xiv) Provisions, Contingent Liabilities and Contingent Assets :
The Company recognises provisions when there is present obligation as a result of past event and it
is probable that there will be an outflow of resources and reliable estimate can be made of the amount
of the obligation. If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows to net present value using an appropriate pre-tax discount
rate that reflects current market assessments of the time value of money and, where appropriate, the
risks specific to the liability. Unwinding of the discount is recognised in the Statement of Profit and
Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the
current best estimate.
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, is disclosed as
a contingent liability. Contingent Liabilities are also disclosed when there is a possible obligation arising
from past events, 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.
Contingent assets are not recognized in financial statements since this may result in the recognition
of income that may never be realised.
xv) Financial instruments:
Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument. Financial assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and financial liabilities at fair value through profit
or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or
loss.
Financial assets
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
(ii) Financial assets 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 flows and selling financial assets and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. Further, in case where the company has made an irrevocable selection
based on its business model, for its investments which are classified as equity instruments,the
subsequent changes in fair value are recognized in other comprehensive income.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair valued
through profit or loss.
(iv) The Company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables
with no significant financing component is measured at an amount equal to lifetime ECL. For all
other financial assets, expected credit losses are measured at an amount equal to the 12 - month
ECL, unless there has been a significant increase in credit risk from initial recognition in which
case those are measured at lifetime ECL. The amount of expected credit losses (or reversal)
that is required to adjust the loss allowance at the reporting date to the amount that is required
to be recognised is recognized as an impairment gain or loss in statement of profit or loss.
Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability
and an equity instrument.
Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net
of direct issue costs.
Financial Liabilities
Trade and other payables are initially measured at fair value, net of transaction costs, and are
subsequently measured at amortised cost, using the effective interest rate method where the
time value of money is significant.
Interest bearing bank loans, overdrafts and unsecured loans are initially measured at fair value
and are subsequently measured at amortised cost using the effective interest rate method. Any
difference between the proceeds (net of transaction costs) and the settlement or redemption of
borrowings is recognised over the term of the borrowings in the statement of profit and loss.
Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition
under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the
Company's balance sheet when the obligation specified in the contract is discharged or cancelled
or expires.
Fair value of financial instruments
In determining the fair value of its financial instruments, the Company uses a variety of methods
and assumptions that are based on market conditions and risks existing at each reporting date.
The methods used to determine fair value include discounted cashflow analysis, available quoted
market prices and dealer quotes. All methods of assessing fairvalue result in general approximation
of value, and such value may or may not be realized.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet
where there is a legally enforceable right to offset the recognized amounts and there is an intention
to settle on a net basis or realize the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the Company or the
counter party.
xvi) Earnings Per Share :
The basic earnings per share is computed by dividing the profit/(loss) for the year attributable to the
equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, profit/(loss) for the year attributable to the
equity shareholders and the weighted average number of the equity shares outstanding during the
year are adjusted for the effects of all dilutive potential equity shares.
xvii) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and demand deposits with banks. Cash equivalents
are short-term balances (with an original maturity of three months or less), highly liquid investments
that are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.
xviii) Government Grants:
Grants from the government are recognised at fair value where there is a reasonable assurance that
the grant will be received and the Company will comply with all attached conditions. Government grants
relating to income are deferred and recognised in the profit or loss over the period necessary to match
them with the costs they are intended to compensate and presented within other income. Government
grants relating to the purchase of property, plant and equipment are included in non-current liabilities
as deferred income and are credited to profit and loss on a straight line basis over the expected lives
of the related assets and presented within other income. The benefit of a government loan at below
current market rate of interest is treated as a government grant.
xix) Dividend Distribution
Dividends paid (including income tax thereon) is recognised in the period in which the interim
dividends are approved by the Board of Directors, or in respect of the final dividend when approved
by shareholders.
xx) Rounding off amounts
All amounts disclosed in the standalone financial statements and notes have been rounded off to the
nearest lakh with two decimals as per the requirement of Schedule III, unless otherwise stated.
xxi) Standards/Amendments issued but not yet effective:
Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants -
Amendments to Ind AS 1 This amendment also includes specific provisions that will take effect for
reporting periods beginning on or after 1 April 2026, as outlined below. Under the existing Ind AS 1,
where there is a breach of a material provision of a long-term loan arrangement on or before the end of
the reporting period with the effect that the liability becomes payable on demand on the reporting date,
the entity does not classify the liability as current, if the lender agreed, after the reporting period and
before the approval of the financial statements for issue, not to demand payment as a consequence
of the breach. However, the amended requirements stipulate that entities will no longer be permitted
to consider lender waivers that are granted after the reporting date but before the financial statements
are approved for the purpose of classification of loans. This amendment is required to be applied
retrospectively in accordance with Ind AS 8. The company does not expect this amendment to have
an impact on its operations or financial statements.
xxii) New standards or amendments issued under Companies (Indian Accounting Standards) Rules,
2015:
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time:
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. April 1, 2025.
The Company has reviewed the amendment and based on its evaluation has determined that it does
not have any impact in its financial statements.
In August 2025, MCA notified the following amendments to:
1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1,2025 - The amendment
relates to classification of liabilities as current or non-current and non-current liabilities with
covenants. In the context of classifying a liability as current, it removes the requirement of existence
of a right to defer settlement for at least 12 months after the reporting date and instead requires
that the said right should exist on the reporting date and have substance. The amendment also
introduces guidance on classification of liabilities with covenants. The Company has no impact
of these amendments in its classification criteria of current and non-current liabilities.
2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable
w.e.f. April 1,2025 - The amendment in Ind AS 7 requires to inform users of financial statements
of the existence of supplier finance arrangements and explain the nature of the arrangements, the
carrying amount of liabilities and the range of payment due dates. Ind AS 107 has been amended
to add supplier finance arrangements as a factor that may cause concentration of liquidity risk.
The Company has no impact of these amendments in its classification criteria.
3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The
amendments provide a temporary mandatory relief from deferred tax accounting for top-up tax
and disclose that they have applied the relief. This relief is immediate and applies retrospectively.
The Company has no impact of these amendments as the entire operations of the Company are
domiciled in India.
(C) Terms/Rights attached to equity shares
The company has only one class of equity shares having a face value of Rs. 5/- each (PY Rs. 5/-
each). Each holder of equity shares is entitled to one vote per share. The company declares and pays
dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company,
the equity shareholders 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.
(D) Shares alloted as fully paid pursuant to contract without payment being received in cash or as fully
paid up bonus shares during the period of five years immediately preceding 31st March, 2026: Nil
Nature and purpose of other reserves
(i) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilized in
accordance with the provisions of the Companies Act, 2013.
(ii) General reserve
General reserve is used for strengthening the financial position and meeting future contingencies and
losses.
(iii) Retained earnings
Retained earnings represents the cumulative profits of the Company and effects of remeasurement
of defined benefit obligations. This reserve can be utilized in accordance with the provisions of the
Companies Act, 2013.
i) Secured loans from banks:
The company has availed term loans from Bank of Bahrain & Kuwait (BBK). The loan is repayable
in 20 equal quarterly installments starting from Feb 2022.The loans are availed for the purchase of
equipments and dumpers.
During the financial year 2022-23, company was sanctioned a term loan of Rs. 73000.00 lakhs for
setting up of clinker production unit (1.2 million tonnes per annum), Cement Grinding Unit (0.8 million
tonnes per annum) and a split grinding unit (1 million tonnes per annum) at different locations, from
State Bank of India, IDBI Bank Limited, Canara Bank and IndusInd Bank Ltd. The said term loan is
modified to Rs. 67000.00 lacs. On company's request, the lenders have extended date of completion
of project from 31.12.2024 to 31.12.2025. The term loan is repayable in 28 equal quarterly instalments
starting from the quarter June'26 and ending March'33 to all the bankers. Out of total loan sanctioned,
the company has drawn an amount of Rs. 63795.68 lacs upto 31st March'26.
ii) Security:
The term loans from State Bank of India, IDBI Bank Limited, Canara Bank and IndusInd Bank Ltd are
secured by paripassu first charge on Property, Plant and Equipment and second charge (pari passu)
on the current assets. The term loan from Bank of Bahrain & Kuwait is secured by exclusive charge
on equipments and dumpers purchased out of loan proceeds.
During the financial year 2025-26, the Company disposed off a land situated at Solipet village, Shabad
mandal, Rangareddy district forming part of Property, Plant and Equipment. Pursuant to the said transaction,
the Company has recognised a net profit of Rs. 1284.07 Lakhs, being the difference between the sale
consideration received and the carrying amount of the land together with related transaction costs, which
is disclosed as an exceptional item.
The amounts receivable from customers become due after expiry of credit period which on an average
is 30 to 120 days. There is no significant financing component in any transaction with the customers.
The Company does not provide performance warranty for products, therefore there is no liability
towards performance.
The Company does not have any material performance obligations which are outstanding as at the
year end as the contracts entered for sale of goods are for short term in nature.
(B) Contract balances
The following table provides information about the receivables, contract assets and contract liabilities
from contracts with customers:'
(i) Leave obligations
The leave obligation covers the company's liability for earned leave which is unfunded.
(ii) Defined contribution plans
The company has defined contribution plans namely provident fund. Contributions are made to
provident fund at the rate of 12% of basic salary plus DA as per regulations. The contributions are
made to registered provident fund administered by the Government. The obligation of the Company
is limited to the amount contributed and it has no further contractual nor any constructive obligation.
The expense recognised during the year towards defined contributions plan is as follows:
(iii) Post- employment obligations
a) Gratuity
The Company provides for gratuity for employees as per the Code on Social Security, 2020.
The amount of gratuity payable on retirement/termination is the employees last drawn basic
salary per month computed proportionately for 15 days salary multiplied for the number of years
of service. The Company operates post retirement gratuity plan with LIC of India. The present
value of obligation is determined based on actuarial valuation using the Projected Unit Credit
Method, which recognises each period of service giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation.
The above sensitivity analysis is based on a change in each assumption while holding all other
assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions
may be correlated. When calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions, the same method (present value of the defined benefit obligation calculated
with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the defined benefit liability recognised in the balance sheet.
v) Risk exposure
Through its defined benefit plans, the company is exposed to a number of risks, the most significant
of which are detailed below:
Interest rate risk:
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond
yields fall, the defined benefit obligation will tend to increase.
Salary inflation risk:
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality,
withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation
is not straight forward and depends upon the combination of salary increase, discount rate and vesting
criteria. It is important not to overstate withdrawals because in the financial analysis the retirement
benefit of a short career employee typically costs less per year as compared to a long service employee.
34. Financial instruments and risk management
Fair values
1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current), lease
liabilities, trade receivables, cash and cash equivalents, other bank balances, other financial assets
and loans are considered to be the same as fair value due to their short term nature.
2. Borrowings (non-current) consists of loans from banks, other financial liabilities (current) consists of
security deposits from stockists.
The fair value of financial assets and liabilities is 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.
Set out below, is a comparison by class of the carrying amounts and fair value of the Company's
financial instruments, other than those with carrying amounts that are reasonable approximation of
fair values:
* Fair value of instruments is classified in various fair value hierarchies based on the following
three levels:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
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 and
rely as little as possible on entity specific estimates. If significant inputs required to fair
value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the
instruments are included in Level 3.
Management uses its best judgement in estimating the fair value of its financial instruments.
However, there are inherent limitations in any estimation technique. Therefore, for substantially
all financial instruments, the fair value estimates presented above are not necessarily indicative
of the amounts that the Company could have realized or paid in sale transactions as of respective
dates. As such, the fair value of financial instruments subsequent to the reporting dates may be
different from the amounts reported at each reporting date.
The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price
and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its
financial instruments. The Company assesses the unpredictability of the financial environment
and seeks to mitigate potential adverse effects on the financial performance of the Company.
(A) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price
risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and
trade payables involving foreign currency exposure. The sensitivity analyses in the following sections
relate to the position as at March 31, 2026 and March 31,2025.
The analysis excludes the impact of movements in market variables on the carrying values of financial
assets and liabilties .
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market
risks. This is based on the financial assets and financial liabilities held at 31 March 2026 and 31 March
2025.
(i) Foreign currency exchange rate 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 capital advances. The risks primarily relate to
fluctuations in Euros against the functional currencies of the Company. The Company's exposure
to foreign currency changes for all other currencies is not material. The Company evaluates the
impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The following tables demonstrate the sensitivity to a reasonably possible change in Euros exchange
rates, with all other variables held constant. The impact on the Company's profit before tax is due
to changes in the fair value of monetary assets and liabilities.
(ii) Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign
currency denominated financial instruments and from foreign forward exchange contracts:
The movement in the pre-tax effect is a result of a change in the fair value of monetary assets
and liabilities denominated in Euros, where the functional currency of the entity is a currency
other than Euros.
(ii) 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 change in market interest rates. The Company's exposure to the risk of
changes in market interest rates relates primarily to the Company's debt obligations with floating
interest rates. As the Company has certain debt obligations with floating interest rates, exposure
to the risk of changes in market interest rates are dependent of changes in market interest rates.
As the Company has no significant interest bearing assets, the income and operating cash flows
are substantially independent of changes in market interest rates.
The following table demonstrates the sensitivity to a reasonably possible change in interest
rates on that portion of loans and borrowings affected. With all other variables held constant, the
Company's profit before tax is affected through the impact on floating rate borrowings, as follows:
The assumed increase/decrease in interest rate for sensitivity analysis is based on the currently
observable market environment.
(B) Credit Risk
Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with
banks and current and non-current held-to financial assets of the Company include trade receivables,
employee advances, security deposits held with government authorities and bank deposits which
represents Company's maximum exposure to the credit risk.
With respect to credit exposure from customers, the Company has a procedure in place aiming to
minimise collection losses. Credit Control team assesses the credit quality of the customers, their
financial position, past experience in payments and other relevant factors. The Company's exposure to
credit risk is influenced mainly by the individual characteristics of each customer. However, management
also considers the factors that may influence the credit risk of its customer base, including default
risk associate with the industry and country in which customers operate. Credit quality of a customer
is assessed based on an extensive credit rating scorecard and individual credit limits are defined
in accordance with this assessment. With respect to other financial assets viz., loans & advances,
deposits with government and banks, the credit risk is insignificant since the loans & advances are
given to employees only and deposits are held with government bodies and reputable banks. The
credit quality of the financial assets is satisfactory, taking into account the allowance for credit losses.
Credit risk on trade receivables and other financial assets is evaluated as follows:
(iii) Significant estimates and judgements
Impairment of financial assets:
The impairment provisions for financial assets disclosed above are based on assumptions
about risk of default and expected loss rates. The company uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on the company's
past history, existing market conditions as well as forward looking estimates at the end of each
reporting period.
(C) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to
meet obligations when due and to close out market positions. Company's treasury maintains flexibility
in funding by maintaining availability under deposits in banks.
(iii) Management expects finance cost to be incurred for the year ending 31 March 2027 to be
Rs. 6,128.85 Lakhs.
35. Capital management
A. Capital management and gearing ratio
For the purpose of the Company's capital management, capital includes issued equity capital, share
premium and all other equity reserves attributable to the equity holders. The primary objective of the
company's capital management is to maximise the shareholder value.
36. Segment information:
a) The Company's Chairperson & Managing Director and Chief Financial Officer examine the Company's
performance from a product perspective and have identified two operating segments viz., Cement
Division and Power Division. Operations of both the segments are based in India. As per the threshold
limits prescribed under Ind AS 108 “Operating Segments”, the management has identified one reportable
segment “Cement Division”. Other segment “Power Division” is below the threshold limits prescribed
under Ind AS 108. Hence, segment reporting is not given.
b) Information about products:
Revenue from external customers - Sale of Cement : Rs. 62,893.56 Lakhs (PY: 52021.06 Lakhs)
Revenue from external customers - Sale of Power: Rs. 439.31 Lakhs (PY: 575.45 Lakhs)
Revenue from external customers - Sale of Tile adhesives: Rs. 29.81 Lakhs (PY: 57.04)
Revenue from external customers - Sale of Clinker: Rs. 101.13 Lakhs (P Y: Nil)
c) The Company has not made external sales to a single customer meeting the criteria of 10% or more
of the entity's revenue.
b. There are differences in the stock and debtors statements submitted to banks and as per books
of account relating to quarters ended 30th June 2025 (short reported by Rs. 1,006.85 lakhs), 30th
September, 2025 (short reported by Rs. 950.56 lakhs), 31st December, 2025 (short reported by Rs.
1,035.76 lakhs) and 31st March, 2026 (short reported by Rs. 231.49 lakhs) on account of reconciliation
of trade balances and inventory which are pending on the date of submission of statements to banks
c. Registration of charges or satisfaction with Registrar of Companies :
As on 31st March 2026, there are no charges that are to be created or satisfied. However, the company
has a charge registered with Axis Trustee Services of Rs. 730 crores. However, the term loan availed
by the company is only Rs. 638.70 crores.
39. The Board of Directors approved the standalone financial statements for the year ended March 31, 2026
and authorised for issue on May 29, 2026.
40. New Labour Codes
On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages,
2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational
Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry
of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial
impact due to changes in regulations. The Company is in the process of restructuring the compensation
of its employees and assessed the impact of the changes, consistent with the Labour Codes, draft rules,
FAQs. The Company has assessed the financial implications of these changes which has resulted in the
increase of gratuity liability by Rs.57.53 lakhs and long-term compensated absences by Rs. 12.78 Lakhs
primarily due to change in wage definition. The Company has presented this incremental impact under
“Employee benefits expense” in the Statement of Profit and Loss. The Company continues to monitor the
finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour
Code and would provide appropriate accounting effect on the basis of such developments as needed.
41. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
42. 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 software impacting books of account at application level. Also, the audit trail is
not disabled/tampered. Further, the audit trail (edit log) is preserved as per the provisions of the Companies
Act. However, the feature of recording audit trail (edit log) facility at database level is not enabled.
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