(12) Provisions, Contingent liabilities and Contingent Assets
i) General
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. When the Company expects some or all of a provision to be reimbursed, for
example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of
any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognized as a finance cost.
ii) Contingent Liability
Contingent Liability is disclosed in the case of:
• A present obligation arising from past events, when it is not probable that an outflow of resources will be required to
settle the obligation.
• A present obligation arising from past events, when no reliable estimate is possible:
• A possible obligation arising from past events, unless the probability of outflow of resources is remote.
Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.
iii) Other Litigation Claims
Provision for litigation related obligation represents liabilities that are expected to materialize in respect of matters in appeal.
iv) Onerous Contracts
A provision for onerous contracts is measured at the present value of the lower of expected costs of terminating the contract
and the expected cost of continuing with the contract. Before a provision is established, the Company recognizes
impairment on the Assets with the contract.
v) Contingent Asset
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. Contingent
Assets are disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.
(13) Revenue Recognition
Revenue towards satisfaction of a performance obligation is measured at the amount of Transaction price (Net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold & services rendered is net of
variable consideration on account of various discounts & schemes offered by the Company as part of the contract.
i) Sale of Goods
Revenue is recognized upon transfer of control of promised goods or services to customers at transaction price (net of taxes
and duties).
Taxes collected on behalf of the government are excluded from revenue. Revenue is recognised to the extent it is probable
that the economic benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably.
ii) Non-Cash Incentives
The Company provides Non-Cash incentives at Fair Value to customers. These benefits are passed on to customers on
satisfaction of various conditions of various sales schemes. Consideration received is allocated between the products sold
and non-cash incentives to be issued to customers. Fair value of the non-cash incentive is determined by applying principle of
Ind AS 113 i.e. at market rate. A contract liability for the non-cash incentive is recognised at the time of sale.
iii) Rebate / Discount to Customers
Rebates to customers are recognized as a reduction in revenue under various discount schemes, including estimated future
rebates expected to be claimed by customers. The Company reassesses and updates its estimates of such rebates at the end
of each reporting period. As sales returns are not material, no liability is recognized for sales returns as of the reporting date.
iv) Dividend Income
Dividend income is recognized when the right to receive dividend is established, which becomes certain after
shareholders'approval.
v) Lease Income
Lease Agreements where the risk and rewards incidental to the ownership of an asset substantially vest with the lessor are
recognized as operating leases. Leases rentals are recognized on straight -line basis as per the terms of the agreements in the
statement of profit and loss.
vi) Interest Income
For all Financial instruments measured at amortized cost, interest income is recorded using Effective Interest Rate (EIR),
which is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the
Financial Instrument or a shorter period, where appropriate, to the net carrying amount of the Financial Asset. Interest
income is included in other income in Statement of Profit and Loss.
vii) Renewable Energy Certificate
Renewable Energy Certificate (REC) benefits are recognized in Statement of Profit & Loss on Sale of REC. Income from Sale of
RECs is recognized on the delivery to the Customers' Account.
(14) Employees Benefits
i) Defined Contribution Plans
Contributions to the employees' regional Provident Fund, Superannuation Fund, Employees Pension Scheme and
Employees' State Insurance are recognized as defined contribution plan and charged as expenses during the period in which
the employees perform the services. The Company has no obligation, other than the contribution payable to the respective
funds. The Company recognises contribution payable to these schemes as an expense, when an employee renders the
related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet
date, then excess is recognised as an asset to the extent that the pre-payment will lead to, for example, a reduction in future
payment or a cash refund.
ii) Defined Benefit Plans
Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit plan and determined on
actuarial valuation using the Projected Unit Credit Method at the balance sheet date. Actuarial Gains or Losses through re¬
measurement of the net obligation of a defined benefit liability or asset is recognized in Other Comprehensive Income. Such
re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.
The Provident Fund Contribution other than contribution to Employees' Regional Provident Fund, is made to trust
administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared
by the Central Government under Employees' Provident Fund and Miscellaneous Provision Act, 1952. The Employer shall
make good deficiency, if any.
iii) Short-term Employee Benefits
Short Term Benefits are charged off at the undiscounted amount in the year in which the related service is rendered.
iv) Long-Term Employee Benefit
Compensated absences which are not expected to occur within twelve months after the end of the period in which the
employee renders the related services are recognized as a liability at the present value of the defined benefit obligation at the
balance sheet date. Annual Leaves can either be availed or enchased subject to restriction on the maximum accumulation of
Leaves.
v) Termination Benefits
Termination Benefits are recognized as an expense in the period in which they are incurred.
The Company shall recognize a liability and expense for termination benefits at the earlier of the following dates:
(a) When the entity can no longer withdraw the offer of those benefits; and
(b) When the entity recognizes costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of
termination benefits.
(15) Borrowing Costs
1) Borrowing Costs that are specifically attributable to the acquisition, construction, or production of a Qualifying Asset are
capitalized as a part of the cost of such Asset till such time the asset is ready for its intended use or sale. A Qualifying Asset is
an asset that necessarily requires a substantial period of time (generally over twelve months) to get ready for its intended use
or sale.
The Borrowing Cost consists of Interest & Other Incidental costs that the Company incurs in connection with the borrowing
of such Funds.
2) For general borrowing used for the purpose of obtaining a Qualifying Asset, the amount of borrowing costs eligible for
capitalization is determined by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the
weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the
period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing
costs capitalized during a period does not exceed the amount of borrowing cost incurred during that period.
3) Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. All other
borrowing costs are recognized as expense in the period in which they are incurred.
(16) Leases
The Company assesses at contract inception whether a contract or part of contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
a) Company as a Lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases
of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing
the right to use the underlying assets.
i) Right-Of-Use Assets
The Company recognises Right-Of-Use assets at the commencement date of the lease (i.e., the date the underlying asset
is available for use). Right-of-use Assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any re-measurement of lease liabilities. The cost of Right-Of-Use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any
lease incentives received. Right-of-use Assets are depreciated on a straight-line basis from the commencement date over
the shorter of the lease term and the estimated useful lives of the Assets.
If ownership of the Leased Asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using the estimated useful life of the Asset.
ii) Lease Liabilities
At the commencement date of the lease, the Company recognises Lease Liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease
term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or
a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or
condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its existing weighted average cost of capital(WACC)
rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the
lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a modification, a
change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an
index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the
underlying asset.
Lease liabilities have been presented as a separate line and Right-of-use assets have been presented under Property Plant
and Equipment in the balance sheet. Lease payments have been classified as cash used in financing activities.
iii) Short-Term Leases and Leases of Low-Value Assets
The Company has elected not to recognise Right-of-Use Assets and Lease Liabilities for short term leases of all assets that
have a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments
associated with these leases as an expense on a straight-line basis over the lease.
b) Company as a Lessor
Lease income from Operating Leases where the Company is a Lessor is recognized in income on a straight-line basis over the
lease term unless the recipients are structured to increase in line with expected general inflation to compensate for the
expected inflationary cost increases. The respective Leased Assets are included in the Balance Sheet based on their nature.
(17) Taxes on Incomea) Current Tax
i) Tax on Income for the Current Period is determined on the basis of estimated taxable income and tax credits computed in
accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments / appeals.
ii) Current Income Tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit
and loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
b) Deferred Tax
Deferred Tax is provided using the Balance Sheet Approach on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
The carrying amount of 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 Assets and Liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.
Deferred Tax relating to items recognized outside the Statement of Profit and Loss is recognized outside the Statement of
Profit and Loss.
Deferred Tax items are recognized in correlation to the underlying transaction either in Other Comprehensive Income or
directly in Equity.
The break-up of the major components of the Deferred Tax Assets and Liabilities as at Balance Sheet date has been arrived at
after setting off deferred tax assets and liabilities where the Company have a legally enforceable right to set-off assets against
liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.
(18) Exceptional Items
On certain non-recurring occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary
activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such
income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the Financial
Statements.
(19) Mines Restoration
The Company provides for the expenditure to reclaim the quarries used for mining, in statement of profit and loss based on present
value of estimated expenditure required to be made towards restoration and rehabilitation at the time of vacation of mines.
(20) Earnings Per Share (EPS)
i) Basic Earnings Per Share
Basic Earnings Per Share is calculated by dividing
• The Profit or Loss attributable to Equity Shareholders of the Company by the Weighted Average number of Equity Shares
outstanding during the Financial Year, adjusted for bonus elements in Equity Shares issued during the Year.
ii) Diluted Earnings Per Share
Diluted Earnings Per Share adjusts the figures used in the determination of basic earnings per share to take into account
• The after Income Tax Effect of interest and other financing costs associated with dilutive potential equity shares, and the
Weighted Average number of additional Equity Shares that would have been outstanding assuming the conversion of all
dilutive potential Equity Shares.
(21) Segment Accounting
The Company is engaged primarily into manufacturing of Cement. The Company has only one business segment as identified by
management namely Cementitious Materials.
Segments have been identified taking into account nature of product and differential risk and returns of the segment. The
business segments are reviewed by the Chairperson & Managing Director (Chief Operating Decision Maker).
The Chief Operational Decision Maker monitors the operating results of its business Segments separately for the purpose of
making decisions about resource allocation and performance assessment. Segment performance is evaluated based on each
segments profit or loss and is measured consistently with profit or loss in the Financial Statements.
(22) Cash dividend
The Company recognises a Liability to pay dividend to Equity Holders of the Company when the distribution is authorised and
the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised
when it is approved by the shareholders. A corresponding amount is recognised directly in Other Equity. Interim Dividends are
recognised as a Liability on the date of declaration by the Company's Board of Directors.
(23) Recent Accounting Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under the Companies
(Indian Accounting Standards) Rules, as issued from time to time. During the year ended March 31,2026, MCA has notified the
Companies (Indian Accounting Standards) Amendment Rules, 2025 applicable to the Company w.e.f. April 1,2025.
a. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates:
The Company has reviewed the amendment and based on its evaluation has determined that it does not have any impact in
its financial statements.
b. Ind AS 1- Presentation of Financial Statements:
The amendments relating to classification of liabilities as current or non-current and non-current liabilities with covenants.
The Company has reviewed the amendment and based on its evaluation has determined that it does not have any significant
impact in its financial statements.
c. Ind AS 7 - Statement of Cash Flows and Ind AS 107 - Financial Instruments:
Require detailed disclosure for Supplier Finance Arrangements and effect of such arrangements on cash flows. For the
current year, this disclosure is not applicable.
d. Ind AS 12 - Income Taxes related to mandatory disclosure of impact of OECD Pillar Two Model Rules and temporary
exemption from deferred tax recognition on the same:
The Company has reviewed the amendment related to application of Pillar Two rules and determined that the Company is
not in scope of OECD Pillar Two Model rules.
d. Terms / Rights attached to Equity Shareholders:
i) The Company has only one class of Equity Shares having a par value of '5 per share. Each holder of equity shares is entitled to
one vote per share held.
ii) In the event of liquidation of the Company, the holders of equity shares 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 and are subject to prefrential rights of prefrence shares (if issued).
iii) The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend.
e. During the last five years, the Company has not issued any bonus shares nor are there any shares bought back and issued for
consideration other than cash except shares issued during the year in pursuant to amalgamation. (Refer footnote 18 a above)
f. Nature of Reserves:
Securities Premium Reserve represents the amount received in excess of par value of Securities issued by the Company, which may
be utilised for purposes specified u/s 52(2) of the Companies Act, 2013.
Capital Reserve represents the reserve created on amalgamation and business combination and profit or loss on purchase, sale,
issue or cancellation of the Group's own equity instruments. (Refer note 73 (a))
Pre-merger Share Disposal Reserve represents the cost of investment in Udaipur Cement Works Limited which was disposed off
prior to the effective date of the merger but after the [appointed date / beginning of the preceding period] (Refer note 73 (a))
Capital Redemption Reserve Represents the statutory reserve created at the time of redemption of Preference Share Capital and
buy back of Equity Share Capital which can be applied for issuing fully paid-up bonus shares.
General Reserve represents accumulated profits set apart by way of transfer from current year Profits / or / and Surplus in P/L
Statement comprised in Retained Earnings for "other than specified purpose".
Shares Pending Issuance represents 64,74,360 equity shares of face value '5 each which were pending issuance to the eligible
shareholders as at March 31,2025 pursuant to the Composite Scheme of Amalgamation and Arrangement. The same has been
issued during the year ended March 31,2026.
1. Term Loan from a Bank of '149.95 Crore is secured by way of an Exclusive First Charge on all the Immovable and Movable Fixed
Assets of the Company's Cement Grinding Unit at Surat in the State of Gujarat. This Term Loan shall be repayable in 40 quarterly
instalments commencing from June 30, 2026.
2. Term Loan from a Bank of '104.88 Crore is secured by way of a Pari Passu First Charge on all the Immovable and Movable Fixed
Assets of the Company's Integrated Durg Cement Plant in the State of Chattisgarh except those assets charged to other lenders. This
Term Loan shall be repayable in 52 Quarterly Instalments commencing from June 30, 2026.
3. Term Loan from a Bank of '63.67 Crore is secured by way of an Exclusive First Charge on Movable Fixed Assets of the Company's
20 MW Thermal Power Plant at Durg, Chattisgarh. This Term Loan is repayable in 26 Quarterly Instalments.
4. Term Loan from a Bank of '49.82 Crore is secured by way of an Exclusive First Charge on all the Immovable & Movable Fixed Assets of
the Company's Cement Grinding Unit at Cuttack, Odisha. This Term Loan is repayable in 31 Quarterly Instalments.
5 Term Loan from a Bank of '104.84 Crore is secured by way of a Pari Passu First Charge on all the Immovable and Movable Fixed
Assets pertaining to the Company's Integrated Sirohi Cement Plant in the State of Rajasthan subject to the prior charges in favour of
Banks on Specified Assets and Company's Banks for Working Capital on Specified Movables Assets. This Term Loan is repayable in
13 Quarterly Instalments.
6 Term Loan from a Bank of '200.00 Crore is secured by way of a Subservient Charge on all the Immovable and Movable Fixed Assets
of the Company's Integrated Durg Cement Plant in the State of Chattisgarh except those assets specifically charged to other lenders.
This Term Loan shall be repayable in 24 Quarterly Instalments commencing from June 26, 2026.
7 Term Loans aggregating to '1402.17 Crore from Banks are secured by a (i) Pari Passu First Charge on all the Movable & Immovable
Fixed Assets of the Company's Integrated Udaipur Cement Plant in the State of Rajasthan & (ii) Pari Passu Second Charge on Current
Assets of the Company's Integrated Udaipur Cement Plant.
• Term Loans of '1089.00 Crore shall be repayable in 42 Quarterly Instalments
• Term Loan of '142.60 Crore shall be repayable in 16 Quarterly Instalments
• Term Loan of '80.00 Crore shall be repayable in 13 Quarterly Instalments
• Term Loan of '53.08 Crore shall be repayable in 14 Quarterly Instalments
• Term Loan of '37.49 Crore shall be repayable in 24 Quarterly Instalments
8 Interest Free Loan (IFL) from The Director of Industries & Commerce, Haryana of '14.26 Crore granted to Company in relation to its
Cement Grinding Unit at Jhajjar, Haryana, is secured by Bank Guarantee of equivalent amount and shall be repaid at the end of
5th year from the respective disbursement dates. The said IFL has been recognised on Amortised Cost Basis.
9 Public Deposits represents the Deposits accepted by the Company from Public under its Fixed Deposit Scheme having maturity of
1,2 & 3 years from the date of deposits.
10 The above outstanding Term Loans are net of the Processing charges of '0.75 Crore (Previous year '3.39 Crore) as per IND AS 109.
I Note-44 Financial Risk Management Objectives and Policies.
The Company realizes that risks are inherent & integral part of any business. The primary focus is to foresee the unpredictability of
financial market & seek to minimize potential adverse effect on its financial performance. The Company's activities are exposed to a
variety of financial risks from its operations. The key financial risks include market risk (including foreign currency risk, interest rate risk and
commodity risk etc.), credit risk and liquidity risk.
44.1 Market Risk: Market risk is the risk of loss of future earnings, fair values or future cash flows that may results from change in the price
of a financial instrument. The value of a financial instrument may change as result of change in the interest rates, foreign currency
exchange rates, equity prices and other market changes may affect market risk sensitive instruments. Market risk is attributable to all
market risk sensitive financial instruments and deposits, foreign currency receivables, payables and loans and borrowings. Market risk
comprises mainly three types of risk: interest rate risk, currency risk and other price risk such as equity price risk and commodity risk.
The Company has an elaborate risk management system to inform board members about risk management and minimization
procedures.
a) Foreign Currency Risk: Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company makes certain imports in foreign currency & therefore is exposed to foreign
exchange risk.
The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk
management policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.
c) Commodity Price Risk and Sensitivity: The Company is exposed to the movement in price of key raw materials in domestic and
international markets. The Company manages fluctuations in raw material price through hedging in the form of advance
procurement when the prices are perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in
order to keep raw material and prices under check, cost of material is hedged to the extent possible.
44.2Credit Risk:
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. The Company is exposed
to credit risk from its operating activities (primarily trade receivables).
a) Trade Receivables: Customer credit risk is managed based on Company's established policy, procedures and controls. The Company
periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and
analysis of historical bad debts and aging of trade receivables. Individual credit risk limits are set accordingly.
The credit risk from the organized and bigger buyers is reduced by securing bank guarantees / letter of credits / part advance payments /
post dated cheques. The outstanding's of different parties are reviewed periodically at different level of organization. The outstanding
from the trade segment is secured by two tier security - security deposit from the dealer himself, and our business associates who
manage the dealers are also responsible for the outstanding from any of the dealers in their respective region. Impairment analysis is
performed based on historical data at each reporting period on an individual basis. For ageing of trade receivables refer note 12.
b) Financial Instruments and Deposits with Banks: The Company considers factors such as track record, size of institution, market
reputation and service standards to select the bank with which balances and deposits are maintained. Generally, balances are
maintained with the institutions with which the Company has also availed borrowings. The Company does not maintain significant
cash and deposit balances other than those required for its day to day operation.
c) Loans: The Company has given loans to step-down subsidiaries and other parties. There is no collateral held against these because
based on historical experience and credit profiles of counterparties, the Company does not expect any significant risk of default. The
Company's maximum exposure to credit risk for each of the above is their carrying values as at the reporting dates.
44.3 Liquidity Risk:
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company's approach is to ensure, as far as possible, that it will have
sufficient liquidity to meet its liabilities when due.
The Company relies on a mix of borrowings, and excess operating cash flows to meet its needs for funds. The current committed lines
of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity
requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn
committed borrowings facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable)
on any of its borrowing facilities.
Note-45 Capital Risk Management:
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of
the financial covenants. The Company's primary objective when managing capital is to ensure that it maintains an efficient capital
structure and healthy capital ratios and safeguard the Company's ability to continue as a going concern in order to support its business
and provide maximum returns for shareholders. The Company also proposes to maintain an optimal structure to reduce the cost of
capital.
Fair Valuation Techniques:
The Company maintains policies and procedures to value Financial Assets & Financial Liabilities using the best and most relevant data
available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and
assumptions were used to estimate the fair values:
1 Fair Value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their
carrying amounts largely due to the short-term maturities of these instruments.
2 Other non-current receivables are evaluated by the Company, based on parameters such as interest rates, individual
creditworthiness of the counterparty etc. Based on this evaluation, allowances are considered to account for the expected losses of
these receivables. As at end of each reporting year, the carrying amounts of such receivables, net of allowances (if any), are not
materially different from their calculated fair values.
3 Fair Value of Investments in quoted Mutual Funds and Equity Shares are based on quoted market price at the reporting date. The fair
value of unquoted investments in Preference Shares are estimated by discounting future cash flows using rates currently available for
debt on similar terms, credit risk and remaining maturities. The fair value of unquoted investments in equity shares are estimated on
net assets basis.
4 Fair Value of borrowings from banks and other non-current financial liabilities, are estimated by discounting future cash flows using
rates currently available for debt on similar terms and remaining maturities.
5 The Fair Values of Derivatives are calculated using the RBI reference rate as on the reporting date as well as other variable parameters.
Fair Value Hierarchy:
The following table provides the fair value measurement hierarchy of Company's asset and liabilities, grouped into Level 1 to Level 3 as
described below:
Level 1: Quoted prices in active markets.
Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.
Level 3: Inputs that are not based on observable market data.
The following table provides the fair value measurement hierarchy of Company's asset and liabilities, grouped into Level 1 to Level 3 as
described below:
Ý Note-47 Segment Information:
The Company is engaged primarily into manufacturing of cement. The Company has only one business segment as identified by
management namely cementious materials. As per Ind AS 108 "Operating Segments", specified under section 133 of the Companies Act
2013 there are no reportable operating or geographical segments applicable to the Company.
Information about major customers
There are no revenues from transactions with a single external customer amounting to 10 per cent or more of an entity's revenues during
the current and previous year.
Reason for variances
A Current Ratio has improved due to increase in current assets and decrease in current liabilities.
B Debt Service Coverage Ratio has increased due to increase in operating income and lower debt repayment.
C Return on Equity Ratio has increased due to increase in profit.
D Inventory Turnover Ratio has improved due to increase in the Revenue from Operation and decrease in the Average inventory.
E Trade Receivable Turnover Ratio has declined due to increase in the Average Trade receivable.
F Net Profit Ratio has improved due to increase in net profit.
G Return on Investment has improved due to increase in Other Income and Average Investment.
Note-53 Estimated amount of contracts remaining to be executed on capital account (net of advances) '1015.45 crore (previous
year '381.07 crore).
Note-54 A.Contingent Liabilities in respect of claims not accepted by the Company (including matters in appeals) and not provided
for are as follows
B. During the previous year the Company has reversed the provision for land tax of amount '36.38 crores pursuant to the receipt of a
notification no. F4(2)FD/Tax/2024-65 issued by the Rajasthan Finance Department, which grants exemption from land tax with
effect from February 8, 2024, and further provides for the waiver of land tax, along with any associated penalties and interest,
accrued prior to the said date post payment of 10% of the tax amount due. (Refer note no. 32)
I Note-55 In respect of certain disallowances and additions made by the income tax authorities, appeals are pending before the
appellate authorities and adjustment, if any, will be made after the same are finally settled. The management believes that
considering the present status and /or opinion of experts, there will not be material impact.
I Note-56 Contingent liability for non-use of jute bags for cement packing upto June 30, 1997, as per Jute Packaging Materials
(compulsory use of packaging commodities) Act, 1987 is not ascertained and the matter is subjudice. The Government has
excluded cement industry from application of the said order from July 01,1997.
H Note-57 Competition Commission of India (CCI) vide its order dated January 19, 2017 had imposed penalty on certain cement
companies including a penalty of '6.55 crore on the Company pursuant to a reference filed by the government of Haryana.
The Company has fled an appeal with Competition Appellate Tribunal (COMPAT) against the said order. COMPAT has
granted a stay on CCI order. After the merger of COMPAT with National Company Law Appellate Tribunal (NCLAT), the
Company's case also stands transferred to NCLAT.
Although based on legal opinion, the Company believes that it has a good case in its favour but out of abundant caution the
Company had provided full amount during the earlier years.
OCI presentation of Defined Benefit plan
Gratuity is in the nature of defined benefit plan, re-measurement gains / (losses) on defined benefit plans is shown under OCI as Items that
will not be reclassified to profit or loss and also the income tax effect on the same.
Presentation in Statement of Profit & Loss and Balance Sheet
Expense for service cost, net interest on net defined benefit liability (asset) is charged to statement of profit & loss. IND AS 19 does not
require segregation of provision in current and non-current, however net defined liability (assets) is shown as current and non-current
provision in balance sheet as per IND AS 1.
When there is surplus in defined benefit plan, company is required to measure the net defined benefit asset at the lower of; the surplus in
the defined benefit plan and the assets ceiling, determined using the discount rate specified, i.e. market yield at the end of the reporting
period on government bonds, this is applicable for domestic companies, foreign company can use corporate bonds rate.
The company assesses these assumptions with its projected long-term plans of growth and prevalent industry standards. The mortality
rates used are as published by one of the leading life insurance companies in India.
The Company uses foreign currency denominated borrowings and foreign exchange forward contracts (including option
contracts - seagull structure) to manage some of its transaction exposures. The foreign exchange forward contracts and
foreign exchange option contracts are not designated as cash flow hedges and are entered into for periods consistent with
foreign currency exposure of the underlying transactions, generally from one to thirty six months.
Foreign Currency Risk
The Company has entered into foreign exchange forward contracts and foreign exchange option contracts with the
intention to reduce the foreign exchange risk on repayment of buyer's credit and foreign currency loan, these contracts are
not designated in hedge relationships and are measured at fair value through profit or loss.
Ý Note-66 Events occurring after the balance sheet date
No adjusting or significant non-adjusting events have occurred between the reporting date and date of authorization of
these financial statements.
Ý Note-67 The proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules
2021 requires companies, which uses accounting software for maintaining its books of accounts, to use only such
accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each
change made in the books of accounts along with the date when such changes were made and ensuring that the audit trail
cannot be disabled.
The Company has used accounting software for maintaining its books of account, which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective
software. Further, the audit trail (edit logs) feature for any direct changes made at the database level was also enabled for
accounting software used for maintenance of books of account. Wherever the audit trail (edit log) facility was enabled and
operated, the audit trail feature has not been tampered with and it has been preserved by the Company as per the statutory
requirements for record retention.
Note-69 Impairment review:
Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment test is performed at
the level of each Cash Generating Unit ('CGU') or groups of CGUs within the Company at which the assets are monitored for internal
management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale
calculations. During the year, the testing did not result in any impairment in the carrying amount of other assets. The measurement of the
cash generating units' value in use is determined based on financial plans that have been used by management for internal purposes. The
planning horizon reflects the assumptions for short to- mid-term market conditions.
I Note-71 a. During the Financial Year 2019-20, the Company had acquired 35% holding (at a cost of '2.10 crore) in M/s. Sungaze
Power Private Limited (SPPL) which has set up a 6.50 MW solar Power Plant under Captive Power Plant (CPP) model at our
Durg Cement Plant in the state of Chhattisgarh. The Company, as a Captive User, has no role & responsibility in the day-
to-day management & operations of SPPL. As such, SPPL has not been considered as an Associate for consolidation
purposes.
b. During the Financial Year 2023-24, the Company had acquired 26% holding (at a cost of '21.61 crore) in M/s. Amplus
Helios Private Limited which has set up a 50.00 MW solar Power Plant under Captive Power Plant (CPP) model at our
Durg Cement Plant in the state of Chhattisgarh. The Company, as a Captive User, has no role & responsibility in the day-
to-day management & operations of Amplus Helios Private Limited. As such, Amplus Helios Private Limited has not been
considered as an Associate for consolidation purposes.
c. (i) During FY 2023-24, the Company, upon signing of a Share Purchase and Shareholders Agreement (SPA) dated
February 9, 2024, had acquired 85% equity stake in a subsidiary i.e. Agrani Cement Private Limited (and its three
wholly owned subsidiaries, together known as Trivikram Consortium) for '325.11 Crore. The Trivikram Consortium
had earlier been awarded MDO Contract for three limestone mines in Assam State (335 MT reserves approx.) by
Assam Mineral Development Corporation Limited (AMDCL). Till March 31,2025, the Company had paid '130.11
Crores based on achievement of milestones as per the terms of the SPA and had accounted for balance amount of
'195.00 Crore as liability.
During the year ended March 31,2026, AMDCL has cancelled the aforesaid MDO Contract on the grounds of non¬
compliance by the Trivikram Consortium for inducting JKLC (the Company) as an Equity Partner.
The Company has initiated legal proceedings against the seller for the recovery of '130 Crore and damages. Further,
subsequent to the Balance Sheet date, the Company has filed petition under Section 9 of the Arbitration and
Conciliation Act, 1996 before the Hon'ble High Court of Delhi for securing the recovery of above amount so paid.
The notice has been issued and the next date of Hearing is July 14, 2026.
Based on the Legal Opinion & Assessment of the terms of SPA, the Management is confident of recovering the
amount of '130 Crore. Accordingly, considered the same as good and fully realisable.
(ii) In view of above cancellation, the Company has derecognized the Investment of '325 Crore as an Exceptional Item
and has also simultaneously written back the Unpaid Liability of '195 Crore & also recognized the amount of '130
Crore as Claims Recoverable as an Exceptional Item in the Standalone Financial Statements.
d. During the year ended March 31,2026, the Company has been declared the Preferred Bidder for Three Limestone Blocks
measuring total area of 605 Hectares by AMDCL (including 2 Mines earlier allotted under the MDO Agreement to
Trivikram Consortium) in the State of Assam. Subsequent to the year ended March 31,2026, the Company has paid the
required Upfront amount of '12.32 Crore in respect of above three Limestone Blocks.
e. During the year ended March 31,2026 , the Company has acquired 26% holding (at a cost of '3.50 crore) in M/s. Ampin
C&I Power Four Private Limited which has set up a 6.60 MW solar Power Plant under Captive Power Plant (CPP) model at
our Jhajjar Grinding unit in the state of Haryana. The Company, as a Captive User, has no role & responsibility in the day-
to-day management & operations of Ampin C&I Power Four Private Limited. As such, Ampin C&I Power Four Private
Limited has not been considered as an Associate for consolidation purposes.
f. During the year ended March 31,2026 , the Company has acquired 26% holding (at a cost of '3.12 crore) in M/s. STLC
RE Limited which has set up a 9.00 MW solar Power Plant under Captive Power Plant (CPP) model in the state of
Rajasthan. The Company, as a Captive User, has no role & responsibility in the day-to-day management & operations of
STLC RE Limited. As such, STLC RE Limited has not been considered as an Associate for consolidation purposes.
g. During the year ended March 31,2026, NECEM Cements Limited has become Subsidiary w.e.f. March 27, 2026 with the
Company acquiring its 77.96% Equity Stake. The Company has paid Purchase Consideration of '1.30 Crore & the
balance Purchase Consideration of '10 Crore is payable after the fulfillment of certain conditions as per terms of
agreement signed between the Company and its erstwhile Shareholders.
i. The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
ii. The Company have not traded or invested in Crypto Currency or Virtual Currency during the financial year.
iii. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
iv. 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:
• 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
• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
v. 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:
• 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
• Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
vi. The Company have no such transactions which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in Tax assessments under Income Tax Act, 1961.
vii. The Company has been sanctioned working capital limits in excess of '5 crores. The quarterly Return of current assets
fled by the Company with Bank having no material variances with Books of Account.
viii. Struck off Companies:
ix. The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined
under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by
the Reserve Bank of India.
x. The Company is in compliance with the number of layers prescribed under clause (87) of Section 2 of the Companies Act,
2013 read with the Companies (Restriction on number of layers) Rules, 2017.
The Board of Directors of the Company, at its Meeting held on July 31, 2024, considered and approved a Composite
Scheme of Amalgamation and Arrangement (the "Scheme") for amalgamation of its three subsidiary Companies, viz
Udaipur Cement Works Limited, Hansdeep Industries & Trading Company Limited & Hidrive Developers and Industries
Limited (collectively the "Amalgamating Companies") into and with the Company. The Scheme has been approved by the
Hon'ble National Company Law Tribunal, Jaipur bench ("NCLT") vide its Order dated June 12, 2025. The said NCLT Order
was filed with the Registrar of Companies, Jaipur on July 31,2025 thereby the Scheme becoming effective on that date.
As per the Scheme, the Appointed Date of the Scheme is April 01,2024. Accordingly, all the Amalgamating Companies
stand merged into & with the Company and all the Assets, Liabilities, Reserves and Surplus of the Amalgamating
Companies have been transferred to and vested in the Company w.e.f. the said Appointed Date of st April 1, 2024.
Consequently, all the Amalgamating Companies stand dissolved without winding up.
Pursuant to the Scheme, and in accordance with the Share Swap Ratio enshrined therein, the Company will allot 4 Equity
Shares of face value and paid-up value of '5 each for 100 Equity Shares of face value and paid-up value of '4 each to the
eligible Shareholders of the Udaipur Cement Works Limited as on Record Date of August 25, 2025 fixed by Board of
Directors. These equity shares have been presented under "Shares Pending Issuance" in March 2025 in the Statement of
Changes in Other Equity. During the current year, 64,74,360 equity shares of face value '5 each were allotted in
accordance with the terms of the Scheme.
Further, Hansdeep Industries & Trading Company Ltd & Hidrive Developers and Industries Ltd being wholly owned
subsidiaries, no consideration was paid for the amalgamation of both these wholly owned subsidiaries into and with the
Company.
Pursuant to the Scheme, the Authorised Share Capital of the Company stands increased, by '521.51 Crores, from '200
Crores to '721.51 Crores.
The financial impact of the Scheme had been recognised in the revised financial statements for the year ended
March 31,2025.
b. Exceptional item:
(i) The Government of India notified the four Labour Codes (New Labour Codes) effective from November 21,2025. On the
basis of Central Rules, FAQs issued by the Ministry of Labour & Employment (MoLE) and Draft Rules issued by certain
States, the Company has assessed the incremental impact towards retiral obligations at '19.09 Crore and disclosed the
same as an Exceptional Item during the year ended March 31,2026 in line with the guidance provided by the Institute of
Chartered Accountants of India. The Company continues to monitor developments relating to the New Labour Codes
and would provide appropriate accounting effect, as needed.
(ii) The Composite Scheme of Amalgamation & Arrangement (The Scheme), which inter-alia included the Amalgamation of
Udaipur Cement Works Ltd (UCWL) & two Wholly Owned Subsidiaries namely Hansdeep Industries & Trading Company
Ltd (HITCL) & Hidrive Developers and Industries Ltd (HDIL) into & with the Company had become effective from
July 31,2025 with effect from the Appointed Date of April 1,2024.
The Cost related to the Scheme (including Provision for Stamp Duty payable on Assets transferred) aggregating to
'35.44 Crore were provided during 2024-25 as an Exceptional Item.
(iii) Also refer note no. 71 ( c) (ii).
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