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Company Information

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20 April 2021 | 12:00

Industry >> Cement

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ISIN No INE079A01024 52Week High 330 Book Value (Rs.) 114.61 Face Value 2.00
Bookclosure 22/03/2021 52Week Low 162 EPS 11.91 P/E 24.82
Market Cap. 58715.53 Cr. P/BV 2.58 Div Yield (%) 6.09 Market Lot 1.00


You can view the entire text of Notes to accounts of the company for the latest year
Year End :2018-12 

Note 1 - Material demand and disputes considered as “remote”

One of the Company's cement manufacturing plants located in the state of Himachal Pradesh was eligible under the State industrial policy for deferral of its sales tax liability arising on sale of cement manufactured in the said plant. The excise and taxation department of the Government of Himachal Pradesh, disputed the eligibility of the Company to such deferment on the ground that the Company also manufactures an intermediate product, viz. clinker, arising in the manufacture of cement, and such intermediate product was in the negative list. A demand of Rs, 66.94 crore (31st December, 2017 - Rs, 66.94 crore) was raised. The Company filed a writ petition before Hon'ble High Court of Himachal Pradesh against the demand. The case has been admitted and the hearing is in process. The Company believes that its case is strong and the demand shall not sustain under law.

Note 2 - Segment reporting

(Refer note 3(T) for accounting policy on segment reporting)

The principal business of the Company is of manufacturing and sale of cement and cement related products. All other activities of the Company revolve around its main business. The Executive Committee of the Company, has been identified as the chief operating decision maker (CODM). The CODM evaluates the Company's performance, allocates resources based on analysis of the various performance indicators of the Company as a single unit. CODM have concluded that there is only one operating reportable segment as defined by Ind AS 108 - Operating Segments, i.e. cement and cement related products.

* As per Ind AS 108 - Operating Segments, non-current assets include assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts (i) located in the entity's country of domicile and (ii) located in all foreign countries in total in which the entity holds assets.

# Sales outside India are in functional currency.

B) Information about major customers

No single customer contributes 10% or more to the Company's revenue during the years ended 31st December, 2018 and 31st December, 2017.

Note 3 - Employee benefits

(Refer note 3 (O) for accounting policy on retirement and other employee benefits)

a) Defined contribution plans

Defined contribution plans - amount recognized and included in note 33 "contribution to provident and other funds" of statement of profit and loss Rs, 29.27 crore (previous year - Rs, 28.09 crore).

b) Defined benefit plans - as per actuarial valuation

Funded plan includes gratuity benefit to every employee who has completed service of five years or more, at 15 days salary for each completed year of service (on last drawn basic salary).

c) Inherent risk

The plan typically exposes the Company to actuarial risks such as investment risk, interest rate risk, demographic risk, salary inflation risk and longevity risk.

Investment risk : As the plan assets include significant investments in quoted debt and equity instruments, the Company is exposed to the risk of impacts arising from fluctuation in interest rates and risks associated with equity market.

Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. All other aspects remaining same, if bond yields fall, the defined benefit obligation will tend to increase.

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, medical cost inflation, discount rate and vesting criteria.

Salary Inflation risk : All other aspects remaining same, higher than expected increases in salary will increase the defined benefit obligation.

Longevity risk : The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

d) Other non-funded plans for current year include post-employment healthcare benefits and for previous year death and disability benefits, non-funded gratuity, post-employment healthcare benefits to certain employees.

Note 43 - Employee benefits

e) Amount recognized as expense in respect of compensated absences is Rs, 16.23 crore (previous year - Rs, 5.97 crore).

f) The company expects to make contribution of Rs, 14.90 crore (previous year - Rs, 14.00 crore) to the defined benefit plans during the next year.

g) Provident fund managed by a trust set up by the Company

The Company has contributed Rs, 7.61 crore (previous year - Rs, 7.74 crore) towards provident fund liability. Deficit of Rs, 0.07 crore (previous year - Rs, Nil) in the accumulated corpus fund is recognized in the statement of profit and loss.

* Only liability is recognized in the books

Note 4 - Leases

(Refer note 3(S) for accounting policy on leases)

A) Operating leases - Company as a lessee

i) The Company has entered into various long term lease agreements for land. The Company does not have an option to purchase the leased land at the expiry of the lease period. The unamortized operating lease prepayments as at 31st December, 2018 aggregating Rs, 36.86 crore (31st December, 2017 - Rs, 38.18 crore) is included in other non current / current assets, as applicable.

ii) The Company has also taken various residential premises, lands, office premises and warehouses under operating lease agreements. These are generally cancellable and are renewable by mutual consent on mutually agreed terms.

iii) The lease payments recognized in the statement of profit and loss under other expenses amounts to Rs, 46.86 crore (31st December, 2017 - Rs, 40.89 crore).

iv) The lease payments recognized in the statement of profit and loss under freight and forwarding expense on finished products amounts to Rs, 35.94 crore (31st December, 2017 - Rs, 32.05 crore).

v) General description of the leasing arrangement:

Future lease rentals are determined on the basis of agreed terms. There are no restrictions imposed by lease arrangements. There are no subleases.

The Company has concluded that it is impracticable to separate the lease payments from other payments made under the arrangement reliably and hence all payments under this arrangement are considered as lease payments.

B) Finance leases - Company as a lessee

The Company has entered into various finance lease agreements for land which have been assessed as finance lease since the present value of the minimum lease payments is substantially similar to the fair value of the leasehold land (Refer note 4). The Company does not have an option to purchase such leasehold land at the end of the lease period. There are no restrictions such as those concerning dividends, additional debts and further leasing imposed by the lease agreement.

Notes :

1) None of the loanees have made, per se, investment in the shares of the Company.

2) For investments disclosure, refer notes 7 and 8.

3) Outstanding loans as disclosed above do not include interest accrued thereon.

Note 5 - Related party disclosure

1) Name of related parties

A) Names of the related parties where control exists

Sr Name Nature of Relationship

i) LafargeHolcim Limited, Switzerland Ultimate Holding Company

ii) Holderfin B.V, Netherlands Intermediate Holding Company

iii) Holderind Investments Limited, Mauritius Holding Company

iv) ACC Limited Subsidiary

v) M.G.T Cements Private Limited Subsidiary

vi) Chemical Limes Mundwa Private Limited Subsidiary

vii) Dang Cement Industries Private Limited, Nepal Subsidiary

viii) Dirk India Private Limited Subsidiary

ix) OneIndia BSC Private Limited Subsidiary

x) ACC Mineral Resources Limited Subsidiary of ACC Limited

xi) Lucky Minmat Limited Subsidiary of ACC Limited

xii) National Limestone Company Private Limited Subsidiary of ACC Limited

xiii) Singhania Minerals Private Limited Subsidiary of ACC Limited

xiv) Bulk Cement Corporation (India) Limited Subsidiary of ACC Limited

B) Others, with whom transactions have taken place during the current year and / or previous year

i) Related parties

Sr Name Nature of Relationship

a) Holcim Group Services Limited, Switzerland Fellow Subsidiary

b) Holcim Technology Limited, Switzerland Fellow Subsidiary

c) Holcim Services (South Asia) Limited Fellow Subsidiary

d) Holcim Trading FZCO., UAE Fellow Subsidiary

e) Holcim (Romania) S.A., Romania Fellow Subsidiary

f) LafargeHolcim Energy Solutions S.A.S., France Fellow Subsidiary

g) LafargeHolcim Building Materials (China) Co., Ltd Fellow Subsidiary

h) Lafarge Cement AS Fellow Subsidiary

i) Geocycle (Deutschland) Gmbh., Deutschland Fellow Subsidiary j) Lafarge Centre De Recherhe S.A.S,France Fellow Subsidiary k) Counto Microfine Products Private Limited Joint Venture

l) Asian Concretes and Cements Private Limited Associate of Subsidiary

m) Ambuja Cements Limited Staff Provident Fund Trust Trust (Post-employment benefit plan)

n) Ambuja Cements Limited Employees Grautity Fund Trust (Post-employment benefit plan)


ii) Key Management Personnel

Sr Name Nature of Relationship

a) Mr. N.S. Sekhsaria Non-Executive Director

b) Mr. Eric Olsen Non-Executive Director (up to 20th September,


c) Mr. Jan Jenisch Non-Executive Director (with effect from 24th

October, 2017)

d) Mr. Martin Kriegner Non-Executive Director

e) Mr. Christof Hassig Non-Executive Director

f) Ms. Usha Sangwan Non-Executive Director (up to 20th December,


g) Mr. B.L.Taparia Non-Executive Director

h) Mr. Nasser Munjee Independent Director

i) Mr. Rajendra P. Chitale Independent Director j) Mr. Shailesh Haribhakti Independent Director k) Dr. Omkar Goswami Independent Director l) Mr. Haigreve Khaitan Independent Director

m) Mr. Roland Kohler Non-Executive Director (with effect from 20th

February, 2018 )

n) Mr. Ajay Kapur Managing Director & Chief Executive Officer

o) Mr. Suresh Joshi Chief Financial Officer

p) Mr. Rajiv Gandhi Company Secretary


1 The company is required to contribute a specified percentage of the employee compensation for eligible employees towards provident fund. For the same the Company makes monthly contributions to a trust specified for this purpose. During the year, the Company has contributed Rs, 5.15 crore (previous year - Rs, 4.97 crore).

2 The Company maintains gratuity trust for the purpose of administering the gratuity payment to its employees. During the year, the Company has contributed Rs, 7.00 crore (previous year - Rs, 15.50 crore)

3 Mr. Martin Kriegner has waived his right to receive DirectorsRs, commission from the year 2018 and sitting fees with effect from the meeting held on 23rd October, 2018.

4 Provision for contribution to gratuity fund, leave encashment on retirement and other defined benefits which are made based on actuarial valuation on an overall Company basis are not included.

5 The performance incentive to Managing director and Chief Executive Officer is accounted for as and when it is approved by the Board of Directors.

6 The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. The Company has not recorded any loss allowances for trade receivables from related parties (previous year - nil)._

Note 6- Financial instruments

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged

in a current transaction between willing parties, other than in a forced or liquidation sale.

A) Fair value measurements

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques:

Level 1 - This level includes those financial instruments which are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - This level includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3 - This level includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The Company considers that the carrying amount of loans, other financial assets, trade receivables, cash and cash equivalents excluding investments in liquid mutual funds, bank balances other than cash and cash equivalents, other financial liabilities (excluding derivative financial instruments) and trade payable recognized in the financial statement approximate their fair values largely due to the short-term maturities of these instruments.

C) The following methods and assumptions were used to estimate the fair values :

Quoted bid prices in an active market - unadjusted quoted price in principle market in which equity instrument is actively traded.

Investments in liquid mutual funds, which are classified as FVTPL are measured using net asset values at the reporting date multiplied by the quantity held.

Under Discounted cash flow method, future cash flows are discounted by using rates which reflect market risks. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate and credit risk. The probabilities of the various estimates within the range can be reasonably assessed and are used in management's estimate of fair value.

Note 7- Capital management

The Company's objectives when managing capital are to maximize shareholders value through an efficient allocation of capital towards expansion of business, optimization of working capital requirements and deployment of balance surplus funds on the back of an effective portfolio management of funds within a well-defined risk management framework.

The management of the Company reviews the capital structure of the Company on regular basis to optimize cost of capital. As part of this review, the Board considers the cost of capital and the risks associated with the movement in the working capital.

The Company does not have any debt funding and thus meets its capital requirement through internal accruals. The Company is not subject to any externally imposed capital requirements.

*Dividend Distribution Tax (DDT) on proposed dividend for the previous year has been changed due to change in dividend distribution tax rate with effect from 1st April, 2018.

Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognized as a liability (including dividend distribution tax thereon.

Note 8 - Corporate social responsibility

The Company has incurred Rs, 53.46 crore (previous year Rs, 58.79 crore) towards social responsibility activities. It is included in different heads of expenses in the statement of profit and loss. Further, no amount has been spent on construction / acquisition of an asset of the Company and the entire amount has been spent in cash. The amount required to be spent under Section 135 of the Companies Act, 2013, for the year ended 31st December, 2018 is Rs, 25.46 crore (previous year Rs, 27.74 crore)

i.e 2% of the average net profits for the last three financial years, calculated as per Section 198 of the Companies Act, 2013.

Note 9 - Assets classified as held for sale

(Refer Note 3(P) for accounting policy on Non-current assets held for sale)

Note 10 - Financial risk management objectives and policies

The Company has a system-based approach to risk management, established policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks such as market risk, credit risk and liquidity risk that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company's risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulations.

All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes shall be undertaken.

The Company's management is supported by a risk management committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The risk management committee provides assurance to the Company's management that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of Directors reviews policies for managing each of these risks, which are summarized below.

A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks a) interest rate risk b) currency risk and c) other price risk. Financial instruments affected by market risk comprise deposits, investments, trade payables.

The Company is not an investor in equity market. The Company is virtually debt-free and its deferred payment liabilities do not carry interest, the exposure to interest rate risk from the perspective of financial liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation.

The Company's investments are predominantly held in fixed deposits and liquid mutual funds (debt market). Mark to market movements in respect of the Company's investments are valued through the statement of profit and loss. Fixed deposits are held with highly rated banks, have a short tenure and are not subject to interest rate volatility. Assumption made in calculating the sensitivity analysis

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other postretirement obligations and provisions.

a) 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 security deposit taken from its dealers.

* Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period.

b) 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's exposure to the risk of changes in foreign exchange rates relates primarily to the Company operating activities. The aim of the Company's approach to manage currency risk is to leave the Company with no material residual risk. The Company is not exposed to significant foreign currency risk. Based on sensitivity analysis, the Company has well defined forex exposure threshold limit approved by Board of Directors, beyond which all forex exposure are fully hedged.

In the Company's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year / in future years.

c) Other price risk

Other price risk includes commodity price risk. The Company primarily imports coal, pet coke and gypsum. It is exposed to commodity price risk arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where considered necessary. Additionally, processes and policies related to such risks are reviewed and controlled by senior management.

B) 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. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Company has no significant concentration of credit risk with any counterparty.

The Company's exposure and wherever appropriate, the credit ratings of its counterparties are continuously monitored and spread amongst various counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management of the Company.

Financial instruments that are subject to concentrations of credit risk, principally consist of balances with banks, investments in liquid mutual funds (debt markets), trade receivables and loans. None of the financial instruments of the Company result in material concentration of credit risks.

Balances with banks were not past due or impaired as at year end. Other than the details disclosed below, other financial assets are not past due and not impaired, there were no indications of default in repayment as at year end.

Note 11- Financial risk management objectives

The Company has used a practical expedient by computing the expected loss allowance for financial assets based on historical credit loss experience and adjustments for forward looking information. Credit risk from balances with banks and financial institutions is managed in accordance with the Company's policy. As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Trade receivables consist of a large number of customers. The Company has credit evaluation policy for each customer and based on the evaluation credit limit of each customer is defined. The exposure in credit risk arising out of major customers is generally backed either by bank guarantee, letter of credit or security deposits.

The Company does not have higher concentration of credit risks since no single customer accounted for 10% or more of the Company's net sales.

Financial instruments and cash deposits

Credit risk on cash and cash equivalent, deposits with the banks / financial institutions is generally low as the said deposits have been made with the banks / financial institutions who have been assigned high credit rating by international and domestic credit rating agencies.

Investments of surplus funds are made only with approved financial Institutions. Investments primarily include investment in units of liquid mutual funds (debt market) and fixed deposits with banks having low credit risk.

Total non-current investments and investments in liquid mutual funds as on 31st December, 2018 are Rs, 11,813.76 crore and Rs, 230.51 crore (31st December, 2017 - Rs, 11,844.70 crore and Rs, 1,483.22 crore)

C) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company's treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company's liquidity position through rolling forecasts on the basis of expected cash flows. The Company has large investments in short term liquid funds which can be redeemed on a very short notice and hence carried negligible liquidity risk.

The table below provides details regarding the remaining contractual maturities of financial liabilities and investments at the reporting date based on undiscounted contractual payments.

* Other financial liabilities includes deposits received from customers amounting to Rs, 404.67 crore (previous year -Rs, 362.10 crore). These deposits do not have a contractual re-payment term but are repayable on demand. Since, the Company does not have an unconditional right to defer the payment beyond 12 months from reporting date, these deposits have been classified under current financial liabilities. For including these amounts in the above mentioned maturity analysis, the Company has assumed that these deposits, including interest thereon, will be repayable at the end of the next reporting period. The actual maturity period for the deposit amount and the interest thereon can differ based on the date on which these deposits are settled to the customers.

Note 12 - Standards issued but not yet effective

Ind AS 115 - Revenue from Contracts with Customers

On 28th March 2018, the Ministry of Corporate Affairs (MCA) notified the new revenue recognition standard, viz., Ind AS 115 Revenue from Contracts with Customers, applicable from the financial years beginning on or after 1st April, 2018. It is applicable to Company from the year beginning 1st January, 2019 . It replaces virtually all the existing revenue recognition requirements under Ind AS, including Ind AS 11 Construction Contracts, Ind AS 18 Revenue and the Guidance Note on Accounting for Real Estate Transactions.

It prescribes a five-step model to help entities decide the timing and amount of revenue recognition from contracts with customers. Ind AS 115 prescribes the 'control approach' for revenue recognition as against the 'risk and reward' model under Ind AS 18. The standard also contains extensive disclosure requirements.

Except for the disclosure requirements, the new standard will not materially impact the financial statements.

Note 13- Total outstanding dues of micro enterprises and small enterprises *

Disclosure of Micro, Small and Medium Enterprises as defined under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 is based on the information available with the Company regarding the status of the suppliers.

* This information has been determined to the extent such parties have been identified on the basis intimation received from the "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.

Note 14

a) Excise duty includes excise duty paid on sale of goods and excise duty on captive consumption of clinker.

b) The Government of India introduced the Goods and Services tax (GST) with effect from 1st July, 2017. Consequently revenue for the previous year ended 31st December, 2017, includes excise duty up to 30th June, 2017.

Note 15

The Company was entitled to incentives from Government at its plant located in the states of Himachal Pradesh and Uttarakhand, in respect of Income tax assessment years 2006-07 to 2015-16. The Company contended that the said incentives are in the nature of capital receipts, and hence not liable to income tax. The Income tax department had, initially not accepted this position and appeals were pending with the Commissioner of Income tax-appeals (CIT-A). The Company had received one favourable order from the assessing officer and one appellate order from the CIT-A against which the department has filed an appeal in the Income Tax Tribunal (ITAT). Considering unfavorable orders by the Income tax department, the Company, up to 31st December, 2017, had classified the risk for these matters as probable and provided for the same.

During the year and the period subsequent to the balance sheet date, the CIT-A decided the matter in favour of the Company for two more years, against which the department has filed an appeal in the ITAT in one of the years and for another year, the window period of sixty days for filing of appeal is not yet over.

In view of the series of repeated favourable orders by the Income tax department in the current year, coupled with the fact, that ACC Limited, a subsidiary company also received favourable orders, the Company again reviewed the matter and, after considering the legal merits of the Company's claim, including inter-alia, the ratio of the decisions of Hon'ble Supreme Court, and the pattern of favourable orders by the department including favourable disposal of the Company's appeal by the CIT (A) during the current year, as mentioned above, the Company has reassessed the risk and concluded that the risk of an ultimate outflow of funds for this matter is no longer probable.

Accordingly the Company has reversed:

a) the existing provisions of Rs, 372.01 crore resulting in reduction in current tax liabilities by Rs, 245.64 crore and an increase in non-current tax assets by Rs, 126.37 crore.

b) Interest provision related to above Rs, 35.87 crore.

Pending final legal closure of the matter, the said amounts have been reported under contingent liabilities in the financial statements.

Note 16

Exceptional items, includes :

a) Rs, 81.41 crore, on account of charge towards separation scheme for employees.

b) Dirk India Private Limited (DIPL) is a wholly owned subsidiary of the Company. The Company has extended interest bearing loans to DIPL. DIPL's economic performance is subdued because of effects of ongoing legal dispute with its supplier of key raw material. The company is making all attempts through legal and formal recourses to resolve the disputes however given circumstances and analysis of events occurred, there is likelihood that economic performance of DIPL shall remain adverse. Considering this situation, the Company has performed a test of impairment and determined the value in use based on estimated cash flow projections. As a result, management has recognized a provision towards loans and interest thereon amounting to Rs, 37.94 crore and Rs, 10.60 crore respectively, due to the Company as on 31st December, 2018.

Note 17

Figures below Rs, 50,000 have not been disclosed.

Note 18

Previous years' figures have been regrouped / reclassified wherever necessary, to conform to current year's classification. See accompanying notes to the financial statements