company and other similarly affected companies, the Madras High court has directed the companies to pay the Royalty as demanded in the impugned notice. Aggrieved by that, the Company has filed a writ appeal against the impugned order and it is pending.
49.2.11 Water Resources Department of Public Works Department, Government of Tamil Nadu had raised a demand of Rs.2.69 Crores contending that water charges are to be paid on the contracted quantity and not on the actual quantity of water drawn by the company from Arjuna River in Virudhunagar District. The demand pertains to the period from the year 1989 to year 2023. The company has obtained interim stay from the High Court of Madras. The Hon’ble Court directed the department not to take any coercive action against the Company and the said interim order was extended until further orders. As per the interim order, the Company has deposited a sum of Rs.0.30 Crores with the Department and the same is held in “Deposits under protest, in appeals” under other non-current assets.
49.2.12 Environment, Forests Science & Technology Department, Government of Andhra Pradesh has increased the Royalty on the Limestone mined from the Forest Area from Rs.5/- per permit to Rs.10/- per ton from the year 2010-11 onwards. The company filed a writ petition before the High Court of Andhra Pradesh and obtained an interim order, to pay 1/3rd of the demand. As per the Court order, the company has paid and expensed Rs.1.57 Crores, being 1/3rd portion up to 31-03-2017 The balance amount of Rs.3.15 Crores being 2/3rd portion remain unpaid. However, there is no dispute with effect from 01-04-2017 onwards.
49.2.13 Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations, 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 9% and 0.5% of their energy requirements from wind and solar sources respectively. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its wind farms, it has been excluded for reckoning the obligatory consumption, since the company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Madras High Court and obtained an interim stay against the implementation of the said regulation.
49.2.14 The Company had purchased around 40.36 acres of lands in Tamil Nadu after verification of title documents based on revenue records of the year 1987 as basis. Thereafter, the revenue officials verified the title documents and transferred the patta in the name of the Company. While this being so, the Sub-Collector, Ariyalur, by the order dated 10-022015, cancelled the said patta and reclassified the said land as Government poromboke Anadheenam lands’ by placing reliance on revenue records of the year 1927 The Company has filed a Writ Petition before the Madras High Court challenging the said cancellation of patta and the High Court has remanded back to the Commissioner of Land Administration for fresh adjudication. The Company has filed application with necessary documents and it is pending for further hearing.
49.2.15 The Department of Mines and Geology, Government of Karnataka by its order dated 31-10-2014 have withdrawn its mining lease granted to the company already granted for 30 hectares of forest land on a technical ground. Based on the writ petition filed by the company, the Honourable Karnataka High court has directed the State Government to consider the company’s representation. The Government vide its order dated 10-01-2016 has rejected the company’s representation. Aggrieved by the said order, the Company has again filed a writ petition before the Honourable Karnataka High Court and the same is pending.
49.2.16 The Special Deputy Collector (Stamps), Ariyalur had issued a notice demanding an amount of Rs.0.65 Crores for alleged deficiency in stamp duty in purchase of lands. Against the demand, the Company filed an appeal before Honourable High Court of Madras and it is pending.
49.2.17 As per the Grid Connectivity and Intra State Open Access Regulations, the TNERC has authorised TANGEDCO to collect Parallel Operation Charges of Rs. 30,000/- per MW from the power generators who avails only parallel operation with grid but without availing open access. Even though the Company had open access approval, TANGEDCO had sent demand notice for parallel operation charges for a sum of Rs.9.17 Crores levied retrospectively from 07-05-2014 to 31-12-2016. The Company has filed writ petition in the Honourable High Court of Madras and obtained the final order directing the TANGEDCO to settle the matter in TNERC within a reasonable period. TNERC ordered that the levy of parallel operation charges was leviable. Aggrieved by the said order, the company has filed an appeal before Appellate Tribunal for Electricity (APTEL) and has obtained interim stay against the order of TNERC.
49.2.18 The company along with other companies have challenged the validity of the “The West Bengal Tax on Entry of Goods into Local Areas Act, 2012” in the writ petitions before the Kolkata High court. The court had held the said Act was ultra-vires. Based on the appeal filed by the Government, the Division Bench has held the said Act as valid. Now, the appeal has been filed by other companies before Honourable Supreme Court against the Division Bench Order and is pending for admission. The company has paid and expensed the said taxes upto July, 2013. The estimated unpaid contingent liability for the period from August, 2013 to June, 2017 is Rs.9.24 crores.
The Asst. Commissioner (CT) LTU, Vijayawada has issued a demand on 12-02-2019 for Rs.1.29 crores for the period from April, 2014 to March, 2017 towards entry tax on petroleum products viz., Diesel, Furnace oil under the Andhra Pradesh Tax of Entry of Goods into Local Areas Act, 2001. The company had filed a writ petition before Honourable AP High court, Vijayawada against the demand. As per the interim order, the Company has deposited a sum of Rs.0.32 Crores (PY: Rs.0.32 Crores) with the Department and the same is held in “Deposits under protest, in appeals” under other non-current assets. The appeal is pending.
49.2.19 The Company had held Mining Lease for an extent of 18.11.5 Ha for a period of 20 years from 25-10-1993 to 24-10-2013, which holding was later reduced to 4.68 Ha of leasehold area. The Company received a Memorandum dated 26-082019 issued by the District Collector, Perambalur, wherein the Company was directed to remit the amount of Rs.6.59 Crores being 100% of the cost of mineral of 1.45 Lac metric tons of limestone mined from our leasehold area covering the period from 15-01-2016 to 10-01-2017, allegedly without Environmental Clearance. The Company believes that there is no violation and hence initiated steps to challenge this demand by way of a Writ Petition before the Honourable High Court of Madras, which was dismissed. The Company has filed an appeal before division bench against the impugned order and the appeal is disposed off with direction to District Collector, Perambalur for fresh adjudication. The District Collector has adjudicated the matter against the Company. Aggrieved by that, the Company has filed writ petition before Honourable High Court of Madras and obtained interim stay.
49.2.20 Haldia Port had raised a demand of Rs.9.48 Crores towards differential port charges payable computed on the basis of shortfall in Minimum Guaranteed Tonnage (MGT) by the Company and invocated the Bank Guarantee furnished as security. Aggrieved by the action of the Port, the Company filed a Writ Petition WPA No.15628 of 2023 in the Calcutta High Court. The Court had passed an interim order directing the company to pay to the Port an amount of Rs.4.25 Crores being the admitted amount by the company and deposit the balance amount of Rs.5.23 Crores in a separate bank account, which would be subject to the outcome of the final orders in the said writ petition, which is pending.
In compliance of the order of the Court, the Company has remitted a sum of Rs.4.25 Crores to the Port on 5-7-2023 and expensed it. Subsequently, Haldia Port encashed the said fixed deposit amount of Rs.5.23 Crores without any court direction. The same has been held in “Deposits under protest, in appeals” under other non-current assets. The writ petition is pending for adjudication. The Company backed by legal opinion, believes that it has a good case and hence no provision is made.
49.2.21 Southern Power Distribution Company of Andhra Pradesh levied Electricity duty at the rate of Rs. 1/- per KWh (in excess of Rs. 0.06 Paise) on energy sales as per G.O M.s No. 7 Energy (Power-III) Department dated 8-4-2022 in contradiction to the orders passed by the Hon’ble High Court of Andhra Pradesh in the batch of Writ Petitions filed by several industries and without any sanction from the State Government as contemplated under APED Act. Therefore, the Company filed a Writ Petition before the High Court of Andhra Pradesh challenging the said G.O and further sought for a direction to refund the amount collected towards Electricity duty or adjust the excess electricity duty paid in terms of the impugned G.O. The Company has obtained an interim order of stay in respect to the demand. The said Writ Petition is pending. The company has also paid the differential amount of 0.94 Paise per unit amounting to Rs.29 crores from Apr-22 to Mar-24 towards disputed electricity duty and expensed it.
49.2.22Eastern Power Distribution Company of Andhra Pradesh Limited (EPDCL) raised electricity bills for the period from December 2020 to March 2021 without considering the electricity units generated and supplied by Andhra Pradesh Gas Power Corporation Limited (APGPCL). EPDCL also indicated disconnection of power supply to the company in the event of non-payment. In view of this, the Company paid the billed amount under protest. Aggrieved by the demand, the Company disputed the excess billing amounting to Rs.2.45 crores and filed a Writ Petition before the Hon’ble High Court of Andhra Pradesh. The Court granted an interim stay in favour of the Company. Subsequently, for the period from December 2021 to September 2022, EPDCL included an additional Rs.5.64 crores in the electricity bills as arrears. However, in compliance with the interim stay order, the Company has not paid the said additional amount. The amount already paid has been classified under “Deposits under protest, in appeals” under Other Non-Current Assets. The matter is currently pending for adjudication before the High Court.
49.2.23 The Company entered into a Purchase and Sale Agreement with M/s Shimsupa GmbH for procurement of petroleum coke. Due to non-payment of freight charges by M/s Shimsupa GmbH, the vessel owner, M/s Aurora Shipping Corporation, obtained an ex-parte order from the Hon’ble High Court of Madras restraining delivery of cargo to the Company. In order to unload and get the material, the Company paid Rs.17.58 crores towards freight, demurrage, and related expenses on behalf of M/s Shimsupa GmbH under a Memorandum of Compromise. M/s Shimsupa GmbH agreed to reimburse the amount and issued a cheque as security, which was subsequently dishonoured. The Company has filed proceedings under Section 138 of the Negotiable Instruments Act, which are currently pending. The Company believes that the said amount is recoverable from the supplier.
52. As per Ind AS 19, the disclosures pertaining to “Employee Benefits” are given below:
The Gratuity payable to employees is based on the employee’s service and last drawn salary at the time of leaving the services of the Company and is in accordance with the rules of the Company read with Payment of Gratuity Act, 1972. This is a defined benefit plan in nature. The Company makes annual contributions to “The Ramco Cements Limited Employees’ Gratuity Fund” administered by trustees and managed by LIC of India, based on the Actuarial Valuation by an independent external actuary as at the Balance Sheet date using Projected Unit Credit method. The company is exposed to actuarial risks such as adverse salary growth, changes in demographic experience, and inadequate returns on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risks.
57 Disclosure of Fair value measurements
The fair values of financial assets and liabilities are determined 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. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to their short term maturities of these instruments.
58. Financial Risk Management
The Board of Directors (BOD) holds overall responsibility for establishing and overseeing the Company’s risk management framework. Accordingly, it has implemented a risk management policy to identify and analyse the risks faced by the Company. The risk management systems are reviewed periodically by the BOD to reflect changes in market conditions and the Company’s operations. Through training, management standards, and established procedures, the Company fosters a disciplined and constructive control environment in which all employees understand their roles and responsibilities. The Audit Committee is responsible for overseeing how management monitors compliance with the Company’s risk management policies and procedures, and for reviewing the overall risk management framework. The Audit Committee is supported in this oversight role by the Internal Audit function, which conducts regular reviews of the risk management controls and procedures. The results of these reviews are reported directly to the Audit Committee. The Company is exposed to the following financial risks:
The Board of Directors regularly reviews these risks and approves the risk management policies, which covers the management of these risks:
Credit Risk
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. This risk primarily arises from the Company’s trade receivables, treasury operations, and other lease-related activities.
Receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer. The Company extends credit to its customers in the normal course of business by considering the factors such as financial reliability of customers. The Company evaluates the concentration of the risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets. The Company maintains adequate security deposits from its customers in case of wholesale and retail segment. In case of institutional segment, credit risks are mitigated by way of enforceable securities. The exposures with the Government are generally unsecured but they are considered as good. However, unsecured credits are extended based on creditworthiness of the customers on case to case basis. Besides, the Company also avails factoring facility on non-recourse basis by assigning its rights and privileges to the counterparty.
Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the company and where there is a probability of default, the company creates a provision based on Expected Credit Loss for trade receivables under simplified approach as below:
Financial Instruments and Cash deposits
Investments of surplus funds are made only with the approved counterparties. The Company is presently exposed to counter party risk relating to short term and medium term deposits placed with banks, and also investments made in mutual funds. The Company places its cash equivalents based on the creditworthiness of the financial institutions.
Liquidity Risk
Liquidity Risks are those risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. In the management of liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the company’s operations and to mitigate the effects of fluctuations in cash flows. Besides, the Company avails supplier financing facility through reverse factoring arrangements to make early payments to suppliers and service providers. The Company is obligated to repay the outstanding amounts to the finance providers on the due date, along with applicable interest.
Fund Management
Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping both committed and uncommitted credit lines available. The Company has laid well defined policies and procedures facilitated by robust information system for timely and qualitative decision making by the management including its day to day operations.
(a) The above table has been drawn up based on the undiscounted contractual maturities of the financial liabilities.
(b) Security deposits payable do not have a contractual payment term but are repayable on demand. Since, the Company does not have an unconditional right to defer the payment beyond 12 months from reporting date, these deposits have been classified under current financial liabilities. For including these amounts in the above-mentioned maturity analysis, the Company has assumed that these deposits will be repayable at the end of the next reporting period. The actual maturity period for the deposit amount can differ based on the date on which these deposits are settled to the customers.
Market Risk
Interest rate risk
Interest rate risk arises from long term borrowings with variable rates which exposed the company to cash flow interest rate risk. The Company’s fixed rate borrowing are carried at Amortised cost and therefore are not subject to interest rate risk as defined in Ind AS 107 since neither the carrying amount nor the future cash flows will fluctuate because of the change in market interest rates. The Company is exposed to the evolution of interest rates and credit markets for its future refinancing, which may result in a lower or higher cost of financing, which is mainly addressed through the management of the fixed/floating ratio of financial liabilities. The Company constantly monitors credit markets to strategise a well-balanced maturity profile in order to reduce both the risk of refinancing and large fluctuations of its financing cost. The Company believes that it can source funds for both short term and long term at a competitive rate considering its strong fundamentals on its financial position.
Foreign Currency Risk
The Company’s exposure in USD and other foreign currency denominated transactions in connection with import of capital goods, spares and fuel, besides exports of finished goods and borrowings in foreign currency, gives rise to exchange rate fluctuation risk. The Company has following policies to mitigate this risk:
Decisions regarding borrowing in Foreign Currency and hedging thereof, (both interest and exchange rate risk) and the quantum of coverage, are is driven by the necessity to keep the cost comparable. Foreign Currency loans, imports and exports transactions are hedged by way of forward contract after taking into consideration the anticipated Foreign exchange inflows/ outflows, timing of cash flows, tenure of the forward contract and prevailing Foreign exchange market conditions. The Company’s exposure to foreign currency risk are detailed below:
Note: The above sensitivity analysis is based on a change in an interest rate by 100 bps while holding all other things constant for the monetary items outstanding as at the reporting date.
Other Price Risk: Commodity price risk
The Company is mainly exposed to the risk arises on account of fluctuations in price of raw materials and fuels viz. coal and pet coke, which are linked to various external factors. Since these are primary costs in cement production, any adverse fluctuation in these prices can lead to significant drop in operating profitability.
To mitigate commodity price risk, the Company closely monitors market prices and strategically purchases when prices are expected to decline. The Company maintains a three to four months’ inventory to cushion against upward price cycles and utilises alternative fuels and an optimised fuel mix to manage fuel costs. Further, long-term contracts with suppliers are negotiated at competitive prices. These strategies and procedures are reviewed regularly by management, and corrective measures are implemented as needed.
(i) Details of Cryptocurrency or Virtual Currency
The Company did not trade or invest in Cryptocurrency or virtual currency during the financial year. Hence, disclosure relating to it is not applicable.
(j) Benami property
The Company did not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(k) The Company has neither advanced or loaned or invested, nor received any fund, to or from, any other persons or entities including foreign entities (intermediaries) with the understanding that the intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company or
ii. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(l) The Company has not been declared as a willful defaulter by any bank or financial institutions.
(m) The company does not have any layers as prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017
(n) The Company’s business operation comprises of single operating segment viz. cement & cement related products, determined in accordance with the requirements of Ind AS 108 - Operating Segments. Accordingly, no separate segment disclosures (business or geographical) are applicable [Refer Note No. 40(c)].
Reason for relative variation in excess of /- 25%:
(a) Debt Service Coverage Ratio has decreased by 30% mainly due to decrease in EBITDA on account of pressure in cement prices.
(b) The trade receivables turnover in days increased by 31%, primarily due to decrease in revenue caused by pricing pressures, along with relatively longer credit periods offered to customers to drive higher sales volume.
(c) Trade payables turnover ratio has increased by 28% in view of availing better credit facility from suppliers.
(d) Net profit ratio has increased by 25% primarily due to exceptional item arising out of profit on sale of investments and surplus lands.
Formula adopted for above Ratios:
(a) Current Ratio = Current Assets / (Total Current Liabilities - Security Deposits payable on Demand -Current maturities of Long Term Debt)
(b) Debt-Equity Ratio = Total Debt / Total Equity
(c) Debt Service Coverage Ratio = (EBITDA - Current Tax) / (Principal Repayment excluding prepayments towards debt replacement Gross Interest)
64. Capital Management
For the purpose of the Company’s capital management, capital includes issued equity share capital 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 shareholders’ wealth. The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. There have been no breaches in the financial covenants of any interest-bearing loans/borrowings. The Company is not subjected to any externally imposed capital requirements. There are no significant changes in the objectives, policies or processes for managing capital during the years ended 31-03-2025 and 31-03-2024.
65. Exceptional items comprise of profit on sale of investments of Rs.290.12 Crores and profit on sale of surplus lands amounting to Rs.49.71 Crores.
66. Closure of foreign branch in Sri Lanka
The Company has closed the operations of foreign branch in Sri Lanka in view of its unviability with effect from 27-07-2021. The strike off application for deregistration of the said branch has been approved by the Registrar of Companies, Colombo vide its communication dated 23-10-2023. Our application for deactivation of Taxpayer Identification Number (TIN) with the Inland Revenue Department is under process. As advised by the Auditors in Sri Lanka, there is no necessity to prepare the audited accounts in respect of the said foreign branch in these circumstances. There is no material impact in the financial statements because of closure of said branch operation.
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