vi) Provisions and contingencies

(a) 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 resources embodying economic benefits will be required to settle
the obligation and a reliable estimate of the amount of the obligation. Provisions are reviewed at each
reporting period and are adjusted to reflect the current best estimate.

(b) Contingencies

A disclosure for contingent liability is made when there is possible obligation arising from past event the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

A disclosure for contingent assets is also made when there is possibility of an inflow of economic benefits to
the entity which arise from unplanned or other unexpected events.

Contingent liabilities and contingent assets are reviewed at each balance sheet date.

vii) Earnings per share:

Basic earnings per share is computed using the net profit for the year attributable to the shareholders’ and
weighted average number of shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.

viii) Income Taxes:

Income tax comprises current tax (including MAT) and deferred tax. Income tax expenses is recognized in
net profit in statement of Profit and loss extent to the extent that it relates to items recognized directly in
other comprehensive income/equity, in which case it is recognized in other comprehensive income/equity.

Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the
provisions of Income Tax Act, 1961.Current tax asset and liabilities are offset when company has a legally
enforceable right to set off the recognized amount and also intends to settle on net basis.

Deferred income tax assets and liabilities are recognized for deductible and taxable temporary difference
arises between the tax basses of assets and liabilities and their carrying amount in the financial statement

Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable
that sufficient taxable profit will be available against which those deductible temporary differences can be
utilised. Deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be
utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered.

Deferred tax is measured at the tax rates and tax law that that have been enacted or substantively enacted
by the balance sheet date and are expected to apply to taxable income in the year in which those temporary
difference is expected to be recovered or settled.

viii) Financial instruments:

Initial measurement

Financial instrument is recognized as soon as the company become a party to the contractual provision of
the instruments. All Financial assets and financial liabilities are measured at fair value on initial recognition,
except for trade receivable which are initially measured at transaction price. Transaction cost that are
directly attributable to the acquisition or issue of financial instrument (other than financial measured at fair
value through profit or loss) are added or deducted from the value of the financial instrument, as appropriate,
on initial recognition.

Financial Instrument sated as financial assets or financial liabilities are generally not offset, and they are only
offset when a legal right to set off exist at that and settlement on a net basis is intended.

Subsequent measurement

Financial assets:

Subsequent measurement of financial assets depends on their classification as follows: -

(a) Financial asset carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within business model whose
objective is to hold the asset in order to collect contractual cash flow and the contractual term of the asset
give rise on specified dates to cash flow that are solely payment of principal and interest on the principal
amount outstanding.

(b) Financial asset carried at Fair Value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held
within a business model whose objective is achieved by both collecting contractual cash flow and selling
financial asset the contractual term of the asset give rise on specified dates to cash flow that are solely
payment of principal and interest on the principal amount outstanding.

For all other equity instrument, the company makes irrevocable election to present in other comprehensive
income subsequent change in fair value. The company makes such election on an instrument- to- instrument
basis.

(c) Financial asset carried at Fair Value through Profit and loss

A financial asset which is not classified in any of the above category is subsequently measured at fair value
through profit and loss.

Financial liabilities and equity instruments:

Debts and equity instrument issued by a company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangement and the definition of a financial liability and an
equity instruments.

a) Equity Instruments

An equity instrument is any contract that an evidence and residual interest in the assets of the company after
deducting all of its liabilities. Equity instruments issued by the company are recognized at the proceeds
received, net of direct issue costs.

b) Financial Liabilities

All Financial liabilities are subsequently measured at amortised cost using the Effective interest method.
De-recognition of financial Instrument: -

A financial asset is primarily derecognized when the contractual right to the cash flow from the financial
asset expires and it transfers the financial asset.

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires.

(ix). Impairment

A) . Financial Asset

The Company measures the expected credit loss associated with its assets based on historical trend,
industry practices and the business environment in which the entity operates or any other appropriate basis.
The impairment methodology applied depends on whether there has been a significant increase in credit
risk.

B) . Non-Financial Asset

Critical accounting estimates, assumptions and judgements

In the process of applying the Company’s accounting policies, management has made the following
estimates, assumptions and judgements, which have significant effect on the amounts recognized in the
financial statement. Uncertainty about these assumptions and estimates could result in outcome that require
a material adjustment to assets or liabilities affected in future periods.

i) Income taxes

The Company’s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits
for the purpose of paying advance tax, determining the provision for income taxes, including amount
expected to be paid/recovered for uncertain tax positions

ii) Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of
contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending
matters with accuracy.

iii) Allowance for uncollected accounts receivable and advances

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate
allowances for estimated irrecoverable amounts. Individual trade receivables and advances are written off
when management deems them not to be collectible. Impairment is made on the expected credit losses,
which are the present value of the cash shortfall over the expected life of the financial assets.

iv) Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment testing for an asset is required, the Company estimates
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair
value less costs of disposal and its value in use. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

v) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected
loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company’s past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

vi) Fair value measurement of financial instruments

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques,
including the discounted cash flow model, which involve various judgements and assumptions.

21. There is nothing to be disclosed under Ind-AS 108 - Segment Reporting since there is no business segment
or geographical segment which is a reportable segment based on the definitions contained in the accounting
standard.

Deferred Tax has been created as per IND-AS-12 issued by Institute of Chartered Accountants of India.

In accordance with IND AS 12 - Income Taxes issued by ministry of corporate affairs, the company has
accounted for the Deferred Tax. Major Components of Deferred Tax Assets and Liabilities are - NIL

22. The debit and credit balances standing in the name of parties are subject to confirmation from them.

23. In the opinion of the Board of Directors, the current assets, loans & advances are fully realizable at the value
stated, if realized in the ordinary course of business. The provisions for all known liabilities are adequate in
the opinion of board.

30. Capital-Work In Progress :There is no capital work in progress for tangible or intangible assets.

31. Benami Properties :No proceedings has been initiated or pending against the Company for holding any
benami property under the Prohibition of Benami Property Transactions Act, 1988.

32. Borrowings from Banks/FI on the basis of security of Current Assets: The Company does not have any

borrowings from bank. Hence the question of Quarterly Returns or Statements of Current Assets filed by
the Company with Banks/FI, are in agreement with books of accounts does not arise.

33. The company has not been declared as willful defaulter by any bank of financial institution or any other lender.

34. Transactions with Struck-off Companies: The company has not entered into any transactions with struck

off companies under section 248 of the Companies Act 2013 or Section 560 of Companies Act 1956.

35. Registration of Charges or Satisfaction: The company does not have any charges.

36. Compliance with layers of the companies:-

The company has complied with the number of layers prescribed under Clause (87) of the Act read with
Companies (Restriction on number of Layers) Rules 2017.

37. Scheme or Arrangement: During the year, the company has not entered into any scheme or arrangement
in terms of Section 230 to 237 of the Companies Act 2013

38. During the year no income was surrendered or disclosed as income in the tax Assessments.

39. The company has not dealt in Crypto Currency during the year.

40. The Company has not advanced or loaned or invested funds to any other person or entities with an under
standing that the intermediary will invest or provide any guarantee, security or the like to or on behalf of
ultimate beneficiaries.

41. The Company has not received any fund from any person (s) or entity(s), including foreign entities
(Funding party)with the understanding that the company shall directly or indirectly investor provide any
guarantee, security or the like to or on behalf of funding party.

42. Use of Borrowed Funds: The Company has not taken any borrowings from banks and Financial
Institutions. Hence the question of its usage does not arise.

43. Debit and credit balances standing in the name of the parties are subject to confirmation from them.

44. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

45. Previous year figures have been regrouped/ reclassified wherever necessary.

46-AFinancial instruments

(i) Fair values
hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are
classified into three Levels of a fair value hierarchy. The three levels are defined based on the observability
of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data rely as little as possible on entity
specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company's board of
directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. This note explains the sources of risk which the entity is exposed to and how
the entity manages the risk and the related impact in the financial statements.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The company is
exposed to this risk for various financial instruments, for example by granting loans and receivables to
customers, placing deposits, etc. The company’s maximum exposure to credit risk is limited to the
carrying amount of following types of financial assets.

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortised cost, and

- deposits with banks

Credit risk rating

The Company assesses and manages credit risk based on internal credit rating system, continuously
monitoring defaults of customers and other counterparties, identified either individually or by the
company, and incorporates this information into its credit risk controls. Internal credit rating is performed
for each class of financial instruments with different characteristics. The Company assigns the following
credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to
the class of financial assets.

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly
rated banks and diversifying bank deposits and accounts in different banks.

Loan measured at amortised cost

Other loan and advances measured at amortized cost includes advances to different persons. Credit
risk related to these other current assets is managed by monitoring the recoverability of such amounts
continuously, while at the same time internal control system in place ensure the amounts are within
defined limits.

Other Current assets measured at amortised cost

Other current assets measured at amortized cost includes advances to different persons. Credit risk
related to these other current assets is managed by monitoring the recoverability of such amounts
continuously, while at the same time internal control system in place ensure the amounts are within
defined limits.

B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations
when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining
availability under committed facilities.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash
equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the
market in which the entity operates. In addition, the Company’s liquidity management policy involves
projecting cash flows in major currencies and considering the level of liquid assets necessary to meet
these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and
maintaining debt financing plans.

C) Market risk

a) Interest rate risk

The Company is not exposed to changes in market interest rates.

b) Price risk Exposure

The Company’s exposure to price risk arises is nil
As per our report of even date attached.

For Nemani Garg Agarwal & Co.

Chartered Accountants For and on behalf of Board of Directors

Firm Reg. No. 010192N RCC CEMENTS LIMITED

Sd/- Sd/- Sd/- Sd/- Sd/-

(J.M. Khandelwal) (Sachin Garg) (Madhu Sharma) (SobanSingh Awal) (Shimpy Goyal)

Partner Mg. Director Director CFO Company Secretary

M.No.:074267 DIN:03320351 DIN:06947852 PAN:ADOPA4692F M. No. 40702

UDIN:25074267BMOXYV9950

Place: New Delhi
Date: 29.05.2025