xiv) Provisions, Contingent Assets/ Contingent
Liabilities
Provisions
Provisions are recognized when the company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that an
outflow of economic benefits will be required to
settle the obligation and a reliable estimate can
be made of the amount of the obligation.
Contingent Liabilities
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond
the control of the Company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation.
A contingent liability also arises in extremely
rare cases where there is a liability that cannot
be recognized because it cannot be measured
reliably. The Company does not recognize a
contingent liability but discloses its existence in
the financial statements.
Contingent Assets
A contingent asset is a possible asset that arises
from past events and whose existence will
be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future
events not wholly within the control of the entity.
The Company does not recognize a contingent
asset but discloses its existence in the financial
statements if the inflow of economic benefits is
probable
xv) Leases
The Company evaluates contracts at inception
to determine whether they contain a lease as
defined under Ind AS 116 - Leases.
A contract is, or contains, a lease if it conveys the
right to control the use of an identified asset for a
period of time in exchange for consideration.
Although the Company has been applying Ind
AS 116 since its mandatory adoption, this is the
first year in which the Company has recognised
a material lease arrangement in its financial
statements.
Accordingly, for contracts identified as leases, the
Company recognises a right-of-use (ROU) asset
and a corresponding lease liability at the lease
commencement date. The ROU asset is measured
at cost, comprising:
• The initial lease liability amount,
• Lease payments made at or before
commencement,
• Initial direct costs,
• An estimate of dismantling or restoration
costs,
• Less any lease incentives received.
The ROU asset is depreciated on a straight-line
basis over the lease term or the useful life of
the asset, whichever is shorter, and is subject to
impairment testing under Ind AS 36.
The lease liability is initially measured at the
present value of unpaid lease payments,
discounted using the Company's incremental
borrowing rate. Lease liabilities are remeasured
for changes in lease terms, indices, rates, or
estimates affecting residual value guarantees or
exercise of options. Any resulting adjustment is
made to the ROU asset or profit or loss if the
carrying amount of the ROU asset has been
reduced to zero.
The Company continues to apply the practical
expedients for:
• Short-term leases (lease term of 12 months
or less), and
• Leases of low-value assets,
by recognising the related lease payments as an
expense over the lease term.
xvi) Mine closure, site restoration and
decommissioning obligations:
An obligation for restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or
ongoing extraction from mines.
The company recognises unavoidable obligations,
legal or assumed, to restore the mines upon
exhaustion of reserves/end of lease period
whichever is earlier. The obligation is estimated
on the basis of cash flows expected to be incurred
as per applicable mining regulations.
The estimate of expenses are discounted at a
discount rate that reflects the current market
assessment of the time value of money and the
risks, such that the amount of provision reflects
the present value of the expenditures expected
to be required to be settle the obligation.
The company records the liability for final
reclamation and mine closure. The obligation is
recognised in the period in which the liability is
incurred.
The value of the provision is progressively
increased over time as the effect of discounting
unwinds creating an expense recognised as
financial expenses. Subsequent adjustments if
any to the obligation for changes in the estimated
cashflows/disbursement period/ discount rate is
modified prospectively.
Income tax expense comprises current and
deferred income tax. Income tax expense is
recognized in the net profit in the statement of
profit or loss except to the extent that it relates
to items recognized in Other comprehensive
income.
Current income tax for current and prior periods
is recognized at the amount expected to be paid
to or recovered from the tax authorities, using the
tax rates and tax laws that have been enacted or
substantially enacted by the balance sheet date.
Deferred income tax assets and liabilities are
recognized for all temporary differences arising
between the tax bases of assets and liabilities and
their carrying amounts in the financial statements.
Deferred tax assets are generally recognized
for all deductable temporary differences to the
extent that it is probable that the taxable profits
will be available against which those deductable
temporary differences can be utilized. Deferred
tax assets are reviewed at each reporting date
and are reduced to the extent that is no longer
probable that related tax benefits will be realized.
Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially
enacted by the end of the reporting period and
are expected to apply when the related deferred
income tax asset is realized, or the deferred
income tax liability is settled.
Current tax assets and tax liabilities are offset
where the entity has a legally enforceable right
to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability
simultaneously.
Where the Company is entitled to claim special
tax deductions for investments in qualifying
assets or in relation to qualifying expenditure,
the Company accounts for such allowances as tax
credits, which means that the allowance reduce
income tax payable and current tax expense.
Deferred tax relating to items recognised outside
statement of profit or loss is recognised outside
statement of profit or loss (either in other
comprehensive income or in equity). Deferred
tax items are recognised in correlation to the
underlying transaction either in OCI or directly in
equity.
A deferred tax asset is recognized for unclaimed
tax credits that are carried forward as deferred
tax assets.
Minimum Alternate Tax (MAT) Credit entitlement
Minimum Alternative Tax ('MAT') under the
provisions of the Income Tax Act, 1961 is
recognised as current tax in the statement of
profit and loss. The credit available under the Act
in respect of MAT paid is recognised as an asset
only when and to the extent there is convincing
evidence that the company will pay normal
income tax during the period for which the MAT
credit can be carried forward for set-off against
the normal tax liability. MAT credit recognised as
an asset is reviewed at each balance sheet date
and written down to the extent the aforesaid
convincing evidence no longer exists.
xviii) Employee Benefits:
Employee benefits includes short term employee
benefits, Post employment benefits, Other long¬
term benefits and Termination benefits.
Short term employee benefits:
The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized
during the year when the employees render the
service. These benefits include performance
incentive and compensated absences which are
expected to occur within twelve months after the
end of the period in which the employee renders
the related service.
Post employment benefits:
a) Defined contribution plans:
These benefits include Pension,
superannuation and Employee State
Insurance (ESI). Entity contributes at
statutorily prescribed minimum rates,
monthly to Provident fund, ESI and will have
no legal obligation to pay further contribution
if fund doesn't have sufficient assets to pay
all employee benefits relating to employee
service in current and prior periods. Whereas
yearly contribution is paid to Life Insurance
Corporation towards superannuation
Pension, monthly contributions are made in
the case of Provident Fund and ESI. Thus,
PF, Superannuation, ESI benefits are defined
contribution plans. These contributions are
recognized in statement of profit and loss by
way of charge against income.
b) Defined benefits plans:
Leave Absences and Gratuity Cost of
providing these benefits is determined using
projected unit credit method by actuary
at the end of each reporting period. Re¬
measurement, comprising actuarial gains
and losses, the effect of the changes to the
asset ceiling (if applicable) and the return
on plan assets (excluding net interest),
is reflected immediately in the balance
sheet with a charge or credit recognised in
other comprehensive income in the period
in which they occur. Re-measurement
recognised in other comprehensive income
is reflected immediately in retained earnings
and is not reclassified to profit and loss. Past
service cost is recognised in statement of
profit and loss when the plan amendment
or curtailment occurs. Gains or losses on
settlement of a defined benefit plan are
recognised when the settlement occurs.
Net interest is calculated by applying the
discount rate at the beginning of the period
to the net defined benefit liability or asset.
It has two components, one is service cost
and other is remeasurements.
Service cost comprises a) current service
cost including gains/ loss on curtailment or
settlements, b) past service cost in case of
plan amendment c) net Interest expense or
income. Remeasurements comprise actuarial
gains/losses, return on plan assets excluding
interest and effect of change in assets ceiling.
Service cost is recognized in statement of
profit or loss while remeasurements are in
other comprehensive income.
c) Compensated Absences:
The employees of the Company are entitled
to compensate absences. The employees
can carry-forward a portion of the unutilised
accrued compensated absence and utilise it in
future periods or receive cash compensation
at retirement or termination of employment
for the unutilised accrued compensated
absence. The Company records an obligation
for compensated absences in the period in
which the employee renders the services
that increase this entitlement.
The Company measures the expected cost
of compensated absence based on actuarial
valuation made by an independent actuary
as at the balance sheet date on projected
unit credit method.
Compensated absences expected to be
maturing after 12 months from the date of
balance sheet are classified as non-current.
xix) Earnings per Share
The Company presents basic and diluted earnings
per share data for its ordinary shares.
Basic earnings per share is calculated by dividing
the profit or loss attributable to ordinary
shareholders of the Company by the weighted
average number of ordinary shares outstanding
during the year, adjusted for shares held. Diluted
earnings per share is determined by adjusting the
profit or loss attribute to ordinary shareholders
and the weighted average number of ordinary
shares outstanding, adjusted for shares held,
for the effects of all dilutive potential ordinary
shares.
Non-derivative financial instruments
Non-derivative financial instruments consist of:
Financial assets, which include cash and cash
equivalents, trade receivables, other advances
and eligible current and non-current assets;
Financial liabilities, which include long and short¬
term loans and borrowings, trade payables,
eligible current and non-current liabilities.
Non derivative financial instruments are
recognized initially at fair value including any
directly attributable transaction costs. Financial
assets are derecognized when substantial risks
and rewards of ownership of the financial asset
have been transferred. In cases where substantial
risks and rewards of ownership of the financial
assets are neither transferred nor retained,
financial assets are derecognized only when
the Company has not retained control over the
financial asset.
Subsequent to initial recognition, non-derivative
financial instruments are measured as described
below:
Cash and cash equivalents
Cash comprises cash on hand, in bank and
demand deposits with banks. Cash equivalents
are short term balances (with an original
maturity of three months or less from the date
of acquisition), highly liquid investments that are
readily convertible into known amounts of cash
and which are subject to insignificant risk of
changes in value
Loans and receivables
Loans and receivables are non-derivative financial
assets with fixed or determinable payments that
are not quoted in an active market. They are
presented as current assets, except for those
maturing later than 12 months after the reporting
date which are presented as non-current assets.
Loans and receivables are initially recognized at
fair value plus directly attributable transaction
costs and subsequently measured at amortized
cost, less any impairment losses. Loans and
receivables comprise trade receivables and other
assets.
The company estimates the un-collectability
of accounts receivable by analyzing historical
payment patterns, customer concentrations,
customer credit-worthiness and current
economic trends. If the financial condition of a
customer deteriorates, additional allowances may
be required.
Borrowings
Borrowings are initially recognized when a
Company becomes a party to the contractual
provisions subsequently measured at amortised
cost using the EIR method.
Trade and payable
Liabilities are recognized for amounts to be paid
in future for goods or services received, whether
billed by the supplier or not.
xxi) Cash Flow Statement:
Cash flows are reported using the indirect
method, whereby profit before tax is adjusted
for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of
income or expenses associated with investing
or financing cash flows. The cash flows from
operating, investing and financing activities of
the Company are segregated.
xxii) Segment Information:
Identification of segments: An operating segment
is a component of the Company that engages
in business activities from which it may earn
revenues and incur expenses, whose operating
results are regularly reviewed by the company's
Chief Operating Decision Maker (“CODM”)
to make decisions for which discrete financial
information is available. The Company has
identified Managing Director and Executive
Director & Chief Financial Officer as CODM.
The Company's operating businesses are
organized and managed separately according to
the nature of products and services provided,
with each segment representing a strategic
business unit that offers different products and
serves different markets.
Allocation of common costs
Common allocable costs are allocated to each
segment according to the relative contribution of
each segment to the total common costs. Inter¬
segment transfers Inter-segment revenue has
been accounted for based on the transaction
price agreed to between segments which is based
on current market prices.
a) Segment Assets and Liabilities:
Segment assets include all operating assets
used by the segment and consist principally
of fixed assets, inventories, sundry debtors
and loans & advances less current liabilities.
Segment assets and liabilities do not include
investments, cash and bank balances, inter
corporate deposits, reserves and surplus,
borrowings, provision for contingencies and
income tax (both current and deferred).
b) Segment Revenue and Expenses:
Segment revenue and expenses are taken
directly as attributable to the segment.
It does not include interest income on
inter-corporate deposits, profit on sale of
investments, interest expense, provision for
contingencies and income tax.
Unallocated items
Revenue, expenses, assets and liabilities
which relate to the Company as a whole
and not allocable to segments on reasonable
basis have been included under ‘unallocated
revenue/expenses/assets/liabilities.
The Company prepares its segment
information in conformity with the
accounting policies adopted for preparing
and presenting the financial statements of
the Company as a whole.
Operating segment is reported in a manner
consistent with the internal reporting
provided to Chief Operating Decision Maker
(CODM)
xxiii) Events after the reporting period:
Adjusting events are events that provide further
evidence of condition that existed at the end of
the reporting period. The financial statements are
adjusted for such events before authorization for
issue.
xxiv) Prior Period Errors
Errors of material amount relating to prior
period(s) are disclosed by a note with nature of
prior period errors, amount of correction of each
such prior period presented retrospectively, to
the extent practicable along with change in basic
and diluted earnings per share. However, where
retrospective restatement is not practicable for
a particular period then the circumstances that
lead to the existence of that condition and the
description of how and from where the error is
corrected are disclosed in Notes to Accounts.
xxv) Dividend Distribution
Dividends paid (including income tax thereon)
is recognised in the period in which the interim
dividends are approved by the Board of Directors,
or in respect of the final dividend when approved
by shareholders.
f) Practical expedients
During the year company has entered into sales contracts with its customers where contracts are not executed, same
has not been disclosed as per practical expedient as the duration of the contract is less than one year or right to receive
the consideration established on completion of the performance by the company.
B. Significant judgements in the application of this standard
(i) Revenue is recognized by the company when the company satisfies a performance obligation by transferring
a promised good or service to its customers. Asset/goods/services are considered to be transferred when the
customer obtains control of those asset/goods/services.
(ii) The company considers the terms of the contract and its customary business practices to determine the transaction
price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange
for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties
(for example, GST etc.).
(iii) The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or
both. Any further adjustment will be made by raising debit/credit notes on the customer. While determining the
transaction price effects of variable consideration, constraining estimates of variable consideration, the existence
of a significant financing component in the contract, non-cash consideration and consideration payable to a
customer is also considered.
Term Loans:
i) Term of Loan of Rs.23.50 crores (2024: Rs.39.64 crores) from Axis Bank Ltd for WHR Project at Mattapally, at an
interest rate Linked to MCLR @ 8.35% p.a repayable in 20 Structured quarterly instalments starting from Sept '21. The
loan amount sanctioned is Rs.67.25 Crores with a moratorium period of 2 years.
ii) Term Loan of Rs.16.25 crores (2024: Rs. 22.75 crores) from Axis Bank Ltd for Modernization of Line 1 at Mattapally, at
an interest rate Linked to MCLR @ 8.35% p.a repayable in 24 Equal quarterly instalments of Rs.1.625 Crores starting
from Dec'21. The loan amount sanctioned is Rs.39 Crores with a moratorium period of 1 year.
iii) Term Loan of Rs.47.98 crores (2024: Rs.58.45 crores) from Kotak Bank Ltd towards Line -3 at Mattapally, at an interest
Linked to MCLR @ 9.10% p.a repayable in 78 quarterly instalments starting from May'23. The loan amount sanctioned
is Rs.75 Crores with a moratorium period of 1.5 years.
iv) The Company availed a loan of Rs.14.49 crores (2024: Rs.24.12 crores) from AXIS Bank under the Emergency Credit
Line Guarantee Scheme (ECLGS 2.0) notified by the Government of India in Two Tranches of Rs.25.00 Crores and
Rs.13.50 Crores, repayable in 48 equated monthly instalments after a 24-month moratorium period from the date of
disbursement, at an interest rate of 9% and 8.85% p.a linked to Repo rate.
v) The Company availed a loan of Rs.5.20 crores (2024: Rs.10.00 crores) from HDFC Bank under the Emergency Credit
Line Guarantee Scheme notified by the Government of India repayable in 48 equated monthly instalments after a
12-month moratorium period from the date of disbursement, at an interest rate of 9% p.a linked to Repo.
vi) Term Loan of Rs.51.76 crores (2024: Rs.NIL crores) from HDFC Bank Ltd towards Vizag Grinding Unit at an interest
Linked to 1M T Bill @ 8.35% p.a repayable in 28 quarterly instalments starting from June'26. The loan amount sanctioned
is Rs.90 Crores with a moratorium period of 2 years.
vi) Term Loan of Rs.NIL crores (2024: 10.58 crores) from Axis Bank Ltd, at an interest rate Linked to MCLR @ 8.35%
p.a repayable in 17 quarterly instalments starting from Oct'19. The loan amount sanctioned is Rs.60.00 Cr with no
moratorium period
vii) Term loan of Rs.NIL (2024: Rs.9.67 crores) from HDFC Bank Ltd , at an interest rate Linked to MCLR @ 9.25% p.a
repayable in 17 quarterly instalments starting from Oct'19. The loan amount sanctioned is Rs. Rs.54.75 Crores with no
moratorium period
viii) All the above are secured by secured by first charge on Fixed assets of the Company, ranking pari passu with other Term
lenders, further secured by second charge on Current assets of company.
Loans repayable on demand from Banks:
i) Cash Credit from AXIS Bank Ltd Rs.Nil (2024 : Rs.NIL) at an interest rate Linked to MCLR at 9.15%. The sanctioned
Limit is Rs.20.00 Cr.
ii) Cash Credit from HDFC Bank Ltd Rs.25.00 Cr (2024 : NIL) at an interest rate Linked to MCLR at 9.25%. The sanctioned
Limit is Rs.75.00 Cr
iii) Cash Credit from State Bank of India Rs.Nil (2024 :NIL) at an interest rate Linked to MCLR at 9.60%. The sanctioned
Limit is Rs.25.00 Cr
iv) Cash Credit from Kotak Bank Ltd Rs.NIL (2024 : NIL) at an interest rate Linked to MCLR at 9.15%. The sanctioned Limit
is Rs.60.00 Cr.
vi) All the above Working Capital Loans are secured by first charge on current assets of the Company, ranking pari passu
with other Working Capital lenders, further secured by second charge on fixed assets of company.
Vehicle & Equipment Loans
Vehicle and Equipment Loans from various Banks are secured by Hypothecation of respective assets financed, for a tenure
of 35 to 47 months and carries Interest @ 7.85% to 9.00% p.a.
Deposits From Public
Public deposits represent deposits accepted from the public carrying interest varying from 8% to 10% p.a. The maturity of
these deposits falls on different dates depending on the date of each deposit.
a) Provident Fund: Company pays fixed contribution to provident fund at predetermined rates to the government
authorities. The contribution of Rs. 381.85 lakhs (Previous year Rs. 363.18 lakhs ) including administrative charges is
recognized as expense and is charged in the Statement of Profit and Loss.
b) Gratuity: Gratuity is provided as per the payment of Gratuity Act 1972, covering all the eligible employees. Defined
Benefit Plan is payable to the qualifying employees on separation. Company considers the liabilities with regard to
gratuity, are independently measured on actuarial valuation carried out as on Balance Sheet date. The liability has been
assessed using Projected Unit Credit Method. 100% of the Gratuity Plan Asset is entrusted to LIC of India under their
group gratuity Scheme
Fair Value Hierarchy Management considers that,the carrying amount of those financial assets and financial liabilities that
are not subsequently measured at fair value in the Financial Statements approximate their transaction value. No financial
instruments are recognized and measured at fair value for which fair values are determined using the judgments and
estimates. The fair value of Financial Instruments referred below has been classified into three categories depending on the
inputs used in the valuation technique. The hierarchy givesthe highest priority to quoted prices in active market for identical
assets or liabilities. (Level-1measurements) and lowest priority to unobservable (Level-3 measurements). Investments in
subsidiary is at cost.
b) Financial Risk Management:
The Company's actual exposure to a variety of financial risks viz.,market risk, credit risk and liquidity risk. The Company's
focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The primary market risk to the Company is credit risk and liquidity risk.
c ) Management of Market Risk:
Market risks comprises of Price risk and Interest rate risk. The Company does not designate any fixed rate financial
assets as fair value through Profit and Loss nor at fair value through OCI. Therefore, the Company is not exposed to any
interest rate risk. Similarly, the Company does not have any Financial Instrument which is exposed to change in price.
e) Credit Risk:
Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligations. The
maximum exposure to the credit risk at the reporting date is primarily from trade receivables. The company considers
that, all the financial assets that are not impaired and past due as on each reporting dates under review are considered
credit worthy
Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current
and non-current financial assets.
With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection
losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in
payments and other relevant factors. Cash or other collaterals are obtained from customers as and when required.
The carrying amount of trade receivables represents company's maximum exposure to the credit risk. No other financial
asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with
reputable banks.
The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses. The management
also considers the factors that may influence the credit risk of its customer base, including default risk associated with
the industry and country in which customers operate. Credit quality of a customer is assessed based on the past track
record.
An impairment analysis is performed at each reporting date on an individual basis for receivables. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also
holds deposits as security from certain customers to mitigate credit risk.
40. Capital Management
The Company's objectives when managing capital are to
Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders,and maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the group monitors capital on the basis of the following gearing ratio:
Net debt (total borrowings net of cash and cash equivalents) divided by Total 'equity' (as shown in the balance sheet).
45. Indian Accounting Standard (Ind As-116): Disclosures On Leases are as Follows
a) Company as Lessee:
The Company has adopted lease accounting during the year considering the lease agreements of certain leases. The
Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease
commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the
initial measurement of the lease liability. The right-of-use assets are depreciated using the straight-line method from
the commencement date over the term of useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The Company has used a single discount rate to a portfolio of leases with similar
characteristics.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that
have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments
associated with these leases are recognised as an expense on a straight-line basis over the lease term.
Note 47:
Other information as required under schedule III of Companies Act, 2013:
i) The Company has 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 Funding Party (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
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 not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
iv) The Company has no Loans or Advances in the nature of Loans to specified persons that are Repayable on Demand or
without specifying any terms or period of repayment.
v) The Company had no transactions with Companies struck off under section 248 of the Companies Act, 2013 or section
560 of the Companies Act, 1956 during the year.
vi) The Company has not 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)
vii) The Code on Social Security, 2020 (“Code”) relating to employee benefits during employment and post-employment
benefits received presidential assent in September 2020. The Code has been published in the Gazette of India. However,
the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code
when it comes into effect and will record any related impact in the period the Code becomes effective.
viii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
ix) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
x) 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.
xi) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was
obtained.
Note 48
As per the requirements of Rule 3(1) of the Companies (Accounts) Rules 2014, the Company is required to use only such
accounting software for maintaining its books of accounts that have a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the books of account along with the date when such changes were
made and who made those changes within such accounting software. In respect of the accounting software used by the
Company, the audit trail was not enabled at certain master tables of database level to log any direct data changes. In respect
of such application and database, the Company has established and maintained an adequate internal control framework over
its financial reporting and based on its assessment, it has been concluded that the internal controls for the year ended March
31, 2025 were effective. The Company is in the process of system upgradation to meet the audit trail requirements for the
relevant masters at database level.
Note 49
Previous year's figures have been regrouped/reclassified wherever necessary to confirm to the current year's presentation.
Note 50 Segmental Reporting :
Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates
the company's performance and allocates resources based on an analysis of various performance indicators by business
segments. Accordingly, information has been presented for each business segment. The accounting principles used in the
preparation of the financial statements are consistently applied to record revenue and expenditure in individual business
segments, and are as set out in the significant accounting policies. Business segments of the company are.
1. Cement
2. Boards
3. RMC
4. Energy
5. Doors
Types of products and services in each business segments (1) OPC/PPC/53 S Cement (2) Plain and laminated Cement
Bonded Particle Boards . (3) Ready Mix Concrete. (4) Generation of Hydel power. (5) Doors
Segment Revenue and Expense
Details regarding revenue and expenses attributable to each segment must be disclosed
Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans
and advances etc. Assets relating to corporate and construction are included in unallocated segments. Segment liabilities
include liabilities and provisions directly attributable to respective segment.
The accompanying notes 1 to 50 are an integral part of the financial statements
As per our report of even date For and on behalf of the Board of Directors of NCL Industries Limited
For M Bhaskara Rao & Co K. Gautam N. G. V. S. G. Prasad
Chartered Accountants Managing Director Executive Director & CFO
Firm Registration No. 000459S DIN: 02706060 DIN: 07515455
D Bapu Raghavendra T. Arun Kumar
Partner Vice President & Company Secretary
Membership No. 213274
Hyderabad
Date: 30th May 2025
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