13.3 Terms/Rights attached to equity shares
The Company has only one class of equity shares having a face value of ?10 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the distribution will be in proportion to the number of equity shares held by the shareholders.
Nature and purpose of reserves:
1. Security premium will be utilised in accordance with the provisions of the Companies Act, 2013.
2. General reserve will be utilised for strengthing financial position and meeting the future contigencies and losses.
3. Amalgamation reserve which was created at the time of amalgamation, will be utilised as per the Companies Act, 2013.
4. The retained earnings represent the cumulative profits of the Company and effects of the remeasurement of defined benefit obligations. This reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
31 Notes to employee benefits Defined benefit plans
(i) leave Obligations
The leave obligation covers the company's liability for earned leave which is unfunded.
(ii) Defined contribution plan
The company has defined contribution plan namely provident fund. Contributions are made to provident fund at the rate of 12% of basic salary plus DA as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plan is as follows:
(iii) Gratuity:
Each employee rendering continuous service of 5 years or more is entitled to receive gratuity amount equal to 15/26 of the monthly emoluments for every completed year of service subject to maximum of ? 20 Lakhs at the time of separation from the company.
The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the fund status and amounts recognised in the balance sheet for the respective plans:
The above sensitivity analysis is based on a change in each assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
v) Risk exposure
Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:
Interest rate risk:
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Salary inflation risk:
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.
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32 Contingent Liabilities:
All amount X in lakhs, unless otherwise stated
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Particulars
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As at
31st March, 2025
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As at
31st March, 2024
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1
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Appeal pending before the Hon'ble High Court of Telangana questioning levy of NPV by the Special Secretary Environment, Forests, Sicence & Technology Department Govt of A.P. for the forest land diverted to KCSIL for the purpose of Mining Lime Stone under Forest (Conservation) Act, 1980.
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755.22
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755.22
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2
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The appeal No.72/2014 dated 05.06.2014 and.73/2014 dated 25.06.2014 for the year 2012-13 is pending before the 'Addl.Commissioner of Customs'. On 03.06.2020, the Commissioner (Appeals), Guntur passed orders remanding back the appeal to the adjudicating authority for denovo consideration as per the directions given by the Supreme Court in a case pertaining to Maruti Ispat and Energy Pvt Ltd & Others pending with the Hon'ble Supreme Court. Further in the Order the Department was directed not to enforce any demand from the Appellant -KCSIL vice versa the Appellant was directed not to make any claim for refund (if any) that accrued during the intervening period.
The said case is yet to be adjudicated by the Supreme Court.
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65.77
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65.77
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3
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For the Asst. years 1999-00 (ITTA No.464/2010), 2000-01(ITTA No.34/2011) and 2001-02 (ITTA No.33/2011) Income tax paid x 123.98 lakhs under protest against the demand of X 136.40 lakhs towards disallowance of un-absorbed depreciation / losses. The matter is pending in appeal before the Hon'ble High Court of Telangana. KCSIL with an intention to settle the pending disputes under Direct Taxes Vivadh Se Vishwas Scheme 2024 of IncomeTax Department, filed Form 1 with the Department on 27.02.2025 and the necessary procedutures are to be completed for the closue of these files.
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12.42
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12.42
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4
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For AY 2007-08 (ITTA No.345/2013), the ITAT in the Appeal partly disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed Appeal ( ITTA No. 345/2013) before the Hon'ble Hight Court of Telangana. The same is pending for adjudication.
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1,156.46
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-
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5
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For AY 2008-09. The ITAT in the Appeal partly disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed Appeal ( ITTA No. 488/2015) before the Hon'ble Hight Court of Telangana. The same is pending for adjudication.
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930.42
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-
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6
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For AY 2009-10. The ITATin the Appeal partly disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed Appeal ( ITTA No. 748/2014) before the Hon'ble High Court of Telangana. The same is pending for adjudication.
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2,581.75
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2,581.75
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7
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For the Asst.Year 2014-15. The CIT(A) disposed of the case in favour of the company by allowing 80IA deduction and in response to that the department has filed a petion with The Hon'ble High Court of Telangana after the dismissal of the case by the ITAT, Hyderabad. However the effectual consequential order u/s 154 is pending with the department for disposal.
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427.94
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427.94
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8
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For the A.Y.2016-17 (ITAT No.66/2021), the company has filed an appeal before the CIT(A) against the orders passed by the Assessing Officer disallowing 80IA deduction under IT Act. The CIT(A) as well as ITAT, Hyderabad disposed of the case in favour of the company allowing 80IA deduction, against which the IT department had filed an appeal before The Hon'ble High Court of Telangana and the effectual condequential order u/s 154 is pending with the department for disposal.
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969.26
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969.26
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9
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The Company has received Demand notices dated 07.01.2021, 11.02.2021 from TSNPDCL, Warangal directing the Company to pay a sum of X 2053.86 lakhs towards Grid Support Charges for the period commencing from 12.04.2002 and ending with 31.03.2009. The Original Petition (OP.NO. 35/2023) filed by KCSIL before TGERC, questioning the demand of Grid Support by TGNPDCL was dismissed by the TGERC on 28.10.2024. Company filed a Review Petition ( R.P. No. 1 of 2025) before TGERC. Counter Affidavit filed by TGNPDCL for which KCSIL filed its rejoinder. The Review Petition is posted to 17.05.2025.
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2,053.86
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2,053.86
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10
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Under Protest KCSIL has paid the crystalised Principal sum of ? 11,95,82,966/- claimed by TGSPDCL towards differential wheeling charges in two parts i.e. ? 8,00,00,000/- on 24.03.2022 and X 3,95,82,966/- on 27.10.2022 and KCSIL has disputed the levy of interest and surcharge amounting to ? 42,36,86,659/- levied by TGSPDCL through its notice dated 07.07.2023 by way of filing a Original Petition (O.P.No.36/2023) before Telangana Electricity Regulatory Commission (TGERC). The O.P. was dismissed by TGERC on 28.10.2024. Company filed an Appeal before the Appellate Tribunal for Electricity (APTEL) - New-Delhi (D.F.R.No, 4/2025). The Appeal is now posted to 26.05.2025 for Counter of TGSPDCL. Till that time APTEL directed TGSPDCL not to initiate any coercive action such as disconnection of power to its Service Connection No. SPT 427.
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4,236.87
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4,236.87
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11
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On 03.07.2023, KCSIL has paid the revised differential wheeling charges of ^ 55,15,496/- determined by APCPDCL in respect of VJA-489 for the period from Fy.2002-09 to Fy.2014-15 vide its letter dated
13.06.2013. But thereafter the CMD of APCPDCL, vide his letter dated 05.12.2013 levied an amount of ? 30,61,100/- towards surcharge on differential wheeling charges calculated w.e.f. 07.07.2020. KCSIL has disputed levy of Surcharge by way of filing an O.P. No. 05/2023 before the Andhra Pradesh Electricity Commission (APERC). The O.P. filed by KCSIL was allowed by APERC on 19.06.2024 by setting aside the surcharge of ? 30,61,100/- imposed by APCPDCL vide its Notice dated
05.12.2013.
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30.61
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30.61
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12
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The Joint Commissioner of Sale Tax vide is Order dated 09.01.2024 revised the proceedings issued by the Assistant Commissioner of Sale Tax for the Assessment Year by levying tax of ? 4,35,60,832. Questioning the revisional Order of Joint Commissioner of Sale Tax, KCSIL filed W.P.No.3148/2024 before the High Court of Telangana. The Hon'ble High Court vide its Orders dated 22.07.2024 disposed off the Writ Petiton filed by KCSIL by directing the Company to avail the alternate remedies available to it. Accordingly KCSIL filed Appeal before VAT Appellate Tribunal, Hyderabad, registered as Tribunal Appeal No. 4/2025 by paying 25% of disputed tax under protest. The Appeal is admitted and posted to 04.08.2025 for hearing.
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435.61
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435.61
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13
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A demand notice on 07.01.2021 was received from TGSPDCL, Suryapet, Telangana towards differential C.C. charges commencing from April 2014 and ending with February 2020. The Company vide its reply dated 22.01.2021 stated that it had entered into an HT agreement with TGSPDCL wherein it has declared its CMD as 4980 KVA for obtaining supply under 132 KV voltage category. TGSPDCL having agreed for the same in the agreement cannot revise the CC Bills. Hence, the Company requested the authority to withdraw the said letter. But till date no further developments took place by TSSPDCL.
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425.91
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425.91
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14
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On 23.05.2024, TGTRANSCO further issued a demand notice claiming an amount of ^ 7,37,30,713/- towards Transmission Charges from 01.04.2004 to 11.04.2022 the Company disputed the said charges till 21.07.2020 are time barred.
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737.31
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737.31
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15
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"The Company has received a notice dated 26.04.2024 from the Superintending Engineer, Operation Circle, TGSPDCL, Suryapet to HT Service No. SPT 427 attached to its Cement Factory, demanding an amount of ? 14,10,82,724/- towards Grid Support Charges caluclated from Fy.2002-03 to Fy.2008-09.
The Company vide its reply dated 09.05.2024 denied its liability and stated that the Cliam towards Grid Support Charges are time barred . Further the Cement Factory does not have any Captive Power Plant (CPP) in parallel with the Grid. APERC vide its order dated 07.12.2002 in OP.No.742/2000 approved KCSIL cement Factory for using the available D.G. Sets for standby operation without integration with the grid. On 04.07.2024 TGSPDCL further issued a notice revising the Grid Support Charges to ?1,36,74,069 restricting the period from 01.04.2002 to 07.12.2002. KCSIL disputed the same on the ground of Limitation and issued a letter dated 20.07.2024. No further developments. "
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1,410.83
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1,410.83
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16
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"The Company has received a notice dated 29.05.2024 from the Chief General Manager, IPC&RAC, TGNPDCL, Warangal demanding an amount of X 8,09,27,403/- towards Grid Support Charges for 3125 KVA TGSET caluclated from Fy. 2002-03 to 2008-09.
The Company vide its reply dated 05.06.2024 stated that the Cliam is barred by limitation, further as per the order dated 07.12.2002 passed by APERC, the 3125 KVA TG Set in the sugar factory was derailed from operations w.e.f 2002 itself. On 28.09.2024 TGNPDCL further issued a notice revising the Grid Support Charges to X 1,22,15,435/-only for the period from March 2002 to 17.03.2003 and with interest up to 31.08.2024. KCSIL has furnished yet another reply dated 15.10.2024. No further developments happened."
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122.15
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-
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17
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KCSIL has questioned the levy of Electricity duty @0.25 paise per unit on Captive Consumption w.e.f 17.07.2013 in W.P. No.20536/2009 & Batch filed before Hon'ble High Court of Telangana. The Hon'ble High Court dismissed our W.P. on 19.05.2016. Thereafter the Company preferred SLP before the Hon'ble Supreme Court of India. As per the Interim Orders dated 14.09.16 & 27.09.16, the Company has paid an amount of X 0.6 paise per unit and X 0.9 Paise per unit respectively out of the demand of X 0.25 paise per unit. Depending on the outcome of the Order, the Company may have to pay the balance 0.10 paise per unit aggregating to X3,21,75,024/- towards Elecl Duty. Hence provision is being provided for the balance amount.
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321.75
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321.75
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18
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"W.P. No.13571/2010 KCSIL Vs. Govt. of A.P.
GO.No. 35/2010, dated. 06.05.10 was issued by Govt of A.P. fixing the permit fee as f 10/- per Tonne for transporting the lime stone. Questioning the same KCSIL filed the present Writ Petition. Interim Order granted on 28.02.11 directing KCSIL to pay x 3 33 per tonne till the disposal of the W.P. as permit fee to the Govt. Counter affidavit was filed by the D.F.O for which Reply affidavit filed by KCSIL. As the permit fee levy is made by the A.P.Government, and the mines are situated at Andhra Pradesh, the High Court of Telangana has transferred the present W.P. to Andhra Pradesh. Not listed till date."
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164.28
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164.28
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33 Capital and other commitments X Nil (P.Y X Nil)
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35. Fair values
The carrying amounts of Trade Payables, Other Financial Liabilities (Current), Borrowings (Current), Trade Receivables, Cash & Cash equivalents,Other Bank Balances, Other Financial Assets and loans are considered to be the same as fair value due their short term nature.
The fair value of financial assets and liabilities is incuded at the amount at which the instrument could be exchanged in a current transactions between willilng parties, other than in a forced or liquidation sale.
Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:
techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If 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 are not based on observable market data, the instruments are included in Level 3.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
36 Financial risk management objectives and policies Financial Risk Management Framework
The Company's principal financial liabilities, other than derivatives, comprise loans and 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 include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The Company is exposed primarily to Credit Risk, Liquidity Risk and Market risk ( interest rate), which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
A. Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.
Trade receivables:
Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of statements of financial position whether a financial asset or a Company of financial assets is impaired. Expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. The company is not expecting any credit loss allowance which is calculated on life time expected credit losses for trade receivables. Credit loss provision on security deposits is taken as 12 months expected credit loss and no loss is expected as at 31st March, 2025, 31st March, 2024
(iii) Significant estimates and judgements Impairment of financial assets
The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company's past history, existing marketing conditions as well as forward looking estimates at the end of each reporting report.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company's Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the authorised person. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
B. Liquidity Risk
Prudent liquidity risk manangement implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Company's treasury maintains flexibility in funding by maintaining availabililty under deposits in banks.
Management monitors cash and cash equivalents on the basis of expecte cash flows.
(i) Financing arrangements
The Company had access to the following undrawn borrowng facility at the end of the reporting facilities.
C. Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk and other price risk, such financial instruments affected by market risk include loans and borrowings, deposits etc.
Interest rate risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long term and short term borrowings. The company has borrowed funds on fixed rate of interest, there is no impact on the entity due to any interest fuluctuations.
37 Capital Management
A. Capital Management and gearing Ratio:
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the Company's capital management is to maximise the shareholder value.
Capital includes equity attributable to the equity holders. The primary objective of the Company's capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
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. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
41 Segment information
The Company's activities are organised into three operating segments namely Cement, Sugar and Power. The Segments are the basis on which the company reports its segment information
Cement division - produce, manufacture, refine and prepare the portland cement Sugar division - It deals mainly with the crushing of sugar-cane Power division - It generates and distributes the power
They primarily uses a measure of profit before tax to assess the performance of the operating segments.
Information about Products:
Revenue from external customers- sale of cement : ? 4,786.05 lakhs (P.Y: ^ 9,783.96 lakhs)
Revenue from external customers- sale of sugar : X 4,136.23 lakhs (P.Y: X 5,811.29 lakhs)
Revenue from external customers- sale of power : ? Nil (P.Y: ? Nil)
The company has not made external sales to a single customer meeting the criteria of 10% or more of the entity's revenue.
Segment revenue and expenses:
The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments.
Segment assets and liabilities:
Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.
Inter segment transfers:
The Company accounts for inter segment sales and transfer at average Market price.
42 “Code on Security, 2020":
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
43 The Financial Statements were approved and authorised by the Board of Directors of the Company on 23rd May, 2025.
44 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lent or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in the persons or entities identified by or on behalf of the funding party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
45 The accounting software that is being used by the Company for maintaining its books of account does not have the feature of audit trail (edit log) facility both at the application level and database.
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